Quiz on Accounts for Retirement of Partners

#1. Profit and Loss Suspense Account is shown in the new Balance Sheet on ……………… side.

#2. Death is a compulsory …………………….

#3. When premium paid on Joint Life Policy taken up severally 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 lives of the remaining partners.

#4. Share of profit of a deceased partner till the date of death is ………………

#5. The ratio by which existing partners are benefited …………………

#6. Benefit Ratio is the Ratio in which ………………..

#7. 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 ………….. percentage per annum.

#8. The balance on the capital account of a partners, on his death is transferred to …………. account.

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