CUET Accountancy: PartnershipRetirement/Death. Free, no login required.

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:

1. 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;
2. Rs. 4,000 included in creditors was not likely to be paid;
3. Rs. 1,000 required for bad debt reserve.

Calculate the revaluation profit or loss from the above information.

X, Y and Z are partners sharing profits in the ratio of 4 : 3 : 2. Y retires and his capital after making adjustments for reserves and profits on revaluation stands at Rs 92,800. X and Z agreed to pay him Rs 1,00,000 in full settlement of his claim. Find the amount of goodwill of the firm.

A, B and C are partners sharing profits in the ratio 2:2:1. B retires from the firm. After making all adjustments relating to revaluation, goodwill and accumulated profit etc., the capital account of A, B and C showed a credit balance of ₹60,000; ₹70,000; and ₹50,000 respectively. It was decided that the amount payable to B will be brought by A and C in such a way as to make their capitals proportionate to their profit sharing ratio. Calculate the amount to be brought in by A and C.

Match List-I with List-II

Choose the correct answer from the options given below:

At the time of death of a partner, if general reserve appears in the balance sheet, it should be credited to:

Karan, Neha and Pankaj are partners sharing profits and losses in the ratio of 4 : 3 : 2. Neha retires and the goodwill is valued at Rs. 72,000. Karan and Pankaj decided to share future profits and losses in the ratio of 5 : 3. The journal entry for adjustment of goodwill will be:

Rakesh (an existing partner) has been retired from partnership firm and the amount payable to him after all adjustments, works out to be Rs. 1,80,000 but the remaining partners Param and Qaireshi, agreed to pay him Rs. 2,25,000 in full settlement of his claim. What does this extra ₹45,000 paid to Rakesh represent?

Consider the following and select the correct statements

(A) The ratio in which the continuing partners acquire the outgoing partner's share is called the Gaining Ratio.

(B) The ratio in which the continuing partners acquire the outgoing partner's share is called the Sacrificing Ratio.

(C) In the event of the death of a partner, the amount of general reserve is transferred to partners' capital accounts in the new profit sharing ratio.

(D) On the admission of a new partner, the old partnership is dissolved.

Choose a pair of correct statements from the given options below.

When a Partner dies in the Middle of the Year, which accounting adjustment / calculation is not done for the intervening period?

Arrange the following in the correct sequence related to adjustment of partners' capitals in case of retirement of a partner :-

(A) Calculation of cash to be brought in or withdrawn by the continuing partners

(B) Calculation of total capital of new firm

(C) Calculation of new profit sharing ratio

(D) Calculation of new capitals of the existing partners

Choose the correct answer from the options given below:

An existing partner of a firm passed away/died during the financial year. His share in estimated trading profits for the intervening period will be transferred to :

Prince, Queen and Raja are partners sharing profit and losses in the ratio 5:4:3. Raja retires and Prince and Queen decide to share future profits equally. Gaining Ratio will be :-

Anjana, Bandana and Chandana are partners in a firm. They share profit and loss of the firm equally. Bandana died and his share is acquired by Anjana and Chandana in the ratio of 1:1. New profit sharing ratio between Anjana and Chandana would be :-

Ajay, Bhanu and Chetan are partners in a firm sharing profit in the ratio of 3 : 4 : 2. Bhanu wants to retire from the firm. The profit on revaluation on that date was Rs. 1,80,000. New ratio between Ajay and Chetan is 5 : 3. Profit on revaluation will be distributed as :

Param, Quasim and Rozi were partners sharing profits in the ratio of their Capital contribution which was Rs. 12,00,000, Rs. 8,00,000 and Rs. 10,00,000 respectively. Their books are closed on 31st March every year. Param dies on 30th September, 2025. Under the partnership deed, deceased partner is entitled to his share of profit/loss from the closing of last balance sheet till the date of death based on the average profits of preceding three years. If profits were 2022 Rs. 1,00,000; 2023 Rs. 1,30,000 (loss); 2024 Rs. 1,95,000 and 2025 Rs. 1,60,000 then Param's share of profit/loss will be :

Narender, Nitish and Naidu are partners sharing profits in the ratio of 5:3:2. Nitish retires. Narender and Naidu decide to share the profits of the new firm in the ratio of 3:2. What will be the gaining ratio of Narender and Naidu?

In the absence of any information regarding the acquisition of share in profit of the deceased partner by the remaining partners, an assumption is made that they will acquire his share in-

The outgoing partner's account is settled as per the terms of partnership deed. However, in the absence of any agreement, Section 37 of the Indian Partnership Act, 1932 is applicable, which states that the outgoing partner has an option to-

Akash, Bhupesh, and Charan are partners in a firm sharing profits in the ratio of 3:2:1. Bhupesh retired and goodwill of the firm was valued at Rs. 60,000. Akash and Charan continue the business, sharing profits in the ratio of 3:1. What will be the journal entry for adjustment of goodwill in this case?

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:

Ganesh, Hari and Mahadev are partners. On retirement of Ganesh, the goodwill already appears in the Balance Sheet at Rs. 24,000. The goodwill will be written-off by:

What is not included in the sum due to the retiring partner?

At the time of retirement of a partner, Advertisement Suspense A/c appearing in the balance sheet would be :

On the death of a partner, his share of loss in the firm from the last balance sheet till the date of his death is transferred to:

MOTI, CHOTI and GUDDU are partners in a firm sharing profits according to their capitals. Their capitals as on April 1, 2025 were Rs. 1,80,000; Rs. 1,40,000; and Rs. 1,40,000 respectively. MOTI retired on above date. Goodwill of the firm is valued at Rs. 92,000 and the retiring partner's share is adjusted through the capital accounts of remaining partners. Correct Journal entry for recording effect of goodwill in the books of the firm will be:

" A creditor of Rs. 100 is not likely to claim his money and is to be written off (creditors of 99,000 were appearing in the balance sheet) at the time of death of a partner"

Journal entry for this would be :

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

Manoj, Suresh and Vaibhav were partners in a firm sharing profits in the ratio of 5:1:4. Vaibhav decides to retire on June 30, 2025. Profit share of Vaibhav till the date of his retirement is to be calculated on the basis of firm's last year profit which is Rs. 1,00,000. The new profit sharing ratio is 1:1. Vaibhav's share of profit for the period from April 01 to June 30, 2025 will be:

Certain sequence is followed at the time of death of a partner and settlement of his account. Arrange them in proper order:

A. Ascertain his/ her adjusted capital, after all adjustments.

B. Opening balance of his/ her capital account.

C. Transfer adjusted amount payable to his /her legal executors.

D. Amount paid to legal executors.

Choose the correct answer from the options given below:

Champa, Roma and Sunakshi are partners sharing profits in the ratio of 5:3:2. Roma retires, the new profit sharing ratio between Champa and Sunakshi will be 1:1. The goodwill of the firm is valued at Rs. 4,00,000, Roma's share of goodwill will be adjusted: