Retirement of Partner .pdf

Nextgen Gurumantra Academy of Commerce Date : 22-05-2024 STD 12 Commerce Accountancy Total Marks : 30 SECTION A * Choose The Right Answer From The Given Options.[1 Marks Each]...

Nextgen Gurumantra Academy of Commerce Date : 22-05-2024 STD 12 Commerce Accountancy Total Marks : 30 SECTION A * Choose The Right Answer From The Given Options.[1 Marks Each] 1. The share of goodwill of the retiring partner is debited to the remaining partners in their: a. Capital retio. b. New ratio. c. Gaining ratio. 2. At the time of retirement of a partner, if goodwill appears in the Balance Sheet, it must be written off and the Capital Accounts of all partners are debited in: a. The old profit-sharing ratio. b. The new profit-sharing ratio. c. The capital ratio. 3. On the death of a partner, credit balance of Profit and Loss Account appearing in the Balance Sheet should be credited to the Capital Accounts of: a. All partners including the deceased partner in their profit-sharing ratio. b. The remaining partners in the new profit-sharing ratio. c. Neither the deceased partner not the remaining partners. * questions of 3 marks each. 4. L, M and O are partners sharing profits and losses in the ratio of 4 : 3 : 2. M retires and the goodwill is valued at ₹ 72,000. Calculate M's share of goodwill and pass the necessary Journal entry for Goodwill. L and O decided to share the future profits and losses in the ratio of 5 : 3. 5. X, Y and Z were partners sharing profits and losses in the ratio of 4 : 3 : 1 respectively Y dies on 30th April, 2018 on Y's death goodwill of the firm valued at 1,80,000 Y's share is taken up by X and Z equally determine the missing values in the following journal entry: 6. X, Y and Z are partners sharing profits in the ratio of 5 : 3 : 2. Y retires on 1st April, 2018 from the firm, on which date capitals of X, Y and Z after all adjustments are ₹ 1,03,680, ₹ 87,840 and ₹ 26,880 respectively. The Cash and Bank Balance on that date was ₹ 9,600. Y is to be paid through amount brought in by X and Z in such a way as to  3 make their capitals proportionate to their new profit-sharing ratio which will be X and 5 2 Z 5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank Balance of ₹ 7,200 was to be maintained and pass the necessary journal entries. * questions of 4 marks each. 7. Sunny, Honey and Rupesh were partners in a firm. On 31st March, 2014, their Balance Sheet was as follows: Honey died on 31st December, 2014. The Partnership Deed provided that the representative of the deceased partner shall be entitled to: a. Balance in the Capital Account of the deceased partner. b. Interest on Capital @ 6% per annum up to the date of his death. c. His share in the ubdistributed profits or losses as per the Balance Sheet. d. His share in the profits of the firm till the date of his death, calculated on the basis of rate of net profit on sales of the previous year. The rate of net profit on sales of previous year was 20%. Sales of the firm during the year till 31st December, 2014 was ₹ 6,00,000. Prepare Honey's Capital Account to be presented to his executors. 8. 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 out: 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.  ​ he Profits for three years were: 2015-16 → ₹ 4,200; 2016-17 → ₹ 3,900; 2017-18 T → ₹ 4,500. Y died on 1st August, 2018. Prepare necessary accounts. 9. X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retires from the firm on 31st March, 2018. On the date of Z's retirement, the following balances appeared in the books of the firm: General Reserve ₹ 1,80,000 Profit and Loss Account (Dr.) ₹ 30,000 Workmen Compensation Reserve ₹ 24,000 which was no more required Employees' Provident Fund ₹ 20,000. Pass necessary journal entries for the adjustment of these items on Z's retirement. * questions of 6 marks each. 10. A, B and C were partners, sharing profits and losses in the ratio of 2 : 2 : 1. B decides to retire on 31st March, 2018. On the date of his retirement, some of the assets and liabilities appeared in the books as follows: Creditors ₹ 70,000; Building ₹ 1,00,000; Plant and Machinery ₹ 40,000; Stock of Raw Material,s ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000. The following was agreed among the partners on B's retirement: a. Building to be appreciated by 20%. b. Plant and Machinery to be depreciated by 10%. c. A Provision of 5% on Debtors to be created for Doubtful Debts. d. Stock of Raw Materials too be valued at ₹ 18,000 and Finished Goods at ₹ 35,000. e. An Old Computer previously written off was sold for ₹ 2,000 as scrap. f. Firm had to pay ₹ 5,000 to an injured employee. Pass necessary journal entries to record the above adjustments and prepare the Revaluation Account. ----- -----