Question 26:
Iqbal and
Kapoor are in partnership sharing profits and losses
in 3 : 2. Kapoor died three
months after the date of the last Balance Sheet. According to the Partnership
Deed, the legal heir is entitled to the following:
(a) His capital as per the last Balance Sheet.
(b) Interest on above capital @ 3% p.a. till the date of death.
(c) His share of profits till the date of death calculated on the basis of last
year's profits.
His drawings are to bear interest at an average rate of 2% on the amount
irrespective of the period.
The net profits for the last three years, after charging insurance premium,
were
` 20,000; ` 25,000 and ` 30,000 respectively. Kapoor's capital as per
Balance Sheet was
` 40,000 and his drawings till the date
of death were
` 5,000.
Draw Kapoor's Capital Account to be rendered to his
representatives.
Answer:
|
Kapoor’s Account |
|||
|
Dr. |
Cr. |
||
|
Particulars |
` |
Particulars |
` |
|
Drawings
A/c |
5,000 |
Balance
b/d |
40,000 |
|
Interest
on Drawings A/c |
100 |
Interest
on Capital A/c |
300 |
|
Balance
c/d |
38,200 |
Profit
and Loss Adjustment A/c |
3,000 |
|
|
|
|
|
|
|
|
|
|
|
|
43,300 |
|
43,300 |
|
|
|
|
|
Working Notes
WN1Calculation
of Interest on Capita of Kapoor till date of his
death
|
Interest |
= capital
×Rate100×time /12 |
|
|
=40,000×3/100×3/12 =300 |
WN2Calculation
of Share of Profit of Kapoor till date of his death
|
Profit |
= last years’
profit ×time /12×share of profit |
|
|
=30,000×3/12×3/5 =3,000 |
WN3 Calculation
of Interest on Drawings
|
Interest |
= Drawing ×2% |
|
|
=5,000×2% =100 |
Question 27: Trisha, Anisha and Rishika were partners
in a firm sharing profits and losses in the ratio of 2:2:1. Their
Balance
Sheet as at 31st March, 2052 was as follows:
|
BALANCE
SHEET OF TRISHA AND RISHIKA as at 3 1st March, 2025 |
|||||
|
Liabilities |
|
` |
Assets |
|
` |
|
Capital A/cs:
|
|
|
Plant and Machinery |
|
5,00,000 |
|
Trisha |
3,00,000
|
|
Stock |
|
1,00,000 |
|
Anisha |
2,00,000
|
|
Debtors |
|
60,000 |
|
Rishika |
1,00,000
|
6,00,000
|
Cash at Bank |
|
40,000 |
|
General Reserve |
|
50,000 |
Creditors |
|
50,000 |
|
|
|
|
|
|
|
|
|
|
7,00,000 |
|
|
7,00,000 |
Trisha
died on 31st July, 2025. According to the partnership deed, the executors of
the deceased partner were entitled to:
(i) Balance in Partner's Capital
Account.
(ii)
Salary @ `15,000 per quarter.
(iii)
Share of goodwill calculated on the basis of twice the average of past three
year's profits.
(iv)
Share
of profits from the closure of the last accounting year till the date of death
on the basis of last year's profit. Profit for 2022-23, 2023-24 and 2024-25
were 1,00,000, 2,00,000 and 1,50,000 respectively.
(v)
Trisha withdrew ₹20,000 on 1st May, 2025 for her personal use.
Showing
your working clearly. Prepare Trishas Capital
Account to be rendered to her executors. (CBSE 2023 Modified)
Answer:
|
Trisha’s
Capital A/c |
|||
|
Particulars |
` |
Particulars |
` |
|
To Drawings |
20,000 |
By Balance b/d |
3,00,000 |
|
To Trisha’s executor’s A/c |
4,60,000 |
By Salaries A/c |
20,000 |
|
|
|
By Anisha’s
Capital A/c |
80,000 |
|
|
|
By Rishika’s
Capital A/c |
40,000 |
|
|
|
By General Reserve |
20,000 |
|
|
|
By P&L Suspense A/c |
20,000 |
|
|
4,80,000 |
|
4,80,000 |
Working Notes:
1. Salary = 15,000×4/3=20,000
2. Goodwill
Total
profit =1,00,000+2,00,000+1,50,000=4,50,000
Average
Profit = 4,50,000/3=1,50,000
Goodwill
= 1,50,000×2=3,00,000
Traisha’s Share of
goodwill =3,00,000×2/5=1,20,000
80,000
will be shared by partners
Anisha = 1,20,000×2/3=80,000
Rishika = 1,20,000×1/3=40,000
3. Calculation of Share of Profit
Last
years profit 1,50,000
Traisha’s Share of Profit
= 1,50,000×2/5×4/12=20,000
Question 28:
X and Y are partners. The Partnership Deed provides inter
alia:
(a) That the Accounts be balanced on 31st March every year.
(b) That the profits be divided as: X one-half, Y one-third
and carried to a Reserve one-sixth.
(c) That in the event of the death of a partner, his Executors be entitled to
be paid:
(i) The Capital to his credit till the date of death.
(ii) His proportion of profits till the date of death based on the average
profits of the last three completed years.
(iii) By way of Goodwill, his proportion of the total profits for the three
preceding years.
(d)
|
BALANCE
SHEET as at 31st March, 2024 |
|||||
|
Liabilities |
` |
Assets |
` |
||
|
Capital
A/cs: |
|
Sundry
Assets |
21,000 |
||
|
X |
9,000 |
|
|
|
|
|
Y |
6,000 |
15,000 |
|
|
|
|
Reserve |
|
3,000 |
|
|
|
|
Creditors |
3,000 |
|
|
||
|
|
|
|
|
||
|
|
21,000 |
|
21,000 |
||
|
|
|
|
|
||
Profits for three years were: 2022− ` 4,200; 2023 −
` 3,900; 2024 −
` 4,500.
Y died on 1st August, 2024. Prepare necessary accounts.
Answer:
|
Y’s
Capital Account |
|||
|
Dr. |
|
Cr. |
|
|
Particulars |
( `) |
Particulars |
( `) |
|
|
|
Balance
b/d |
6,000 |
|
|
|
X’s
Capital A/c (Reserve) |
1,200 |
|
Y’s
Executor’s A/c |
12,800 |
X’s
Capital A/c (Goodwill) |
5,040 |
|
|
|
X’s
Capital A/c (Profit) |
560 |
|
|
12,800 |
|
12,800 |
|
|
|
|
|
Working Notes:
WN 1
Old Ratio (X and Y) = 1/2 : 1/3 or 3:2
WN 2
Y’s share of reserve =3,000×2/5=1,200
WN 3Calculation Y’s Share of Profit
Average profit = total
profit of past given years/number of years
Average profit =4200+3900+4500/3=12600/3=4,50
Y’s Share of Profit (from April
01,2024 to August 01, 2024 )
4,200×2/5×4/12=560
WN 4Calculation of Y’s Share of
Goodwill
Y’s share of Goodwill = Y’s Profit Share in last three year
Profit for last three years = 4,200 + 3,900 + 4,500 = ` 12,600
Y’s
Share of Goodwill=12,600×2/5=5040
Question
29:
A, B and C were partners in a firm. A died on 31st March, 2025 and the Balance
Sheet of the from on that date was as under:
|
Liabilities
|
|
₹ |
Assets |
₹ |
|
Creditors |
|
7,000
|
Cash at Bank |
12,000 |
|
General Reserve |
|
27,000
|
Debtors |
32,000 |
|
Workmen's Compensation Reserve |
10,000
|
Furniture |
30,000 |
|
|
Profit & Loss Account |
|
6,000 |
Plant |
40,000 |
|
Capitals: |
|
|
Patents |
8,000 |
|
A |
40,000 |
|
Deferred Advertisement Expenditure
|
18,000 |
|
B |
30,000 |
|
|
|
|
C |
20,000 |
90,000 |
|
|
|
|
|
1,40,000 |
|
1,40,000 |
On
A's death it was found that patents were valueless, furniture was to be brought
down to ₹24,000, plant was to be reduced by ₹10,000 and there was a
liability of ₹7,000 on account of workmen's compensation.
Pass
the necessary Journal entries for the above at the time of A's death.
(CBSE 2019, Modified)
Answer:
|
Date
|
Particulars |
|
L.F. |
(Dr.) ₹ |
(Cr.) ₹ |
|
|
Revaluation A/c |
Dr. |
|
24,000 |
|
|
|
To Patents A/c |
|
|
|
8,000 |
|
|
To Furniture A/c |
|
|
|
6,000 |
|
|
To Plant A/c |
|
|
|
10,000 |
|
|
(Being decrease in asstes account) |
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
8,000 |
|
|
|
B’s Capital A/c |
Dr. |
|
8,000 |
|
|
|
C’s Capital A/c |
Dr. |
|
8,000 |
|
|
|
To Revaluation A/c |
|
|
|
24,000 |
|
|
(Being Loss of Revaluation account
transferred to partners capital accounts in the ratio of 1:1:1) |
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
27,000 |
|
|
|
To A’s Capital A/c |
|
|
|
9,000 |
|
|
To B’s Capital A/c |
|
|
|
9,000 |
|
|
To C’s Capital A/c |
|
|
|
9,000 |
|
|
(Being General Reserve distributred in the ratio of 1:1:1) |
|
|
|
|
|
|
Workmen's Compensation Reserve A/c |
Dr. |
|
10,000 |
|
|
|
To Workmen's Compensation Claim A/c |
|
|
|
7,000 |
|
|
To A’s Capital A/c |
|
|
|
1,000 |
|
|
To B’s Capital A/c |
|
|
|
1,000 |
|
|
To C’s Capital A/c |
|
|
|
1,000 |
|
|
(Being Workmen's Compensation
Reserve distributred in the ratio of 1:1:1after
adjusting claim on it) |
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
6,000 |
|
|
|
B’s Capital A/c |
Dr. |
|
6,000 |
|
|
|
C’s Capital A/c |
Dr. |
|
6,000 |
|
|
|
To Deferred Advertisement Expenditure A/c |
|
|
|
18,000 |
|
|
(Being capital written off with
the amount of Deferred Advertisement Expenditure in the ratio of 1:1:1) |
|
|
|
|
|
|
Profit & Loss Appropriation
A/c |
Dr. |
|
6,000 |
|
|
|
To A’s Capital A/c |
|
|
|
2,000 |
|
|
To B’s Capital A/c |
|
|
|
2,000 |
|
|
To C’s Capital A/c |
|
|
|
2,000 |
|
|
(Being Profit for the year distributed in the ratio of 1:1:1) |
|
|
|
|
Question
30: Shirish,
Harit and Asha were
partners in a firm sharing profits in the ratio of 5:4:1. Shirish
died on 30th June, 2018. On this date, their Balance Sheet was
follows:
Balance sheet of Shirish,Harish, Asha as at 31st
March, 2018
|
||||
Assets
|
|
`
|
Liabilities
|
`
|
Capital A/cs:
|
|
|
Plant and Machinery
|
5,60,000
|
Shirish
|
1,00,000
|
|
Stock
|
90,000
|
Harit
|
2,00,000
|
|
Debtors
|
10,000
|
Asha
|
3,00,000
|
6,00,000
|
Cash
|
40,000
|
Profits for the year 2017-18
|
|
80,000
|
|
|
Bills Payable
|
|
20,000
|
|
|
|
|
|
7,00,000
|
|
7,00,000
|
|
|
|
|
|
|
According to the Partnership Deed, in addition to
deceased partner’s capital, his executor is entitled to:
(i) Share in profits in
the year of death on the basis of average of last two years’ profit. Profit for
the year 2016-17 was 60,000.
(ii) Goodwill of the firm was to be valued at 2
years’ purchase of average of last two years’ profits.
Prepare Shirish’s Capital
Account to be presented to his executor. (CBSE 2019)
Answer:
Shirish’s Capital Account
|
|||
Particulars
|
Dr. `
|
Particulars
|
Cr. `
|
To Sadhu’s
Executors A/c
|
2,18,750
|
By Balance b/d
|
1,00,000
|
|
|
|
By P&L Suspense A/c (WN-1)
|
8,750
|
|
|
|
By Manish’s Capital A/c (WN-2)
|
56,000
|
|
|
|
By Asha’s
Capital A/c (WN-2)
|
14,000
|
|
|
|
By P&L Appropriation A/c(WN-3)
|
40,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,18,750
|
|
2,18,750
|
Working
notes:
WN-1
Calculation of Sadhu’s share of Profit
Average Profit of last
two years= 80,000+60,000/2=70,000
Shirish’s
Share of Profit = 70,000×5×3/10×12 = `
8,750
WN-2
Calculation of goodwill
The average profits of the last two years were ` 70,000
Goodwill of the Firm = ` 70,000×2=1,40,000
Share of Shirish is in
Goodwill = 1,40,000 × 5/10 = 70,000
Goodwill Share of Shirish
is in Goodwill will be compensated by Harish and Asha
in 4:1
Harish = 70,000 × 4/5 = 56,000
Asha
= 70,000 × 1/5 = 14,000
WN-3
Calculation of Sadhu’s share of undistributed Profits
for the year 2017-18
Shirish’s
Share of Profit = 80,000×5/10 = `
40,000
Ts Grewal Solution 2025-2026
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Class 12 / Volume – I