Partnership

Retirement/Death

Easy

common

Vandana, Bhavna and Chandrika were partners in a firm sharing profits in the ratio of 5:3:2. Bhavna died on December 15, 2025 and Rs. 60,000 is the amount payable to her executors. 75% of amount payable is paid immediately to her executors. Pass journal entry for immediate payment being made.

Bhavna's Executor's A/c Dr. 15,000

To Cash A/c 15,000

Bhavna's Executor's Loan A/c Dr. 45,000

To Cash A/c 45,000

Bhavna's Executor's A/c Dr. 45,000

To Cash A/c 45,000

Cash A/c Dr. 45,000

To Bhavna's Executor's A/c 45,000

✅ Correct Option: 3

Amount paid immediately $= 60{,}000 \times 75\% = 45{,}000$ . Payment reduces the liability, so the Executor's Account is debited and Cash credited by $45{,}000$ . The unpaid balance of $15{,}000$ is later transferred to the Executor's Loan Account.

2023: 28 May Shift 1

Identify the correct sequence to be followed at the time of Retirement of a Partner :

(A) New Balance Sheet after Retirement

(B) Transferring balance to Retiring partner's Loan Account

(D) Partners' Capital Account

(E) Preparation of Revaluation Account

Choose the correct answer from the options given below :

2026: 11 May Shift 2

On retirement/death of a partner, the remaining partner(s) who have gained due to change in profit sharing ratio should compensate the:

2026: 19 May Shift 1

ABC Ltd. is a firm with Amit, Ankit and Arjit as partners. The profit sharing ratio is 1:1:1. Ankit retires in the middle of the year from the firm, which of the following amount will not be considered in calculation of amount due to Ankit ?

2025: 29 May Shift 2

A, B, and C were in partnership, sharing profits in the ratio of 3:2:1 respectively, B retires and the new profit sharing ratio between A and C is 3:2 . The gaining ratio is .

2026: 21 May Shift 2

Which of the following deduction may be made from the sum due to the retiring partner?

2025: 15 May Shift 1

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

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

Choose the correct answer from the options given below:

Vandana, Bhavna and Chandrika were partners in a firm sharing profits in the ratio of 5:3:2. Bhavna died on December 15, 2025 and Rs. 60,000 is the amount payable to her executors. 75% of amount payable is paid immediately to her executors. Pass journal entry for immediate payment being made.

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