Worksheets › Class 12 › Reconstitution of a Partnership Firm – Retirement/Death of a Partner

Class 12 Reconstitution of a Partnership Firm – Retirement/Death of a Partner worksheet

CBSE Accountancy. New and gaining ratios, the retiring partner’s goodwill, revaluation and reserves, profit to the date of death on time and sales basis, amount due and instalments. Every sheet has 20 questions in three sections and an answer key, and the numbers change every time.

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Sample questions

Real questions from this chapter, as the app sets them. Tap Answer to see the answer and working.

Section A · multiple choice

  1. 1.

    On retirement, the ratio in which the continuing partners gain is the:

    1. old ratio
    2. capital ratio
    3. sacrificing ratio
    4. gaining ratio
    Answer

    (d) gaining ratio

  2. 2.

    What is meant by “retiring partner’s loan account”?

    1. holds the amount due when it is not paid at once
    2. paying the amount due to a retiring partner in parts, with interest on the unpaid balance
    3. restating assets and liabilities at their current values
    4. debit balances that are written off to all partners in the old ratio
    Answer

    (a) holds the amount due when it is not paid at once

  3. 3.

    Which of these is CREDITED to a retiring partner’s capital account?

    1. the partner’s share of loss up to the date of retirement
    2. the partner’s share of revaluation loss
    3. the partner’s drawings
    4. interest on capital up to retirement
    Answer

    (d) interest on capital up to retirement

Section B · short answer

  1. 4.

    What is the gaining ratio?

    Answer

    The ratio in which the continuing partners acquire the share of the retiring or deceased partner: new share − old share.

  2. 5.

    Explain each term: (a) executors (b) gaining ratio

    Answer

    (a) persons who receive the amount due to a deceased partner (b) the ratio in which the continuing partners gain the share of the retiring partner

Section C · long answer

  1. 6.

    Explain the adjustments needed on the retirement of a partner.

    Answer

    New and gaining ratios, treatment of goodwill, revaluation of assets and liabilities, accumulated profits and losses, adjustment of capitals, and settlement of the amount due.

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