CUET Assertion Reason MCQs of Retirement of Partner with Answers
Looking for Assertion Reason MCQs of Retirement of Partner of Accountancy class 12 for CUET, CBSE, ISC, and State Board Examination.
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Assertion Reason Multiple Choice Questions of Retirement of Partner with answers
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Assertion (A): Retirement of partner means partnership comes to an end and new partnership becomes operative.
Reason (R): Retirement of a partner is the reconstitution of partnership and 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): Retiring partner will get his share in the firm’s gain (profit) on revaluation of assets and reassessment of liabilities and will bear the loss on revaluation.
Reason (R): Retiring partner is entitled to share in profit and bear loss, if any, up to the date of retirement.
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): Retiring partner will not get share in firm’s goodwill on his retirement from the firm.
Reason (R): Retiring partner is entitled to his share in firm’s goodwill since he has forgone his share in the profits of the firm in favour of other 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): At the time of retirement, the retiring partner will get an amount equal to his share in profits out of general reserve and credit balance in Profit and Loss Account.
Reason (R): Retiring partner will not get an amount out of the General Reserve and credit balance of the Profit and Loss Account at the time of his retirement since he gets his share in goodwill.
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 – c)
Assertion (A): At the time of retirement of a partner, besides the Retiring Partner, if a continuing partner also sacrifices his profit share, he along with the retiring partner will get a share in the firm’s goodwill equal to the profit share sacrificed.
Reason (R): Goodwill is paid by the Gaining Partners to the Sacrifice Partners for sacrificing their profit share.
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 retirement of a partner, the combined profit share of the remaining or continuing partners increases.
Reason (R): Remaining or continuing partners take a part of profit share of the retiring 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 – b)
Assertion (A): At the time of retirement of a partner, assets are revalued and liabilities are reassessed to ensure that the retiring 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 retiring partner) since it is for the period before retirement.
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): The amount due to the retiring partner is always transferred to his Loan Account.
Reason (R): Amount due to the retiring partner may be paid immediately or later in installments.
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 not calculated at the time of retirement of a partner.
Reason (R): At the time of retirement of a partner only the gaining ratio is 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 retirement of partners, if the retiring partner is paid more amount than due to him, the difference amount is goodwill paid based on valuation.
Reason (R): Goodwill is not paid by the Gaining Partners to the Sacrificing 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) Both Assertion (A) and Reason (R) are Correct.
Ans – d)
