Retirement and Death of a Partner – Test 2

Joint life policy account after the maturity of the policy should be transferred to the capital accounts of the partners is

The amount received from the insurance company on the maturity of joint life policy is distributed amongst the partners

The balance of joint life policy account of partners represents :

The joint life policy received on the death of a partner is credited to the

The balance in the Joint Life Policy Reserve A/c is transferred to the

On the maturity of a joint life policy, how would the amount received from the insurance company be distributed among the partners ?

The balance of the retiring partner’s capital account is transferred to _______, if not paid is cash

In the ________ method, the total amount due to a retiring partner is divided by the number of equal installments in such a way that the amount together with interest will always be equal

In case the assets and liabilities are to appear at the original values in the balance-sheet after the retirement of a partner, then the balance of the second part of the memorandum revaluation account is transferred to the remaining partners in the _______ ratio

Joint life policy reserve account should be transferred to the capital account of _____.

Retiring partner’s loan account attract interest @ 6%

The amount received from the insurance company on joint life policy of partners in excess of its surrender value should be credited to partners

Premium paid on the joint life policy of partners is

When a partner retires, decrease in the value of liability is credited to

The balance of joint life policy account as shown in the balance sheet represent

The amount in excess of surrender value, received from the insurance company of joint life policy should be credited to the partners

Assertion:- When a partner retires, all the assets and liabilities are revalued according to current values.

Reasoning:- The balance sheet should show the current values of assets and liabilities.

On retirement of a partner, continuing partners gain in terms of _______ ratio

The profit or loss disclosed by the revaluation account at the time of retirement of a partner is transferred to the capital accounts of the partners in the ______ ratio.

When the goodwill is to be raised in the books at the time of retirement of a partner, then the capital accounts of __________ partners are to be created

When premium payable on the life policy taken  on the life of partners is treated as on asset, then at the end of the year, the balance in joint life policy account in excess of its surrender value is treated as ______

On retirement of a partner, partnership is dissolve

At the time of retirement/death the undistributed profit/loss and reserve are distributed among existing partners in their old profit sharing ratio

The retiring partner may claim a share in the profits of the firm even after his retirement of his accounts are not settled

In the event of death of a partner the amount realised on account of a joint life insurance policy is credited only to the deceased partner’s execution account

The amount due to the retiring partner is transferred to his loan account in case it is not paid immediately

Sacrificing ratio is applied at the time of retirement of a partner

Goodwill is paid out to the retiring partner in capital ratio

A retiring partner is entitled to have a share in the goodwill of the firm

Calculation of gaining ratio is necessary for the distribution of goodwill at the time of retirement or death