D. K. Goel solutions for Accountancy Part A Volume 1 and 2 [English] Class 12 chapter 4 - Retirement or Death of a Partner [Latest edition]

On the basis of above information, answer the following question:

In respect of goodwill, A's Capital Account will be:

On the basis of above information, answer the following question:

Net amount paid to B will be:

On the basis of above information, answer the following question:

In the above case, Interest on Partner's Capital:

On the basis of above information, answer the following question:

Interest on Capital allowed to partner's will be:

You are required to answer the following questions:

In respect of goodwill:

You are required to answer the following questions:

In respect of Workmen Compensation Reserve:

You are required to answer the following questions:

In respect of Investments:

You are required to answer the following questions:

Advertisement Suspense Account: 

You are required to give answer to the following question:

In respect of goodwill: 

You are required to give answer to the following question:

In respect of B’s share of profit:

You are required to give answer to the following question:

On death of a partner, the amount due to him will be transferred to:

You are required to give answer to the following question:

Choose the odd one:

A, B and C are partners sharing profits in the ratio of 6 : 5 : 4. Calculate new profit sharing ratios if A retires.

A, B, C and D are partners sharing profits in the ratio of 5 : 3 : 1 : 2. Calculate the new profit sharing ratio if B and C retire from the firm.

X, Y and Z are partners sharing profits in the ratio of `2/3 : 1/4: 1/12`. Calculate the new ratio if X retires.

L, M and O were partners in a firm sharing profits in the ratio of 3 : 2 : 2. M retired and his share was divided equally between L and O. Calculate the new profit sharing ratio of L and O.

A, B and C are partners sharing profits in the ratio of 4 : 3 : 2. B retires and his share was taken up by A and C in the ratio of 3 : 2. Find out the new ratio.

A, B and C are partners sharing profits in the ratio of 4 : 3 : 1. A retires and his share is taken over by B and C equally. Calculate the new ratio.

A, B and C are partners sharing profits in the ratio of 1/2 : 1/3 : 1/6. B retires and his share is taken by A and C in the ratio of 5 : 3. Calculate the new ratio.

X; Y and Z are partners sharing in the ratio of 2 : 2 : 1. Y retires and his share is entirely taken by Z. Calculate the new ratio.

Aman, Naman and Neel were partners in a firm sharing profits in the ratio of 1 : 2 : 1. Neel retires and he surrender `2/3`rd of his share in favour of Aman and the remaining share in favour of Naman.

Calculate the new profit sharing ratio of Aman and Naman.

P, Q, R and S were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 2 : 1. On 31st March, 2022, P retired from the firm. P's share was taken over by Q, R and S in the ratio of 1 : 2 : 3. Calculate the new profit sharing ratio of Q, R, and S.

P, Q and R are in partnership sharing profits and losses as 1/2, 2/6 and 1/6 respectively. R retires and his share is taken by P and Q in the ratio of 2 : 1. Immediately, Sis admitted for 1/4th share of profit, 1/3rd of which was given by P and the remaining share was taken equally from P and Q. Calculate new profit-sharing ratio after S's admission.

A, B and C were partners sharing profits in the ratio of 7 : 5 : 3. Find out the gaining ratio and new ratios when A retires.

X, Y and Z share profits in the ratio of 1/2, 3/10, 1/5. Calculate the gaining ratio and new ratios when X dies.

X, Y and Z share profits in the ratio of 1/2, 3/10, 1/5. Calculate the gaining ratio and new ratios when Z dies.

P, Q, R and S were partners sharing profits in the ratio of 5 : 4 : 3 : 1. P and S retire from the firm. Calculate the gaining ratio and new profit sharing ratio of Q and R.

On 1st April, 2022 Ashish, Namish and Aman were partners sharing profits and losses in the ratio of 2/5, 2/5 and 1/5 respectively. On this date Namish retires. The new profit sharing ratio of Ashish and Aman will be 3/4 and 1/4 respectively. Calculate gaining ratio.

On 1st April, 2022 A, B and C were partners sharing profits and losses in the ratio of A 5/10, B 3/10 and C 2/10 respectively. On this date B retires. The new profit sharing ratio of A and C will be A 3/5 and C 2/5. Calculate gaining ratio.

A, B and C are partners sharing profits in the ratio of 1/2 : 1/3 : 1/6. C retires and A and B decide to share future profits equally. Calculate the gaining ratio.

A, B, C and D are partners sharing profits in the ratio of 5 : 4 : 3 : 2. A retires and B, C and D decide to share the profits and losses equally in future. Calculate the gaining ratio.

Rekha, Ruchi and Suruchi are partners. Ruchi retires. Calculate new ratio if continuing partners acquired her share in the ratio of 2 : 3. Also mention the gaining ratio.

X, Y and Z are partners sharing profit in the ratio of 1/9 : 1/3 and 5/9. Z retires and surrenders 3/4th of this share in favour of X and remaining in favour of Y. Calculate new ratio and gaining ratio.

P, Q, R and S were partners sharing profits in the ratio of 2 : 3 : 5 : 2. S retires and his share is acquired by Q and R in the ratio of 3 : 2. Calculate new ratio and gaining ratio.

A and B were partners sharing profits in the ratio of 5 : 3. On 1st April, 2021 they admitted C as a new partner for 1/4th share which he acquired from A and B in the ratio of 3 : 2. On 1st April 2022, another new partners D was admitted for 1/6th share which he acquires 1/10 from A and 1/15 from C. On 1st April, 2023 A dies and his share was taken over by B, C and D equally.

Calculate:

1. New profit sharing ratio of A, B and C on C's admission.
2. New profit sharing ratio of A, B, C and D on D’s admission.
3. New profit sharing ratio of B, C and D on A's Death.

X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 3. X retires from the firm and it is decided that new profit sharing ratio between Y and Z will be same as existing between X and Y. Calculate new ratio and gaining ratio.

L, M and N are three partners sharing profits in the ratio of 4 : 3 : 2 respectively. M retires and the goodwill is valued at ₹ 1,08,000. No goodwill account appears as yet in the books of the firm. L and N will share profits in future in the ratio of 5 : 3 respectively. Pass Journal Entry for goodwill.

Ashok, Rakesh and Mukesh were partners sharing profits and losses in the ratio of 2 : 2 : 1. On 1st April, 2023, their goodwill was valued at ₹ 3,00,000 : there being no account for it in the books. On this date Rakesh retired. Pass the Journal Entry to record goodwill.

A, B and C are sharing profits in the ratio of 4 : 3 : 2. Goodwill is appearing in the books at a value of ₹ 42,000. C retires and on the day of C’s retirement Goodwill is valued at ₹ 63,000. Pass the necessary journal entries.

P, Q and R are equal partners. Goodwill is appearing in their books at ₹ 4,00,000. R retires and on the day of R's retirement Goodwill is valued at ₹ 2,50,000. Pass the necessary journal entries.

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1. C decided to retire and on this date goodwill of the firm is valued at ₹ 2,00,000. Pass entries when goodwill account is already appearing in the books at ₹ 1,50,000.

P, R and S are in partnership sharing profits 4/8, 3/8 and 1/8 respectively. It is provided under the partnership deed that on the death of any partner his share of goodwill is to be valued at one-half of the net profits credited to his account during the last 4 completed years (books of accounts are closed on 31st March).

R died on 1st April, 2022. The firm’s profits for the last 4 years ending 31st March each year were as follows: 2019 Profits ₹ 1,20,000; 2020 Profits ₹ 60,000; 2021 Losses ₹ 20,000 and 2022 Profits ₹ 80,000.

1. Determine the amount that should be credited to R in respect of his share of goodwill.
2. Pass a journal entry without raising goodwill account for its adjustment assuming that profit sharing ratio between P and S in future will be 3 : 2. Show your working clearly.

A, B, C and D are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 : 1. A and C decided to retire from the firm. The goodwill of the firm was valued at ₹ 90,000. B and D decided to share future profits in the ratio of 5 : 3. Pass necessary journal entry for the treatment of goodwill.

Arjun, Bhim and Nakul are partners sharing profits & losses in the ratio of 14 : 5 : 6 respectively. Bhim retires and surrenders his 5/25^th share in favour of Arjun. The goodwill of the firm is valued at 2 years purchase of super profits based on average profits of last 3 years. The profits for the last 3 years are Rs 50,000, Rs 55,000 & Rs 60,000 respectively. The normal profits for the similar firm are Rs 30,000. Goodwill already appears in the books of the firm at Rs 75,000. The profit for the first year after Bhim's retirement was Rs 1,00,000. Give the necessary Journal Entries to adjust Goodwill and distribute profits showing your workings.

A, B and C were partners sharing profits in the ratio of 6 : 4 : 5. Their capitals were A – ₹ 1,00,000, B – ₹ 80,000 and C – ₹ 60,000. On 1st April 2023, B retired from the firm and the new profit sharing ratio between A and C was decided as 11 : 4. On B's retirement the goodwill of the firm was valued at ₹ 1,80,000. Showing your calculations clearly pass necessary journal entry for the treatment of goodwill on B's retirement.

X, Y and Z were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Z retired and the new profit sharing ratio between X and Y was 1 : 2. On Z's retirement the goodwill of the firm was valued at ₹ 30,000. Pass necessary journal entry for the treatment of goodwill on Z's retirement.

A, B, C and D are partners sharing profits in the ratio of 5 : 3 : 3 : 1. On the retirement of C, goodwill was valued at ₹ 3,60,000. C’s share of goodwill will be adjusted into the Capital accounts of A, B and D. Pass necessary entry for the treatment of goodwill when new profit sharing ratio is decided at 9 : 2 : 1.

A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 1. On the retirement of B, Goodwill was valued at ₹ 3,00,000. A, C and D decide to continue the firm sharing profits equally. Pass entries.

X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Y retires selling his share to X and Z for 1,60,000, 1,00,000 being paid by X and ₹ 60,000 by Z. The profit for the year after Y’s retirement is ₹ 2,40,000.

Pass entries to (a) record the sale of Y’s share to X and Z, and (b) distribute the profit between X and Z.

A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2. Following was their Balance Sheet as at 31st March, 2023.

A retires on this date and the following adjustments were agreed upon:

1. Bad Debts amounting to ₹ 10,000 were to be written off and provision for doubtful debts be maintained at existing rate.
2. An unrecorded creditor of ₹ 20,000 will be taken into account.
3. Provision is to be made for legal damages amounting to ₹ 25,000.
4. There is a liability for ₹ 15,000 for outstanding salaries.
5. Sundry creditors be reduced by ₹ 8,000 being a liability not payable.
6. Stock be increased by ₹ 15,000 and Plant is to be reduced to ₹ 1,80,000.

Pass journal entries to give effect to above adjustments and prepare Revaluation Account.

A, B, C and D are partners sharing profits in the ratio of 1 : 2 : 3 : 4. D retires and his share is taken up by A and B equally. Goodwill was valued at 3 year's purchase of average profits which were ₹ 20,000. General Reserve showed a balance of ₹ 65,000 at the time of D's retirement.

You are required to record necessary journal entries to record the above adjustments on D's retirement. You are also required to prepare his capital account to find out the amount due to him when his capital balance in the balance sheet was ₹ 1,50,000 before any adjustment. Also calculate the new profit sharing ratios.

A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 2. C retires and the remaining partners decided to share future profits in 5 : 3 : 2. On the date of C’s retirement there was a debit balance of ₹ 30,800 in the profit and loss account. Show the necessary journal entry for the treatment of profit and loss account balance.

A, B and C are partners sharing profits and losses in the ratio of 2 : 2 : 1. A retires and the new ratio between B and C is agreed at 3 : 2. Give journal entries on A's retirement in the following case:

Investment Fluctuation Reserve appears in the books at ₹ 40,000, when Investments (market value ₹ 1,00,000) appear at ₹ 85,000.

A, B and C are partners sharing profits in the ratio of 3 : 2 : 1. C retires and new profit sharing ratio is agreed at 3 : 1. They also decided to record the effect of the following without affecting their book values:

You are required to pass the necessary single adjusting entry.

Rohan, Riya and Priya were partners in a firm with profit sharing ratio of 4 : 2: 1. Priya retired on 1st September, 2024. On that day, the capitals of Rohan and Riya after all adjustments were ₹ 10,50,000 and ₹ 5,50,000 respectively. Total amount payable to Priya was ₹ 4,00,000 which was not paid to her until 31st March, 2025.

The Firm earned a profit of ₹ 50,000 during the period of 7 months ended on 31st March, 2025. Priya wants to exercise provisions of Section 37 of Indian Partnership Act. 1932.

Which of the two options available under Section 37 should be opted by Priya, if amount due to her was paid on 31st March, 2025?

X, Y and Z are partners in a firm sharing profits and losses equally. The balance sheet of the firm as at 31st March, 2023 stood as follows:

Z retires on 1st April, 2023 subject to the following adjustments:

1. Freehold Property be valued at ₹ 5,80,000.
2. Investments be valued at ₹ 47,000; and stocks be valued at ₹ 94,000;
3. A provision of 5% be made for doubtful debts.
4. Trade Marks are valueless.
5. An item of ₹ 12,000 included in creditors is not likely to be claimed.
6. Goodwill be valued at one year's purchase of the average profit of the past three years. Profits ending 31st March were 2021 ₹ 1,20,000; 2022 ₹ 1,00,000 and 2023 ₹ 95,000.

Pass journal entries, give capital accounts and the balance sheet of the remaining partners.

P, Q and R were partners in a firm sharing profits in the ratio of 2 : 3 : 5. On 31-3-2024 their Balance Sheet was as follows:

On the above date R retired from the firm due to his illness on the following terms:

1. Building was to be depreciated by ₹ 40,000.
2. Provision for doubtful debts was to be maintained at 20% on debtors.
3. Salary outstanding ₹ 5000 was to be recorded and creditors ₹ 4,000 will not be claimed.
4. Goodwill of the firm was valued at ₹ 72 000.
5. R was to be paid ₹ 15,000 in cash, through bank and the balance was to be transferred to his loan account.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of P and Q after R’s retirement.

Manoj, Naveen and Deepak were partners sharing profits and losses in the ratio of 4 : 3 : 2. As at 1st April, 2022, their Balance Sheet was as follows:

Deepak retired on the above date as per the following terms:

1. Goodwill of the firm was valued at ₹ 21,000.
2. Stock to be appreciated by 10%.
3. Provision for doubtful debts should be 5% on debtors.
4. Machinery is to be valued at 5% more than its book value.
5. Motor Car is revalued at ₹ 15,500. Retiring partner took over Motor Car at this value.
6. Deepak be paid ₹ 2,000 in cash and balance be transferred to his loan account.

Show necessary journal entries. Prepare Revaluation Account, Capital Accounts and Opening Balance Sheet of continuing partners.

On the above date, Sameer retired and it was agreed that:

1. Debtors of 4,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
2. An unrecorded creditor of 20,000 will be recorded.
3. Patents will be completely written off and 5% depreciation will be charged on stock, machinery and building.
4. Yasmin and Saloni will share future profits in the ratio of 3 : 2.
5. Goodwill of the firm on Sameer’s retirement was valued at ₹ 5,40,000.

Pass necessary journal entries for the above transactions in the books of the firm on Sameer’s retirement.

Following is the Balance Sheet of X, Y and Z as at 31st March, 2022. They shared profits in the ratio of 3 : 3 : 2. 

On 1st April, 2022, Y decided to retire from the firm on the following terms:

1. Stock to be reduced by ₹ 12,000.
2. Advertisement Suspense Account to be written off. 
3. Provision for Doubtful Debts to be increased to ₹ 6,000.
4. Fixed Assets be appreciated by 10%.
5. Goodwill of the firm, valued at ₹ 80,000 and the amount due to the retiring partners be adjusted in X’s and Z’s Capital Accounts.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet to give effect to the above.

A, B and C are in partnership sharing profits in the ratio of 3 : 2 : 1. On 28th February, 2023 C retires from the firm. Their Balance Sheet as at that date was as follows:

The following was agreed upon:

1. Goodwill of the firm is valued at ₹ 1,50,000. C sells his share of goodwill to A and B in the ratio of 4 : 1.
2. Stock is revalued at 3,00,000 and debtors are revalued at ₹ 1,50,000.
3. Outstanding expenses be brought down to 3,000.
4. Investments are sold at a loss of 10%.
5. C is paid off in full.

Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the new firm.

On 31st March, 2022 the Balance Sheet of M/s A, B and C sharing profits and losses in proportion to their fixed capitals stood as follows:

On 1st April, 2022, B wants to retire from the firm and remaining partners decide to carry on. The following re-adjustments of assets and liabilities have been agreed upon before the ascertainment of the amount payable to B:

1. that, out of the Fire Insurance Premium paid during 2021-22, ₹ 10,000 be carried forward as unexpired.
2. that the land and buildings be appreciated by 10%.
3. that provision for doubtful debts be brought upto 5% on debtors.
4. that the machinery be depreciated by 5%.
5. that a provision for ₹ 15,000 be made in respect of an outstanding bill for repairs.
6. that the goodwill of the entire firm be at ₹ 1,80,000 and B's share of the same adjusted in the A/cs of A and C who share future profits in the proportion of 3/4th and 1/4th respectively; and
7. that B be paid ₹ 50,000 in cash and the balance be transferred to his Loan A/c.

Prepare Revaluation A/c, Partner's Current Accounts, Capital Accounts and the Balance Sheet of the firm of A and C.

Piu and Nina are partners in a firm sharing profits and losses in the ratio of 3 : 1 respectively.

Nina retires and her claim, including her capital and entitlements from the firm including her share of goodwill of the firm, is ₹ 60,000.

After this amount was determined, it was found that there was some unrecorded office equipment valued at ₹ 18,000 which had to be recorded.

Upon recording this office equipment, the revised amount due to Nina was determined and Piu settled it by giving Nina this office equipment and for the balance she drew a promissory note.

You are required to give the necessary journal entries to record the transactions on the date of Nina's retirement.

P, Q and R are partners in a firm. Q retires and his claim including his capital and his share of goodwill is ₹ 8,00,000. There was an unrecorded furniture valued at ₹ 60,000, three-fourth of which was given to an unrecorded creditor of ₹ 1,00,000 in settlement of his claim of ₹ 70,000 and remaining one-fourth was given to Q at ₹ 12,000 in part settlement of his claim. Balance of Q's claim was discharged by cheque.

Pass necessary Journal entries.

The Balance Sheet of X, Y and Z who were sharing profit in proportion of capitals is as follows:

Y retires and the following adjustment of the assets and liabilities have been made before the ascertainment of the amount payable by the firm to Y:

1. That the stock be depreciated by 5%.
2. That the provision for doubtful debts be increased to 5% on debtors.
3. That the land and building be appreciated by 20%.
4. That a provision of ₹ 750 be made in respect of outstanding legal charges.
5. That the Goodwill of the entire firm be fixed at ₹ 16,200 and Y's share of the same be adjusted into the Accounts of X and Z.
6. That X and Z decide to share future profits of the firm in equal proportion.
7. That the entire capital of the new firm is fixed at ₹ 48,000 between X and Z in equal proportions. For the purpose, actual cash is to be brought in or paid off.

You are required to prepare the Revaluation Account, Partner's Capital Accounts, Bank account and revised balance sheet after Y's retirement. Also indicate the gaining ratio.

Ajay, Vijay and Sanjay are partners in a firm sharing profits and losses in the ratio of 5 : 4 : 3. Vijay retires. After making all adjustments relating to revaluation, goodwill and accumulated profits, etc. the capital account of Ajay showed a credit balance of ₹ 2,00,000 and that of Sanjay ₹ 1,00,000. It was decided to adjust the capitals of Ajay and Sanjay in their profitsharing ratio. You are required to calculate the new capital of the partners' and record necessary entry for surplus/deficit.

X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On April 1st 2024, X retires from the firm, Y and Z agree that the capital of the new firm shall be fixed at ₹ 2,10,000 in the profit sharing ratio. The Capital Accounts of Y and Z after all adjustments on the date of retirement showed balances of ₹ 1,45,000 and ₹ 63,000 respectively. State the amount of actual cash to be brought in or to be paid to the partners.

A, B and C are partners sharing profits in 4 : 3 : 3. Their Balance Sheet as at 31st March 2020 was as follows:

C retires on 1st April, 2020 and A and B decide to share future profits in the ratio of 6 : 4. It is agreed that:

1. Goodwill of the firm is valued at ₹ 80,000.
2. Land & Building is undervalued by ₹ 1,00,000 and Stock is overvalued by 20%.
3. Provision for Doubtful Debts is to be decreased to ₹ 10,000.
4. Computer valued ₹ 30,000 was unrecorded in the books.

It was decided to pay off C by giving him this computer and the balance in annual instalments of ₹ 1,00,000 together with interest @ 10% p.a.

You are required to prepare:

1. Revaluation Account,
2. C’s Capital Account, and
3. C’s Loan Account till it is finally closed.

Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20% respectively. On 31st March, 2021, their Balance Sheet was as follows:

On this date, Madhur retired and Lalit and Neena agreed to continue on the following terms:

1. The goodwill of the firm was valued at ₹ 51,000.
2. There was a claim for Workmen’s Compensation to the extent of ₹ 6,000.
3. Investment were brought down to ₹ 15,000.
4. Provision for bad debts was reduced by ₹ 1,000.
5. Madhur was paid ₹ 10,300 in cash and the balance was transferred to his loan account payable in two equal instalments together with interest @12% p.a.

Prepare Revaluation Account, Partner’s Capital Accounts and Madhur’s Loan Account till the loan is finally paid off.

R, S and T were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 1-4-2021 their Balance Sheet was as follows:

S retired from the firm on 1-4-2021 and his share was ascertained on the revaluation of assets as follows:

Stock ₹ 40,000; Furniture ₹ 6,000; Plant and Machinery ₹ 18,000; Building ₹ 40,000; ₹ 1,700 were to be provided for doubtful debts. The goodwill of the firm was valued at ₹ 12,000.

S was to be paid ₹ 21,680 in cash on retirement and the balance in three equal quarterly instalments (starting from 30th June 2021) along with interest @ 12% p.a.

Prepare Revaluation Account, Partner's Capital Accounts, S's Loan Account and Balance Sheet on 1-4-2021.

Following is the Balance Sheet of G, K & W as at 31st March, 2019 who share profits in the ratio of 3 : 2 : 1.

On 1st April, 2019, G retired and the following arrangements were agreed upon:

1. Goodwill of the firm is to be valued at ₹ 15,000.
2. The assets and liabilities are to be valued as under: Stock ₹ 10,000; Sundry Debtors ₹ 11,500; Land and Buildings ₹ 18,000; Plant and Machinery ₹ 16,500; and Sundry Creditors ₹ 9,200.
3. Liability for Workmen’s Compensation amounting to ₹ 500 is to be brought into the books.
4. K and W were to introduce ₹ 12,000 and ₹ 6,000 respectively into the business and ₹ 13,150 were paid to G. The balance due to him was to be paid in three equal instalments annually together with interest @ 12% per annum.

Give necessary ledger accounts, the Balance Sheet of the firm after G’s retirement and G’s Loan Account till it is finally paid off.

P, Q and R were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On 31st March, 2022 the Balance Sheet of the firm stood as follows:

On this date Q decided to retire and for this purpose:

1. Goodwill was valued at ₹ 19,000;
2. Fixed assets were valued at ₹ 30,000;
3. Stock was considered as worth 10,000.

Q was to be paid through cash, brought in by P and R, in such a way as to make their capitals proportionate to their new profit sharing ratio which was to be P 3/5 and R 2/5.

Record these matters in the journal of the firm and prepare the resultant Balance Sheet.

P, Q and R are partners in a firm. R retires from the firm. On the date of retirement, ₹ 3,00,000 is due to him. It is agreed to pay him in instalments every year at the end of the year. Prepare R’s Loan Account in the following cases:

1. Five yearly instalments plus interest @ 15% p.a.
2. Instalments of ₹ 1,00,000 which already include interest @ 15% p.a. on the outstanding balance for the first four years and the balance including interest in the fifth year.

A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 31st March 2022 C retired. Following balances were disclosed by the Firm's Balance Sheet on this date:

1. Capitals: A ₹ 10,00,000; B ₹ 6,00,000 and C ₹ 4,40,000.
2. Profit & Loss (Dr. Balance) ₹ 45,000.
3. Advertisement Expenditure ₹ 15,000.

Revaluation of Assets and re-assessment of liabilities resulted in a loss of ₹ 60,000. On the retirement of C, goodwill is valued at ₹ 1,80,000.

The amount payable to C is agreed to be paid in two yearly instalments of ₹ 2,00,000 each including interest @ 10% p.a. on the outstanding balance during the first two years and the balance including interest in the third year. Books are closed on 31st March every year.

Prepare C’s Loan Account till it is finally paid.

Kushal Kumar and Kavita were partners in a firm sharing profit in the ratio 3 : 1 : 1. On 1st April 2023 their Balance Sheet was as follows:

On the above date Kavita retired and the following was agreed:

1. Goodwill of the firm was valued at ₹ 40,000.
2. Land was to be appreciated by 30% and building was to be depreciated by ₹ 1,00,000.
3. Value of furniture was to be reduced by ₹ 20,000.
4. Bad debts provision is to be increased to ₹ 15,000.
5. 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
6. Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their Capital Accounts will be adjusted through Current Accounts.

Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of Kushal and Kumar after Kavita’s retirement.

A, B and C were equal partners. Their Balance Sheet as at 31-3-2022 was as under:

B retired on 1st April, 2022. A and C decided to continue the business as equal partners on the following terms:

1. Goodwill of the firm was valued at ₹ 57,600.
2. Reserve for bad and doubtful debts to be maintained at 10% on debtors.
3. Land and building to be increased to ₹ 1,32,000.
4. Furniture to be reduced by ₹ 8,000.
5. Rent outstanding (not provided for as yet) was ₹ 1,500.

Remaining partners decided to bring sufficient cash in the business to pay off B and to maintain a bank balance of ₹ 24,800. They also decided to readjust their capitals as per their new profit sharing ratio.

Prepare necessary Ledger Accounts and Balance Sheet.

A, B and C were partners sharing profits in the ratio of 3 : 2 : 1 respectively. B retired on 31st March, 2024. On that date the capitals of A, B and C after all adjustments were ₹ 5,10,000; ₹ 3,30,000 and 1,80,000 respectively. Cash and bank balances on 31st March, 2024 were 30,000. B was to be paid through cash brought by A and C in a manner that their capitals are proportionate to their new profit-sharing ratio which was to be 5 : 3. Firm wants to maintain a minimum cash balance of ₹ 50,000. Pass necessary journal entries.

X; Y and Z are partners sharing profits in the ratio of 4 : 2 : 3. Y retires. On this date his Capital after making adjustments for reserves and revaluation exists at ₹ 2,00,000. X and Z agreed to pay him ₹ 2,40,000 in full settlement of his account. Record necessary journal entry for the treatment of goodwill if X and Z decided to share future profits equally.

Shobha, Romila and Payal were partners sharing profits equally. Romila retired on 1st April, 2026 and amount due to her after all adjustments for accumulated profits and gain on revaluation was ₹ 5,80,000. It was decided that Romila will be paid ₹ 6,40,000 in full settlement.

Shobha and Payal agreed to share future profits in the ratio of 7 : 2. ₹ 40,000 was paid immediately and balance on 1st December, 2026.

Pass the necessary Journal entries on Romila's retirement.

Ratan, Anmol and Heera are partners with equal share in profits. Ratan retires on 1st April, 2026. Anmol and Heera agreed to share future profits in the ratio of 5 : 4. Following is the Balance Sheet extract on that date.

Additional Information:

1. There was a claim of Workmen Compensation for ₹ 46,000
2. Stock was found overvalued by 10%.
3. Bad debts amounted to ₹ 7,000 and remaining debtors are good.
4. Ratan was given Investments and 50% of the stock in full settlement.

Pass necessary journal entries on the date of Ratan's retirement.

A, B and C were partners in a firm. B died on 31st August, 2021. B’s 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 ending 31st March 2019, 2020 and 2021 were ₹ 40 000; ₹ 50,000 and ₹ 72,000 respectively. The firm closes its books on 31st March every year.

Calculate B’s share of profit till the date of her death and pass the necessary journal entry for the same assuming:

1. There is no change in the profit sharing ratio of A and C.
2. There is change in the profit sharing ratio of A and C and the new ratio is 7 : 5.

Hari, Mohan and Sohan were partners in a firm sharing profits in 2 : 2 : 1 ratio. The firm closes its books on 31st March every year. Mohan died on 24-8-2021. On Mohan’s death the goodwill of the firm was valued at ₹ 75,000. The partnership deed provided that on the death of a partner his share in the profits of the firm in the year of his death will be calculated on the basis of last year’s profit. The profit of the firm for the year ended 31-3-2021 was ₹ 2,00,000. Calculate Mohan’s share of profit till the time of his death and pass the necessary journal entries for the treatment of goodwill and his share of profit.

A, B and C are sharing profits in the ratio of 4 : 3 : 2. A dies on 31st December, 2022. Accounts are closed on 31st March every year. Sales for the year ending 31st March, 2022 amounted to 4,00,000. Sales of ₹ 3,30,000 amounted between the period from 1st April 2022 to 31st December 2022. The profit for the year ending 31st March, 2022 amounted to ₹ 60,000.

Calculate the deceased partners's share in the current year's profits of the firm.

A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their books are closed on March 31st every year.

B died on 1st August, 2022. The executors of B are entitled to:

1. His share of Capital i.e., ₹ 4,00,000 along-with his share of goodwill. The total goodwill of the firm was valued at 1.5 year's purchase of last year's profit.
2. His share of profit up to his date of death on the basis of sales till date of death. Sales for the year ended March 31, 2022 was ₹ 4,00,000 and profit for the same year was ₹ 80,000. Sales shows a growth trend of 25% and percentage of profit earning is increased by 4%.
3. Amount payable to B was transferred to his executors.

Pass necessary Journal Entries and show the workings clearly.

The Balance Sheet of Sindhu, Rahul and Kamlesh, who were sharing profits in the ratio of 3 : 3 : 4 respectively, as at 31st March, 2023 was as follows:

Sindhu died on 31st July 2023. The partnership deed provided for the following on the death of a partner:

1. Goodwill of the firm be valued at two year's purchase of average profits for the last three years which were ₹ 80,000.
2. Sindhu’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, 2023 amounted to ₹ 8,00,00 and that from 1st April to 31st July 2023 ₹ 3,00,000. The profit for the year ended 31st March, 2023 was ₹ 2,00,000.
3. Interest on capital was to be provided @ 6% p.a.

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

A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. The Balance Sheet as at 31 -3-2023 was as follows:

A died on 30-9-2023 and B and C decided to share future profits in the ratio of 7 : 3. Under the partnership agreement the executors of a deceased partner were entitled to:

1. Amount standing to the credit of partner's capital account.
2. Interest on capital at 12% per annum.
3. Share of goodwill on the basis of four years purchase of last three years average profit.
4. Share of profit from the closing of the last financial year to the date of death on the basis of last year’s profit. Profits for the year 2021, 2022 and 2023 were ₹ 8,000; ₹ 12,000 and ₹ 7,000 respectively.

Prepare A’s Capital account to be rendered to his executors.

R, S and T were partners in a firm sharing profits in the ratio of 4 : 3 : 3. T died on 1st August, 2024 and goodwill was valued at ₹ 7,50,000 on that day. Adjustment entry for goodwill was passed as follows:

Gain on revaluation of assets and reassessment of liabilities credited to T’s account was ₹ 45,000.

Calculate new profit sharing ratio and total amount of gain (profit) on revaluation of assets and reassessment of liabilities.

Aryan, Sahira and Tulsi are partners in a firm with profit sharing ratio of 3 : 2 : 4. Sahira died on 31st March, 2025. The new profit sharing ratio between Aryan and Tulsi was agreed to be 2 : 3.

The capital accounts of partners on 31st March, 2025, before considering the firm’s goodwill were: Aryan ₹ 11,40,000; Sahira ₹ 10,65,000; Tulsi ₹ 12,30,000.

Aryan and Tulsi agreed to pay the executors of Sahira ₹ 11,85,000 immediately by issuing a cheque from the firm, the amount being contributed by Aryan and Tulsi in such a way that their capitals would become proportionate to their new profit sharing ratio.

You are required to pass necessary journal entries.

Ram, Ghanshyam and Vrinda 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, 2023 Ghanshyam died and it was decided that the new profit-sharing ratio between Ram and Vrinda will be equal. The Partnership Deed provided for the following on the death of a partner:

1. 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 profit for the last four years were. 2018-19 - ₹ 1,20,000, 2019-20 - ₹ 80,000, 2020-21 - ₹ 40,000, and 2021-22 - ₹ 80,000.
2. His share of profit in the year of his death was to be computed on the basis of average profits of past two years.

Pass necessary Journal entries relating to goodwill and profit to be transferred to Ghanshyam’s Capital Account. Also show your workings clearly.

A, B and C were partners in a firm. A died on 31.3.2018 and the Balance Sheet of the firm on that date was as under:

On A’s death it was found that patents were valueless, 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.

Anuj, Tanuj and Vishesh were partners in a firm sharing profits in 2 : 2 : 1. Tanuj died on 31st July 2023. His capital on 1st April, 2023 was ₹ 6,00,000. You are informed that:

1. Tanuj is entitled to 6% p.a. interest on his capital.
2. He is entitled to his share of profit till the date of death on the basis of last year’s profit which were ₹ 2,40,000.
3. Land and Building with book value of ₹ 12,00,000 is undervalued by 40%.
4. Executors of Tanuj were paid 10,00,000 in full settlement of his account.

Prepare Tanuj’s Capital Account.

A, B, C and D were partners sharing profits in the ratio of 5 : 3 : 2 : 2. B died on 1st March, 2024. Goodwill of the firm was valued at ₹ 6,00,000. A, C and D decided to share future profits equally. Give necessary journal entry.

Brown and Smith are partners. The partnership deed provides:

1. That the Accounts be balanced on 31st December each year.
2. That the profits be divided as follows: Brown 1/2; Smith 1/3 and carried to a Reserve account 1/6.
3. That in the event of the death of a partner, his executors be entitled to be paid out:
   1. The Capital to his credit at the date of death.
   2. His proportion of Reserve at the date of last Balance Sheet.
   3. His proportion of profit to date of death based on the average profits of the last three completed years.
   4. By way of goodwill his proportion of the total profits for the three preceding years.

On 31st December, 2023, the ledger balances were:

The profits for three years were:

2021 ₹ 4,200; 2022 ₹ 3,900; 2023 ₹ 4,500. Smith died on 1st May, 2024.

Show the accounts as between the firm and Smith's executors as on May 1st, 2024.

A, B and C are in partnership, sharing profits in the proportion of two-thirds, one-sixth and one-sixth respectively.

A died on the 30th June, 2022, three months after the annual accounts had been prepared and in accordance with the partnership agreement, his share of the profits to the date of death was estimated on the basis of the profit for the preceding year. In addition to this, the agreement provided for interest on capital at 5 percent per annum on the balance standing to the credit of the capital account at the date of the last Balance Sheet, and also for goodwill, which was to be brought into account at two year’s purchase of the average profits for the last three years.

A’s capital on 31st March, 2022 stood at ₹ 1,20,000, and his drawings from then to the date of death amounted to ₹ 9,000.

The net profits of the business for the three preceding years amounted to ₹ 33,500; ₹ 41,500 and ₹ 40,500, respectively.

You are required to prepare A’s Capital Account as at the date of death, for a settlement with his executors.

You are given the Balance Sheet of A, B and C who are partners sharing profits in the ratio of 2 : 2 : 1 as at March 31, 2022.

B died on June 15, 2022. According to the Deed, his legal representatives are entitled to:

1. Balance in Capital Account;
2. Share of goodwill valued on the basis of thrice the average of the past 4 year’s profits;
3. Share in profits up to the date of death on the basis of average profits for the past 4 years;
4. Interest on capital account @ 12% p.a.

Profits for the years ending on March 31 of 2019, 2020, 2021, 2022 respectively were ₹ 15,000, ₹ 17,000, ₹ 19,000 and ₹ 13,000.

B’s legal representatives were to be paid the amount due. A and C continued as partners by taking over B’s share equally. Work out the amount payable to B’s legal representatives.

P, Q and R were partners in a firm sharing profits in the ratio of 5 : 6 : 9. On 31-3-2023, their Balance Sheet was as follows:

R died on 30th April, 2023. The partnership deed provided for the following on the death of a partner:

1. Goodwill of the firm was to be valued at 3 year's purchase of the average profits of the last 5 years. The profits for the years ending 31-3-2022, 31-3-2021, 31-3-2020 and 31-3-2019 were ₹ 80,000, ₹ 80,000; ₹1,10,000 and ₹ 2,20,000 respectively.
2. R's share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the year ending 31-3-2023.

You are required to calculate the following:

1. Goodwill of the firm and R's share of goodwill at the time of his death.
2. R's share in the profit or loss of the firm till the date of his death.

X, Y and Z were partners, sharing profits and losses equally. Y died on 1st October, 2023 and the total amount transferred to Y’s executors was ₹ 15,60,000. Y’s executors were being paid ₹ 3,60,000 immediately, and the balance was to be paid in four equal quarterly installments, together with interest @ 6% p.a. Pass entries till payment of the first two installments.

A, B, C and D are partners sharing profits in the ratio of 4 : 3 : 2 : 1. A and C retire from the firm. Calculate the new profit sharing ratio of B and D.

A, B and C are partners sharing profits in the ratio of 1/2 : 3/8 : 1/8. Calculate the new ratio if C retires.

A, B, and C were partners in a firm sharing profits in the ratio of 8 : 4 : 3. B retires and his share is taken up equally by A and C. Find the new profit-sharing ratio.

Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5 : 5 : 4. Mohan retired and his share was divided equally between Shiv and Hari. Calculate the new profit sharing ratio of Shiv and Hari.

A, B and C are partners sharing profits in the ratio of 1/5, 1/3 and 7/15 respectively. C retires and his share was taken up by A and B in ratio of 3 : 2. Calculate the new ratio.

X, Y and Z were partners sharing profits in the ratio of 4/9 : 3/9 : 2/9. X retires and his share was taken up by Y and Z in the ratio of 2 : 1. Find out the new ratio.

A, B and C were partners sharing profits in the ratio of 4 : 3 : 2. B retires from the firm. Calculate the new ratio, if

1. B's share was taken up by A and C in the ratio of 2 : 1.
2. B's share was taken up by A and C equally.
3. B's share was taken up by A only.

H, P and S were partners in a firm sharing profits in the ratio of 4 : 3 : 3. On August 1, 2017, P died. His 20% share was acquired by H and remaining by S. Calculate the new profit sharing ratio.

Suman, Shubham and Siya were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Shubham retired from the firm and Suman and Siya decided to continue the business. Their gaining ratio was 3 : 2.

Calculate the new profit sharing ratio of Suman and Siya.

Kangli, Mangli and Sanvali are three partners sharing profits in the ratio of 4 : 3 : 2. Kangli retires. Assuming Mangli and Sanvali will share profits in future in the ratio of 5 : 3, determine the gaining ratio.

A, B and C are partners sharing profits and losses equally. B dies. A and C agree to share future profits in the ratio of 7 : 5. Calculate the gaining ratio.

A, B and C are partners with capitals of ₹ 1,00,000; ₹ 75,000 and ₹ 50,000 respectively. They share profits and losses in the ratio of their capital. C retires, His share is acquired by A and B in the ratio of 2 : 1. Calculate the new profit sharing ratio and gaining ratio.

A, B and Care partners with capitals of ₹ 1,00,000; ₹ 75,000 and ₹ 50,000 respectively. On C's retirement, his share is acquired by A and B in the ratio of 6 : 4. Ascertain new profit sharing ratio and gaining ratio.

Alia, Karan and Shilpa were partners in a firm sharing profits in the ratio of 5 : 3 : 2. Goodwill appeared in their books at a value of ₹ 60,000 and General Reserve at ₹ 20,000. Karan decided to retire from the firm. On the date of his retirement, goodwill of the firm was valued at ₹ 2,40,000. The new profit sharing ratio decided among Alia and Shilpa was 2 : 3.

Record necessary Journal entries on Karan's retirement.

M, N and O are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Goodwill has been valued at ₹ 60,000. On N's retirement, M and O agree to share profits equally. Pass the necessary Journal entry for treatment of N's share of goodwill.

Ravi, Mukesh, Naresh and Yogesh are partners in a firm sharing profits in the ratio of 2 : 2 : 1 : 1. On Mukesh’ s retirement the goodwill of the firm is valued at ₹ 90,000. Ravi, Naresh and Yogesh decided to share future profits equally. Pass the necessary journal entry for the treatment of goodwill.

L, M, N and O are partners in a firm sharing profits and losses on the ratio of 2 : 2 : 1 : 1. M and O decided to retire from the firm. The goodwill of the firm was valued at ₹ 3,60,000. L and N decided to share future profits equally.

Find out Gaining Ratio and Pass necessary journal entry for the treatment of goodwill.

A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 2. A retires and his share is taken up by B and C equally. Find the new profit sharing ratio and the gaining ratio.

The goodwill of the firm is valued at ₹ 2,00,000. No goodwill account appears in the books. Pass necessary journal entry for recording the goodwill in the above mentioned case.

L, M and O were partners in a firm sharing profits in 1 : 3 : 2 ratio. L retired and the new profit sharing ratio between M and O was 1 : 2. On L’s retirement the goodwill of the firm was valued at 1,20,000. Pass necessary journal entry for the treatment of goodwill on L’s retirement.

X, Y and Z are in partnership sharing profits in the proportion of 3 : 2 : 1. There is no goodwill A/c in the books of the firm.

As from 1st April, 2023, it was agreed that X should give only part of time, to the business and that in consequence he should receive in future only one half of his previous share, the remaining half being divided equally between Y and Z. The goodwill to be valued for this purpose, at ₹ 40,000.

Show the new share of partners and pass necessary journal entry.

Krish, Vrish and Peter are partners sharing profits in the ratio of 3 : 2 : 1. Vrish retired from the firm. On that date the Balance Sheet of the firm was as follows:

Additional Information:

1. Premises to be appreciated by 20%, Stock to be depreciated by 10% and Provision for doubtful debts was to be maintained @ 5% on Debtors. Further, provision for legal damages is to be increased by 1,200 and furniture to be brought up to ₹ 45,000.
2. Goodwill of the firm is valued at ₹ 42,000.
3. ₹ 26,000 from Vrish’s Capital Account be transferred to his loan account and balance to be paid through bank; if required, necessary loan may be obtained from bank.
4. New profit sharing ratio of Krish and Peter is decided to be 5 : 1.

Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet.

Kavya, Manya and Navita were partners sharing profits as 50%, 30% and 20% respectively. On 31-3-2016, their Balance Sheet was as under:

On the above date, Kavya retired and Manya and Navita agreed to continue the business on the following terms:

1. Firm’s goodwill was valued at ₹ 60,000 and it was decided to adjust Kavya’s share of goodwill in the capital accounts of continuing partners.
2. There was a claim for workmen’s compensation to the extent of ₹ 4,000.
3. Investments were revalued at ₹ 2,13,000.
4. Fixed Assets were to be depreciated by 10%.
5. Kavya was to be paid ₹ 20,000 through a bank draft and the balance was transferred to her loan account which will be paid in two equal annual instalments together with interest @ 10% p.a.

Prepare Revaluation A/c, Partner’s Capital accounts and Kavya’s Loan Account till it is finally paid.

Kanika, Disha and Kabir Were Partners Sharing Profits in the Ratio of 2 : 1 : 1. on 31st March, 2016, Their Balance Sheet Was as Under:

Kanika retired on 1st April, 2016. For this purpose, the following adjustments were agreed upon:

1. Goodwill of the firm was valued at 2 years' purchase of average profits of three completed years preceding the date of retirement. The profits for the year: 2013-14 were ₹ 1,00,000 and for 2014-15 were ₹ 1,30,000.
2. Fixed Assets were to be increased to ₹ 3,00,000.
3. Stock was to be valued at 120%.
4. The amount payable to Kanika was transferred to her Loan Account.

​Prepare Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the reconstituted firm.  

K, L and M were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31-3-2021 the Balance Sheet of the firm was as follows:

L retired from the firm on the following terms:

1. The new profit sharing ratio between K and M will be 2 : 1.
2. Goodwill of the firm is valued at ₹ 72,000.
3. Provision for bad debts is to be made at the rate of 10% on debtors.
4. Creditors of ₹ 4,000 will not be claimed.

Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of K and M after L's retirement.

X, Y and Z were partners in a firm sharing profits in the ratio of `1/2 : 1/3 : 1/6` respectively. The Balance Sheet of the firm as at 31st March, 2022 stood as follows:

Y retired from the firm on 1st April, 2022 subject to the following conditions:

1. Goodwill of the firm be valued at ₹ 9,000.
2. Machinery would be depreciated by 10% and motor vans by 15%.
3. Stock would be appreciated by 20% and Buildings by 10%.
4. The provision for doubtful debts would be increased by ₹ 975.
5. Liability for workmen's compensation to the extent of ₹ 825 would be created.

It was agreed that X and Z would share profits in future in the ratio of 3 : 2 respectively.

You are required to prepare the Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the firm after the retirement of Y.

A, B and C were in partnership sharing profits in proportion to their capitals. Their Balance Sheet as at 31-3-2018 was as follows:

On the above date B retired owing to ill health and the following adjustments were agreed upon:

1. Buildings be appreciated by 10%.
2. Provision for bad and doubtful debts be increased to 5% on debtors.
3. Machinery be depreciated by 15%.
4. Goodwill of the firm be valued at ₹ 36,000 and be adjusted into the Capital Accounts of A and C who will share profits in future in the ratio of 3 : 1.
5. A provision be made for outstanding repairs bill of ₹ 3,000.
6. Included in the value of creditors is ₹ 1,800 for an outstanding legal claim, which is not likely to arise.
7. Out of the insurance premium paid ₹ 2,000 is for the next year. The amount was debited to P & L A/c.
8. The partners decide to fix the capital of the new firm as ₹ 1,20,000 in the profit sharing ratio.
9. B to be paid ₹ 9,000 in cash and the balance to be transferred to his Loan Account.

Prepare the Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the new firm after B’s retirement.

Mohan, Vinay and Nitya were partners in a firm sharing profits and losses in the proportion of `1/2,1/3` and `1/6` respectively. On 31st March, 2018, their Balance Sheet was as follows:

Mohan retired on the above date and it was agreed that:

1. Plant and Machinery will be depreciated by 5%.
2. An old computer previously written off was sold for ₹ 4,000.
3. Bad debts amounting to ₹ 3,000 will be written off and a provision of 5% on debtors for bad and doubtful debts will be maintained.
4. Goodwill of the firm was valued at ₹ 1,80,000 and Mohan’s share of the same was credited in his account by debiting Vinay’s and Nitya’s accounts.
5. The capital of the new firm was to be fixed at ₹ 90,000 and necessary adjustments were to be made by bringing in or paying off cash as the case may be.
6. Vinay and Nitya will share future profits in the ratio of 3 : 2.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of the reconstituted firm.

The Balance Sheet of Messrs A, B and C showed as follows:

B agrees to take over the business, A and C retiring on the following terms:

1. That the goodwill of the firm be valued at ₹ 15,000
2. That plant and stock be reduced by 10%.
3. That freehold property be appreciated by ₹ 1,000.
4. That Provision for doubtful debts be brought up to ₹ 250.
5. B has to bring in sufficient cash to pay off A and C. The partners used to share profits in the proportion of 2/5, 2/5 and 1/5.

Show the necessary Journal entries, Partner’s Capital Accounts and Balance Sheet of B after the retirement of A and C.

Akul, Bakul, and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31^st March 2018 their Balance Sheet was as follows:

Bakul retired on the above date and it was agreed that:

1. Plant and Machinery were undervalued by 10%.
2. Provision for doubtful debts was to be increased to 15% on debtors.
3. Furniture was to be decreased to ₹ 87,000.
4. Goodwill of the firm was valued at ₹ 3,00,000 and Bakul’s share was to be adjusted through the capital accounts of Akul and Chandan.
5. Capital of the new firm was to be in the new profit sharing ratio of the continuing partners.

Prepare Revaluation account, Partner’s Capital accounts, and the Balance Sheet of the reconstituted firm.

G, E and F were partners in a firm sharing profits in the ratio of 7 : 2 : 1. The Balance Sheet of the firm as at 31st March, 2018, was as follows:

E retired on the above data. On E’s retirement the following was agreed upon:

1. Land and Building were revalued at ₹ 1,88,000, Machinery at ₹ 76,000 and Stock at ₹ 10,000 and goodwill of the firm was valued at ₹ 90,000.
2. A provision of 2.5% was to be created on sundry debtors for doubtful debts.
3. The net amount payable to E was transferred to his loan account to be paid later on.
4. Total capital of the new firm was fixed at ₹ 2,40,000 which will be adjusted according to their new profit sharing ratio by opening current accounts.

Prepare Revaluation Account, Partner’s Capital Accounts and the Balance Sheet of reconstituted firm.

A, B and C are partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March, 2022 was as follows:

C retired on 1st April, 2022 as per the following conditions:

1. Goodwill of the firm is to be valued at three years purchase of the average profits of the last five years which were ₹ 20,000; ₹ 12,000; ₹ 30,000; ₹ 6,000 (loss) and ₹ 34,000 respectively.
2. Machinery is to be reduced to ₹ 40,000 and patents are valueless.
3. There is no need of any provision for doubtful debts.
4. An unclaimed liability of ₹ 2,000 is to be written off.
5. Out of the total insurance premium paid, ₹ 1,000 be treated as pre-paid.
6. Investments are revalued at ₹ 16,000 and these are taken by C at this value.

Entire sum payable to C is to be brought in by A and B in such a way so as to make their capitals proportionate to their new profit sharing ratio which is 2 : 1.

Prepare Revaluation Account, Capital Accounts and the opening Balance Sheet of A and B.

X, Y and Z are partners sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2022 was as follows:

X retired on that date and it was decided to make the following adjustments:

1. Stock to be depreciated by 40% and sale of old papers and materials realised ₹ 1,000.
2. Provision for doubtful debts to be increased to 17% of Sundry Debtors.
3. Machinery be depreciated by 40% and buildings be appreciated by 20%.
4. Partners paid ₹ 10,000 to the family of an employee who died of an heart-attack.
5. Goodwill is valued at ₹ 30,000.
6. Y and Z decided to share future profits in the ratio of 3 : 2 and not to show goodwill in the books.
7. Y and Z would introduce sufficient capital to pay off X and have thereafter a sum of ₹ 25,000 as Working Capital in a manner that their Capitals would be in proportion of their new profit sharing ratio.

Pass journal entries and prepare the Balance Sheet of the new firm.

Harish, Paresh and Mahesh were three partners as sharing profits and losses in the ratio of 5 : 4 : 1. Paresh retired on 31st March, 2017. His capital on 1st April, 2016, was ₹ 80,000. During the year 2016-17, he made drawings of Rs. 5,000. He was to be charged interest on drawings of ₹ 100.

The partnership deed provides that on the retirement of a partner, he will be entitled to:

1. His share of capital.
2. Interest on capital @ 10% per annum.
3. His share of profit for the year of his retirement.
4. His share of goodwill in the firm.
5. His share in the profit/loss on revaluation of assets and liabilities.

Additional information: 

1. Paresh’s share in the profits of the firm for the year 2016-17 was ₹ 20,000.
2. Goodwill of the firm was valued at ₹ 24,000.
3. The firm suffered a loss of ₹ 12,000 on the revaluation of assets and liabilities.
4. It was decided to transfer the amount due to Paresh to his loan account bearing interest @ 6% per annum. The loan was to be repaid in two equal annual instalments, the first instalment to be paid on 31st March, 2018.

You are required to prepare: 

1. Paresh’s Capital Account.
2. Paresh’s Loan Account till it is finally closed.

L, M and N were partners in a firm sharing profit & losses in the ratio of 2:2:3. On 31^st March 2023, their Balance Sheet was as follows:

On 31^st March 2023, M retired from the firm and remaining partners decided to carry on business. It was decided to revalue assets and liabilities as under:

1. Land and Building be appreciated by ₹ 2,40,000 and Machinery be depreciated 10%.
2. 50% of investments were taken by the retiring partner at book value.
3. Provision for doubtful debts was to be made at 5% on debtors.
4. Stock will be valued at market price which is ₹ 1,00,000 less than the book value.
5. Goodwill of the firm be valued at ₹ 5,60,000. L and N decided to share future profits and losses in the ratio of 2 : 3.
6. The total capital of the new firm will be ₹ 32,00,000 which will be in proportion of profit-sharing ratio of L and N.
7. Gain on revaluation account amounted to ₹ 1,05,000.

Prepare Partner’s Capital accounts and Balance sheet of firm after M’s retirement.

Furkan, Tanmay and Barkat were partners in a firm sharing profits in the ratio of 3 : 2 : 1. The firm closes its books on 31st March every year. Tanmay died on 31st July, 2019. His executor was entitled to:

1. His capital ₹ 8,00,000 and his share of goodwill which was valued for the firm at ₹ 96,000.
2. His share of profit as per partnership agreement, which was to be calculated on the basis of average profit of last 3 years. Average profits of the last 3 years were ₹ 78,000.
3. Tanmay's executor's were paid ₹ 95,000 by cheque at the time of his death and the balance was transferred to his executor's loan account.

Pass the necessary journal entries in the books of the firm, on Tanmay's death, for the above transactions.

Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2 : 2 : 1. On 1st July, 2017, Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2016-17 ₹ 5,00,000 and that from 1st April to 30th June, 2017, 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.

Dev, Swati and Sanskar were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31-3-2023 their Balance Sheet was as follows:

On 30th June 2023 Dev died. According to partnership agreement Dev was entitled to interest on capital at 12% per annum. His share of profit till the date of his death was to be calculated on the basis of the average profits of last four years. The profit of the last four years was:

On 1-4-2014, Dev withdrew Rs 15,000 to pay his medical bills.

Prepare Dev's account to be presented to his executors.

Babita, Chetan and David are partners in a firm sharing profits in the ratio of 2 : 1 : 1 respectively. Firm closes its accounts on 31st March every year. Chetan died on 30th September, 2020. There was a balance of ₹ 1,25,000 in Chetan's Capital Account in the beginning of the year. In the event of death of any partner, the Partnership Deed provides for the following:

1. Interest on capital will be calculated at the rate of 6% p.a.
2. The executor of deceased partner shall be paid ₹ 24,000 for his share of goodwill.
3. His share of Reserve Fund of ₹ 12,000, shall be paid to his executor.
4. His share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2019-20 were ₹ 4,00,000. The sales from 1st April, 2020 to 30th September, 2020 were ₹ 1,20,000. The profit of the firm for the year ending 31st March, 2020 was ₹ 2,00,000.

Prepare Chetan's Capital Account to be presented to his executor.

In the partnership agreement between X, Y and Z who were sharing profits in the ratio of 5 : 3 : 2, the goodwill was to be valued on the death of any partner on the basis of such partner’s share of 2 year’s profits calculated on the average of 5 year’s profits immediately preceding the year of death less 10%. The firm’s profits were 2016 ₹ 10,000; 2017 ₹ 30,000; 2018 ₹ 43,000 and in 2019 and 2020 losses of ₹ 6,000 and ₹ 4,000 respectively. The deceased partner’s share of profits for the period of his life-time in the year of death was to be based on the average of the profits of the previous 3 years plus 10%.

X died on 31st August, 2020. His Capital A/c showed a credit of ₹ 50,000 on 1st April, 2020 and he had drawn ₹ 4,000 since that date.

Calculate the amount due to his legal representatives.

A, B and C were partners. Their partnership deed provided that they were to share profits thus; A 26 percent; B 34 percent; C 40 percent; and that if a partner died, his capital should remain in the business for a stated period at a fixed rate of interest, but that the deceased partner’s share should be credited with an amount for Goodwill, based upon one and a half year’s average profits, for the five years prior to his death, but be subject to deduction of 5 percent from the book debts. C died, and the profits of the firm for five years were agreed at ₹ 20,000; ₹ 30,000; ₹ 15,000 (loss); ₹ 5,000 (loss); and ₹ 45,000 respectively. Book Debts stood at ₹ 90,000.

Prepare a statement showing the amount of Goodwill to be credited to C’s Account and give the Journal entry in the firm's book necessary to carry out the transactions.

M, N and O were partners in a firm sharing profits and losses equally. Their Balance Sheet as at 31st March, 2023 was as follows:

N died on 12th June, 2023. According to the Partnership Deed, executors of the deceased partner are entitled to:

1. Balance of partner’s capital account.
2. Interest on Capital @ 5% p.a.
3. Share of goodwill calculated on the basis of twice the average of past three year’s profits and
4. Share of profits from the closure of the last accounting year till the date of death on the basis of twice the average of three completed year’s profits before death.

Profits for the years ended on 31st March, 2021, 2022 and 2023 were ₹ 80,000, ₹ 90,000 and ₹ 1,00,000 respectively. Show the working for deceased partner’s share of goodwill and profits till the date of his death. Pass the necessary journal entries and prepare N’s Capital Account to be rendered to his executors.

B, C and D were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31st December, 2023, their Balance Sheet was as follows:

B died on 31st June, 2023. The Partnership Deed provided for the following on the death of a partner: 

1. Goodwill of the firm was to be valued at 3 year's purchase of the average profits of last 5 years. The profits for the years ending 31-3-2022, 31-3-2021, 31-3-2020 and 31-3-2019 were ₹ 70,000; ₹ 60,000; ₹ 50,000 and ₹ 40,000 respectively.
2. B's share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the year ending 31st March, 2023.

You are required to calculate the following:

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

Arun, Varun and Karan were Partners in a firm sharing profits in the ratio of 4 : 3 : 3. On 31-3-2014, their Balance Sheet was as follows:

On 30.9.2014, Karan died. The partnership Deed provided for the following to the executors of the deceased partner

1. His share in the goodwill of the firm calculated on the basis of three year's purchase of the average profits of the last four years. The profits of the last four years were ₹ 1,90,000; ₹ 1,70,000; ₹ 1,80,000 and ₹ 1,60,000 respectively.
2. His share in the profits of the firm till the date of his death calculated on the basis of the average profits of the last four years.
3. Interest @ 8% p.a. on the credit balance, if any, in his Capital Account.
4. Interest on his loan @ 12% p.a.

Prepare Karan's Capital Account to be presented to his executors, assuming that his loan and interest on a loan was transferred to his Capital Account.

Hint: Interest on capital will not be allowed since Karan's Capital Account shows a debit balance.

P, Q and R were partners sharing profits in the ratio of 2 : 2 : 1. The firm closes its books on March 31 every year. On June 30, 2017, R died. The following information is provided on R's death:

1. Balance in his capital account in the beginning of the year was ₹ 6,50,000.
2. He withdrew ₹ 60,000 on May 15, 2017 for his personal use.

On the date of death of a partner the partnership deed provided for the following:

1. Interest on capital @ 10% per annum.
2. Interest on drawings @ 12% per annum.
3. His share in the profit of the firm till the date of death, to be calculated on the basis of the rate of Net Profit on Sales of the previous year, which was 25%. The Sales of the firm till June 30, 2017 were ₹ 6,00,000.

Prepare R's Capital Account on his death to be presented to his executors.

Rita, Nina and Mita are partners in a firm sharing profits and losses in the ratio of 3:2:1. Mita dies on 1st April, 2017. On the date of her death, it was decided to value goodwill on the basis of two year’s purchase of
weighted average profits of the firm for the last three years.

The profits of the last three years and weights assigned were:

You are required to:

1. Calculate the firms goodwill on the date of Mita’s death (show working formula).
2. Pass the necessary journal entry to credit Mita’s capital account with her share of goodwise.

Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March 2017 their Balance Sheet was as follows:

Karan died on 12.6.2017. According to the partnership deed, the legal representatives of the deceased partner were entitled to the following:

1. Balance in his Capital Account
2. Interest on Capital @12% p.a.
3. The share of goodwill. Goodwill of the firm on Karan's death was valued at ₹ 60,000.
4. Share in the profits of the firm till the date of his death, calculated on the basis of last year’s profit. The profit of the firm for the year ended 31.3.2017 was ₹ 5,00,000.

Prepare Karan's Capital Account to be presented to his representatives.

Hints: Interest on Capital for 73 days ₹ 4,800; Share of Profit ₹ 40,000.

Sia, Manav and Ajay were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On 31st March, 2024, their Balance Sheet was as follows:

On 31st March, 2024 Manav retired from the firm and the remaining partners decided to carry on the business. The assets and liabilities were revalued which resulted into a gain of ₹ 1,20,000 because of the increase in the value of Land and Building by the same amount.

1. 40% of Land and Building were taken by retiring partner at revalued value.
2. Goodwill of the firm be valued at ₹ 4,00,000. Sia and Ajay decided to share future profits and losses in the ratio of 3 : 2.
3. The total capital of the new firm will be ₹ 20,00,000 which will be in proportion of the new profit sharing ratio of Sia and Ajay. For this, necessary cash was brought in or was paid off to the partners, as the case may be.

Prepare Partners' Capital Accounts.

State Whether the following Statement is True or False:

Gaining Ratio = New Ratio − Old Ratio

State whether the following statement is true or false:

Amount due to a retiring partner if not paid, appears as his loan in the books of the firm.

State Whether the following Statement is True or False:

If a partner retires, then other partners have a gain in their profit sharing ratio.

State Whether the following Statement is True or False:

At the time of retirement or death of a partner, the undistributed profits or losses and reserves are distributed among all partners in their old profit sharing ratio.

State Whether the following Statement is True or False:

Retiring partner gets full goodwill of the firm on his retirement.

State Whether the following Statement is True or False:

Retiring partner is not responsible for any loss incurred after his retirement.

State Whether the following Statement is True or False:

In the event of death, the combined share of profits of the continuing partners will decrease.

State Whether the following Statement is True or False:

Goodwill given to the retiring partner is shared by continuing partners in their sacrificing ratio.

State Whether the following Statement is True or False:

Goodwill is given to the retiring partner in capital ratio.

State Whether the following Statement is True or False:

A family member of the retiring partner will automatically become the new partner in a reconstituted firm.

State Whether the following Statement is True or False:

In the event of death, profit or loss on revaluation is transferred to the continuing partners in the old profit sharing ratio.

State Whether the following Statement is True or False:

Credit side of Revaluation Account shows increase in the value of assets and decrease in liabilities.

State Whether the following Statement is True or False:

Entire share of retiring partner may be acquired by one partner.

State Whether the following Statement is True or False:

X, Y and Z are partners in the ratio of `1/2 : 1/3 : 1/6`. On retirement of Y, the new ratio of X and Z will be 3 : 1.

State Whether the following Statement is True or False:

Increase in provision for doubtful debts is a gain for the firm.

Retirement of a partner results in ______ of the partnership.

The ratio in which the remaining partners acquire the retiring partner's share is called ______.

Excess of credit side over debit side in Revaluation Account is called ______.

On retirement of a partner, gain on revaluation is transferred to ______ partner's Capital accounts in ______ ratio.

In case all debtors are good, the provision for doubtful debts appearing in the balance sheet will be ______ in Revaluation Account.

Retiring partner's share of goodwill is adjusted through remaining partners' capital accounts in ______ ratio.

______ Account is prepared when amount payable to outgoing partner is paid in instalments with interest.

In case of death of a partner, his share of profit till the date of his death may be estimated on the basis of ______ or ______.

The ______ of a deceased partner is entitled to all the rights of a deceased partner.

Interest on drawings due from decreased partner till the date of his death is ______ to his capital account.

As per Section 37 of the Indian Partnership Act 1932, in the absence of partnership deed, the retiring partner is entitled to interest @ ______ till the amount due to him is not paid.

On retirement, if goodwill is appearing in the Balance Sheet, it will be ______ to ______ partners's capital accounts.

Profit and Loss Suspense A/c is closed by transferring its balance to ______ A/c.

On retirement of a partner, Creditors of ₹ 20,000 not likely to be claimed will be ______ to Revaluation A/c.

A, B and C are partners sharing profits in 1/2, 3/10 and 1/5. B retires selling his share of profit to A for ₹ 30,000 and to C for ₹ 60,000. New profit sharing ratio will be ______.

Diya, Riya and Tiya were partners sharing profits and losses in the ratio of 2 : 3 : 5. Tiya died on 28th November, 2019. Her share of profit was taken equally by Diya and Riya. Diya's share of profit in the new firm will be ______.

Match the following in case of Retirement of a Partner:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items at the time of retirement. Workmen Compensation Reserve in Balance Sheet is ₹ 50,000:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match the following items:

Match List I with List II:

Retiring partner is compensated for parting with the firm's future profits in favour of the remaining partners. The remaining partners contribute to such compensation amount in ______.

‘Gaining Ratio’ means ______.

What treatment is made of accumulated profits on the retirement of a partner?

At the time of retirement of a partner, profit on revaluation will be credited to ______.

What journal entry will be recorded for writing off the goodwill already existing in Balance Sheet at the time of retirement of a partner?

What journal entry will be recorded for the deceased partner’s share in profit from the closure of the last balance sheet till the date of his death?

On retirement of a partner, goodwill will be credited to the Capital Account of ______.

On the death of a partner, the amount due to him will be credited to ______.

How Goodwill is recorded on the retirement of a partner?

A, B and C are partners in 3 : 4 : 2. B wants to retire from the firm. The profit on revaluation on that date was ₹ 36,000. New ratio of A and C is 5 : 3. Profit on revaluation will be distributed as:

A, B and C are partners sharing profits in the ratio of 5 : 2 : 1. If the new ratio on the retirement of A is 3 : 2, what will be the gaining ratio?

P, Q and R are partners sharing profits in the ratio of 5 : 4 : 3. Q retires and P and R decide to share future profits equally. Gaining Ratio will be ______.

A, B and C are partners sharing profits in the ratio of 1/2 : 1/4 : 1/4. New ratio on the retirement of B will be ______.

A, B and C are partners sharing profits in the ratio of 1/4 : 3/10 : 9/20. The New ratio on the retirement of C will be ______.

X, Y and Z were partners sharing Profit & Losses in the ratio 5 : 3 : 2. Y retired, and he gifted half of his share to X and remaining half was taken over equally by X and Z. Determine the new Profit-sharing Ratio.

Aaroh, Bhuvan and Charu were partners in a firm sharing profits and losses in the ratio of 1 : 2 : 6. Charu died. Aaroh and Bhuvan acquired Charu's share in the ratio of 2 : 1. The new profit sharing ratio between Aaroh and Bhuvan after Charu’s death will be ______.

Vishesh, Manik, and Amit were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 1. Amit retired on 31st March, 2024. Vishesh and Manik acquired Amit’s share in the ratio of 2 : 3. The new profit-sharing ratio between Vishesh and Manik after Amit’s retirement will be:

Varsha, Aryan, and Nimit were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Varsha retired and surrendered `1/3`rd of her share in favour of Aryan and the remaining share in favour of Nimit. The new profit sharing ratio between Aryan and Nimit will be:

A, B and C are equal partners. C retires. He surrenders 3/5th of his share in favour of A and 2/5th in favour of B. New ratio will be ______.

Mita, Veena and Atul were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Atul retired and his share was taken over by Mita and Veena in the ratio of 1 : 4. The new profit sharing ratio between Mita and Veena after Atul’s retirement will be ______.

Srishti, Nitya and Anand were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Srishti retired from the firm selling her share of profits to Nitya and Anand in the ratio of 2 : 1. The new profit sharing ratio between Nitya and Anand will be ______.

Amla, Bimla and Kavita were partners sharing profits and losses in the ratio of 4 : 3 : 1. Bimla retires and gives her share of profit to Amla for ₹ 3,600 and to Kavita for ₹ 3,000. The gaining ratio of Amla and Kavita will be ______.

Rey and Ley Associates is having three partners named as Rakesh, Leena and Sanjana. Their Capitals were ₹ 4,00,000; ₹ 40,000 and ₹ 1,60,000 respectively. Sanjana retired on March 31, 2023 and sold her share of profits by taking ₹ 30 000 from Rakesh and ₹ 20,000 from Leena. Determine the new ratio.

On 1st April, 2024 A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On this date B retires. The new profit sharing ratio of A and C will be 3 : 2. Gaining ratio will be ______.

B, P and L sharing profits in the ratio 4 : 3 : 2. B retires, P and L decided to share profits in future in the ratio of 5 : 3. Gaining ratio will be ______.

P, Q and R were partners sharing profits in the ratio 2 : 2 : 1. Q retires and the new profit sharing ratio of P and R will be 3 : 1. Gaining ratio will be ______.

Anju, Divya and Bobby were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Bobby retired. The new profit sharing ratio between Anju and Divya after Bobby’s retirement was 5 : 3. The gaining ratio of remaining partners will be ______.

A, B and C are partners sharing profit or loss in the ratio of 4 : 3 : 2. C retires and after C’s retirement A and B agreed to share profit or loss in the ratio of 4 : 3 in future. Their gaining ratio will be ______.

A, B and C are partners sharing profit or loss in the ratio of 2 : 3 : 4. А retires and after A's retirement B and C agreed to share profit or loss in the ratio of 3: 4 in future. Their gaining ratio will be ______.

A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The capital balance are ₹ 50,000 for A, ₹ 70,000 for B, ₹ 35,000 for C. B decided to retire from the firm and balance in reserve on the date was ₹ 25,000. If goodwill of the firm was valued at ₹ 30,000 and profit on revaluation was ₹ 7,500 then, what amount will be payable to B?

P, Q and R are sharing profits and losses equally. R retires and the goodwill is appearing in the books at ₹ 30,000. Goodwill of the firm is valued at ₹ 1,50,000. Calculate the net amount to be credited to R’s Capital A/c.

Ram, Krishna and Ganesh were sharing profits and losses in the ratio of 5 : 3 : 2. Ram retires and Krishna and Ganesh share the future profits and losses equally. Goodwill of the firm is valued at ₹ 1,00,000. Calculate the amount of goodwill to be debited to Krishna’s and Ganesha’s Capital A/c.

A, B and C are partners with profit sharing ratio 4 : 3 : 2. B retires and goodwill was valued ₹ 1,08,000. If A & C share profits in 5 : 3, find out the goodwill shared by A and C in favour of B.

A, B and C are partners sharing profits in the ratio of 3 : 4 : 5. B retires and the goodwill of the firm is valued at ₹ 42,000. A and C decide to share profits in the ratio of 3 : 4. Journal entry will be:

X; Y and Z are partners sharing profits in the ratio of 2 : 3 : 5. Goodwill is already appearing in their books at a value of ₹ 60,000. X retires and Y and Z decided to share future profits equally. Journal entry will be:

A, B and C are partners in a firm sharing profit/loss in the ratio of 2 : 2 : 1. On March 31, 2024, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2023 was ₹ 6,00,000 and the profits were ₹ 60,000. The sales for the period from Jan. 1, 2024 to March 31, 2024 were ₹ 2,00,000. The share of deceased partner in the current year’s profits on the basis of sales is:

A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Books are closed on 31st March every year. C dies on 5th November, 2023. Under the partnership deed, the executors of the deceased partner are entitled to his share of profit to the date of death, calculated on the basis of last year’s profit. Profit for the year ended 31st March, 2023 was ₹ 2,40,000. C’s share of profit will be: 

P, Q and R were partners sharing profits in the ratio of their Capital contribution which were ₹ 6,00,000; ₹ 4,00,000 and ₹ 5,00,000 respectively. Their books are closed on 31st March every year. P dies on 24th August, 2021. Under the partnership deed, deceased partner is entitled to his share of profit/loss to the date of death based on the average profits of preceding three years. Profits were 2018 ₹ 50,000; 2019 1,80,000 (Loss); 2020 ₹ 30,000 and 2021 ₹ 60,000. P’s share of profit/loss will be:

A, B and C are partners in a firm sharing profit/loss in the ratio of 3 : 2 : 1. On March 31, 2019, C died. Accounts are closed on Dec., 31 every year. The sales for the year 2018 was 10,00,000 and the profits were 2,00,000. The sales for the period from Jan. 1, 2019 to March 31, 2019 were ₹ 3,00,000. The share of deceased partner in the current year’s profits on the basis of sales is:

A, B and C were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. C retired and his capital balance after adjustments regarding reserves, accumulated profits/losses and his share of gain on revaluation was ₹ 2,50,000. C was paid ₹ 3,22,000 including his share of goodwill. The amount credited to C’s Capital Account, on his retirement, for goodwill will be:

In the case of retirement, if full or part of the amount payable to the retiring partner still remains to be paid, and there is no agreement among the partners then the retiring partner will get:

1. Interest @ 6% p.a. on the Balance amount.
2. Share of profit earned proportionate to his amount outstanding to the total capital of the firm.
3. Interest @ 9% p.a. on the balance amount.

Which out of the following is correct?

Rajat, Mishi and Tanvi were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Tanvi died on 31st October, 2019. According to the partnership agreement, her share of profits from the closure of last accounting year till the date of her death was to be calculated on the basis of aggregate profits of two completed years before death. Profits of the firm for the years ending 31st March, 2018 and 31st March, 2019 were ₹ 57,000 and ₹ 63,000 respectively. The firm closes its books on 31st March every year. Tanvi’s share of profits till the date of her death will be:

______ is opened to credit the share of profit of the deceased partner, till the time of his death to his Capital Account.

X, Y and Z were partners in a firm sharing profits in the ratio of `1/2,1/3` and `1/6` respectively. Z decided to retire from the firm. On the date of his retirement, ‘Workmen Compensation Reserve’ of 1,20,000 was appearing in the Balance Sheet of the firm. The claim on account of Workmen Compensation was determined at ₹ 67,500. Excess of reserve amount over the claim will be:

A, B and C are partners sharing profits in 3 : 2 : 1 B retires, and the balance of his Capital A/c after adjusting reserves and his share of goodwill was ₹ 2,40 000. The remaining partners gave B an unrecorded vehicle valued at ₹ 60,000 and the balance payable to B was discharged by giving a Bank draft. What will be the amount of the Bank Draft?

A, B, C are partners sharing profits in 7 : 3 : 2 C retires and his share was purchased by A and B by giving him (C) ₹ 10,000 each from their Capital A/cs. What will be the new profit-sharing ratio of A and B?

A, B and C are partners sharing profits in 5 : 3 : 2. C retires and his share was purchased by A and B by giving him (C) ₹ 10,000 each from their Capital A/cs. What will be the value of the goodwill of the firm?

A, B, C are partners. B retired and on the date of retirement Workmen’s compensation fund was appearing in the books at ₹ 50,000. The claim on account of workmen’s compensation was ₹ 65,000. The excess claim will be:

Amay, Bina and Chander are partners in a firm with capital balances of ₹ 50,000, ₹ 70,000 and ₹ 80,000 respectively on 31st March, 2022. Amay decides to retire from the firm on 31st March 2022. With the help of the information provided, calculate the amount to be paid to Amay on his retirement. There existed a general reserve of ₹ 7,500 in the balance sheet on that date. The goodwill of the firm was valued at ₹ 30,000. Gain on revaluation was ₹ 24,000.

Punit, Sujit and Jiten are partners sharing profits and losses in the ratio of 4 : 3 : 1. Sujit retires from the firm, selling his share of profit to Punit and Jiten for ₹ 1,50,000; ₹ 80,000 being paid by Punit and ₹ 70,000 by Jiten. What is the new profit-sharing ratio between the remaining partners?

A firm has an unrecorded liability for workmen compensation of ₹ 10,000: The firm was not prudent enough to create a workmen compensation reserve. How will this liability be treated in the books of the firm at the time of retirement of a partner?

G, S and T were partners sharing profits in the ratio 3:2:1. G retired and his dues towards the firm including Capital balance, Accumulated profits and losses share, Revaluation Gain amounted to ₹ 5,80,000. G was being paid ₹ 7,00,000 in full settlement. For giving that additional amount of ₹ 1,20,000, S was debited for ₹ 40,000. Determine goodwill of the firm.

Khushi, Namita and Manvi were partners in a firm sharing profits and losses in the ratio of 5:2:3. On 30^th June, 2022, Khushi died. The partnership deed provided that on the death of a partner, her share of profit till the date of death was to be calculated on the basis of average profit of last three years less ₹ 10,000. Profits for the last three years were:

Khushi's share of profit till the date of her death was:

At the time of retirement, if nothing is mentioned about the payment made due to him, in which account, the amount will be transferred:

Eena, Meena and Deeka are partners sharing profits and losses in the ratio 5:4:1. Meena retired on 31st March 2023 and her dues came out to be ₹ 7,20,000. Amount of ₹ 1,20,000 was paid immediately and balance was to be paid in three equal annual instalments together with interest @ 10% per annum. Determine the amount payable to Meena on 31st March 2025.

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?

Hari, Chander, Prakash and Govind were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1 : 1. On 1st April, 2024, Hari retired and his share was acquired equally by Chander, Prakash and Govind. The new profit sharing ratio of Chander, Prakash and Govind will be:

Vimal, Bose and Ghosh were partners in a firm sharing profits and losses equally. On 1st April, 2024, Bose retired from the firm and the new profit sharing ratio between Vimal and Ghosh was decided as 4 : 3. On Bose's retirement, the goodwill of the firm was valued at ₹ 2,10,000. By what amount will the partners' Capital accounts be debited or credited for the treatment of goodwill on Bose's retirement?

Assertion (A): Retirement of a partner results into dissolution of partnership and new partnership among the remaining partners comes into existence.

Reason (R): Retirement of a partner results into reconstitution of partnership.

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

Assertion (A): In the event of retirement of a partner, the combined share of profit of the remaining partners will increase.

Reason (R): Combined share of profit of the remaining partners increases because they will also acquire the profit share of the retiring partner.

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

Assertion (A): If A, B, C and D are partners, D’s son will automatically become the new partner in case of D’s death. 

Reason (R): D’s son will become the new partner only if majority of the remaining partners agree to admit him into partnership.

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

Assertion (A): In case of retirement of a partner, goodwill is credited to all partners Capital accounts in old ratio.

Reason (R): In case of retirement of a partner, his share of goodwill is credited to retiring partner’s capital account and debited to continuing partners in their sacrificing ratio.

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

Assertion (A): At the time of retirement, the retiring partner is entitled to get his share of general reserve and credit balance in Profit & Loss Account.

Reason (R): Retiring partner is not entitled to share of general reserve and credit balance in Profit & Loss Account since he gets his share of goodwill.

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

Assertion (A): In the event of death of a partner, in case there is no change in the profit sharing ratio of continuing partners, the deceased partner’s share of profit till the date of his death is debited to Profit & Loss Suspense Account.

Reason (R): Profit and Loss Suspense Account is closed by transferring its balance to Profit & Loss Account.

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

Assertion (A): At the time of retirement of a partner, loss on revaluation is debited to the Capital accounts of remaining partners in their old ratio.

Reason (R): At the time of retirement of a partner, gain on revaluation is credited to the Capital accounts of all partners in their old ratio.

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

Assertion (A): In case of retirement, the retiring partner is entitled to get interest @ 6% p.a. till the amount due to him is paid off.

Reason (R): At his option, the retiring partner, instead of the interest, may take that share of profits which has been earned by the firm by the use of the amount due to him.

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

Assertion (A): Amount due to retiring partner is always transferred to his Loan Account bearing interest @ 6% p.a.

Reason (R): Amount due to retiring partner may be paid immediately or later in instalments with agreed rate of interest.

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

Assertion (A): On retirement of a partner, if the retiring partner is paid in excess of the total amount due to him, such an excess is treated as his share of goodwill.

Reason (R): Retiring partner’s share of goodwill is recorded by debiting goodwill account and crediting retiring partner’s capital account.

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

Assertion (A): A, B and C were partners sharing profits in 4 : 3 : 2. A retires and new profit sharing ratio between B and C is agreed at 2 : 1. On that date, advertisement suspense account of ₹ 1,80,000 existed in the balance sheet. It will be written off among all partners in old ratio.

Reason (R): Advertisement Suspense Account is a fictitious asset and at the time of retirement of a partner all fictitious assets are written off to the Capital Accounts of old partners in old profit sharing ratio.

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

Assertion (A): When Workmen Compensation Reserve appearing in the Balance Sheet is more than the claim against it, the excess of such reserve is credited to old partners in their old profit-sharing ratio.

Reason (R): Workmen Compensation Reserve is a reserve created out of past profits and hence distributed among old partners in their old ratio.

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