Quiz on Retirement

Which of the following statement is correct?

• Goodwill at the time of retirement of a partner is credited to remaining Partner's Capital Accounts in sacrificing ratio.

• Goodwill at the time of retirement of a partner is credited to the remaining Partner's Capital Accounts in gaining ratio.

• Goodwill at the time of retirement of a partner is debited to the remaining partner's capital accounts in sacrificing ratio.

• Goodwill at the time of retirement of a partner to the extent of retiring partner's share is debited to remaining partner's capital accounts in gaining ratio.

At the time of retirement of a partner, profit (gain) on revaluation will be credited to the Capital Accounts of

• all partners in their old profit sharing ratio

• the remaining partners in their old profit sharing ratio

• the remaining partners in their old profit sharing ratio

• the remaining partners in their new profit sharing ratio

Increase in liability at the time of retirement of a partner is:

• credited to Revaluation Account

• debited to Revaluation Account

• debited to Profit and Loss Account

• debited to Profit and Loss Appropriation Account

Increase in the value of assets at the time of retirement of a partner is

• credited to Revaluation Account

• debited to Revaluation Account

• debited to Profit and Loss Account

• debited to Profit and Loss Appropriation Account

Decrease in liabilities at the time of retirement of a partner is

• credited to Revaluation Account

• debited to Revaluation Account

• debited to Profit and Loss Account

• debited to Profit and Loss Appropriation Account

Decrease in the value of assets at the time of retirement of a partner is

• Credited to Revaluation Account

• debited to Revaluation Account

• debited to Profit and Loss Account

• debited to Profit and Loss Appropriation Acccount

Gaining ratio is

• Old profit share less new profit share

• Old profit sharing ratio

• New profit sharing ratio

• New profit share less old profit share

On the retirement of Hari from the firm of Hari, Ram and Sharma, the Balance Sheet showed a debit balance of ₹12,000 in the profit and Loss Account. For calculating the amount payable to Hari, this balance will be transferred.

• to the credit of the capital accounts of Hari, Ram and Sharma equally.

• to the debit of the capital accounts of Hari, Ram and Sharma equally.

• to the debit of the capital accounts of Ram and Sharma equally

• to the credit of the capital account of Ram and Sharma equally

Amla, Bimla and Kavita were partners sharing profits and losses in the ratio of 4:3:1. Bimla retires and gives here share of profit to Amla for ₹3,600 and to Kavita for ₹3,000. The gaining ratio of Amla and Kavita will be:

• 4:5

• 2:1

• 6:5

• 4:1

Srishti, Nitya and Anand were partners in a firm sharing profits and losses in the ratio of 3:2:1. Srishti retired from the firm selling here share of profits ot Nitya and Anand in the ratio of 2:1. The new profit sharing ratio between Nitya and Anand will be

• 3:2

• 17:11

• 2:1

• 19:11