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12th | Death Of A Partner | Question No. 16 To 20 | Ts Grewal Solution 2023-2024

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

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