Partnership

Retirement/Death

Easy

common

In the case of a death of a partner in a partnership firm, the share of profit of the deceased partner is calculated on the basis of:

Last year's profit (or average of past few years) or on the basis of sales

10% of deceased partner capital

Profit made by any similar firm in the industry

10% of deceased partner capital. or lump sum Rs 25,000, whichever is higher

✅ Correct Option: 1

Since accounts are not closed on the date of death, the deceased partner's share of profit for the part year is estimated. The two accepted bases are the time basis, using last year's profit or the average of past few years' profits, and the sales or turnover basis. Fixed percentages of capital or lump sums have no sanction.

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: 31 May Shift 1

Negi, Bhagi, Tiwari and Chaman are partners in a firm sharing profits and losses in the ratio of 2 : 1 : 2 : 1. On Negi's retirement, the goodwill of the firm is valued at Rs. 36,000. Bhagi, Tiwari and Chaman decided to share future profits equally. What will be the journal entry for the treatment of goodwill without opening 'Goodwill Account' in this case?

2026: 23 May Shift 2

Lata, Richa and Madhuri are partners sharing profits in the ratio of 5:3:2. Richa retires. Lata and Madhuri decide to share the profits of the new firm in the ratio of 3:2. Calculate the gaining ratio of Lata and Madhuri.

2025: 30 May Shift 1

In the absence of any information regarding the acquisition of share in profit of the retiring/deceased partner by the remaining partners, it is assumed that they will acquire his/her share in:

2025: 24 May Shift 1

In the absence of any information, it is assumed that the remaining partners acquire the share of profit of the retiring/deceased partner in:

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:

In the case of a death of a partner in a partnership firm, the share of profit of the deceased partner is calculated on the basis of:

Solution

Related questions:

Keyboard Shortcuts

CUET Accountancy Past Year Questions (Topic-Wise)