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12th | Death Of A Partner | Question No. 11 To 15 | Ts Grewal Solution 2023-2024

Question 11:


A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 25th February, 2019, B died. B’s share of profit till the date of his death was calculated at ` 5,000. Pass the necessary Journal entry for the same in the books of the firm. (CBSE 2020)

 

Answer:


Date

Particulars

 

L.F.

(Dr.) `

(Cr.) `

2020

25th Feb.

Profit and Loss Suspense A/c

  To B’s Capital A/c

  (Being profit distributed)

Dr.

 

50,000

 

50,000

 

Question 12:


A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. B died on 30th June, 2022. For the year ended 31st March, 2023, proportionate profit of 2022 is to be taken into consideration. During the year ended 31st March, 2023, bad debts of  ` 2,000 had to be adjusted. Profit for the year ended 31st March, 2022 was  `14,000 before adjustment of bad debts. Calculate B's share of profit till the date of his death.

 

Answer:


Profit for the year 2022-23 before adjusting bad debts = ` 14,000
Bad debts =
` 2,000
Profits after adjusting bad debts

=14,000 – 2,000= `12,000
Proportionate profit of the firm (from April 01, 2022 to June 30, 2022)

=12,000×3/12=3,000
B’s share of profit (from April 01, 2022 to June 30, 2022)

=3,000×2/6=1,000

 

Question 13: Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2023. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed financial years of profits before death. Profits for the years ended 31st March, 2021, 2022 and 2023 were ` 1,10,000; ` 1,20,000 and ` 1,30,000 respectively. Calculate Hari’s share of profit till the date of his death and pass necessary Journal entry for the same.


 

Answer:


Total profit previous three years = 1,10,000 + 1,20,000  + 1,30,000 = 3,60,000

Average Profit previous three years = 3,60,000/3 = 1,20,000

Hari died on 30th June, 2023 after 3 month of beginning of the year (from 1 April 2021 to 30th June, 2022)

Hari’s share of Profit for 3 month = 1,20,000 × 3 × 1 ÷ 12 × 3 = ` 10,000

 

Question 14:


XY and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2022. Profit from 1st April, 2022 to 30th June, 2022 was  ` 3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2 respectively with effect  from 1st July, 2021. Pass the necessary Journal entries to record Y's share of profit up to the date of death. 

 

Answer:


Journal

S.No.

Particulars

L.F.

Debit

 ( `)

Credit

( `)

 

 X’s Capital A/c

Dr.

 

36,000

 

 

 Z’s Capital A/c

Dr.

 

84,000

 

 

   To Y’s Capital A/c

 

 

 

1,20,000

 

 (Proportionate profit dispensed to deceased partner)

 

 

 

 


Working Notes:
WN1: Calculation of Y’s Share of Profit

Y's share=Firm's Profit×Y's Profit Share

Y's share=3,60,000×2/6=1,20,000 to be borne by gaining partners in gaining ratio

WN2: Calculation of Gaining Ratio

Gaining Ratio = New Ratio − Old Ratio

X's gain=3/5−3/6=3/30

Z's gain=2/5−1/6=7/30

Gaining Ratio=3:7

X's share=1,20,000×3/10=36,000

Z's share=1,20,000×7/10=84,000

 

Question 15: Radha, lina and Reeta were partners sharing profits equally. Reeta died on 31st July, 2022. Radha and Tina decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit, which was 4,50,000.


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

 

Answer:


Date

Particulars

 

L.F.

(Dr.) `

(Cr.) `

2022

31st July

Profit and Loss Suspense A/c

  To Reeta’s Capital A/c

 (Being profit transferred on the basis of last years profit)

Dr.

 

50,000

 

50,000

 

Working Notes:

Hadha, lina and Reeta were partners sharing profits equally (1:1:1)

Reeta died on 31st July, 2022 after 4 month of beginning of the year (from 1 April 2022 to 31st July, 2022)

Last year’s profit = ` 4,50,000

Reeta’s share of Profit for 3 month = 4,50,000 × 4 × 1 ÷ 12 × 3 = ` 50,000

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 6 – Death of a Partner

 

Question No. 1 To 5

Question No. 6 To 10

Question No. 11 To 15

Question No. 16 To 20

Question No. 21 To 25

Question No. 26 To 30

Question No. 31 To 35

Question No. 36 And 37