Question 1

Which of the following is NOT included in the amount due to a retiring partner?

Accepted Answer

Correct Option: C. Solution: The retiring partner is not entitled to a share of future profits. The amount due includes accumulated profits, goodwill, and revaluation gains.

Question 2

In the event of a partner's retirement, how is the gaining ratio calculated if the new profit sharing ratio is specified?

Accepted Answer

Correct Option: A. Solution: The gaining ratio is calculated by deducting the old share from the new share of each continuing partner.

Question 3

In a partnership firm, Shyam, Gagan, and Ram share profits in the ratio of 2:2:1. Gagan retires, and the goodwill of the firm is valued at Rs. 70,000. Shyam and Ram decide to share future profits in the ratio of 5:3. How should Gagan's share of goodwill be adjusted in the capital accounts of Shyam and Ram?

Accepted Answer

Correct Option: A. Solution: Gagan's share of goodwill is adjusted in the gaining ratio of 9:7, so Shyam's capital account is debited by Rs. 15,750 and Ram's by Rs. 12,250.

Question 4

If a partner retires and the firm has accumulated losses, how should these losses be treated?

Accepted Answer

Correct Option: B. Solution: Accumulated losses are distributed among all partners in their old profit sharing ratio.

Question 5

A partnership firm has partners A, B, and C sharing profits in the ratio of 4:3:2. If B retires and his share is acquired by A and C in the ratio of 3:1, what will be the new profit sharing ratio between A and C?

Accepted Answer

Correct Option: A. Solution: B's share of 3/9 is distributed between A and C in the ratio of 3:1. A's new share = 4/9 + 3/12 = 7/12, C's new share = 2/9 + 1/12 = 5/12. Thus, the new ratio is 7:5.

Question 6

If a retiring partner's share of profit for the period from the last balance sheet date to the date of retirement is calculated based on average profits of the last three years, which were Rs. 1,36,000, Rs. 1,54,000, and Rs. 1,00,000, what is the retiring partner's share if his profit share ratio is 1/10?

Accepted Answer

Correct Option: A. Solution: The average profit is calculated as (Rs. 1,36,000 + Rs. 1,54,000 + Rs. 1,00,000) / 3 = Rs. 1,30,000. The retiring partner's share is 1/10 of Rs. 1,30,000, which equals Rs. 13,000.

Question 7

P, Q, and R are partners sharing profits in the ratio of 2:2:1. If Q retires and P and R decide to share profits in the ratio of 3:2, what is the gaining ratio?

Accepted Answer

Correct Option: A. Solution: The new profit sharing ratio is 3:2, thus the gaining ratio is the same as the new profit sharing ratio, which is 3:2.

Question 8

In the absence of any agreement, what interest rate is applied to the amount due to a retiring partner as per the Indian Partnership Act, 1932?

Accepted Answer

Correct Option: B. Solution: According to Section 37 of the Indian Partnership Act, 1932, the retiring partner is entitled to interest at 6% per annum on the amount due until it is paid.

Question 9

When a partner retires, how is the goodwill adjusted if it does not appear in the books?

Accepted Answer

Correct Option: A. Solution: When goodwill does not appear in the books, it is adjusted by crediting the retiring partner's capital account and debiting the remaining partners' capital accounts in their gaining ratio.

Question 10

How is the new profit sharing ratio determined if the continuing partners acquire the retiring partner's share in a proportion other than their old ratio?

Accepted Answer

Correct Option: B. Solution: When the continuing partners acquire the retiring partner's share in a proportion other than their old ratio, the new profit sharing ratio is calculated based on the new agreed proportion.

Question 11

In the event of a partner's retirement, which of the following is NOT included in the sum due to the retiring partner?

Accepted Answer

Correct Option: B. Solution: The sum due to the retiring partner includes his share of goodwill, accumulated profits, profits up to the date of retirement, and gain from revaluation of assets and liabilities, but not accumulated losses, which are deducted.

Question 12

What should be done if a partner retires and the firm is unable to pay the amount due immediately?

Accepted Answer

Correct Option: A. Solution: If the firm cannot pay the amount due immediately, it is transferred to the retiring partner's loan account and paid as and when possible.

Question 13

Which method is used to calculate the retiring partner's share of profit for the period from the last balance sheet date to the date of retirement?

Accepted Answer

Correct Option: D. Solution: The retiring partner's share of profit for the period can be calculated using the average profit of the last three years, the profit of the previous year, or based on sales during the period.

Question 14

How is the gaining ratio calculated when the new profit sharing ratio is specified among the continuing partners?

Accepted Answer

Correct Option: B. Solution: The gaining ratio is calculated by subtracting the old share from the new share for each partner.

Question 15

If a partner retires in the middle of the year, how is his share of profit for the intervening period calculated?

Accepted Answer

Correct Option: D. Solution: The retiring partner's share of profit for the intervening period can be calculated using last year's profit, average profit of the last three years, or based on sales during the period.

Question 16

If a retiring partner's share of goodwill is Rs. 20,000 and the gaining ratio is 3:2, how much will each continuing partner compensate?

Accepted Answer

Correct Option: A. Solution: The compensation is divided according to the gaining ratio. Partner 1 pays Rs. 12,000 (3/5 of Rs. 20,000) and Partner 2 pays Rs. 8,000 (2/5 of Rs. 20,000).

Question 17

If a partner retires and the remaining partners decide to adjust their capitals in the new profit sharing ratio, what is the first step in this adjustment process?

Accepted Answer

Correct Option: A. Solution: The first step is to determine the total capital of the new firm, which is then divided among the remaining partners in the new profit sharing ratio.

Question 18

A partner retires and the firm decides to adjust their capital in the new profit sharing ratio of 5:3. If the total capital of the firm is Rs. 1,60,000, what will be the new capital amount for the partner with a share of 5?

Accepted Answer

Correct Option: A. Solution: The new capital for the partner is $\frac{5}{8} 	imes 1,60,000 = 1,00,000$.

Question 19

What is the correct journal entry for transferring accumulated profits to partners' capital accounts upon the retirement of a partner?

Accepted Answer

Correct Option: A. Solution: The correct journal entry is: Reserves A/c Dr. To All Partners' Capital A/c's (Individually).

Question 20

In a partnership firm, Mohit, Neeraj, and Sohan share profits in the ratio of 2:1:1. Neeraj retires, and it is decided that the new capital of the firm will be fixed at Rs. 1,20,000. After all adjustments, Mohit's and Sohan's capital accounts show balances of Rs. 82,000 and Rs. 41,000 respectively. How much cash should Mohit and Sohan bring in or withdraw to adjust their capitals according to the new profit-sharing ratio of 2:1?

Accepted Answer

Correct Option: B. Solution: Mohit's new capital should be Rs. 80,000 and Sohan's should be Rs. 40,000. Therefore, Mohit withdraws Rs. 2,000 and Sohan brings in Rs. 1,000 to adjust their capitals.

Question 21

In a partnership firm, the retiring partner's share of goodwill is Rs. 28,000. If the remaining partners decide to adjust this amount in their gaining ratio of 3:2, how much will each partner's capital account be debited?

Accepted Answer

Correct Option: A. Solution: The retiring partner's share of goodwill is Rs. 28,000. The gaining ratio is 3:2, so the partners will be debited Rs. 16,800 (3/5 of Rs. 28,000) and Rs. 11,200 (2/5 of Rs. 28,000) respectively.

Question 22

In the event of a partner's retirement, how should the accumulated losses be adjusted if the firm has a profit and loss account debit balance of Rs. 60,000 and the partners share profits in the ratio of 4:3:2?

Accepted Answer

Correct Option: B. Solution: The retiring partner's share of the loss is $\frac{3}{9} 	imes 60,000 = 20,000$.

Question 23

Asha, Deepa, and Lata are partners sharing profits in the ratio of 3:2:1. Deepa retires, and after all adjustments, Asha's and Lata's capital accounts show balances of Rs. 1,60,000 and Rs. 80,000 respectively. If their capitals are to be adjusted to their new profit-sharing ratio of 3:1, how much cash should Asha and Lata bring in or withdraw?

Accepted Answer

Correct Option: A. Solution: Asha's new capital should be Rs. 1,80,000 and Lata's should be Rs. 60,000. Therefore, Asha brings in Rs. 20,000 and Lata withdraws Rs. 20,000 to adjust their capitals.

Question 24

In a partnership, X, Y, and Z share profits in the ratio of 5:3:2. Z retires and X and Y agree to share profits equally. What is the gaining ratio?

Accepted Answer

Correct Option: C. Solution: X and Y decide to share profits equally, hence the gaining ratio is 1:1.

Question 25

In the event of a partner's death, which of the following is included in the amount due to the deceased partner's legal representatives?

Accepted Answer

Correct Option: B. Solution: The amount due to the deceased partner's legal representatives includes the partner's share of goodwill, accumulated profits, and other entitlements.

Question 26

In a partnership, if the continuing partners decide to acquire the retiring partner's share in a specified new profit sharing ratio, what is the impact on the gaining ratio?

Accepted Answer

Correct Option: B. Solution: When the continuing partners acquire the retiring partner's share in a specified new profit sharing ratio, the gaining ratio is the same as this specified ratio.

Question 27

When adjusting the capital accounts of continuing partners after a partner's retirement, what is the basis for determining the new capital amounts?

Accepted Answer

Correct Option: B. Solution: The new capital amounts are determined by dividing the total capital of the firm among the continuing partners according to the new profit sharing ratio.

Question 28

A retiring partner is entitled to his share of goodwill, which is Rs. 72,000. If the continuing partners decide to adjust this goodwill in their gaining ratio of 13:11, how much will each partner's capital account be debited?

Accepted Answer

Correct Option: B. Solution: The retiring partner's share of goodwill is Rs. 72,000. The gaining ratio is 13:11, so the partners will be debited Rs. 37,440 (13/24 of Rs. 72,000) and Rs. 34,560 (11/24 of Rs. 72,000) respectively.

Question 29

What happens to the retiring partner's capital account when the firm is not in a position to make immediate payment?

Accepted Answer

Correct Option: A. Solution: If the firm cannot pay immediately, the amount due is transferred to the retiring partner's loan account.

Question 30

If a partner retires and the remaining partners acquire the retiring partner's share in the old profit sharing ratio, what is the gaining ratio?

Accepted Answer

Correct Option: A. Solution: The gaining ratio is the same as the old profit sharing ratio when the remaining partners acquire the retiring partner's share in the old ratio.

Question 31

Upon the retirement of a partner, the firm's goodwill is valued at Rs. 1,20,000. If the retiring partner's share of goodwill is 1/3, how should this be adjusted in the remaining partners' capital accounts, assuming they share profits equally?

Accepted Answer

Correct Option: B. Solution: The retiring partner's share of goodwill is $\frac{1}{3} 	imes 1,20,000 = 40,000$. Each remaining partner, sharing equally, will have their capital account debited by Rs. 40,000.

Question 32

During the revaluation of assets and liabilities, how is an unrecorded liability brought into the books?

Accepted Answer

Correct Option: A. Solution: An unrecorded liability is brought into the books by debiting the Revaluation Account and crediting the respective liability account.

Question 33

What is the journal entry for an increase in the value of assets during the revaluation process?

Accepted Answer

Correct Option: A. Solution: The correct entry for an increase in the value of assets is to debit the individual asset accounts and credit the Revaluation Account.

Question 34

If the goodwill of a firm is valued at Rs. 60,000 and partner B retires, how is B's share of goodwill adjusted if A and C continue the business sharing profits in the ratio 3:1?

Accepted Answer

Correct Option: A. Solution: B's share of goodwill is adjusted to A and C's capital accounts in their gaining ratio of 3:1.

Question 35

When a partner retires, which of the following journal entries is correct for revaluation of assets that have increased in value?

Accepted Answer

Correct Option: A. Solution: When assets increase in value, the correct entry is to debit the individual asset accounts and credit the Revaluation Account.

Question 36

Lalit, Pankaj, and Rahul are partners sharing profits in the ratio of 4:3:3. After Lalit's retirement, the balances in their capital accounts are Rs. 70,000, Rs. 60,000, and Rs. 50,000 respectively. If Pankaj and Rahul decide to adjust their capitals in the ratio of 1:1, how much cash should each partner bring in or withdraw?

Accepted Answer

Correct Option: A. Solution: After Lalit's retirement, the new profit sharing ratio between Pankaj and Rahul is 1:1. The total capital of the new firm is Rs. 1,80,000. Therefore, Pankaj's and Rahul's new capitals should be Rs. 90,000 each. Pankaj needs to bring in Rs. 30,000 (Rs. 90,000 - Rs. 60,000) and Rahul needs to bring in Rs. 40,000 (Rs. 90,000 - Rs. 50,000) to adjust their capitals proportionately.

Question 37

What is the treatment of goodwill when it does not appear in the books at the time of a partner's retirement?

Accepted Answer

Correct Option: A. Solution: When goodwill does not appear in the books, credit is given to the retiring partner for the share in goodwill by debiting the goodwill account to gaining partners' capital accounts in their gaining ratio.

Question 38

A partner retires and the firm decides to settle his dues by paying Rs. 40,000 immediately and the rest as a loan. If the retiring partner's total due amount is Rs. 1,00,000, how much will be transferred to the Retiring Partner's Loan Account?

Accepted Answer

Correct Option: A. Solution: The total due amount is Rs. 1,00,000. After paying Rs. 40,000 immediately, the remaining Rs. 60,000 is transferred to the Retiring Partner's Loan Account.

Question 39

If a partner retires and the firm decides to adjust the capital of the remaining partners in their new profit sharing ratio, what is the journal entry if a partner has excess capital?

Accepted Answer

Correct Option: A. Solution: When a partner has excess capital, the amount is withdrawn, and the entry is to debit the partner's capital account and credit the cash or bank account.

Question 40

What is the treatment of goodwill when a partner retires and the goodwill already appears in the books?

Accepted Answer

Correct Option: A. Solution: When goodwill already appears in the books, it is written off in the old profit sharing ratio among all partners.

Question 41

What is the accounting treatment for the revaluation of assets and liabilities at the time of a partner's retirement?

Accepted Answer

Correct Option: D. Solution: The revaluation of assets and liabilities involves crediting increases in asset values, debiting decreases, and transferring the resulting profit or loss to partners' capital accounts in the old profit sharing ratio.

Question 42

What is the new profit sharing ratio between Asha and Nisha if Deepti retires from a partnership firm where profits were previously shared in the ratio 3:2:1?

Accepted Answer

Correct Option: A. Solution: When Deepti retires, Asha and Nisha will share the profits in the ratio 3:1 as per the old profit sharing ratio among them.

Question 43

Which of the following represents the correct treatment of unrecorded liabilities at the time of a partner's retirement?

Accepted Answer

Correct Option: A. Solution: Unrecorded liabilities are brought into the books by debiting the Revaluation Account and crediting the respective liability accounts.

Question 44

When a partner retires, what is the correct accounting treatment for goodwill if it does not appear in the books?

Accepted Answer

Correct Option: A. Solution: When goodwill does not appear in the books, the retiring partner is credited for their share of goodwill by debiting the goodwill account to the gaining partners' capital accounts in their gaining ratio.

Question 45

What is the journal entry for adjusting goodwill when a partner retires and goodwill is valued at the time of reconstitution?

Accepted Answer

Correct Option: C. Solution: When a partner retires and goodwill is valued, the gaining partners' capital accounts are debited and the retiring partner's capital account is credited to adjust for the share of goodwill.

Question 46

When a partner retires, how is the new profit sharing ratio among the remaining partners generally determined if no specific information is provided?

Accepted Answer

Correct Option: A. Solution: In the absence of specific information, the remaining partners acquire the retiring partner's share in their old profit sharing ratio.

Question 47

If Naveen and Tarun acquire Suresh's share in the ratio 2:1, what will be their new profit sharing ratio?

Accepted Answer

Correct Option: B. Solution: Naveen and Tarun's new profit sharing ratio will be 7:3 after acquiring Suresh's share in the ratio 2:1.

Question 48

When a partner retires from a partnership firm, the remaining partners decide to pay the retiring partner in installments with interest. If the total amount due to the retiring partner is Rs. 60,000 and the interest rate is 12% per annum, what will be the interest amount for the first year if the installment paid is Rs. 15,000?

Accepted Answer

Correct Option: C. Solution: The interest for the first year is calculated on the unpaid balance. After the first installment of Rs. 15,000, the unpaid balance is Rs. 45,000. Therefore, the interest is 12% of Rs. 45,000, which equals Rs. 5,400.

Question 49

How is the amount due to a retiring partner settled if the firm cannot pay immediately?

Accepted Answer

Correct Option: B. Solution: If the firm cannot pay the retiring partner immediately, the amount due is transferred to the retiring partner's loan account.

Question 50

How is the gaining ratio calculated when the new profit sharing ratio of continuing partners is specified?

Accepted Answer

Correct Option: B. Solution: The gaining ratio is calculated by subtracting the old share of each continuing partner from their new share.

Question 51

How is the gaining ratio calculated when the new profit sharing ratio is specified?

Accepted Answer

Correct Option: A. Solution: The gaining ratio is calculated by deducting the old share from the new share for each continuing partner.

Question 52

In the event of a partner's death, how is the share of profit for the intervening period calculated?

Accepted Answer

Correct Option: A. Solution: The share of profit for the intervening period is calculated based on the average profit of the last three years, unless otherwise specified.

Question 53

How is the share of goodwill adjusted when a partner retires and goodwill does not appear in the books?

Accepted Answer

Correct Option: C. Solution: When goodwill does not appear in the books, the retiring partner's share of goodwill is adjusted by debiting the gaining partners' capital accounts in their gaining ratio.

Question 54

If a partner retires and the remaining partners decide to adjust their capitals in the new profit sharing ratio, which of the following steps is necessary?

Accepted Answer

Correct Option: C. Solution: When adjusting capitals in the new profit sharing ratio, the remaining partners may need to bring in or withdraw cash to match their capitals to the new ratio.

Question 55

What is the treatment of accumulated profits and losses when a partner retires?

Accepted Answer

Correct Option: B. Solution: Accumulated profits and losses are transferred to all partners, including the retiring partner, in their old profit sharing ratio.

Question 56

When a partner retires, the accumulated profits and losses are distributed among the partners. If a firm has a general reserve of Rs. 90,000 and the partners' profit sharing ratio is 3:2:1, what amount will the retiring partner with a share of 2 receive from the general reserve?

Accepted Answer

Correct Option: B. Solution: The retiring partner's share is calculated as $\frac{2}{6} 	imes 90,000 = 30,000$.

Question 57

When a partner retires, how are accumulated profits distributed among the partners?

Accepted Answer

Correct Option: C. Solution: Accumulated profits are distributed among partners in their old profit sharing ratio.

Question 58

The calculation of a deceased partner's share of profit for the intervening period is based on the profit from the previous accounting period.

Accepted Answer

Answer: True. Solution: The deceased partner's share of profit for the period from the last balance sheet to the date of death is calculated based on the previous year's profit.

Question 59

When a partner retires or dies, the goodwill of the firm is adjusted through the capital accounts of the remaining partners in their gaining ratio.

Accepted Answer

Answer: True. Solution: The retiring or deceased partner is entitled to his share of goodwill, which is adjusted by debiting the capital accounts of the remaining partners in their gaining ratio.

Question 60

When a partner retires, the remaining partners may need to adjust their capital contributions to reflect the new profit sharing ratio.

Accepted Answer

Answer: True. Solution: Upon the retirement of a partner, the remaining partners often adjust their capital contributions to align with the new profit sharing ratio, ensuring the firm's capital structure remains balanced.

Question 61

During the revaluation of assets and liabilities at the time of a partner's retirement, unrecorded assets and liabilities must be brought into the firm's books.

Accepted Answer

Answer: True. Solution: The revaluation account is prepared to ascertain net gain or loss on revaluation of assets and liabilities, including bringing unrecorded items into the firm's books.

Question 62

Accumulated profits and losses are distributed among partners in their old profit sharing ratio during the reconstitution of a partnership firm.

Accepted Answer

Answer: True. Solution: During the reconstitution of a partnership firm, accumulated profits and losses are indeed distributed among partners in their old profit sharing ratio as part of the necessary adjustments.

Question 63

The new profit sharing ratio among the remaining partners after the retirement of a partner is always the same as their old profit sharing ratio.

Accepted Answer

Answer: False. Solution: The new profit sharing ratio among the remaining partners is not always the same as the old profit sharing ratio. It depends on how the retiring partner's share is acquired by the remaining partners. If the remaining partners acquire the retiring partner's share in their old profit sharing ratio, then the new ratio remains the same. Otherwise, it needs to be recalculated.

Question 64

According to Section 37 of the Indian Partnership Act, 1932, a retiring partner has the option to receive either interest at 6% per annum or a share of profits earned with his/her capital until the date of payment.

Accepted Answer

Answer: True. Solution: Section 37 of the Indian Partnership Act, 1932 provides that the outgoing partner can opt to receive interest at 6% p.a. or a share of the profits earned with his/her capital until the date of payment.

Reconstitution of a Partn..

Learning Objectives

Learning Objectives

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Retirement/Death of a Partner

Terms Introduced in the Chapter

Summary

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Multiple Choice Questions

Q1.Which of the following is NOT included in the amount due to a retiring partner?

Correct Answer: C

Q2.In the event of a partner's retirement, how is the gaining ratio calculated if the new profit sharing ratio is specified?

Correct Answer: A

Correct Answer: A

Q4.If a partner retires and the firm has accumulated losses, how should these losses be treated?

Correct Answer: B

Q5.A partnership firm has partners A, B, and C sharing profits in the ratio of 4:3:2. If B retires and his share is acquired by A and C in the ratio of 3:1, what will be the new profit sharing ratio between A and C?

Correct Answer: A

Correct Answer: A

Q7.P, Q, and R are partners sharing profits in the ratio of 2:2:1. If Q retires and P and R decide to share profits in the ratio of 3:2, what is the gaining ratio?

Correct Answer: A

Q8.In the absence of any agreement, what interest rate is applied to the amount due to a retiring partner as per the Indian Partnership Act, 1932?

Correct Answer: B

Q9.When a partner retires, how is the goodwill adjusted if it does not appear in the books?

Correct Answer: A

Q10.How is the new profit sharing ratio determined if the continuing partners acquire the retiring partner's share in a proportion other than their old ratio?

Correct Answer: B

Q11.In the event of a partner's retirement, which of the following is NOT included in the sum due to the retiring partner?

Correct Answer: B

Q12.What should be done if a partner retires and the firm is unable to pay the amount due immediately?

Correct Answer: A

Q13.Which method is used to calculate the retiring partner's share of profit for the period from the last balance sheet date to the date of retirement?

Correct Answer: D

Q14.How is the gaining ratio calculated when the new profit sharing ratio is specified among the continuing partners?

Correct Answer: B

Q15.If a partner retires in the middle of the year, how is his share of profit for the intervening period calculated?

Correct Answer: D

Q16.If a retiring partner's share of goodwill is Rs. 20,000 and the gaining ratio is 3:2, how much will each continuing partner compensate?

Correct Answer: A

Q17.If a partner retires and the remaining partners decide to adjust their capitals in the new profit sharing ratio, what is the first step in this adjustment process?

Correct Answer: A

Q18.A partner retires and the firm decides to adjust their capital in the new profit sharing ratio of 5:3. If the total capital of the firm is Rs. 1,60,000, what will be the new capital amount for the partner with a share of 5?

Correct Answer: A

Q19.What is the correct journal entry for transferring accumulated profits to partners' capital accounts upon the retirement of a partner?

Correct Answer: A

Correct Answer: B

Q21.In a partnership firm, the retiring partner's share of goodwill is Rs. 28,000. If the remaining partners decide to adjust this amount in their gaining ratio of 3:2, how much will each partner's capital account be debited?

Correct Answer: A

Q22.In the event of a partner's retirement, how should the accumulated losses be adjusted if the firm has a profit and loss account debit balance of Rs. 60,000 and the partners share profits in the ratio of 4:3:2?

Correct Answer: B

Correct Answer: A

Q24.In a partnership, X, Y, and Z share profits in the ratio of 5:3:2. Z retires and X and Y agree to share profits equally. What is the gaining ratio?

Correct Answer: C

Q25.In the event of a partner's death, which of the following is included in the amount due to the deceased partner's legal representatives?

Correct Answer: B

Q26.In a partnership, if the continuing partners decide to acquire the retiring partner's share in a specified new profit sharing ratio, what is the impact on the gaining ratio?

Correct Answer: B

Q27.When adjusting the capital accounts of continuing partners after a partner's retirement, what is the basis for determining the new capital amounts?

Correct Answer: B

Q28.A retiring partner is entitled to his share of goodwill, which is Rs. 72,000. If the continuing partners decide to adjust this goodwill in their gaining ratio of 13:11, how much will each partner's capital account be debited?

Correct Answer: B

Q29.What happens to the retiring partner's capital account when the firm is not in a position to make immediate payment?

Correct Answer: A

Q30.If a partner retires and the remaining partners acquire the retiring partner's share in the old profit sharing ratio, what is the gaining ratio?

Correct Answer: A

Q31.Upon the retirement of a partner, the firm's goodwill is valued at Rs. 1,20,000. If the retiring partner's share of goodwill is 1/3, how should this be adjusted in the remaining partners' capital accounts, assuming they share profits equally?

Correct Answer: B

Q32.During the revaluation of assets and liabilities, how is an unrecorded liability brought into the books?

Correct Answer: A