{"id":27264,"date":"2019-10-01T14:56:45","date_gmt":"2019-10-01T09:26:45","guid":{"rendered":"http:\/\/mycbseguide.com\/blog\/?p=27264"},"modified":"2019-10-05T12:27:03","modified_gmt":"2019-10-05T06:57:03","slug":"retirement-or-death-of-a-partner-class-12-accountancy-important-questions","status":"publish","type":"post","link":"https:\/\/mycbseguide.com\/blog\/retirement-or-death-of-a-partner-class-12-accountancy-important-questions\/","title":{"rendered":"Retirement or Death of a partner Class 12 Accountancy Important Questions"},"content":{"rendered":"

Retirement or Death of a partner Class 12 Accountancy Important Questions. <\/strong>myCBSEguide has just released Chapter Wise Question Answers for class 12 Accountancy. There chapter wise Practice Questions with complete solutions are available for download in\u00a0myCBSEguide<\/a>\u00a0<\/strong>website and mobile app. These test papers with solution are prepared by our team of expert teachers who are teaching grade in CBSE schools for years. There are around 4-5 set of solved Accountancy Extra questions from each and every chapter. The students will not miss any concept in these Chapter wise question that are specially designed to tackle Exam. We have taken care of every single concept given in\u00a0CBSE Class 12 Accountancy\u00a0<\/a><\/strong>syllabus and questions are framed as per the latest marking scheme and blue print issued by CBSE for class 12.<\/p>\n

CBSE Class 12 Accountancy Extra Questions<\/strong><\/p>\n

Download as PDF<\/a><\/strong><\/p>\n

Practice Questions for Class 12 Accountancy<\/h2>\n
Ch-5 Retirement or Death of a partner<\/strong><\/p>\n
\n<\/div>\n
    \n
  1. M, N and H are partners without partnership deed. M wants to get retired. The profit on revaluation on the date was ` 12000.and other partners N and H want to share this in the new ratio 3:2. M wants this to be shared equally How this profit should be shared\n
      \n
    1. 6000 equally between each partner<\/span><\/li>\n
    2. 4000 equally between each partner<\/li>\n
    3. 8000 equally between each partner<\/li>\n
    4. 3000 equally between each partner<\/li>\n<\/ol>\n<\/li>\n
    5. If any asset is taken over by a partner at the time of his retirement, how will you record it?\n
        \n
      1. Balance Sheet<\/li>\n
      2. Revaluation Account<\/li>\n
      3. Cr. Side of his capital account<\/li>\n
      4. Dr. side of his capital account<\/li>\n<\/ol>\n<\/li>\n
      5. New Ratio \u2013 Old Ratio = ?\n
          \n
        1. New ratio of continuing partners<\/li>\n
        2. Both Sacrificing ratio and New ratio of continuing partners<\/li>\n
        3. Sacrificing ratio<\/li>\n
        4. Gain Ratio<\/li>\n<\/ol>\n<\/li>\n
        5. Calculation of sharing of profit up to date of death will be calculated on the basis of\n
            \n
          1. Yearly basis<\/li>\n
          2. Time basis<\/li>\n
          3. Turnover basis<\/li>\n
          4. Both Time basis and Turnover basis<\/li>\n<\/ol>\n<\/li>\n
          5. There are some adjustments are to be done at the time of retiring partner\n
              \n
            1. New profit sharing ratio of continuing partners<\/li>\n
            2. Accounting treatment of goodwill<\/li>\n
            3. Preparation of Executor\u2019s Account<\/li>\n
            4. Adjustment of Reserves and Profits
              \nWhich of the above adjustments are to be done<\/p>\n
                \n
              1. b, c and d<\/span><\/li>\n
              2. a, c , b<\/span><\/li>\n
              3. a, b , c, d<\/span><\/li>\n
              4. a , b and d<\/span><\/li>\n<\/ol>\n<\/li>\n<\/ol>\n<\/li>\n
              5. \n
                \n

                State any two items of deductions that may have to be made from the amount of payable to a retiring partner.<\/p>\n<\/div>\n<\/li>\n

              6. \n
                \n

                Neetu, Meetu and Teetu were parents in a firm. On 1st January 2018, Meetu retired. On Meetu’s retirement, the goodwill of the firm was valued at Rs.4,20,000. Pass necessary journal entry for the treatment of goodwill on Meetu’s retirement.<\/p>\n<\/div>\n<\/li>\n

              7. \n
                \n

                Give the Journal entry to distribute the \u2018Workmen Compensation Reserve\u2019 of Rs.60,000 at the time of retirement of Vinod, when there is no claim against it. The has three partners.<\/p>\n<\/div>\n<\/li>\n

              8. \n
                \n

                X, Y and Z were partners sharing profits in the ratio of\u00a01<\/span>2<\/span><\/span>,<\/span>3<\/span>10<\/span><\/span>\u00a0and\u00a0<\/span>1<\/span>5<\/span><\/span><\/span><\/span>12,310\u00a0and\u00a015<\/span><\/span><\/span>. X retired from the firm. Calculate the gaining ratio of the remaining partners.<\/p>\n<\/div>\n<\/li>\n

              9. \n
                \n

                Give the journal entry to distribute ‘workmen compensation reserve\u2019 of Rs 60,000 at the time of retirement of Sajjan, when there is no claim against it. The firm has three partners Rajat, Sajjan and Kavita.<\/p>\n<\/div>\n<\/li>\n

              10. \n
                \n

                P, Q, and R are partners sharing profits in the ratio of 4: 3: 1. P retires and his share is taken over by Q and R equally. Find the new profit sharing ratio of Q and R.<\/p>\n<\/div>\n<\/li>\n

              11. \n
                \n

                Meera, Sarthak and Rohit were partners sharing profits in the ratio of 2 : 2 : 1. On 31 March 2018, their Balance Sheet was as follows :<\/p>\n

                Balance Sheet of Meera, Sarthak and Rohit as at 31 March 2018<\/strong><\/p>\n\n\n\n\n\n\n\n\n\n\n
                Liabilities<\/strong><\/td>\nAmount (Rs.)<\/strong><\/td>\nAssets<\/strong><\/td>\nAmount (Rs.)<\/strong><\/td>\n<\/tr>\n
                Creditors<\/td>\n3,00,000<\/td>\nFixed Assets<\/td>\n7,00,000<\/td>\n<\/tr>\n
                Contingency Reserve<\/td>\n1,00,000<\/td>\nStock<\/td>\n2,00,000<\/td>\n<\/tr>\n
                Capital :<\/td>\n<\/td>\nDebtors<\/td>\n1,50,000<\/td>\n<\/tr>\n
                Meera<\/td>\n4,00,000<\/td>\nCash at bank<\/td>\n3,50,000<\/td>\n<\/tr>\n
                Sarthak<\/td>\n4,00,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                Rohit<\/td>\n2,50,000<\/td>\n<\/td>\n<\/td>\n<\/tr>\n
                <\/td>\n14,00,000<\/td>\n<\/td>\n14,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                Sarthak died on 15th June, 2018. According to the partnership deed, his executors were entitled to : The firm\u2019s profits for the last four years were : 2014 – 15 Rs.1,20,000, 2015 – 16 Rs.2,00,000, 2016 – 17 Rs.2,60,000 and 2017 – 18 Rs.2,20,000. Sarthak\u2019s executors were paid the amount due immediately. Prepare Sarthak\u2019s Capital Account to be presented to his executors.<\/p>\n

                  \n
                1. Balance in his Capital Account.<\/li>\n
                2. His share of goodwill will be calculated on the basis of thrice the average of the past 4 years\u2019 profits.<\/li>\n
                3. His share in profits up to the date of death on the basis of average profits of the last two years. The time period for which he survived in the year of death will be calculated in months.<\/li>\n
                4. Interest on capital @ 12% p.a. up to the date of his death.<\/li>\n<\/ol>\n<\/div>\n<\/li>\n
                5. \n
                  \n

                  X, Y, and Z are partners sharing profits and losses in the ratio of 4: 3: 2. Y retires and surrenders l\/9th of his share in favour of X and the remaining in favour of Z. Calculate the new profit-sharing ratio and the gaining ratio.<\/p>\n<\/div>\n<\/li>\n

                6. \n
                  \n

                  Giriija, Yatin, and Zubin were partners sharing profits in the ratio 5 : 3 : 2. Zubin died on 1st August 2015. Amount due to Zubin\u2019s executor after all adjustments was Rs.90,300. The executor was paid Rs.10,300 in cash immediately and the balance in two equal annual instalments with interest @ 6% p.a. starting from 31st March 2017. Accounts are closed on 31st March each year. Prepare Zubin\u2019s Executors Account till he is finally paid.<\/p>\n<\/div>\n<\/li>\n

                7. \n
                  \n

                  Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20% respectively. On 31st March, 2013 their balance sheet was as follows<\/p>\n

                  Balance Sheet<\/strong>
                  \nas on 31st March, 2013<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
                  Liabilities<\/strong><\/td>\n<\/td>\nAmount<\/strong><\/p>\n

                  (Rs)<\/strong><\/td>\n

                  		Assets<\/strong><\/td>\n<\/td>\nAmount<\/strong><\/p>\n

                  (Rs)<\/strong><\/td>\n<\/tr>\n

                  Creditors<\/td>\n<\/td>\n28,000<\/td>\nCash<\/td>\n<\/td>\n34,000<\/td>\n<\/tr>\n
                  Provident Fund<\/td>\n<\/td>\n10,000<\/td>\nDebtors<\/td>\n47,000<\/td>\n<\/td>\n<\/tr>\n
                  Investment Fluctuation Fund<\/td>\n<\/td>\n10,000<\/td>\n(-) Provision for Doubtful Debts<\/td>\n(3,000)<\/td>\n44,000<\/td>\n<\/tr>\n
                  Capital A\/cs<\/td>\n<\/td>\n<\/td>\nStock<\/td>\n<\/td>\n15,000<\/td>\n<\/tr>\n
                  Lalit<\/td>\n50,000<\/td>\n<\/td>\nInvestments<\/td>\n<\/td>\n40,000<\/td>\n<\/tr>\n
                  Madhur<\/td>\n40,000<\/td>\n<\/td>\nGoodwill<\/td>\n<\/td>\n20,000<\/td>\n<\/tr>\n
                  Neena<\/td>\n25,000<\/td>\n1,1.5,000<\/td>\nProfit and Loss A\/c<\/td>\n<\/td>\n10,000<\/td>\n<\/tr>\n
                  <\/td>\n<\/td>\n1,63,000<\/p>\n

                  =======<\/td>\n

                  		<\/td>\n<\/td>\n1,63,000<\/p>\n

                  =======<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

                  On this date, Madhur retired and Lalit and Neena agreed to continue on the following terms<\/p>\n

                    \n
                  1. The goodwill of the firm was valued at Rs 51,000.<\/li>\n
                  2. There was a claim for workmen\u2019s compensation to the extent of Rs 6,000<\/li>\n
                  3. Investments were brought down to Rs 15,000.<\/li>\n
                  4. Provision for bad debts was reduced by Rs 1,000.<\/li>\n
                  5. Madhur was paid Rs 10,300 in cash and the balance was transferred to his loan account payable in two equal installments together with interest @ 12% per annum.<\/li>\n<\/ol>\n

                    Prepare revaluation account, partners\u2019 capital accounts and Madhur\u2019s loan account till the loan is finally paid off.<\/p>\n<\/div>\n<\/li>\n<\/ol>\n

                    Ch-5 Retirement or Death of a partner<\/strong><\/p>\n

                    \n

                    Answer<\/strong><\/p>\n

                      \n
                    1. \n
                        \n
                      1. 4000 equally between each partner,\u00a0Explanation:\u00a0<\/strong>In the absence of partnership deed profit sharing ratio will be equal. In this case, M is right; profit should be shared equally among the partners i.e. 4,000 equally among all the partners.<\/li>\n<\/ol>\n
                          \n
                        1. Dr. side of his capital account,\u00a0Explanation:\u00a0<\/strong>Any asset taken by the partner will be shown in the debit side of his capital account. It means his capital account will be reduced by the same.<\/li>\n<\/ol>\n
                            \n
                          1. Gain Ratio,\u00a0Explanation:\u00a0<\/strong>At the time of retirement or death of a partner, gain ratio of remaining partners is calculated as follows: New Ratio \u2013 Old Ratio = Gain Ratio<\/li>\n<\/ol>\n
                              \n
                            1. Both Time basis and Turnover basis,\u00a0Explanation:\u00a0<\/strong>Deceased partner\u2019s share will be calculated on the basis of:\n