Question 16: Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2:2:1. Manoj died on 30th June, 2022. Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit. Last year’s loss was ` 2,00,000.
Pass necessary Journal entry to record Manoj’s share of profit/loss up to the date of death
Answer:
|
Date |
Particulars |
|
L.F. |
(Dr.) ` |
(Cr.) ` |
|
2022 31st
July |
Manoj’s
Capital A/c To Profit and Loss Suspense A/c (Being
profit transferred on the basis of last years loss) |
Dr. |
|
20,000 |
20,000 |
Working Notes:
Manoj, Rakesh and Harsh were partners sharing profits (2:2:1)
Manoj died on 30th June, 2022
after 3 month of beginning of the year (from 1 April 2021 to 31st June, 2022)
Last year’s loss = ` 2,00,000
Reeta’s share of Loss for 3 month = 2,00,000 × 3 × 2 ÷ 12 × 5 = ` 20,000
Question 17:
A, Band C were partners sharing profits in the ratio of3:2:1.The firm closes its books on 31st March every year. B died on 30th June, 2022. On his death, Goodwill of the firm was valued at Rs. 6,00,000. B's share profit or loss till the date of death was to be calculated on the basis of previous year's profit which was Rs. 15,00,000 (Loss). Pass necessary Journal entries for goodwill and his share of loss.
Answer:
|
Date |
Particulars |
|
Dr. (`) |
Cr. (`) |
|
(i) |
A's Capital A/c |
Dr. |
1,50,000 |
|
|
|
C's Capital A/c |
|
50,000 |
|
|
|
To B's Capital
A/c |
|
|
2,00,000 |
|
|
(Being Compensated) |
|
|
|
|
(ii) |
|
|
|
|
|
|
B's Capital A/c |
|
1,25,000 |
|
|
|
To
Profit & Loss Suspense A/c |
|
|
1,25,000 |
|
|
(Being Capital Written-off with the share of loss) |
|
|
|
B’s Share of Goodwill=6,00,000×2/6= 2,00,000;
B's Share of Loss- 15,00,000×2×3/6×12=1,25,000
Question 18:
X, Y and Z
were partners in a firm. Z died on 31st May, 2022. His share of profit
from the closure of the last accounting year till the date of death was to be
calculated on the basis of the average of three completed years of before
death. Profits for the year ended 31st March, 2020, 2021 and 2022
were `18,000,
`
19,000 and ` 17,000
respectively.
Calculate Z's share of profit till his death and pass necessary
Journal entry for the same when:
(a) there is no change in profit-sharing ratio of remaining partners, and
(b) there is change in profit-sharing ratio of remaining partners, new ratio
being 3 : 2.
Answer:
|
Journal |
|||||
|
S.No. |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
(a) |
Profit
& Loss Suspense A/c |
Dr. |
|
1,000 |
|
|
|
To
Z’s Capital A/c |
|
|
|
1,000 |
|
|
(Proportionate
profit dispensed to deceased partner) |
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
X’s
Capital A/c |
Dr. |
|
800 |
|
|
|
Y’s
Capital A/c |
Dr. |
|
200 |
|
|
|
To
Z’s Capital A/c |
|
|
|
1,000 |
|
|
(Proportionate
profit dispensed to deceased partner) |
|
|
|
|
Working Notes:
WN1: Calculation of Z’s Share of Profit
Z's share=Firm's Average Profit×Z's Profit Share×Period for which Z remained in the business
Average Profits=Total Profits
Number of Years=18,000+19,000+17,000/3=54,000/3=` 18,000
Z's share=18,000×13×2/12=1,000 to be borne by gaining partners in gaining ratio in case b
WN2: Calculation of Gaining
Ratio
Gaining Ratio = New Ratio − Old Ratio
X's gain=3/5−1/3=415
Y's gain=2/5−1/3=115
Gaining Ratio=4:1
X's share=18,000×4/5=800
Y's share=18,000×1/5=200
Question 19: A, B and C were partners sharing profits and losses in the ratio of 2: 2:1. C died on 30th June, 2023. Profit and Sales for the year ended 31st March, 2023 were ` 1,00,000 and ` 10,00,000 respectively. Sales during April to June, 2023 were ` 1,50,000. You are required to calculate share of profit of C till the date of his death.
Answer:
A, B and C were partners sharing profits (2:2:1)
C died on 30th June, 2023 after 3 month of beginning of the
year (from 1 April 2023 to 31st June, 2023)
Profit for the year ended 31st March, 2023 were ` 1,00,000
Sales for the year ended 31st March, 2023 were ` 10,00,000
Percentage of Profit ended 31st March, 2023 were 10,00,000 × 100 ÷ 1,00,000 = 10 %
Sales during April to June, 2023 were ` 1,50,000
Profit from April to June, 2023 were ` 1,50,000 × 10 ÷ 100 = 15,000
C’s share of Loss for 3 month = 15,000 × 1 ÷ 5 = ` 3,000
Question 20: Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2:2:1. On 1st July, 2022 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2021-22 ` 5,00,000 and that from 1st April to 30th June, 2022 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 specially 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 necessary Journal entry for the same.
(CBSE 2018 C, Modified)
Answer:
|
Date |
Particulars |
|
L.F. |
(Dr.) ` |
(Cr.) ` |
|
2021 31st
July |
Shreya’s
Capital A/c To Profit and Loss Suspense A/c (Being
loss transferred) |
Dr. |
|
5,600 |
5,600 |
Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2:2:1
On 1st July, 2022 Shreya died
Shreya’s share of
Profit On sale from 1st April, 2022 to 30th June, 2021 for 3 Month is to be calculated as 20% on sales
Sales from 1st April to 30th June, 2022 were `1,40,000
for 3 Month
Profit from 1st April to 30th June, 2022 (for 3 Month) were `1,40,000×20÷100=28,000
Shreya’s share of
Profit =`28,000×1÷5=5,600
Ts Grewal Solution 2023-2024
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Class 12 / Volume – I