Partnership

Retirement/Death

Medium

Asha, Deepa and Lata are partners in a firm sharing profits in the ratio of 3 : 2 : 1. Deepa retires. After making all adjustments relating to revaluation, goodwill, Payment to Deepa and accumulated profit etc., the capital accounts of Asha and Lata showed a credit balance of Rs. 1,60,000 and Rs. 80,000 respectively. It was decided to adjust the capitals of Asha and Lata in their new profit sharing ratio. You are required to calculate the new capitals of the partners i.e Asha and Lata.

Rs.1,80,000 & Rs.1,70,000

Rs.1,80,000 & Rs.60,000

Rs. 60,000 & Rs.1,60,000

Rs.1,60,000 & Rs. 80,000

✅ Correct Option: 2

After Deepa's retirement and all adjustments, the capital balances are:

Asha: Rs. 1,60,000
Lata: Rs. 80,000

Total Capital = 1,60,000 + 80,000 = Rs. 2,40,000

To find the new profit sharing ratio between Asha and Lata, we look at their original shares:

Original ratio = Asha : Deepa : Lata = 3 : 2 : 1

When Deepa retires, Asha and Lata continue in their existing proportion to each other.

New ratio of Asha and Lata = 3 : 1

The total capital of Rs. 2,40,000 needs to be distributed in the ratio 3 : 1:

Asha's New Capital = $\frac{3}{3+1} \times 2,40,000 = \frac{3}{4} \times 2,40,000$ = Rs. 1,80,000

Lata's New Capital = $\frac{1}{3+1} \times 2,40,000 = \frac{1}{4} \times 2,40,000$ = Rs. 60,000

Since Asha's capital needs to increase from Rs. 1,60,000 to Rs. 1,80,000, she will bring in Rs. 20,000. Since Lata's capital needs to decrease from Rs. 80,000 to Rs. 60,000, she will withdraw Rs. 20,000.

Answer: Rs. 1,80,000 & Rs. 60,000

2026: 21 May Shift 1

Arun, Barun and Chaitanya are partners in a firm sharing profits in the ratio of 3:2:1. Arun retired and the value of goodwill of the firm is valued at Rs. 1,80,000. Barun and Chaitanya continue sharing business profits in the ratio of 2:1. The journal entry for adjustment of goodwill will be:

2025: 31 May Shift 1

Murli, Naveen and Omprakesh are partners sharing profits in the ratio of 3 /8 , 1/2 and 1/8 . Murli retires and surrenders 2/3rd of his share in favour of Naveen and the remaining share in favour of Omprakesh. The gaining ratio of the remaining partners is-

2025: 22 May Shift 2

Match List-I with List-II

At the time of retirement following Transactions took place. Chose the correct treatment

List-I	List-II
(Particulars )	(Treatment )
(A) Asset taken over by the partner	(I) Debit side of Revaluation A/C
(B) Increase in Assets	(II) Written off amongst old partners in old ratio
(C) Unrecorded Liability	(III) Debit side of Partners Capital A/C
(D) Goodwill Appearing in books	(IV) Credit side of Revaluation A/C

Choose the correct answer from the options given below:

2026: 21 May Shift 1

Aditya, Biral and Mukul are partners in a firm. On the date of retirement of Mukul, Rs. 6,00,000 becomes due to him. Aditya and Biral promised to pay him the amount due. Payment is made in three yearly installments of Rs. 2,00,000 each including interest @ 12% p.a. on the outstanding balance during the first three years and the balance including interest in the fourth year. Opening balance of Mukul's loan account in the beginning of second year, third year, and fourth year would be:

2026: 31 May Shift 1

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Gaining Ratio	I.	Average Profit × 100/ Normal Rate of Return
B.	Goodwill	II.	Old Ratio - New Ratio
C.	Sacrificing Ratio	III.	Super Profit × 100/ Normal Rate of Return
D.	Capitalised Value	IV.	New Ratio - Old Ratio

Choose the correct answer from the options given below:

2023: 28 May Shift 1

Shweta, Shreya and Shaniya were partners sharing profits in the ratio of 3 : 2 : 1. Shaniya retired from the firm and her capital, after making adjustments for reserves and gain of revaluation amounted to Rs. 4,50,000. Shaniya took 25% of the furniture, accepted bill of exchange for Rs. 52,000. Finally Rs. 2,75,000 was transferred to her loan account. The total value of furniture was :

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