Case Based MCQs of Retirement of Partner Class 12 with Answers
Case Based MCQs of Retirement of Partner Class 12 with Answers
Let’s Practice,
A, B and C were in partnership sharing profits and losses in the proportion of 3 : 2 : 1. On 1st April, 2023, B retires from the firm and A and C decided to share future profits in the ratio of 3 : 2. On that date their capitals were as follows:
A ₹ 1,77,000; B ₹ 1,70,000 and C ₹ 1,23,000.
Loss on revaluation of assets amounted to ₹ 30,000.
Amount due to B was paid on this date by giving him ₹ 40,000 over and above the amount due to him.
As per partnership deed, partners are allowed 6% p.a. interest on their capitals. Profit for the year ending 31st March 2024 before allowing interest on capitals amounted to ₹ 10,000.
On the basis of above information, answer the following questions:
Q. 1. In respect of goodwill, A’s Capital Account will be:
(A) Debited by ₹ 20,000
(B) Debited by ₹ 24,000
(C) Debited by ₹ 12,000
(D) Credited by ₹ 12,000
Ans – (C)
Q. 2. Net amount paid to B will be:
(A) ₹ 2,10,000
(B) ₹ 2,00,000
(C) ₹ 2,10,200
(D) ₹ 1,70,200
Ans – (B)
Q. 3. In the above case, Interest on Partner’s Capital:
(A) Is a charge against profit
(B) Is an appropriation out of profit
(C) Will be credited to Profit & Loss Appropriation Account
(D) Will be credited to all Partner’s Capital Accounts (including B)
Ans – (B)
Q. 4. Interest on Capital allowed to partner’s will be:
(A) A ₹ 9,000 and C ₹ 5,400
(B) A ₹ 10,620 and C ₹ 7,380
(C) A ₹ 6,250 and C ₹ 3,750
(D) No interest will be allowed
Ans – (C)
A, B and C were partners in a firm sharing profits in the ratio of 1 : 2 : 2. On 1st July, 2024 A retired and the new profit sharing ratio of B and C was 3 : 2. Goodwill of the firm was valued at ₹ 4,00,000.
(i) Workmen Compensation Reserve appears in the books at ₹ 2,00,000 and there is a claim of ₹ 80,000 against it.
(ii) Investment Fluctuation Reserve appears in the books at ₹ 1,00,000 when Investments (Market Value ₹ 6,00,000) appear at ₹ 10,00,000.
(iii) Advertisement Suspense Account appears in the books at ₹ 50,000.
You are required to answer the following questions:
Q. 1. In respect of goodwill:
(A) B and C will be debited by ₹ 40,000 each
(B) B and C will be debited by ₹ 48,000 and ₹ 32,000 respectively
(C) B will be debited by ₹ 80,000
(D) B will be credited by ₹ 80,000
Ans – (C)
Q. 2. In respect of Workmen Compensation Reserve:
(A) ₹ 1,20,000 will be credited to all partners in old ratio
(B) ₹ 1,20,000 will be credited to B and C equally
(C) ₹ 1,20,000 will be credited to B and C in 3 : 2
(D) ₹ 1,20,000 will be debited to B and C in gaining ratio
Ans – (A)
Q. 3. In respect of Investments:
(A) ₹ 1,00,000 will be credited to all partners in old ratio
(B) ₹ 3,00,000 will be debited to all partners in old ratio
(C) ₹ 3,00,000 will be debited to B and C in 3 : 2
(D) ₹ 3,00,000 will be debited to B and C in gaining ratio
Ans – (B)
Q. 4. Advertisement Suspense Account:
(A) Will be credited to all partners in old ratio
(B) Will be debited to B and C in 3 : 2
(C) Will be entirely debited to B
(D) Will be debited to all partners in old ratio
Ans – (D)
Juhi, Riya and Pari are partners sharing profits in the ratio of 2 : 1 : 1. On 1st April, 2024, Pari retires from the firm, her Capital Account is given below:
Pari’s Capital Account
| Particulars | ₹ | Particulars | ₹ |
| To Bank A/c | 65,000 | By Balance b/d | 47,000 |
| By Juhi’s Capital A/c | 12,000 | ||
| By Riya’s Capital A/c | 6,000 | ||
| 65,000 | 65,000 |
Which Statement is Correct regarding the above posting in Pari’s Capital Account?
Dr. Juhi’s Capital A/c – ₹ 12,000 and Riya’s capital A/c – ₹ 6,000
Cr. Pari’s Capital A/c – ₹ 18,000
(a) It shows adjustment of capital
(b) It shows adjustments of Pari’s share of goodwill
(c) It shown adjustment of accumulated losses
(d) It shows contribution of Juhi and Riya for settlement of Pari’s Capital Account
Ans:- (b)
Raju, Farhan and Rancho are partners sharing profits and losses equally. Rancho’s Capital Account is shown below:
Which statement is Correct regarding the above postings in Rancho’s Capital Account?
(a) Rancho increased his Capital by introducing Furniture and Cash at Bank.
(b) Rancho retired and took the amount due to him from the firm in kind by way of Furniture and the rest through cheque.
(c) Rancho purchased Furniture from the business by paying ₹ 2,000 more than its book value.
(d) Rancho’s Capital Account shows his share of loss in the sale of Furniture.
Ans:- (b)
