Operating profits ratio

9.The accumulated reserves will be transferred to the old partners Capital account in the _______ ratio at the time of his retirement

• old profit sharing

• new profit sharing

• sacrificing

• gaining

7.If the amount due to the outgoing partner is transferred to loan account then he is entitled to interest at _____untill it is paid out.

• 9%

• 5%

• 6%

• 4%

solvency ratio include

• G/P Ratio

• Fixed Assets turnover

• Capital gearing ratio

• P/E ratio

6.When the amount due to an outgoing partner is not paid immediately, then it is transferred to

• Capital A/c

• Loan A/c

• Cash A/c

• Revaluation A/c

The liquid ratio should be around

• 4

• 2

• 5

• 1

Income tax paid is

• current liability

• current asset

• an application of funds

• none of these

5.At the time of retirement of a partner, calculation of new profit ratio is

• not necessary

• necessary

• optional

• None of the above

3. What treatment is made of accumulated profits and losses on the retirement of a partner?

• Credited to all partner’s capital accounts in old ratio.

• Debited to all partner’s capital accounts in old ratio.

• Credited to remaining partner’s capital accounts in new ratio.

• Credited to remaining partner’s capital accounts in gaining ratio.

2.Gaining Ratio’ means :

• Old Ratio – New Ratio

• New Ratio – Old Ratio

• Old Ratio – Sacrificing Ratio

• New Ratio – Sacrificing Ratio

Issue of bonus shares out of reserves

• Increase working capital

• Decrease working capital

• Does not affect working capital

• All of these.