Question
16:
Manoj,
Rakesh and Harsh were partners sharing profits in the
ratio of 2:2:1. Manoj died on 30th June, 2024 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.) ₹ |
|
2024 3oth June |
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, 2024 after 3 month of beginning of the year (from 1 April
2024 to 30th June, 2024)
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, B
and C were partners sharing profits in the ratio of 3 :
2 : 1. The firm closes its books on 31st March every year. B died on 30th June,
2024. On his death, Goodwill of the firm was valued at ₹ 6,00,000. B's share in profit or loss till the date of death
was to be calculated on the basis of previous year's profit which was ₹
15,00,000 (Loss). Pass necessary Journal entries for
goodwill and his share of loss.
Answer:
|
In the books of the A, B and C Journal |
|||||
|
Date |
Particulars |
|
L.F. |
Debit |
Credit |
|
2024 |
|
|
|
|
|
|
June 30 |
A’s
Capital A/c (2,00,000 × 3/4) |
Dr. |
|
1,50,000 |
|
|
|
C’s
Capital A/c (2,00,000 × 1/4) |
Dr. |
|
50,000 |
|
|
|
To B’s
Capital A/c (WN1) |
|
|
|
2,00,000 |
|
|
(Being
B’s share of goodwill adjusted in gaining ratio 3 : 1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
B’s
Capital A/c (WN2) |
Dr. |
|
1,25,000 |
|
|
|
To
Profit & Loss Suspense A/c |
|
|
|
1,25,000 |
|
|
(Being
B’s Share of loss debited to his Capital) |
|
|
|
|
Working Notes:
1. Calculation of B’s Share of
Goodwill
|
Goodwill |
= |
₹ 6,00,000 |
|
B’s Share of Goodwill |
= |
₹ (6,00,000 × 2/6) = ₹ 2,00,000 |
2. Calculation of B’s Share of Loss till the date of his death i.e.
30th June, 2024
|
Previous
year’s loss |
= |
₹ 15,00,000 |
|
B’s share of loss till the date of
death |
= |
Previous
year’s loss × B’s Share of Loss × Months till the date of his death/12 |
|
|
= |
₹ (15,00,000 × 2/6 × 3/12) |
|
|
= |
₹ 1,25,000 |
Question 18:
X, Y and Z were partners in a firm. Z died
on 31st May, 2025. 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, 2023, 2024 and 2025 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, 2025. Profit and Sales for the
year ended 31st March, 2023were ₹ 1,00,000 and ₹ 10,00,000 respectively. Sales during
April to June, 2025 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 2025 to 31st June, 2025)
Profit for the year ended 31st March, 2025 were ₹ 1,00,000
Sales for the year ended 31st March, 2025 were ₹
10,00,000
Percentage of Profit ended 31st March, 2025 were 10,00,000 × 100 ÷ 1,00,000 = 10 %
Sales during April to June, 2025 were
₹ 1,50,000
Profit from April to June, 2025 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, 2024 Shreya died. The books of accounts are closed on 31st March
every year. Sales for the year 2023-24 ₹ 5,00,000
and that from 1st April to 30th June, 2024 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.) ₹ |
|
2024 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, 2023 Shreya
died
Shreya’s share of Profit On
sale from 1st April, 2024 to 30th June, 2024 for 3 Month is to be calculated as 20%
on sales
Sales from 1st April to 30th June, 2024 were ₹1,40,000
for 3 Month
Profit from 1st April to 30th June, 2024 (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 2025-2026
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Class 12 / Volume – I