List of top Accountancy Questions on Retirement asked in CUET (UG)

In case of death of a partner, for deceased partner's share of profits for the intervening period (from the closing of last year account till the date of death) in the books of accounts, the following journal entry is recorded:
Profit and Loss Suspense A/c Dr.
       To Deceased Partner's Capital A/c
Which of the following entry is to be made later to close the Profit and Loss Suspense Account?

Balance Sheet of A, B & C as on 31st March, 2025

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Creditors	11,000	Buildings	20,000
Reserve Fund	6,000	Machinery	30,000
A Capital 30,000 B Capital 25,000 C Capital 15,000	70,000	Stock	10,000
		Patents	11,000
		Debtors	8,000
		Cash	8,000
	87,000		87,000

C retires and following revaluations took place.
Patents be valued at Rs.8,000; Machinery at Rs.28,000; and Buildings at Rs.25,000.
Find Revaluation Profit/Loss

At the time of retirement of a partner, arrange the following accounts in the correct sequence.
(A) Partners' Current A/c
(B) Revaluation A/c
(C) Balance Sheet
(D) Partners' Capital A/c
Choose the correct answer from the options given below:

A, B and C were partners in a firm sharing profits and losses in the ratio of 5:4:1. B died on June 30, 2025. The profit for the previous three years were Rs 68,000 (For 2022-23), Rs 77,000 (For 2023-24), Rs 50,000 (2024-25) while the sales during the year 2024-25 were Rs. 4,00,000 and the sales from April 1, 2025 to June 30, 2025 were Rs. 75,000. Find the profits that the firm must have earned from the date of closing of last year's balance sheet till the date of death of B.

In the absence of any information regarding the acquisition of share in profit of the retiring partner by the remaining partners, it is assumed that they will acquire his/her share in .

The ratio in which the continuing partners have acquired the share from the deceased partner is known as .

At the time of retirement of a partner, accumulated Profits or Losses are available. To whom these accumulated profits or losses belong to?

Select the correct sequence of accounts prepared in case of death of a partner.
(A) Prepare the deceased partner's executor's account.
(B) Determine the gaining ratio and new profit sharing ratio among the remaining partners.
(C) Prepare the deceased partner's capital account.
(D) Prepare the Revaluation account, if required.
Choose the correct answer from the options given below:

From the following options, select the deductions to be made from the share of a partner at the time of his/her retirement.
(A) Debit balance of his current account
(B) Share of goodwill to be written off
(C) Share of accumulated losses
(D) Share of loss on revaluation of assets and liabilities
Choose the correct answer from the options given below:

At the time of death of a partner, balance of Investment Fluctuation Reserve after adjusting fall in investment value is treated as:

Under Section 37 of Indian Partnership Act, 1932, what is the right of outgoing partner if amount remains unpaid?

Ram, Manohar and Joshi were partners. Joshi died on 28 Feb 2018. His share of profit is calculated on average of 3 years profits. Find Joshi's share. Profits: 2015 = 8000, 2016 = 9000, 2017 = 10000

Ram, Manohar and Joshi were partners in a firm. Joshi died on 28th February, 2018. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death. Profits for 2015, 2016 and 2017 were Rs. 8,000, Rs. 9,000, and Rs. 10,000 respectively. Firm follows calendar year as accounting year. Calculate Joshi’s share of profit till his death.

Under Section 37 of the Indian Partnership Act, 1932, when the amount due to an outgoing partner remains wholly or partly unpaid and there is no agreement regarding payment of interest or share of profit, the outgoing partner or his legal representative is entitled to:

Rana, Sana and Kamana are partners, sharing profits in the ratio 4:3:2. Rana retires; Sana and Kamana decided to share profits in the future in the ratio of 5:3. The Gaining Ratio of Sana and Kamana will be -

The sum due to the retiring partner includes: (A) His share of profits up to the date of retirement.
(B) His share of goodwill.
(C) His share of accumulated profits.
(D) His share in the gain of revaluation of assets and liabilities.
Choose the correct answer from the options given below:

On retirement, the retiring partner’s capital account will be credited with:
(A) His/Her Capital Balance
(B) His/Her share of goodwill
(C) Share of goodwill of remaining partners
(D) his/her share of Reserve
(E) his/her drawings
Choose the correct answer from the options given below :

Identify the correct sequence to be followed at the time of Retirement of a Partner :
(A) New Balance Sheet after Retirement
(B) Transferring balance to Retiring partner’s Loan Account
(C) Calculation Gaining/Sacrificing Ratio
(D) Partners’ Capital Account
(E) Preparation of Revaluation Account
Choose the correct answer from the options given below :