Retirement and Death of a Partner-Test 6

A family member of the retiring partner will automatically become the new partner in a reconstituted firm

A partner can retire from the firm with the consent of all other partners

The amount due to the retiring partner will always be settled in cash

The firm is under obligation to pay an agreed rate of interest for the unpaid balance to the retiring partner

A retiring partner is not entitled to share in the goodwill of the firm

The balance of capital account of a retiring partner, if not paid, appears as his loan in the books of accounts

When goodwill is raised in the books of the firm, then only goodwill is payable to retiring partner

Retirement of a partner leads to dissolution of the firm unless otherwise agreed upon

Deceased partner is not entitled to a share in General Reserve

On the death of a partner, Interest on his Capital must be credited to his capital account from the date of last balance sheet to the date of his death

Amount due to the deceased partner must be paid to his executor immediately after his death

On the death of a partner, the total amount due to his executors must be paid in cash immediately

A Deceased Partner is not entitled to Goodwill

A, B and C are partners in the ratio of 5 : 3 : 2. B retires. The new ratio between A and C will be

A, B, C and D are partners sharing profits in the ratio of 5 : 4 : 3 : 2. A retires and B, C and D decide to share profits and losses equally in future. What is the gaining ratio ?

A, B and C are partners in the ratio of 1/2 : 1/3 : 7/15. C retires and his share is taken up by A and B in the ratio of 3 : 2. The new profit sharing ratio will be

Gain or loss on revaluation of assets to the time of retirement is a capital profit

In the event of death, the combined share of profit of continuing partners will decrease

A joint life policy matures in the event of death or at the time of retirement of a partner

Surrender value of the joint life policy is equal to the total amount of premium paid till that date

The capital account of retiring partner always shows a debit balance

The capital A/c of the retiring partner closes only when the full amount due to him is paid

A retiring partner is not entitled to a share in the reserve and accumulated profits of the firm

After the death of a partner, the continuing partners share the profit of the firm in equal proportion

A partnership firm automatically gets dissolved on the death of its partner, unless there is an agreement to that effect

A zero balance of Profit and Loss Adjustment Account indicates profit on revaluation

Balance of the deceased partner’s capital account is transferred to his loan account

When the goodwill account is raised on death of a partner goodwill account is debited

Death of a partner is just like compulsory retirement of partner

A, B and C are partners sharing profits in the ratio of 1/2, 1/3 and 1/6. B retires and his share is taken by A and C in the ratio of 5 : 3. What is the new ratio ?