Death of a Partner (New Profit-Sharing Ratio and G ig Ratio) 1. X, Yand Z were partners sharing profits in the ratio of 1/2, 2/5 and 1/10. Find the new profit-sharing ratio, of the remaining partners if Z dies. [Ans.: New Profit-sharing Ratio—5 4.) 2. From the following particulars, calculate new profit-sharing ratio of the partners: (@) Shiv, Mohan and Hari were partners in a firm sharing profits in the ratio of 5: 5:4. Mohan died and his share was taken equally by Shiv and Hari. (b) PR Qand R were partners sharing profits in the ratio of 5:4: 1. P died. [Ans.: New Profit-sharing Ratio—(a) 15:13; (b) 4:1.) Scanned with CamScanner7.30 Double Entry Book Keeping—CBSE XIl 3, R, Sand Mare partners sharing profits in the ratio of 2/5, 2/5 and 1/5. M died ee Etim by Rand Sin the rato of 1:2.Calculate the new profit-sharing ratio. (Ans. New? om es atio—7:4) 4. A,Band Cwere partners sharing profits in the ratio of 4:3:2.A died. Band colts Be fe sn thera of 2: 1. Determine the gaining ratio. 2 21) 5. (a) W,X, Vand Zare partners sharing profits and losses in the ratio Y died and Wx and 2 decide to share the profits and losses equally in future of 1/3, 1/6, 1/3 and 1/6 respectively, Calculate gaining ratio. (b) A,B and C are partners sharing profit C's share and balance is taken by 8. Calct [Ans.: (a) Gaining Ratio of W, X and 2—0:1: and losses in the ratio of 4: 3:2. C died. A takes 4/9 of ‘ulate the new profit-sharing ratio and gaining ratio. 1; (b) Gaining Ratio of Aand B~4: 5, [New Profit-sharing Ratio—44: 37) 2. Pankaj died and his shareis taken [Ans.: New Profit-sharing Ratio—7: 3) 6. Keshay, Nirmal and Pankaj are partners sharing profits in the ratio of by Keshav. Calculate new profit-sharing ratio of Keshav and Nirmal. Calculation of Profit of a Deceased Partner 7. Dinkar, Navita and Vani were partners sharing profits and losses in the ratio of 3 : 2: 1. Navita died on 30th June, 2017. Her share of profit for the intervening period was based on the sales during that period, which were & 6,00,000. The rate of profit during the past four years had been 10% on sales. The firm closes its books on 31st March every year. Calculate Navita’s share of profit. (case2019) [Ans.: Navita’s Share of Profit = 60,000 x 2/6 = 20,000) 8. Anil, Sunil and Hari were partners sharing profits equally. Sunil died on 31st December, 2020. In terms of the partnership deed, accounts were prepared for the period ended 31st December, 2020 and net profit was determined at % 6,00,000. Pass the Journal entry for the profit share of the partners. [Ans.: Dr, Profit and Loss Appropriaion A/c by & 6,00,000; Cr. Anil’s Capital A/c by & 2,00,000; Sunil’s Capital A/c by & 2,00,000 and Hari’s Capital A/c by & 2,00,000) 9. A,Band C were partners in a firm sharing profits and losses in the ratio of 2: 2: 1. On 25th February, 2019, B died. B's share of profittillthe date of his death was calculated at 5,000. Pass the necessary Journal entry for the same in the books of the firm. (CBSE 20200 Ans.: Dr Profit and Loss Suspense A/c and Cr. B's Capital A/c by ® 5,000.) 10. A, Band Care partners sharing profits and losses in the ratio of 3:2: 1. B died on 30th June, 2021. For the year ended 31st March, 2022, proportionate profit of 2021 is to be taken into consideration. During the year ended 31st March, 2022, bad debts of 2,000 had to be adjusted. Profit for the year ended 31st March, 2021 was ¥ 14,000 before adjust ment of bad debts. Calculate 6's share of profit till the date of his death. [Ans.: BS Share of Profit— 1,000] 11. Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2021. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed financial years of profits before death. Profits for the years ended 31st March, 2019, 2020 and 2021 were 1,10,000; 1,20,000 and & 1,30,000 respectively. Calculate Haris share of profit til the date ofhis death and pass necessary Journal entry forthe same. _[Ans.: Haris Share of Profit for 3 months — 10000) 12. x, Yand Z were partners sharing profits and losses in the ratio of 3:2: 1. ¥ died on 30th June, 2021. Profit from 1st April, 2021 to 30th June, 2021 was & 3,60,000. X and Z decided to share future profits in the ratio. of 3:2 with effect from 1st July, 2021. Pass the necessary Journal entries to record Y's share of profit up to the date of death. (Ans.: Dr. X's Capital A/c by ® 36,000 and Z's Capital A/c by © 84,000; Cr. Y's Capital A/c by ® 1,20,000; Gaining Ratio of X and Zis 3:7) Scanned with CamScannerChapter 7- Death ofaPartner 7.31 13. Radha, Tina and Reeta were partners sharing profits equally. Reeta died on 31st July, 2021. Radha and Tina decided to continue the business. Share of Profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year’s profit, which was & 4,50,000. Pass necessary Journal entry to record Reeta’s share of profit/loss up to the date of death. [Ans.: Dr. Profit and Loss Suspense A/c and Cr. Reeta’s Capital A/c by & 50,000.) 14, Manoj, Rakesh and Harsh were partners sharing profits in the ratio of 2: 2: 1. Manoj died on 30th June, 2021. Rakesh and Harsh decided to continue the business. Share of profit or loss of the deceased partner from the beginning of the year up to the date of death was to be determined on the basis of last year's profit. Last year’s loss was & 2,00,000. Pass necessary Journal entry to record Manoj’s share of profit/loss up to the date of death. [Ans.: Dr. Manoj’s Capital A/c and Cr, Profit and Loss Suspense A/c by ® 20,000.) 15. X, Yand Z were partners in a firm. Z died on 31st May, 2020. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years of profits before death. Profits for the years ended 31st March, 2018, 2019 and 2020 were & 18,000; 219,000 and & 17,000 respectively. Calculate Z’s share of profit tll his death and pass necessary Journal entry for the same when: {a)_ profit-sharing ratio of remaining partners does not change, and (b) profit-sharing ratio of remaining partners changes and new ratio being 3 : 2 [Ans.: (i) Dr. Profit and Loss Suspense A/c and Cr. Z's Capital A/c by & 1,000. (i) Dr. Profit and Loss Suspense A/c by ® 1,000; Cr. Zs Capital A/c by % 1,000; Dr. X's Capital A/c by € 800 and Y's Capital A/c by & 200; Cr. Profit and Loss Suspense A/c by ® 1,000; Alternatively: Dr. X's Capital A/c by & 800 and Y's Capital A/c by ® 200; Cr. 7's Capital A/c by & 1,000.) 16. A,B and C were partners sharing profits and losses in the ratio of 2: 2: 1. Cdied on 30th June, 2020. Profit and Sales for the year ended 31st March, 2020 were & 1,00,000 and & 10,00,000 respectively. Sales during April to June, 2020 were & 1,50,000. You are required to calculate share of profit of C till the date of his death. Ans.: % of Profit to Sales—10%, Profit for the period April to June, 2020—R 15,000; C’s Share of Profit—R 3,000.) 17. Ajay, Bhawna and Shreya were partners sharing profits in the ratio of 2:2: 1.On 1st July, 2020 Shreya died. ‘The books of accounts are closed on 31st March every year. Sales for the year 2019-20 & 5,00,000 and that from 1st April to 30th June, 2020 were & 1,40,000. Rate of profit during the past three years had been 10% on sales, Since Shreya’s legal representative was her only son, who is specially abled, it was decided that the profit for the purpose of settling Shreya's account is to be calculated as 20% on sales. Calculate Shreya’s share of profits till the date of her death and pass necessary Journal entry for the same. {CBSE 2018 C, Modified) {Ans.: Profit on sale from 1st April, 2020 to 30th June, 2020 = 1,40,000 x 20/100 = % 28,000 ‘Shreya's Share of Profit till the date of her death = & 28,000 x1/5 = 8 5,600. Journal Entry: Dr. Profit and Loss Suspense A/c and Cr. Shreya’s Capital A/c by ® 5,600.) 18. Raman, Param and Karan were partners sharing profits and losses in the ratio of 3 :2: 1. Param died on 31st December, 2020. Accounts of the firm are closed on 31st March every year. Sales for the year ended 31st March, 2020 was & 12,00,000 and sales for the nine months ended 31st December, 2020 was & 6,00,000. Loss for the year ended 31st March, 2020 was ® 90,000. Calculate deceased partner's share of profit/loss from the beginning of the accounting year up to 31st December, 2020. [ans.: Param’s Share of Loss— 15,000.) 19. Akhil, Bikram and Charu were partners sharing profits and losses in the ratio of 3 : 2: 1. Bikram died on 30th September, 2020. Loss from the beginning of the accounting year till the date of death was estimated at %3,60,000. Akhil and Charu decided to share future profits in the ratio of 3:2 we.f. 1st October, 2020. Pass the necessary Journal entry to record Bhuwan's share of profit/loss up to the date of death [Ans.: (i) Dr. Bikram’s Capital A/c and Cr. Profit and Loss Suspense A/c by 1,20,000. (i) Dr, Profit and Loss Suspense A/c by 1,20,000; Cr. Akhil’ Capital A/c by & 36,000 and Charu's Capital A/c by & 84,000. Alternatively: Dr. Bikram’s Capital A/c by ® 1,20,000; Cr. Akhil’s Capital A/c by 36,000 and Charu's Capital A/c by & 84,000.) Scanned with CamScanner