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.

Karim, Saleem and Raheem were partners in a firm sharing profits and losses in the ratio of 3 : 4 : 3. The firm closes its books on 31st March every year. On 1-10-2019 Karim died. On Karim’s death the goodwill of the firm was valued at ₹ 3,50,000. Karim’s share in profits of the firm in the year of his death was to be calculated on the basis of average profits of last four years. The profits for the last four years were 2015-16 - 1,70,000; 2016-17 - 1,30,000; 2017-18 - 1,90,000; 2018-19 - 1,10,000. The total amount payable to Karim’s executors on his death was ₹ 7,35,000. It was paid on 15.10.2019.

Pass necessary journal entries for the above transactions in the books of the firm.

Iqbal and Kamal are in partnership sharing profits and losses in 3 : 2. Kamal died three months after the date of the last Balance Sheet. According to the Partnership Deed, his legal heir is entitled to the following:

1. His capital as per the last Balance Sheet.
2. Interest on above capital @ 3% p.a. till the date of death.
3. His share of profit till the date of death is calculated on the basis of last year’s profits.

His drawings are to bear interest at an average rate of 2% on the amount irrespective of the period.

The net profits for the last three years, after charging an insurance premium, were ₹ 20,000; ₹ 25,000 and ₹ 30,000, respectively. Kamal’s capital as per Balance Sheet was 40,000 and his drawings till the date of death were 5,000.

Draw Kamal’s Capital Account to be rendered to his representatives.

Chandni, Bhanu, and Garima were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. On 1st October, 2024, Chandni died. On that date, her capital account showed a credit balance of ₹ 3,00,000. On the date of Chandni’s death, the firm had a General Reserve of ₹ 60,000. The partnership deed provided that on the death of a partner, her representatives will be entitled to the following:

1. Balance in the Capital Account and interest on the same @ 10% p.a.
2. Her share in the goodwill of the firm. The goodwill of the firm on Chandni’s death was valued at 1,20,000.
3. Her share in the profits of the firm to be calculated on the basis of the previous year’s profit. The profit of the firm for the year ended 31st March 2024 was 4,50,000.

Prepare Chandni’s Capital Account to be presented to her executors.

A, B and C were partners in a firm. A died on 31st March, 2026 and the Balance Sheet of the firm on that date was as under:

On A’s death it was found that patents were of nil value, furniture was to be brought down to ₹ 24,000, plant was to be reduced by ₹ 10,000 and there was a liability of ₹ 7,000 on account of workmen’s compensation. Pass the necessary journal entries for the above at the time of A’s death.

Shirish, Harit and Asha were partners in a firm sharing profits in the ratio of 5 : 4 : 1. Shirish died on 30th June, 2025. On this date, their Balance Sheet was follows:

According to the Partnership Deed, in addition to the deceased partner’s capital, his executor is entitled to:

1. Share in profits in the year of death on the basis of average of last two years’ profit. Profit for the year 2023-24 was 60,000.
2. Goodwill of the firm was to be valued at 2 years’ purchase of average of last two years’ profits.

Prepare Shirish’s Capital Account to be presented to his executor.

Balance Sheet of Somesh, Rahul and Kamlesh, who were sharing profits in the ratio of 3 : 3 : 4 respectively as on 31st March, 2025 was as follows:

Somesh died on 31st July, 2025. The Partnership deed provided for the following on the death of a partner:

1. Goodwill of the firm be valued at two years’ purchase of average profit for the last three years which was 80,000.
2. Somesh’s share of profit till the date of his death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2025 was ₹ 8,00,000 and that from 1st April to 31st July, 2025 ₹ 3,00,000. Profit for the year ended 31st March, 2025 was ₹ 2,00,000.
3. Interest on capital is to be allowed, and interest on Drawings is to be charged @ 6% p.a, Drawings for the period were 36,000.

Prepare Somesh’s Capital Account to be rendered to his executor.

Trisha, Anisha and Rishika were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2025 was as follows:

Trisha died on 31st July, 2025. According to the partnership deed, the executors of the deceased partner were entitled to:

1. Balance in Partner’s Capital Account.
2. Salary @ 15,000 per quarter.
3. Share of goodwill calculated on the basis of twice the average of past three years’ profits.
4. Share of profits from the closure of the last accounting year till the date of death on the basis of last year’s profit. Profit for 2022-23, 2023-24 and 2024-25 were ₹ 1,00,000, ₹ 2,00,000 and ₹ 1,50,000 respectively.
5. Trisha withdrew 20,000 on 1st May, 2025, for her personal use.

Showing your working clearly, prepare Trisha’s Capital Account to be rendered to her executors.

Madhav, Raghav and Purav were partners in a firm sharing profits and losses in the ratio of 3 : 1 : 1. Their Balance Sheet as at 31^st March, 2023 was as follows:

Purav died on 30^th September, 2023. According to Partnership deed, his legal representatives are entitled to the following:

1. Balance in his Capital Account.
2. Share of profit upto the date of death to be calculated on the basis of last year's profit.
3. Share of goodwill calculated on the basis of three years' purchase of average profits of the last four years.
4. Interest on capital @ 12% p.a.

Purav's share of profit was ₹ 3,000 and the average profit of last four years were ₹ 50,000. Purav's drawings upto the date of death were ₹ 10,000.

Prepare Purav's Capital Account to be rendered to his legal representatives.

Karan, Prateek and Umang were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2025, their Balance Sheet was as follows:

Prateek died on 30th June, 2025. The Partnership Deed provided for the following on the death of a partner:

1. Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. Profits for the years ended 31st March, 2025, 31st March, 2024, 31st March, 2023, 31st March, 2022 and 31st March, 2021 were ₹ 3,20,000 (Loss); ₹ 1,00,000, ₹ 1,60,000; ₹ 2,20,000 and ₹ 4,40,000 respectively.
2. Prateek’s share of profit or loss from 1st April, 2025, till his death was to be calculated on the basis of the profit or loss for the year ended 31st March, 2025.

You are required to calculate the following:

1. Goodwill of the firm and Prateek’s share of goodwill at the time of his death.
2. Prateek’s share in the profit or loss of the firm till the date of his death.
3. Prepare Prateek’s Capital Account at the time of his death to be presented to his executors.

Ram, Mohan and Sohan were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2025, their Balance Sheet was:

Sohan died on 1st August, 2025. It was agreed that:

1. Goodwill of the firm is to be valued at 1,75,000.
2. Machinery be valued at ₹ 1,40,000; Patents at ₹ 40,000; Land at ₹ 1,50,000 on this date.
3. For the purpose of calculating Sohan’s share in the profits of the year of death, profits should be taken to have accrued on the same scale as in the previous year, which were 75,000.

Prepare Revaluation Account and Sohan’s Capital Account.

Ajay, Vijay and Sanjay were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Ajay died on 20th February, 2026. The balance sheet of the firm on that date was as follows:

According to the Partnership Deed, on the death of a partner, the executor of the deceased partner will be entitled to:

1. Balance in Capital Account.
2. His share in profit/loss on revaluation of assets and reassessment of liabilities which were as follows:
   1. Machinery is to be revalued at 45,000 and furniture at 7,000.
   2. A provision of 10% was to be created for Doubtful Debts.
3. The amount payable to Ajay was transferred to his Executors’ Loan Account which was to be paid later.

Prepare the Revaluation Account, Partners’ Capital Accounts, Ajay’s Executors’ Account and the Balance Sheet of Vijay and Sanjay who decided to continue the business, keeping their capital balances in their new profit-sharing ratio. Surplus or deficit was to be transferred to Current Accounts of the partners.

Ramesh, Suresh and Dinesh were partners sharing profits and losses in the ratio of 3 : 2 : 1. Dinesh died on 1st May, 2025 on which date the capitals of Ramesh, Suresh and Dinesh after all necessary adjustments stood at ₹ 1,20,000 ₹ 80,000 and ₹ 50,000 respectively. Ramesh and Suresh decide to carry on the business for 8 months without settling the account of Dinesh. During the period of 8 months ended 31st December, 2025, a profit of ₹ 40,000 is earned by the firm.

State which of the two options available with Dinesh’s Executor under Section 37 of the Indian Partnership Act, 1932, should be exercised.

Also calculate the total amount payable to Dinesh’s Executor if Ramesh and Suresh clear the dues of Dinesh on 31st December, 2025.

On retirement/death of a partner, the retiring/deceased partner's capital account will be credited with ______

Debit Balance of Profit & Loss A/c appearing in the Balance Sheet on the death of a partner is debited to ______.

Anita, Mitra and Param are partners. Param died on 28th December, 2025, and as per the Partnership Deed, financial statements as on 28th December, 2025 were prepared. Share of profit of Param was determined as ₹ 1,50,000. Which account will be debited to transfer Param’s share of profits?

Assertion (A): Deceased partner is entitled to his/her share in Workmen’s Compensation Reserve and is also liable to share Workmen Compensation Claim, if any.

Reason (R): Accumulated profits or losses belong to all the partners and are transferred to the capital accounts of all partners in their old profit-sharing ratio.

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

Ishan, Kabir and Rajveer are partners sharing profits in the ratio of 2 : 2 : 1. On 30th June, 2026, Rajveer died. Accounts are closed on 31st March every year. Sale for the year 2025-26 was ₹ 6,00,000, and the profit was 60,000. Sale for the period from April, 2026, to 30th June, 2026 was 2,00,000. The share of the deceased partner on the basis of sales will be ______.

P, Q and R are partners sharing profits and losses in the ratio of 5 : 3: 2. P died on 30th June, 2026. P’s share in the goodwill of the firm is calculated as half the amount credited to his account in the previous three years as profit. Profits for last 3 years were ₹ 50,000; ₹ 60,000; ₹ 70,000.

Journal entry for P’s share of goodwill will be:

P, Q and R were partners sharing profits in the ratio of 2 : 2 : 1. P died three months after the date of the Balance Sheet. On that date, Goodwill of the firm was valued at 90,000. According to the agreement, share of profit of a deceased partner in the year of death is to be calculated on the basis of the Average Profit of the last four years. The profits of last four years were:

Pass the necessary journal entries for the treatment of Goodwill and P’s share of profit on his death.

Girija, Yatin and Zubin were partners sharing profits in the ratio 5 : 3 : 2. Zubin died on 1st August, 2023. Amount due to Zubin’s executor after all adjustments was ₹ 90,300. The executor was paid ₹ 10,300 in cash immediately and the balance in two equal annual instalments with interest @ 6% p.a. starting from 31st March, 2025. Accounts are closed on 31st March each year.

Prepare Zubin’s Executor’s Account till he is finally paid.

Balance Sheet of Sudhir, Deepak and Manu as on 31st March, 2025 who were sharing profits in the ratio of 7 : 3 : 4 was as follows:

Manu died on 1st September, 2025. The partnership deed provided for the following on the death of a partner:

Goodwill of the firm was to be valued at two years’ purchase of average profit for the last three years which was ₹ 70,000.

Manu’s share of profit or loss till the date of his death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2025 amounted to ₹ 8,00,000 and that from 1st April to 1st September, 2025 to ₹ 4,00,000. Profit for the year ended 31st March, 2025 was ₹ 2,24,000.

Interest on capital was to be provided @ 8% p.a.

At the time of death, there was unrecorded furniture estimated value of which was ₹ 7,500, half of which was given in settlement of the unrecorded liability of ₹ 7,500 out of total unrecorded liability of ₹ 15,000 and the remaining half was given to Manu’s executors at a discount of 10% in part satisfaction of their claim.

Prepare Manu’s Capital Account and Manu’s Executors’ Account.