Partnership

Retirement/Death

Medium

common

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:

(D), (C), (B), (A)

(A), (B), (C), (D)

(B), (A), (D), (C)

(C), (B), (D), (A)

✅ Correct Option: 1

Assets and liabilities are first revalued (D) so that the deceased partner gets his share of the gain or loss. Next his share of profit up to the date of death is computed (C). These are then taken into his Capital Account (B), whose balance is finally transferred to the Executor's Account (A).

2026: 20 May Shift 1

Balance Sheet of A, B & C as on 31st March, 2025

Liabilities	Amount	Assets	Amount
Creditors	11,000	Buildings	20,000
Reserve Fund	6,000	Machinery	30,000
A Capital 30,000		Stock	10,000
B Capital 25,000		Patents	11,000
C Capital 15,000	70,000	Debtors	8,000
		Cash	8,000
Total	87,000	Total	87,000

C retires and following revaluations took place.

Patents be valued at Rs.8,000; Machinery at Rs.28,000; and Buildings at Rs.25,000.

Find Revaluation Profit/Loss

2026: 20 May Shift 1

A, B and C were partners in a firm sharing profits and losses in the ratio of 5:4:1. B died on June 30, 2025. The profit for the previous three years were Rs 68,000 (For 2022-23), Rs 77,000 (For 2023-24), Rs 50,000 (2024-25) while the sales during the year 2024-25 were Rs. 4,00,000 and the sales from April 1, 2025 to June 30, 2025 were Rs. 75,000. Find the profits that the firm must have earned from the date of closing of last year's balance sheet till the date of death of B.

2026: 20 May Shift 1

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

2026: 6 June Shift 1

During retirement, the revaluation results in a loss. Which partner(s) should bear the loss?

2025: 29 May Shift 2

On the retirement of an existing partner, an increase in the value of a liability will be credited to :-

2026: 20 May Shift 1

Select the correct sequence of accounts prepared in case of death of a partner.

(A) Prepare the deceased partner's executor's account.

(B) Determine the gaining ratio and new profit sharing ratio among the remaining partners.

(D) Prepare the Revaluation account, if required.

Choose the correct answer from the options given below:

Solution

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