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CUET Accountancy 2025 PYQs15 May Shift 1. Free, no login required.

Partnership

past year questions, CUET Accountancy 2025 15 May Shift 1

Retirement/Death

past year questions, Partnership, CUET Accountancy 2025 15 May Shift 1

Medium

Various accounting aspects involved on death of a partner are as follows:

(A) Adjustment in respect of unrecorded assets and liabilities

(B) Treatment of goodwill

(C) Preparation of Realization A/c

(D) Preparation of Executor's loan A/c

Choose the correct answer from the options given below:

Solution

✅ Correct Option: 2

When a partner dies, the firm continues with the remaining partners. The accounting treatment differs from dissolution of the firm.

Analyzing each aspect:

(A) Adjustment in respect of unrecorded assets and liabilities - This is required. All assets and liabilities that were not recorded in the books must be brought into accounts to determine the true capital of the deceased partner.

(B) Treatment of goodwill - This is required. The deceased partner's share of goodwill must be adjusted. The gaining partners (continuing partners) compensate the deceased partner's account for their share of firm's goodwill.

(C) Preparation of Realization A/c - This is NOT required. Realization Account is prepared only when the entire firm is dissolved and business is closed down. On death of a partner, the firm continues its operations, so no realization account is needed.

(D) Preparation of Executor's loan A/c - This is required. The final amount due to the deceased partner (after all adjustments) is transferred to Executor's Loan Account (or Deceased Partner's Executor's Account). This represents the firm's liability payable to the legal heirs of the deceased partner.

The key distinction is that death of a partner leads to reconstitution of the firm (not dissolution). The firm continues with remaining partners. Therefore, aspects related to continuing business [(A), (B), (D)] are relevant, while Realization Account [(C)] which is used for winding up is not applicable.

Correct Option: 2 - (A), (B) and (D) only

Related questions:

2022: 30 Aug Shift 2

Journal entry to be passed for unrecorded assets for preparing Revaluation A/C at the time of Retirement of a partner will be ____

2023: 28 May Shift 1

Lisa, Monika and Nisha are partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. Their capital A/c stood as Rs. 50,000, Rs. 50,000 and Rs. 25,000 respectively. Monika died and balance in the reserve on that date was Rs. 15,000. If goodwill of the firm is Rs. 30,000 and profit on revaluation is Rs. 7,050. What amount will be transferred to Monika's Executors Account ?

2026: 29 May Shift 1

Mita, Gita and Sita are partners in a firm sharing profits in the ratio of 1:2:3. Gita retired and the value of the goodwill of the firm is valued at Rs. 60,000. Mita and Sita continue the business sharing profits in the ratio of 1:3. What will be the journal entry for adjustment of goodwill ?

2026: 21 May Shift 1

Bhim, Swati and Adita are partners sharing profits and losses in the ratio of 5:3:2 respectively. On March 31, 2025, Swati retired. Revaluation of assets and reassessment of liabilities resulted in a loss of Rs. 1,90,000. Journal entry for this would be:

2026: 12 May Shift 1

What will be the sequence of events in case of death of a partner in a partnership firm?

(A) Prepare Deceased Partner's Executor's A/c

(B) Prepare Deceased Partner's Capital A/c

(C) Calculate share of Profit upto date of death for the deceased partner

(D) Revaluation of assests and liabilities

Choose the correct answer from the options given below:

2022: 20 July Shift 1

On the death of a partner, his share in the loss of the firm till the date of his death is transfered to :

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