Important Questions of Class 12 Accountancy Ch-6 Death of Partner
Question 1:
Gita, Hina, and Isha were partners in a firm sharing profits and losses in the ratio of 3 : 3 : 2. Gita died. Hina and Isha decided to share profits and losses in the future, equally. On the day of Gita’s death, goodwill of the firm was valued at ₹ 8,00,000. Calculate the gaining ratio and pass the necessary journal entry to record the treatment of goodwill on Gita’s death.
Answer
Important Questions of Class 12 Accountancy Ch-6 Death of Partner
Question 2:
Pankaj, Rajat and Samay were partners in a firm sharing profits and losses in the ratio of 7 : 2 : 1. Their Balance Sheet as at 31st March, 2023 was as follows :
Balance Sheet of Pankaj, Rajat and Samay as at 31st March, 2023
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals : | Machinery | 2,10,000 | |
| Pankaj | 3,00,000 | Furniture | 1,00,000 |
| Rajat | 2,00,000 | Stock | 1,50,000 |
| Samay | 1,00,000 | Debtors | 1,60,000 |
| General Reserve | 1,00,000 | Bank | 2,50,000 |
| Creditors | 1,70,000 | ||
| Total | 8,70,000 | Total | 8,70,000 |
Rajat died on 30th June, 2023. It was agreed between his executors and remaining partners that :
(i) Goodwill be valued at two years purchase of average profits of the previous four years which were ₹ 5,00,000.
(ii) Share of profit up to the date of death will be on the calculated on the basis of average profits of the past four years. Rajat’s share of profit amounted to ₹ 25,000.
(iii) Interest on capital is to be provided @ 10% p.a.
(iv) Half the amount due to Rajat is to be paid immediately.
Prepare Rajat’s Capital Account and Rajat’s Executor’s Account as on 30th June, 2023.
Answer
Important Questions of Class 12 Accountancy Ch-6 Death of Partner
Question 3:
Manu, Naresh, and Paras were partners in a firm sharing profits and losses equally. Their Balance Sheet as of 31st March 2023 was as follows:
Balance Sheet of Manu, Naresh, and Paras as on 31st March 2023
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 60,000 | Bank | 60,000 |
| General Reserve | 60,000 | Stock | 90,000 |
| Capitals: | Debtors | 1,10,000 | |
| Manu – 90,000 | Fixed Assets | 1,00,000 | |
| Naresh – 80,000 | |||
| Paras – 70,000 | 2,40,000 | ||
| Total | 3,60,000 | Total | 3,60,000 |
Paras died on 31st January 2024. It was agreed between his executors and the remaining partners that:
(i) Goodwill be valued at ₹30,000 at 3 years’ purchase of average profits of the previous three years.
(ii) Share of profit up to the date of death on the basis of average profits of the previous three years. Paras’s share of profit amounted to ₹48,000.
(iii) Interest on capital is to be provided at 12% p.a.
(iv) Half the amount due to Paras is to be paid immediately.
Prepare Paras’s Executor’s Account and Paras’s Capital Account
Important Questions of Class 12 Accountancy Ch-6 Death of Partner
Question 4:
Gopi, Hira, and Ira were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as of 31st March 2023 was as follows:
Balance Sheet of Gopi, Hira, and Ira as on 31st March, 2023
| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Creditors | 40,000 | Bank | 50,000 |
| General Reserve | 30,000 | Stock | 30,000 |
| Capitals: | Debtors | 20,000 | |
| Gopi | 75,000 | Fixed Assets | 1,40,000 |
| Hira | 50,000 | ||
| Ira | 45,000 | ||
| Total | 2,40,000 | Total | 2,40,000 |
Hira died on 31st December 2023. It was agreed between her executors and the remaining partners that:
(i) Goodwill will be valued at 2 years’ purchase of the average profits of the previous 3 years. The average profits of the previous three years were ₹ 45,000.
(ii) Share of profit up to the date of death on the basis of average profits of the previous four years. Hira’s share of profit amounted to ₹ 18,000.
(iii) Interest on capital is to be provided at 12% p.a.
(iv) Half of the amount due to Hira is to be paid immediately.
Prepare Hira’s Capital Account and Hira’s Executor’s Account as on 31st December 2023.
Important Questions of Class 12 Accountancy Ch-6 Death of Partner
