Question : Reserves, Accumulated (Undistributed) Profits And Losses will be 

Option 1: Distributed in remaining partner’s capital account

Option 2: Distributed among all partner’s capital account in old ratio

Option 3: Distributed among all partner’s capital account in New profit sharing ratio

Option 4: Distributed among old partners capital account in gaining ratio 

Question :

Accumulated losses on the retirement of a partner are

Option 1:

credited to all Partners’ Capital Accounts in old profit-sharing ratio.

Option 2:

debited to all Partners’ Capital Accounts in the old profit-sharing ratio.

Option 3: credited to remaining Partners’ Capital Accounts in new profit-sharing ratio.

Option 4: credited to remaining Partners’ Capital Accounts in gaining ratio.

Question : What happens to accumulated earnings and losses when a partner retires?

Option 1: Debited to all partner’s capital accounts in old ratio.

Option 2: Credited to all partner’s capital accounts in old ratio.

Option 3: Credited to remaining partner’s capital accounts in new ratio.

Option 4: Credited to remaining partner’s capital accounts in gaining ratio.

Question : Which of the following statements is incorrect?

Option 1: New Profit-sharing Ratio among remaining or continuing partners is same as their Old Profit-sharing Ratio.

Option 2: Gaining Ratio of remaining or continuing partners is same as their Old Profit-sharing Ratio.

Option 3: Gaining ratio is the ratio in which the remaining partners take the outgoing (retired or deceased) partner's share.

Option 4: None of the above

Question : Choose the correct Journal entry If the profit-sharing ratio of the remaining or continuing partners does not change in case of profit.

Option 1: Profit and Loss Suspense A/c ...Dr.

To Deceased Partner ‘s Capital A/c

Option 2: Deceased’s partner’s capital account Dr 

To profit and loss suspense account 

Option 3: Profit and loss appropriation account Dr 

To Deceased partner’s capital account

Option 4: Profit and l;oss  adjustment account Dr ]

      To deceased  partner’s capital account