Question 16:
Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2:2:1. Manoj died on 30th June, 2025 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.) ₹ |
|
2025 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, 2025 after 3 month of beginning of the year (from 1 April 2025 to 30th June, 2025)
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, 2025. 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 |
|
2025 |
|
|
|
|
|
|
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, 2025
|
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, 2025 were ₹ 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, 2025 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, 2025 Shreya died. The books of accounts are closed on 31st March every year. Sales for the year 2024-25 ₹ 5,00,000 and that from 1st April to 30th June, 2025 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.) ₹ |
|
2025 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, 2025 Shreya died
Shreya’s share of Profit On sale from 1st April, 2025 to 30th June, 2025 for 3 Month is to be calculated as 20% on sales
Sales from 1st April to 30th June, 2025 were ₹1,40,000 for 3 Month
Profit from 1st April to 30th June, 2025 (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 2026-2027
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Class 12 / Volume – I