Practice Test

1) If Joint Life policy appears in the balance sheet at surrender value, then the firm will

2) In the absence of proper agreement, representative of the deseased partner is entitled to the dead partner's share in the following items

3) As per section 37 of the Indian Partnership Act,1932,the executors would be entitled at their choice to the interest calculated from the date of death till the date of payment on the final amount due to the dead partner at __% p.a

4) A , B and C are partners sharing profit and losses in the ratio 2:1:1 .firm took a joint life policy of Rs1,20,000 in the balance sheet it is appearing at the surrender value i.e. Rs.20,000.On the death of A,how this JLP will be shared among the partners

5) R, J & D are partners sharing profit and losses in the ratio 7:5:4. D died on 30.06.2006.& profit for the accounting year 2005-06 were Rs.24,000.How much share in the profits for the period 1st April 2006 to 30th June will be credited to D' account

6) At the time of death of a partner ,firm gets __from the insurance company against the JLP taken jointly for all the partners

7) At the time of death of a partner ,firm gets __from the insurance company against the JLP taken severely for each of the partners

8) When premium paid on JLP taken up severely for each partner ,the amount received on death of a partner would be firm's profit .It is also necessary to credit partner's capital account with ___of the policy on the lines of the remaining partners

9) All the following except one is the method of recording JLP

10) A ,B & C takes a joint life policy their profit sharing ratio is 2:2:1. After death of B , A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value?

11) A ,B & C takes a joint life policy their profit sharing ratio is 2:2:1..After death of B, A & C decides to share profit equally .They had taken a Joint life policy of Rs.2,50,000 with the surrender value Rs.50,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value along with reserve

12) On the death of a partner ,his executor is paid the share of profit of the dying partner partner for the relevant period.This payment is recorded in profit & loss__account

13) A ,B & C takes a joint life policy for Rs.30,000 their profit sharing ratio is 5;3:2. After death of B , what is the amount payable to each partner

14) Joint life policy

15) Premium on joint life policy taken up in the lives of all the partners

16) The objective of taking a Joint life policy by the partnership firm is

17) death of a partner has effect of

18) in case of death of a partner

19) the heir of the deceased partner

20) at the time of death of a partner ,firm gets___from the insurance company against the joint life policy taken severely for each of the partners

21) A , B and C are partners sharing profit and losses in the ratio 9:4:3 .They took a joint life policy of Rs.5,44,000.C died. What is the share of C in the JLP amount ?

22) A , B and C are partners sharing profit and losses in the ratio 2:1:1 .firm took a joint life policy of Rs.2,40,000 in the balance sheet it is appearing at the surrender value i.e. Rs.40,000.On the death of A,how this JLP will be shared among the partners

23) A ,B & C are partners sharing profit and losses in the ratio 7:5:4. C died on 30.06.2006.It was decided to value the goodwill on the basis of 3 year's purchase of last 5 years avg. profit .if the profits are Rs.53,600:Rs.57,400 ; Rs.57,800 ;Rs.48,000 & Rs.26,800.What will be C's share of goodwill ?

24) R, J & D are partners sharing profit and losses in the ratio 7:5:4. D died on 30.06.2006.& profit for the accounting year 2005-06 were Rs.48,000.How much share in the profits for the period 1st April 2006 to 30th June will be credited to D' account

25) If A , B and C are partners sharing profit and losses in the ratio 5:3:2 ,.then on the death of A,how much B & C will pay to A's executer on account of goodwill .Goodwill is to be calculated on the basis of 2 year's purchase of last 3 years avg. profit .if the profits are Rs.6,58,000:Rs.6,92,000 ; Rs.8,10,000

26) A ,B & C takes a joint life policy their profit sharing ratio is 2;2:1. After death of B , A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.1,00,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value?

27) A ,B & C takes a joint life policy their profit sharing ratio is 2;2:1..After death of B, A & C decides to share profit equally .They had taken a Joint life policy of Rs.5,00,000 with the surrender value Rs.1,00,000.what will be the treatment in the partner's capital account on receiving the JLP amt if joint life policy is maintained at surrender value along with reserve

28) A ,B & C takes a joint life policy for Rs.60,000 their profit sharing ratio is 5;3:2. After death of B , what is the amount payable to each partner

29) Gain ratio is calculated on_______

30) Gain ratio is the ratio in which_______

31) Share of profit of a deceased partner till the date of death is_______

32) An amount received from the Insurance Company against the joint life policy is ________

33) M, N and S are partners in a firm having joint life policy of Rs.10,00,000 on which premium has been paid by a firm. M dies and his legal representatives want the whole amount of the policy whereas N and S want to distribute the amount among all the partners.

34) On death of partner, his share of profit from the date of balance sheet to the date of his death is debited to ______ account.

35) Profit and Loss Suspense account is shown in the new balance sheet on _____ side.

36) Deceased partner's legal representative loan A/c. is shown in the balance sheet on _____ side.

37) Death is a compulsory______

38) The balance on the Capital A/c of a partner, on his death is transferred to ______ A/c

39) Retiring partner is entitled to his share of goodwill

40) Retiring partner is not entitled to his share of general reserve

41) The capital account of a retiring partner always shows a debit balance.

42) An amount due to a deceased partner is transferred to his executor's loan A/c

43) If goodwill is written off a retiring partner's capital account is debited

44) Death of a partner is like a compulsory retirement

45) Total amount due to deceased partner is paid in cash to executor immediately after his death

46) On the death of a partner, his share in the goodwill is divided equally among continuing partners

47) Deceased Partner's share in profit upto the date of his death will be debited to his capital A/c

48) It is not possible to revalue the assets and liabilities of the firm on death of a partner.

49) A deceased partner is not entitled to goodwill.

50) A deceased partner must be paid interest on his capital

51) Deceases partner's legal representative's loan A/c appears in the balance sheet of the new firm on assets side.

52) A partnership firm is automatically dissolved on the death of its partners

53) When a partner dies, all amounts due to him are transferred to the capital Account of surviving partners.

54) It is necessary to prepare a Profit and Loss Adjustment A/c and balance sheet immediately on the death of a partner to ascertain his share of Profit and the amount due to him

55) After the death of a partner, it is necessary to revalued the assets and liabilities of the partnership firm

56) The legal representative of a deceased partner is entitled to share General Reserve of the firm.

57) After the death of a partner, entire amount due to deceased partner is paid to legal representative of the deceased partner

58) After the death of a partner, continuing partners will share Goodwill in their new proportion.

59) The executors of the deceased partner are entitled to a share of profit earned by the firm from the date of last balance sheet and to the date of death.Which of the entry will be passed for this purpose ? (Name of the deceased partner was Mr.X)

60) The effect of the revaluation of aasets and liabilities is recorded in_______

61) In which of the following account,accounting entriees are made on the basis of the different between book value and revalued figures ?

62) R,J and D are the partners sharing profits in the ratio 7:5:4. D died on 30th june 2016. It was decided to value the goodwill on the basis of three year’s purchase of last five years average profits. If the profits are Rs.29,600; Rs.28,700; Rs.28,900; Rs.24,000 and Rs.26,800. What will be D’s share of goodwill?