[CUET] Assertion Reason MCQs of Death of Partner with Answers class 12
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Assertion Reason Multiple Choice Questions of Death of Partner with answers
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Assertion (A): Death of Partner measn partnership comes to an end and new partnership becomes operative.
Reason (R): Death of partner is reconstitution of partnership as the firm continues.
Options:
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
Assertion (A): Deceased partner will get share in firm’s goodwill on death from the gaining partners.
Reason (R): Deceased partners is entitled to share in firm’s goodwill since his profit share is taken by all or some of the continuing partners.
Options:
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
Assertion (A): at the time of death of a partner, the deceased partner will get his share in General Reserve and credit balance in profit and loss Account
Reason (R): Deceased partner will get his share of Workmen Compensation Reserve remaining after claim, if any
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – b)
Assertion (A): At the time of death of a partner and new partner is not admitted, the combined profit share of the remaining partners increases.
Reason (R): Remaining or Continuing partners take a part of profit share of the deceased partner. As a result, their individual profit share increases.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
Assertion (A): At the time of death of a partner, assets are revalued and liabilities are reassessed to ensure that the deceased partner is neither at an advantage nor at loss due to change in values of assets and liabilities.
Reason (R): As a principle, assets and liabilities are valued at their current values, and gain (profit) or loss due to the change be credited or debited to the Capital Accounts of all the partners (including the deceased partner) since it is for the period before his death.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
Assertion (A): Amount due to the deceased partner is never transferred to his Executor’s Loan Account.
Reason (R): Amount due to the deceased partner may be paid immediately or later in instalments:
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – d)
Assertion (A): Sacrificing Ratio is always calculated at the time of death of a partner.
Reason (R): At the time of death of a partner, Gaining Ratio may or may not be calculated.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – d)
Assertion (A): At the time of death of a partner, if the retiring partner is paid more amount than due to him, the difference amount is not termed as Hidden Goodwill.
Reason (R): Goodwill is not paid by the Gaining Partners to the Sacficing Partners.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – d)
Assertion (A): Gain (profit) or Loss on revaluation of assets and reassessment of liabilities is transferred to the Capital Accounts of all the partners, including that of the Deceased Partner.
Reason (R): Gain (Profit) or loss due to change in values of assets and liabilities are for the period before the death of the partner.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
Assertion (A): Unrecorded assets and liabilities are not accounted at the time of death of a partner.
Reason (R): Unrecorded assets and liabilities are recorded in the books at the time of death of a partner because they came into existence when all the partners, including deceased partner were partners in the firm.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – d)
Assertion (A): In the absence of Partnership Deed or Aggrement, interest on amount due to Deceased Partner is paid @ 6% p.a. on the outstanding amount.
Reason (R): Unpaid amount is a loan to the firm. The Partnership Act, 1932 (Section 37) prescribes that interest is payable @ 6% p.a. in the absence of agreement.
Options:-
a) Assertion (A) and Reason (R) are correct and Reason (R) is the correct explanation of Assertion (A)
b) Assertion (A) and Reason (R) are correct but Reason (R) is not the correct explanation of Assertion (A).
c) Assertion (A) is correct but Reason (R) is not Correct
d) Assertion (A) is not correct but Reason (R) is correct
Ans – a)
