Partnership

Retirement/Death

Easy

common

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:

Particulars	Dr. Amount	Cr. Amount
Bhim's Capital A/c Dr.	95,000
Swati's Capital A/c Dr.	57,000
Adita's Capital A/c Dr.	38,000
To Revaluation A/c		1,90,000

Particulars	Dr. Amount	Cr. Amount
Revaluation A/c Dr.	1,90,000
To Bhim's Capital A/c		95,000
To Swati's Capital A/c		57,000
To Adita's Capital A/c		38,000

Particulars	Dr. Amount	Cr. Amount
Swati's Capital A/c Dr.	57,000
To Bhim's Capital A/c		28,500
To Adita's Capital A/c		28,500

Particulars	Dr. Amount	Cr. Amount
Bhim's Capital A/c Dr.	28,500
Adita's Capital A/c Dr.	28,500
To Swati's Capital A/c		57,000

✅ Correct Option: 1

A revaluation loss is borne by all partners, including the retiring one, in their old ratio of $5:3:2$ : Bhim $\text{Rs.}95{,}000$ , Swati $\text{Rs.}57{,}000$ and Adita $\text{Rs.}38{,}000$ .

Losses are debited to the capital accounts and credited to Revaluation A/c to close it, which is what option 1 records.

2026: 19 May Shift 1

S, B and T share profits and losses in the ratio of 3:2:1. On Jan. 1, 2025. S and B agreed to share profit/losses equally on retirement of T. On this date:

Book value of land and building and furniture was Rs. 2,60,000 and Rs. 60,000 respectively and were revalued at Rs. 3,00,000 and Rs. 50,000 respectively;
Rs. 4,000 included in creditors was not likely to be paid;
Rs. 1,000 required for bad debt reserve.

Calculate the revaluation profit or loss from the above information.

2026: 11 May Shift 1

The old profit sharing ratio among Gagan, Richa and Madhuri was 2:2:1. The new profit sharing ratio after Richa's retirement is 3:2. The gaining ratio is:

2025: 29 May Shift 2

Various accounting aspects involved on retirement or 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 A/c

Choose the correct answer from the options given below:

2026: 19 May Shift 1

Manav, Nath and Narayan were partners in a firm sharing profits in the ratio of 1 : 2 : 1. The firm closes its books on 31st March every year. On 30th September, 2025 Nath died.

Match List-I with List-II

List-I	List-II
(A) There was a debit balance of Rs 30,000 in the profit and loss account.	(I) Nath's Capital A/c will be debited by Rs. 5100
(B) Nath's share of profit/loss in the year of his death was to be calculated on the basis of average profit/loss of last 5 years, the average loss is Rs 90,000.	(II) Nath's Capital A/c will be debited by Rs. 15000
(C) There was a Goodwill appearing in the books for Rs. 25000.	(III) Nath's Capital A/c will be debited by Rs. 12500
(D) There was a drawing of Nath of Rs 85000 on which interest is to be charged at 12%.	(IV) Nath's Capital A/c will be debited by Rs. 22,500

Choose the correct answer from the options given below:

2026: 21 May Shift 2

Match the LIST-I with LIST-II

LIST-I		LIST-II
A.	Profit and loss Suspense A/c	I. Admission or Retirement of a partner
B.	The outgoing partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his/her money (i.e. based on capital ratio)	II. Hidden Goodwill
C.	Revaluation A/c	III. Section 37 of the Indian Partnership Act 1932
D.	It has to be inferred from the arrangement of the capital and profit sharing ratio	IV. Death of a partner

Choose the correct answer from the options given below:

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:

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:

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