Death of Partner
- The balance of joint life policy account as shown in the balance sheet represents:
(a) Surrender value of a policy
(b) Annual premium of JLP
(c) Total premium paid by the firm
(d) Amount receivable on the maturity of the policy - The amount due to the deceased partners paid to his:
(a) Father
(b) Friend
(c) Wife
(d) Executors - A, B, C are partners sharing profit in the ratio 1 : 1: 2 C died on 30th June 2006 and profit for the accounting year ended on 31st December 2006 were Rs. 24,000. How much share in profit will be credited to C’s Account.
(a) Rs. 12,000
(b) Rs. 6,000
(c) Rs. 24,000
(d) Rs. 3,000 - JLP of the partners is a / an account:
(a) Nominal
(b) Personal
(c) Representative personal
(d) Assets - After death of a partner amount payable is received by:
(a) Government
(b) Firm
(c) Executors of deceased partner
(d) None - How is the premium paid on the JLP of partners treated? It is ––––––to the ––––––account :
(a) Credited; Partner’s current
(b) Credited ; Profit & Loss A/c
(c) Debited; Partner’s capital A/c
(d) Debited; Profit & Loss A/c - A, B, C are partners sharing profit and loss in 5 : 3 : 2. The firm’s balance sheet as on 31.3.2007 shows Reserve Balance of Rs. 25,000. Profit of the last year Rs. 50,000. Joint life policy of Rs. 10,00,000. On 1st June C died and on same date assets were revalued. The executors of C will get along with capital:
(a) Share joint life policy
(b) Share in Reserves
(c) Proportionate share of profit upto the date of death
(d) All of the above - Joint life policy amount received by a firm is distributed in ––––––––––––––
(a) Opening capital Ratio
(b) Closing capital ratio
(c) Old profit sharing ratio of partners
(d) New ratio of partners - X, Y, and Z are the partners sharing profit in the ratio of 7: 5 : 4. On 30th June 2008 Z died and profit for the year ending 31st March, 2009 were Rs. 2,40,000. How much share in profit for the period 1st April 2008 to 30th June 2008. Will be the profit occurred evenly throughout the year ?
(a) Rs. 60,000
(b) Rs. 15,000
(c) Rs. 20,000(d) Nil - At the time of death of partner firm gets –––––– from the insurance company of the joint life policy taken jointly for all the partners.
(a) Policy Value
(b) Surrender Value
(c) Policy value for the dead partner
(d) Surrender value for all the partners - In case of death of partner shares of goodwill of deceased partner, will be borne by the remaining partners in:
(a) Sacrificing Raito
(b) Gaining Ratio
(c) Old profit sharing Ratio
(d) Net profit Sharing Ratio