[CUET] MCQs of Death of a Partner Accountancy
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Multiple Choice Questions of Death of Partner with answers for CUET, CBSE, ISC Board Examination
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The amount due to deceased partner is transferred to the credit of
a) his current account
b) remaining partner’s capital accounts
c) his executor’s account
d) None of these
Ans:- (c)
Gaining Ratio is
a) Old Profit sharing ratio – New Profit Sharing Ratio
b) Old Profit Sharing Ratio + New Profit Sharing Ratio
c) New Profit Sharing Ratio + Old Profit Sharing Ratio
d) New Profit Sharing Ratio – Old Profit Sharing Ratio
Ans:- (d)
Deceased Partner is entitled to
(a) Share of profit from the beginning of the accounting year up to the date of death.
(b) Share in Goodwill.
(c) Interest on capital from the beginning of the accounting year up to the date of death, if the Partnership Deed allows.
(d) All of the above.
Ans:- (d)
Amount due from the deceased partner is transferred to
(a) the credit of Executor’s Account
(b) the debit of Executor’s Account
(c) the credit of remaining or continuing partners in their profit-sharing ratio.
(d) the debit of remaining or continuing partners in their profit-sharing ratio.
Ans:- (b)
Gunjan, Ekta and Jiya have been sharing profits in the ratio of 4 : 3 : 2. Ekta died. Gunjan took 1/9 from her share and remaining was taken by Jiya. New profit-sharing ratio will be
(a) 5 : 4
(b) 4 : 5
(c) 2 : 1
(d) 3 : 2
Ans:- (a)
Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 3 : 2 : 1. Rashi died and her share is taken by Susan and Geeta in the ratio of 1 : 2. New profit-sharing ratio of Susan and Geeta is
(a) 5 : 4
(b) 4 : 5
(c) 3 : 1
(d) 2 : 1
Ans:- (a)
Aman, Manish and Karan were partners sharing profits in the ratio of 4:5:3. Karan died and remaining partners decided to share profits in the ratio of 7:8, the gaining ratio will be
a) 8:7
b) 4:5
c) 1:1
d) 2:1
Ans:- (a)
Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu’s share in the ratio of 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death will be:
(a) 2 : 1
(b) 1 : 2
(c) 5 : 4
(d) 4 : 5
Ans:- (c)
A, B and C were partners, sharing profit in the ratio of 3:2:1. B died on
30th June, 2022. profit share of the deceased partner from the begining of the financial year was to be estimated based on sales up to the date of death and profit of the previous year. Net Profit earned in the previous year was 20% of the net sale. Net sale for the period of three months ended 30th June, 2022 was ₹ 6,00,000. The profit share of B will be
a) ₹ 35,000
b) ₹ 40,000
c) ₹ 20,000
d) ₹ 60,000
Ans:- (b)
Aditya, Vishesh and Nimesh were partners in a firm sharing Profits and losses equally. Aditya died on 1st July, 2023. Remaining partners decided to continue the business of the firm and decided to share future profit in the ratio of 4 : 3. The gaining ratio of Vishesh and Nimesh will be:
(a) 4 : 3
(b) 3 : 2
(c) 5 : 2
(d) 1 : 1
Ans:- (c)
X, Y and Z were partners sharing profits in the ratio of 2:2:1. Y died on 3oth June, 2022 and profit for the accounting year ended 31st March, 2022 was ₹ 3,60,000. If profit share of deceased partner is to be calculated based on previous year’s profit, amount of profit credited to Y’s Capital Account will be
a) ₹ 72,000
b) ₹ 36,000
c) ₹ 1,44,000
d) ₹ 2,50,000
Ans:- (b)
A, B and C are partners in a firm sharing profits/loss in the ratio of 2:2:1. On March 31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018 was ₹6,00,000 and the profits were ₹60,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹2,00,000. The share of deceased partner in the current year’s profits on the basis of sales is:
a) ₹20,000
b) ₹8,000
c) ₹3,000
d) ₹4,000
Ans:- d)
After the death of a partner, balance of Profit & Loss Suspense Account is transferred to which account at the end of the Accounting Period?
(a) Partners’ Capital Accounts
(b) Profit & Loss Account
(c) Profit & Loss Appropriation Account
(d) None of these
Ans:- (c)
A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Books are closed on 31st March every year. C dies on 5th November, 2023. Under the partnership deed, the executors of the deceased partner are entitled to his share of profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March, 2023 was ₹ 2,40,000. C’s share of profit will be:
(a) ₹ 28,000
(b) ₹ 32,000
(c) ₹ 28,800
(d) ₹ 48,000
Ans:- (c)
P, Q and R were partners sharing profits in the ratio of their capital contribution which were ₹6,00,000; ₹4,00,000 and ₹5,00,000 respectively. Their book are closed on 31st March every year. P dies on 24th August, 2018. Under the partnership deed, deceased partner is entitled to his share of profit/loss to the date of death based on the average profits of preceding three years. Profits were 2015 ₹50,000; 2016 ₹1,80,000 (Loss); 2017 ₹30,000 and 2018 ₹60,000. P’s share of profit/loss will be:
a) (₹3,200)
b) (₹6,400)
c) (₹12,000)
d) (₹4,800)
Ans:- d)
A, B and C are partners in a firm sharing profit/Loss in the ratio of 3:2:1. On March 31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018 was 10,00,000 and the profits were 2,00,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹3,00,000. The share of deceased partner in the current year’s profits on the basis of sales is:
a) ₹2,500
b) ₹10,000
c) ₹15,000
d) ₹60,000
Ans:- b)
Rajat, Mishi and Tanvi were partners in a firm sharing profits and losses in the ratio of 5:3:2. Tanvi died on 31st October, 2019. According to the partnership agreement, her share of profits from the closure of last accounting year till the date of her death was to be calculated on the basis of aggregate profits of two completed years before death. Profits of the firm for the years ending 31st March 2018 and 31st March, 2019 were ₹57,000 and ₹63,000 respectively. The firm closes its books on 31st March every year. Tanvi’s share of profits till the date of her death will be:
a) ₹24,000
b) ₹7,000
c) ₹14,000
d) ₹12,000
Ans:- c)
Amit, Sudhir and Aman were partners sharing profits in the ratio of 3 : 2 : 1. Sudhir died on 30th June, 2024. Journal entry passed for Sudhir’s estimated share of profit from the beginning of the yea up to the date of death will be:
(a)
Profit & Loss A/c Dr.
To Sudhir’s Capital A/c
(b)
Profit & Loss Appropriation A/c Dr.
To Sudhir’s Capital A/c
(c)
Sudhir’s Capital A/c Dr.
To Profit & Loss Suspense A/c
(d)
Profit & Loss Suspense A/c Dr.
To Sudhir’s Capital A/c
Ans:- (d)
Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5 : 2 : 3. On 30th June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average Profits for the last three years were:
| Year ended | Profit/Loss (₹) |
| 31st March, 2020 | 1,20,000 |
| 31st March, 2021 | (50,000) |
| 31st March, 2022 | 1,70,000 |
Khushi’s share of profit till the date of her death was:
(a) ₹ 35,000
(b) ₹ 9,583
(c) ₹ 28,750
(d) ₹ 8,750
Ans:- (d)
A, B and C were partners sharing profits and losses equally. B died on 31st August, 2023 and total amount transferred to B’s executors was ₹ 13,20,000. B’s executors were being paid ₹ 1,20,000 immediately and balance was to be paid in four equal semi-annual instalments together with interest @ 10% p.a. Total amount of interest to be credited to B’s executors Account for the year ended March 31, 2024 will be?
(a) ₹ 70,000
(b) ₹ 67,500
(c) ₹ 60,000
(d) ₹ 77,000
Ans:- (b)
Choose the odd one:
a) Revaluation Account
b) Realisation of Assets
c) Adjustment of Goodwill
d) Gaining Ratio
Ans:- (b)
The Partnership Deed does not have a cluase on rate of interest to be paid on amount due to heirs of deceased partner. At what rate interest on the outstanding amount shall be payable?
a) At the rate at which the banks grant loan.
b) At the rate of interest provided in the Partnership Act, 1932.
c) At the rate of interest demanded by the heirs of the deceased partner
d) 8% p.a.
Ans:- (b)
Which of the following is true?
a) Revaluation Account is unaffected when an unrecorded assets is taken over
by the executors of a deceased partner.
b) Revaluation Account is debited with the decrease in the value of creditors on the death of a partner.
c) Revaluation Account is credited when an unrecorded asset is sold on the death
of a partner
d) Revaluation Account is unaffected when revaluation expenses are paid by a partner
Ans:- (c)
Pawan, Karman and Harman were partners shairng profit equally. Pawan died on 31st July, 2022. Journal entry passed for Pawan’s share of loss for the intervening period will be:
a) Pawan’s Capital A/c Dr.
To Profit and Loss Suspence A/c
b) Pawan’s Capital A/c Dr.
To Karman’s Capital A/c
c) Pawan’s Capital A/c Dr.
To Profit and Loss A/c
d) Profit and Loss Suspence A/c Dr.
To Pawan’s Capital A/c
Ans:- (a)
Raj, Manoj and Vasu are partners sharing profits and losses in the ratio
of 3:2:1. Manoj died on 3oth June, 2022. Loss from 1st April, 2022 to 30th June, 2022 was estimated at ₹ 45,000. Raj and Vasu decided to share future profits in the ratio of 3:2 with effect from 1st July, 2022. The Journal entry to record Manoj’s share of loss till the date of death is:
a) Manoj’s Capital A/c Dr. ₹15,000
To Raj’s Capital A/c ₹4500
To Vasu’s Capital A/c ₹10,500
b) Raj’s Capital A/c Dr. 15,000
To Vasu’s Capital A/c 15,000
c) Vasu’s Capital A/c Dr. ₹15,000
To Raj’s Capital A/c ₹15,000
d) Raj’s Capital A/c Dr. ₹15,000
To Manoj’s Capital A/c ₹15,000
Ans:- (a)
Balance of Revaluation Account, in case of fixed capitals, is transferre to
a) partner’s Capital Accounts
b) Partner’s Current Accounts
c) Profit and Loss Account
d) Realisation Account
Ans:- (b)
On death of a partner, the assets and liabilities of the firm are
(a) revalued upward only
(b) revalued downward only
(c) revalued both upward and downward, wherever necessary
(d) not to be revalued
Ans:- (c)
The partnership Deed does not have a clause on rate of interest to be paid on amount due to heirs of deceased partner. At what rate interest on the outstanding amount shall be payable?
(a) At the rate at which the banks give loan
(b) 8% p.a.
(c) At the rate of interest demanded by the heirs of the deceased partner
(d) At the rate of interest provided in the Partnership Act, 1932.
Ans:- (d)
Which of the following statement is correct?
(a) Deceased partner’s legal heir becomes partner in the firm on his death.
(b) Deceased partner does not share loss from the beginning of the accounting year up to the date of death.
(c) Drawings by the deceased partner from the beginning of the accounting year up to the date of death is transferred to the debit of his Capital Account.
(d) Balance in Deceased Partner’s Current Account is not transferred to his Capital Account.
Ans:- (c)
Which of the following is debited to Partner’s Capital Accounts at the time of death of partner?
(a) Accumulated Losses
(b) Accumulated Profits
(c) Loss on Revaluation
(d) Both (a) and (c)
Ans:- (d)
Lisa, Monika and Nisha are partners in a firm, sharing profits in the ratio of 2 : 2 : 1. Their Capital Accounts stood as ₹ 50,000, ₹ 50,000 and ₹ 25,000 respectively. Monika died, and balance in the reserve on that date was ₹ 15,000. If goodwill of the firm is ₹ 30,000 and profit on revaluation is ₹ 7,050, What amount will be transferred to Monika’s Executor’s Account?
(a) ₹ 50,820
(b) ₹ 70,820
(c) ₹ 8,820
(d) ₹ 60,820
Ans:- (b)
On the death of a partner, his share in the profits of the firm till the date of his death is transferred to the
a) Debit of Profit and Loss Account
b) Credit of Profit and Loss Account
c) Debit of Profit and Loss Suspence Account
d) Credit of Proift and loss Suspence Account
Ans:- (c)
A, B and C are partners sharing profit and losses in the ratio of 2:2:1. B
died, at that time goodwill of the firm was valued at ₹30,000. What Contribution has to be made by A and C in order to pay B’s Executor?
a) ₹20,000 and ₹10,000
b) ₹15,000 and ₹15,000
c) ₹8000 and ₹4000
d) ₹6,000 and ₹6,000
Ans:- (c)
Nicku, Mala and Ritu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nicku died on 30th September, 2023. The deceased partner was entitled to his share of profit up to the date of death which was to be calculated on the basis of previous year’s profit. The previous year’s profit was ₹ 80,000. Nicku’s share of profit will be
(a) ₹ 10,000
(b) ₹ 20,000
(c) ₹ 30,000
(d) ₹ 40,000
Ans:- (b)
On the death of a partner, his share of loss in the firm till the date of his death is transferred to the
(a) Debit of Profit & Loss Account
(b) Credit of Profit & Loss Account
(c) Debit of Profit & Loss Suspense Account
(d0 Credit of Profit & Loss Suspense Account
Ans:- (d)
At the time of death of a partner, share of deceased partner’s goodwill is credited to the Capital Account(s) of
(a) Remaining Partners
(b) Decreased Partners
(c) Both sacrificing and gaining partners
(d) Gaining Partners
Ans:- (b)
At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner, in the absence of any agreement among partner, when he opts for interest and not share of profit.
(a) 6% p.a.
(b) 6%
(c) 10% p.a.
(d) 10%
Ans:- (a)
On death of a partner, the combined share of the continuing partners
(a) will remain same
(b) will decrease
(c) will increase
(d) will decrease or increase
Ans:- (c)
Lisa, Monika and Nisha are partners in a firm, sharing profits in the ratio of 2:2:1. Their capitals Accounts stood as ₹50,000, ₹50,000 and ₹25,000 respectively. Monika died, and balance in the reserve on that date was ₹15,000. If Goodwill of the firm is ₹30,000 and profit on revaluation is ₹7,050, What amount will be transferred to Monika’s Executors Account?
a) ₹50,820
b) ₹70,820
c) ₹8,820
d) ₹60,820
Ans:- (b)
Balance in the Deceased Partner’s Capital Account is transferred to
(a) Remaining Partner’s Capital Account
(b) Bank Account
(c) Deceased Partner’s Executor’s Account
(d) Loan Account
Ans:- (c)
According to the Indian Partnership Act, 1932, interest payable on the amount due to the deceased partner is
(a) 6% p.a.
(b) 6%
(c) 10% p.a.
(d) 10%
Ans:- (a)
A, B and C were partners sharing profits and losses equally. B died on 31st August, 2023 and total amount transferred to B’s Executors was ₹ 13,20,000. B’s Executors were being paid ₹ 1,20,000 immediately and balance was to be paid in four equal semi-annual instalments together with interest @ 10% p.a. Total amount of interest to be credited to B’s Executors Account for the year ended March 31, 2024 will be
(a) ₹ 70,000
(b) ₹ 67,500
(c) ₹ 60,000
(d) ₹ 77,000
Ans:- (b)
In the absence of information as to profit share of deceased partner being taken by the remaining partners, it is assumed that they take the profit share in
(a) Old Profit-sharing ratio
(b) New profit-sharing ratio
(c) Equal ratio
(d) None of these
Ans:- (a)
A, Ba and C are partners. C exprired on 18th December, 2019 and as per the agreement, surviving partners A and B directed the accountanat to prepare financial statements as on 18th December, 2019 and accordingly the sahre of profit of C (Deceased partner) was calculated as ₹ 12,00,000. Which account will be debited to
transfer C’s share of profit?
a) Profit and Loss Suspense Account
b) Profit and Loss Appropriation Account
c) Profit and Loss Account
d) None of these
Ans:- (b)
Vijay, Ajay and Sanjay are partners in a firm sharing profits and losses in the ratio of 7 : 5 : 8. Sanjay dies on 28th August, 2021. His share in the profits of the firm till the date of his death was determined at ₹ 75,000. It will be debited to which of the following accounts?
(a) Profit & Loss Suspense Account
(b) Profit & Loss Account
(c) Profit & Loss Appropriation Account
(d) Profit & Loss Adjustment Account
Ans:- (c)
Loan by the deceased partner to the firm is transferred to
a) the debit of his current account
b) the credit of his capital account
c) the debit of Remaining Partner’s Capital Accounts
d) the credit of Remaining Partner’s Capital Accounts
Ans:- (b)
Aditya, Vishesh and Nimesh were partners in a firm sharing profits and losses equally. Aditya died on 1st July, 2023. Remaining partners decided to continue the business of the firm and decided to share future profits in the ratio of 4 : 3. The gaining ratio of Vishesh and Nimesh will be
(a) 4 : 3
(b) 3 : 2
(c) 5 : 2
(d) 1 : 1
Ans:- (c)
Amit, Bhanu and Charu are partners. Charu died on 18th December, 2023 and as per the agreement, remaining partners Amit and Bhanu prepared the financial statements as on 18th December, 2023. Share of profit of Charu was determined as ₹ 1,00,000. Which account will be debited to transfer Charu’s Share of profit?
(a) Profit & Loss Suspense Account
(b) Profit & Loss Appropriation Account
(c) Profit & Loss Account
(d) None of these
Ans:- (b)
