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Death of A Partner 2

The document outlines various accounting scenarios related to the retirement and death of partners in a partnership. It includes journal entries for recording the retirement of partners, calculating new profit-sharing ratios, and preparing capital accounts for deceased partners. Specific examples and calculations are provided for each scenario, including goodwill valuation and distribution of reserves.

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108 views1 page

Death of A Partner 2

The document outlines various accounting scenarios related to the retirement and death of partners in a partnership. It includes journal entries for recording the retirement of partners, calculating new profit-sharing ratios, and preparing capital accounts for deceased partners. Specific examples and calculations are provided for each scenario, including goodwill valuation and distribution of reserves.

Uploaded by

anushka.ids19
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ACCOUNTANCY

CLASS – XII
Chapter – Death of a Partner

1. X, Y and Z are partners sharing profit in the ratio of 3:2:1. Y retires and on the
date of Y’s retirement. Goodwill already appears in the books at a value of
48,000. New ratio of X and Y is 3:2. Pass the necessary journal entries
2. Aman, Vikram and Sonu are partners sharing profits in the ratio of 4 : 3 : 1.
Vikram retires selling his share of profits to Aman & Sonu for Rs. 8,100; Rs.
3,600 paid by Aman and 4,500 paid by Sonu. Profit for the year after Vikram
retirement was Rs. 10,500.You are required:-
a. To give necessary journal entries to record the transfer of Vikram’s share to
Aman and Sonu.
b. To calculate new profit-sharing ratio

3. X, Y and Z were in a partnership sharing profits in the ratio of 5 : 3 : 2. X retires


and the balance in reserve at the time of retirement of X was 20,000. Pass the
necessary journal entry:-
a. Partner’s decide to distribute the entire reserve
b. Partner’s decide to distribute only the retiring partners share

4. A, B & C are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1,
their balance sheet on 31.12.17
Calculate:-

Liabilities Amount Assets Amount


Sundry creditors 40,000
Cash in hand 20,000
General Reserve 5,000
Debtors 25,000
Capital accounts
Stock 30,000
A 20,000
Furniture 10,000
B 40,000
Building 50,000
C 30,000 90,000
1,35,000 1,35,000
B died on 31 st march 2018 and as per partnership deed his executor were entitled
for

a. His capital as on the date of last balance sheet.


b. His share in general reserve.
c. His share of goodwill. The goodwill of the firm was valued at 48,000.
d. His share of accrued profit, calculated on the basis of last year’s profit. The
profit for the last year was Rs. 24,000
e. Interest on capital up to the date of death at 9% per annum.
f. Prepare B’s capital account.

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