## Accountancy MCQ Class 12 Chapter 4 | Reconstitution of Partnership Firm: Retirement and Death of a Partner | Accountancy Quiz for Class 12 and Other Competitive Exams

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## Accountancy MCQ Class 12 Chapter 4

1. In the event of death of a partner, the accumulated profits and losses are shared by the partners in their:
(a) Old Profit-sharing Ratio
(b) New Profit-sharing Ratio
(c) Capital Ratio
(d) None of these

(a) Old Profit-sharing Ratio

2. The amount of a joint life insurance policy is credited into the capital accounts of _________ on account of the death of a partner.
(a) Deceased partner only
(b) The deceased partner as well as all the remaining partners
(c) In the new profit-sharing ratio of the remaining partners
(d) In the old profit-sharing ratio of the remaining partners

(b) The deceased partner as well as all the remaining partners

3. The executors of deceased partner will be paid interest on the amount due from the date of death of the partner at:
(a) 5% p.a.
(b) 6% p.a.
(c) 7% p.a.
(d) 8% p.a.

(b) 6% p.a.

4. On the death of a partner, the amount of Joint Life Insurance Policy is credited to the Capital Accounts of:
(a) Only the deceased partner
(b) All partners including the deceased partner
(c) Remaining partners, in the new profit-sharing ratio
(d) Remaining partners, in their old profit-sharing ratio

(b) All partners including the deceased partner

5. At the time of _______ revaluation, an account is prepared.
(a) Retirement of an existing partner
(b) Death of an existing partner
(c) Admission of a new partner
(d) All of the above

(d) All of the above

6. On retirement of a partner’s the amount of General Reserve is transferred to all partner’s capital account in:
(a) New Profit Sharing Ratio
(b) Capital Ratio
(c) Old Profit Sharing Ratio
(d) None of these

(c) Old Profit Sharing Ratio

7. On death of a partner, the remaining partner(s) who have gained due to change in profit-sharing ratio should compensate the:
(a) Deceased partner
(b) Remaining partners (who have sacrificed) as well as decreased partner
(c) Remaining partners (who have sacrificed)
(d) None of these

(a) Deceased partner

8. On the retirement of a partner, the capital account of the retiring partner will be credited with _______.
(a) Goodwill of the firm
(b) Shares of goodwill of the remaining partners
(c) His/her share of goodwill
(d) None of the above

(c) His/her share of goodwill

9. Abhi, Bhanu, and Clarin are partners sharing profits in the ratio of 3:2:1. Together they had a joint life policy of Rs. 3,00,000. The surrender value of the joint life policy in the balance sheet is Rs. 90,000. Clarin dies; what is the share of each partner in the joint life policy?
(a) Rs. 45,000 , Rs. 30,000, Rs. 15,000
(b) Rs. 1,50,000 , Rs. 1,00,000 , Rs. 50,000
(c) Rs. 1,95,000 , Rs. 1,30,000 , Rs. 65,000
(d) Rs. 1,05,000 , Rs. 70,000, Rs. 35,000

(b) Rs. 1,50,000 , Rs. 1,00,000 , Rs. 50,000

10. In case of death of a partner, the whole amount standing to the credit of his capital account is transferred to :
(a) Capital Accounts of all partners
(b) Capital Accounts of remaining partners
(c) His Executor’s Account
(d) Account of the Government

(c) His Executor’s Account

By Team Learning Mantras

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