TS Grewal solutions for अकाउन्टन्सी डबल एंट्री बुक कीपिंग वॉल्यूम १ एण्ड २ [अंग्रेजी] कक्षा १२ chapter 6 - Death of a Partner [Latest edition]

Profit share gained by each continuing partner on the death of a partner is ______.

Deceased Partner is entitled to ______.

Amount due from the deceased partner is transferred to ______.

Balance in the Deceased Partner’s Capital Account after adjustments is transferred to ______.

In the absence of information as to profit share of deceased partner being taken by the remaining partners, it is assumed that they take the profit share in ______.

A, B and C were partners sharing Profits & Losses in the ratio 7 : 2 : 1. B died. A took over `1/20` from his share and remaining share was taken over by C. Determine the new Profit sharing Ratio.

Vijay, Ajay and Sanjay are partners in a firm sharing profits and losses in the ratio of 7 : 5 : 8. Sanjay dies on 28th August, 2021. His share in the profits of the firm till the date of his death was determined at ₹ 75,000. It will be debited to which of the following accounts?

Aditya, Vishesh and Nimesh were partners in a firm sharing profits and losses equally. Aditya died on 1^st July, 2023. Remaining partners decided to continue the business of the firm and decided to share future profits in the ratio of 4 : 3. The gaining ratio of Vishesh and Nimesh will be ______.

Amit, Bhanu and Charu are partners. Charu died on 18th December, 2025 and as per the agreement, remaining partners Amit and Bhanu prepared the financial statements as on 18th December, 2025. The share of profit of Charu was determined as 1,00,000. Which of the following Journal entries will be passed?

Nicku, Mala and Ritu were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Nicku died on 30th September, 2023. The deceased partner was entitled to his share of profit up to the date of death, which was to be calculated on the basis of the previous year’s profit. The previous year’s profit was ₹ 80,000. Nicku’s share of profit will be ______.

A, B and C were partners, sharing profit in the ratio of 3 : 2 : 1. B died on 30th June, 2025. Profit share of the deceased partner from the beginning of the financial year was to be estimated based on sales up to the date of death and profit of the previous year. Net Profit earned in the previous year was 20% of net sales. Net sales for the period of three months ended 30th June, 2025 were 6,00,000. The profit share of B will be ______.

X, Y and Z were partners sharing profits in the ratio of 2 : 2 : 1. Y died on 30th June, 2025, and the profit for the accounting year ended 31st March, 2025 was 3,60,000. If profit share of deceased partner is to be calculated based on previous year’s profit, amount of profit credited to Y’s Capital Account will be ______.

Sharma, Verma and Khan were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm closes its books on 31st March every year. On 31st December, 2024, Khan died. Khan’s share in the profits of the firm till the date of his death was to be calculated on the basis of the profit of the previous year. During the year ended 31st March, 2024, the firm earned a profit of ₹ 6,00,000. The treatment for Khan’s share in the profits of the firm till the date of his death will be ______.

Which of the following statement is correct?

On death of a partner, his share of loss in the firm till the date of his death is transferred to the ______.

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1. B died. At that time, the goodwill of the firm was valued at 30,000. What contribution has to be made by A and C in order to pay B’s Executor?

Lisa, Monika and Nisha are partners in a firm, sharing profits in the ratio of 2 : 2 : 1. Their Capital Accounts were ₹ 50,000, ₹ 50,000 and ₹ 25,000 respectively. Monika died, and the balance in the reserve on that date was 15,000. If the goodwill of the firm is 30,000 and the profit on revaluation is ₹ 7,050, what amount will be transferred to Monika’s Executor’s Account?

Loan by the deceased partner to the firm is transferred to ______.

According to the Indian Partnership Act, 1932, interest payable on the amount due to the deceased partner is ______.

A, B and C were partners, sharing profits and losses equally. B died on 31 August 2023, and the total amount transferred to B’s executors was ₹ 13,20,000. B’s executors were being paid ₹ 1,20,000 immediately, and the balance was to be paid in four equal semi-annual installments together with interest @ 10% p.a. Total amount of interest to be credited to B’s executors account for the year ended March 31, 2024, will be?

Assertion (A): Death of partner means partnership comes to an end and new partnership comes into effect.

Reason (R): Death of a partner normally results in reconstitution of the partnership and the firm continues.

In the context of the above two statements, which option is correct?

Assertion (A): Deceased partner will get share in firm’s goodwill on death from the Gaining Partners.

Reason (R): Deceased partners is entitled to share in firm’s goodwill since his profit share is taken by all or some of the Continuing partners.

In the context of the above two statements, which option is correct?

Assertion (A): At the time of death of a partner, the deceased partner will not get share in General Reserve and credit balance in Profit & Loss Account, if the Partnership Deed does not provide so.

Reason (R): Deceased partner will get his share of Workmen Compensation Reserve remaining after claim, if any.

In the context of the above two statements, which of the above options is correct?

Assertion (A): Gain (Profit) or Loss on revaluation of assets and reassessment of liabilities is transferred to the Capital Accounts of all the partners, including that of the Deceased Partner.

Reason (R): Gain (profit) or loss due to change in values of assets and liabilities is for the period before the death of the partner.

In the context of the above two statements, which option is correct?

Assertion (A): Unrecorded assets and liabilities are not accounted for at the time of death of a partner.

Reason (R): Unrecorded assets and liabilities are recorded in the books at the time of death of a partner because they came into existence when all the partners, including the deceased partner, were partners in the firm.

In the context of the above two statements, which option is correct?

Assertion (A): In the absence of Partnership Deed or Agreement, interest on amount due to Deceased Partner is paid @ 6% p.a. on the outstanding amount.

Reason (R): Unpaid amount is not a loan to the firm. Thus, interest is not payable in the absence of an agreement.

In the context of the above two statements, which option is correct?

X, Y and Z are partners sharing profits in the ratio of 2 : 2 : 1. Z died on 18th December, 2025 and as per agreement, surviving partners X and Y got the financial statements prepared as on 18th December, 2025. The share of loss of Z (deceased partner) was determined as ₹ 2,00,000. Which of the following Journal entries will be passed?

Which of the following Journal entries will be passed for the deceased partner’s share in profit from the date of the last Balance Sheet till the date of death calculated based on the net profit of the previous year, if their profit-sharing ratio do not change:

Shiv, Mohan and Hari are partners sharing profits in the ratio of 3 : 2 : 1. Shiv died on 30th September, 2025. His share of profit up to his date of death is to be calculated on the basis of sales till the date of death. Sales for the year ended 31st March, 2025 was 3,00,000 and profit for the same year was 22% on sales. Sales show a growth trend of 30% and percentage of profit earning is reduced by 2%. The share of profit credited to Shiv will be ______.

A, B and C were partners sharing profits in the ratio of 2 : 2 : 1. C died. The amount due to C was calculated as 50,000 up to the date of death, without considering the following:

Unrecorded assets 12,000 and Unrecorded Liabilities 2,000.

What is the amount due to C’s Executors?

Assertion (A): On the death of a partner, the profit-sharing ratio among the remaining (continuing) partners always changes if the firm continues.

Reason (R): Unless otherwise agreed, the deceased partner’s profit share is taken by the continuing partners in their old profit-sharing ratio.

Choose the correct alternative from the following:

Kavya, Manya and Navita were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The profit of the firm ending on 31st March, 2025 was 1,80,000. Navita dies on 30th June, 2025. As per the agreement, her share of profit from the last Balance Sheet date till the date of death will be calculated on the basis of last year’s profit. Determine the missing values in the following Journal entry:

Lisa, Monika and Nisha were partners sharing profits in the ratio of 4 : 3 : 1. Monika died on 30th April, 2025. On Monika’s death, the goodwill of the firm is valued at 60,000. Monika’s share is taken up by Lisa and Nisha equally. Determine the missing values in the following Journal entry:

A, B and C used to work in a call centre on the night shift, where they became friends. After completing their graduations through correspondence, they decided to quit their jobs and start their own business. They opened a Readers’ Café in a famous mall. They were earning well. On 30th June, 2025, fire broke out in the kitchen of Café and B met with an accident and lost his life. Their previous year’s Balance sheet of the firm as at 31st March, 2025 is as follows:

According to the Partnership Deed, in addition to the Deceased Partner’s Capital, the executors are entitled to the following:

(i) Goodwill is to be valued at 3 years’ purchase of the average profit of the last five years ended 31st March, which were:

2021 = ₹ 50,000,

2022 = ₹ 40,000

2023 = ₹ 80,000

2024 = ₹ 90,000

(ii) B’s share of goodwill be adjusted against the capital accounts of continuing partners A and C, who have decided to share future profits in the ratio of 5 : 3.

(iii) Cooking Utensils were found undervalued by 20%; Ovens were revalued at 90% and Inventories at ₹ 35,000.

(iv) A liability on account of workmen’s compensation is determined at 1,08,000.

(v) B’s share of profit or loss up to the date of death on the basis of average profits of the last two years.

Based on the above information, answer the following questions:

A. Gaining the ratio of A and C would be ______.

1. 1 : 1
2. 5 : 3
3. 7 : 1
4. 3 : 2

B. B’s share in gain (profit)/loss on revaluation of assets and reassessment of liabilities would be ______.

1. ₹ 36,000 (Gain).
2. ₹ 30,000 (Gain).
3. ₹ 10,000 (Gain).
4. ₹ 12,000 (Gain).

C. B’s share of Goodwill would be ______.

1. ₹ 1,30,800.
2. ₹ 43,600.
3. ₹ 72,000.
4. ₹ 24,000.

D. Entry for adjusting B’s share of profit or loss till the date of death would be:

1. 
   

   A’s Capital A/c   ...Dr.	₹ 38,150	-
   C’s Capital A/c   ...Dr.	₹ 5,450	-
   To B’s Capital A/c	-	₹ 43,600

2.  

   A’s Capital A/c   ...Dr.	₹ 1,750	-
   C’s Capital A/c   ...Dr.	₹ 250	-
   To B’s Capital A/c	-	₹ 2,000

3. 
   

   A’s Capital A/c   ...Dr.	₹ 21,000	-
   C’s Capital A/c   ...Dr.	₹ 3,000	-
   To B’s Capital A/c	-	₹ 24,000

4. 
   

   Profit & Loss Suspense A/c   ...Dr.	₹ 2,000	-
   To B’s Capital A/c	-	₹ 2,000

E. Amount transferred to B’s executor’s account will be ______.

1. ₹ 2,47,600.
2. ₹ 2,61,600.
3. ₹ 2,59,600.
4. ₹ 2,45,600.

Ajay, Vijay and Saurav were partners sharing profits in the ratio of `1/2, 2/5 and 1/10`. Find the new profit-sharing ratio of the remaining partners if Saurav dies.

Keshav, Nirmal and Pankaj are partners sharing profits in the ratio of 5 : 3 : 2. Pankaj died and his share is taken by Keshav.

Calculate New Profit-sharing Ratio of Keshav and Nirmal.

From the following particulars, calculate New Profit-sharing Ratio of the partners:

1. Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan died and his share was taken equally by Shiv and Hari.
2. P, Q and R were partners sharing profits in the ratio of 5 : 4 : 1. P died.

Gini, Bini and Mini were partners sharing profits in the ratio of 4 : 3 : 2. Gini died. Bini and Mini will share profits in the ratio of 2 : 1. Determine the Gaining Ratio.

W, X, Y and Z are partners sharing profits and losses in the ratio of `1/3, 1/6, 1/3 and 1/6` respectively. Y died, and W, X and Z decide to share the profits and losses equally in the future.

Calculate the Gaining Ratio.

A, B and C are partners sharing profits and losses in the ratio of 4 : 3 : 2. C died. A takes `4/9` of C’s share and balance is taken by В.

Calculate the New Profit-sharing Ratio and Gaining Ratio.

X, Y and Z were partners in a firm sharing profit in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. Y died on 30th June, 2026. On Y’s death, goodwill of the firm was valued at ₹ 60,000. Y’s share in the profit of the firm till the date of his death was to be calculated on the basis of previous year’s profit, which was 1,50,000.

Pass necessary journal entries for goodwill and Y’s share of profit at the time of his death.

Adil, Bunty and Cris are in partnership, sharing profits `4/8, 3/8 and 1/8` respectively. It is provided in the Partnership Deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profit credited to his account during the last four completed years.

Bunty died on 1st April, 2026. The firm’s profits for the last four years ended 31st March, were as: 2023-1,20,000; 2024-80,000; 2025-40,000; 2026-80,000.

1. Determine the amount that should be credited to Bunty in respect of his share of Goodwill.
2. Pass Journal entry for adjustment of Goodwill.

P, Q and R were partners in a firm sharing profits in the ratio of 3 : 2 : 1. P died and the new profit-sharing ratio of Q and R was agreed to be equal. On P’s death, goodwill of the firm was valued at 60,000:

Pass the necessary entries for the treatment of goodwill under the following conditions:

1. When Goodwill does not exist in the books of account; and
2. When Goodwill exists in the books of account at 30,000.

Note: Q’s Gain = `1/2 - 2/6 = 1/6`; R’s Gain = `1/2 - 1/6 = 2/6` and Gaining Ratio = 1 : 2.

Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3 : 2 : 1. Navita died on 30th June, 2025. Her share of profit for the intervening period was based on the sales during that period, which were ₹ 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year.

Calculate Navita’s share of profit.

Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2025. 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 financial years of profits before death. Profits for the years ended 31st March, 2023, 2024 and 2025 were 1,10,000; 1,20,000 and 1,30,000 respectively.

Calculate Hari’s share of profit till the date of his death and pass the necessary journal entry for the same.

Juhi, Riya and Pari are partners sharing profits and losses in the ratio of 3 : 2 : 1. Riya died on 30th June, 2024. For the year ended 31st March, 2025, a proportionate profit of 2024 is to be taken into consideration. During the year ended 31st March, 2025, bad debts of 2,000 had to be adjusted. Profit for the year ended 31st March, 2024, was 14,000 before adjustment of bad debts.

Calculate Riya’s share of profit till the date of her death.

Anil, Sunil and Hari were partners sharing profits equally. Sunil died on 31st December, 2025. In terms of the partnership deed, accounts were prepared for the period ended 31st December, 2025 and net profit was determined at 6,00,000.

Pass the Journal entry for the profit share of the partners.

A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 25th February, 2019, B died. B’s share of profit till the date of his death was calculated at 5,000.

Pass the necessary journal entry for the same in the books of the firm.

X, Y and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2025. Profit from 1st April, 2025 to 30th June, 2018 was ₹ 3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2 with effect  from 1st July, 2025.

Pass the necessary journal entries to record Y’s share of profit up to the date of death.

Radha, Tina and Reeta were partners sharing profits equally. Reeta died on 31st July, 2025. Radha and Tina decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit, which was ₹ 4,50,000. Pass the necessary journal entry to record. Reeta’s share of profit/loss up to the date of death.

Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2 : 2 : 1. Manoj died on 30th June, 2025. Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit. Last year’s loss was 2,00,000.

Pass the necessary journal entry to record Manoj’s share of profit/loss up to the date of death.

A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. B died on 30th June, 2025. On his death, Goodwill of the firm was valued at ₹ 6,00,000. B’s share in profit or loss till the date of death was to be calculated on the basis of previous year’s profit which was ₹ 15,00,000 (loss).

Pass necessary journal entries for goodwill and his share of loss.

X, Y and Z were partners in a firm Z died on 31st May, 2025. 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 the years ended 31st March, 2023, 2024 and 2025 were ₹18,000 ₹ 19,000 and ₹ 17,000 respectively.

Calculate Z’s share of profit till his death and pass necessary Journal entry for the same when:

1. Profit-sharing ratio of the remaining partners does not change, and
2. Profit-sharing ratio of the remaining partners changes, and new ratio being 3 : 2.

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. C died on 30th June, 2025. Profit and Sales for the year ended 31st March, 2025 were ₹ 1,00,000 and ₹ 10,00,000 respectively. Sales during April to June, 2025 were 1,50,000.

You are required to calculate share of profit of C till the date of his death.

Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2 : 2 : 1. On 1st July, 2025, Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2024-25 ₹ 5,00,000 and that from 1st April to 30th June, 2025, were ₹ 1,40,000. Rate of profit during the past three years had been 10% on sales. Since Shreya’s legal representative was her only son, who is differently abled, it was decided that the profit for the purpose of settling Shreya’s account is to be calculated as 20% on sales.

Calculate Shreya’s share of profits till the date of her death and pass the necessary journal entry for the same.

Raman, Param and Karan were partners sharing profits and losses in the ratio of 3 : 2 : 1. Param died on 31st December, 2025. Accounts of the firm are closed on 31st March every year. Sales for the year ended 31st March, 2025 was 12,00,000 and sales for the nine months ended 31st December, 2025, were 6,00,000. Loss for the year ended 31st March, 2025, was 90,000.

Calculate the deceased partner’s share of profit/loss from the beginning of the accounting year up to 31st December, 2025.

Akhil, Bikram and Charu were partners sharing profits and losses in the ratio of 3 : 2 : 1. Bikram died on 30th September, 2025. Loss from the beginning of the accounting year till the date of death was estimated at 3,60,000. Akhil and Charu decided to share future profits in the ratio of 3 : 2 w.e.f. 1st October, 2025.

Pass the necessary journal entry to record Bikram’s share of profit/loss up to the date of death.

Abha, Beena and Chanda were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Abha died on 1st July, 2025. The Partnership Deed provided that Abha’s executors are entitled to her share of profit till the date of death calculated on the basis of sales for the immediate previous year. Sales for the year ended 31st March, 2025 was 12,00,000 and the profit for the same year was ₹ 3,00,000. Sales show a growth trend of 20%, and the percentage of profit earning remains the same.

Journalise the transaction along with working notes.

X, Y, and Z were partners in a firm sharing profits in the ratio of 4 : 3 : 1. The firm closes its books on 31st March every year. On 1st February, 2026, Y died, and it was decided that the new profit-sharing ratio between X and Z will be equal. The Partnership Deed provided for the following on the death of a partner:
(a) His share of goodwill be calculated on the basis of half of the profits credited to his account during the previous four completed years. The firm’s profits for the last four years were:

(b) His share of profit in the year of his death was to be computed on the basis of the average profit of the past two years.

Pass necessary journal entries relating to goodwill and profit to be transferred to Y’s capital account.