State any two deductions that may have to be made from the amount payable to the legal representative of a deceased partner.

At what rate is interest payable on the amount remaining unpaid to the executor of deceased partner ?

Why does a firm revaluate its assets and reassess its liabilities on retirement or death of a partner ?

Kumar,Verma and Naresh were partners in a firm sharing profit and loss in the ratio of 3:2:2. On 23rd January, 2015, Verma died. Verma's share of profit till the date of his death was calculated Rs.2,350.

Pass necessary journal entry for the same in the books of the firm.

Give the journal entry to distribute workmen Compensation Reserve of Rs.70,000 at the time of retirement of Neeti, when there is a claim of Rs.25,000 against it. The firm has three partners Raveena, Neeti and Rajat.

A,B,C and D are partners sharing profits in the ratio of 3:3:2:2 respectively. D retires and A,B and C decide to share the future profits in the ratio of 3:2:1. Goodwill of the firm is valued at Rs.6,00,000. Goodwill already appears in the books at Rs.4,50,000. The profits for the first year after D's retirement amount to Rs.12,00,000. Give the necessary Jounal entires to record Goodwill and to distribute the profits. Show your calculations clearly.

Identify the value being reflected by continuing partners in giving outgoing partner his share of Goodwill.

The balance sheet of Block, white and red sharing profits and losses in the ratio 5:3:2 on 31st December 2014 is given below
                                                 Balance Sheet
                                            as at 31st December 2014

Red retire from 1st May 2015 and Black and White decide to share future profits and losses in the ratio of 3:5.Red has withdrawn Rs.20.000 during 2015.It was agreed that
(i) Goodwill be valued at 2 1/2 years' purchase of average of four completed years' profits which were:2011 Rs.4,04,000; 2012 Rs.56,000; 2013 Rs.64,000
(ii) Red's share of profits from the closure of last accounting year till date of retirement be calculated on the basis of the average of three completed years' profits before retirement.
(iii) Patents undervalued by Rs.28000, machinery overvalued by Rs.27,200, all debtors are good.Rs.2,000 provided in sundry creditors is not likely to arise.Unaccounted accrued income of Rs.4,400 to be provided for.A debtor whose dues of Rs.800 were written-off as bad debts, paid 50% in full settlement.A Claim of Rs.2,000 on account of workmen's compensation to be provided for.
(iv) Investments be sold for Rs.16,400.Red was to be paid through cash brought in by Black and White in such a way as to make their capitals proportionate to their new profit sharing ratio of 3:5 assuming that a minimum cash and bank balance of Rs.18,000 was to be maintained.
Prepare revaluation account, capital accounts of partners and the balance sheet of new firm.

Sandeep, Praveen and Tara are partners sharing profits in the ratio of 3:2:1. On 1st April, 2012  Sandeep gave a notice to retire from the firm. Praveen and Tara after all adjustments showed a balance of Rs.64,000 and Rs.1,00,000 respectively. The total amount to be paid to Sandeep was Rs.1,23,000. This amount was to be paid by Praveen and Tara in such a way Pass necessary Journal entires for the above transations in the books of the firm. Show your working clearly.

Amit, Balan and Chander were partners in a firm sharing profits in the proportion of \(\frac { 1 }{ 2 } ,\frac { 1 }{ 3 } and\frac { 1 }{ 6 } \) respectively. Chander retired on 1.04.2014. The Balance Sheet of the firm on the date of Chander's retirement was as follows:

                         Balance Sheet of Amit, Balan and Chander

                                   as on 1-4-2014

It was agreed that:

(a) Goodwill will be valued at Rs.27,000.

(b) Depreciation of 10% was to be provided on machinery.

(c) Patents were to be reduced by 20%.

(d) Liability on account of Provident Fund was estimated at Rs.2,400.

(e) Chander took over investments for Rs.15,800.

(f) Amit and Balan decided to adjust their capitals in proportion of their profit sharing ratio by opening current accounts.

Prepare Revaluation Account and Partners' Capital Accounts on Chander's retirement.

Pawan,Prem and Poonam were partners in a firm sharing profits in the ratio of 2:1:2. Their fixed capitals were RS.2,00,000, RS.1,50,000 and 2,00,000 respectively. The firm closses its books on 31st March every year. On 31.03.2006 Prem died. The executor of a deceased partner according to the agreement was entitled for the following:

(i) Interest on capital from the first day of the accounting year till the date of his death @ 10% p.a.

(ii) His share of goodwill - The goodwill of the firm for the on Prem's death was valued at RS.3,00,000.

(iii) His share of profits - the profit of the firm for the year ended 31.03.2006 was RS.1,50,000 Prem's executor was paid the sum due in two equal annual instalment with interest @ 10% p.a. prepare Prem's capital account as on 31.03.2006 to be presented to his executor and his executor's loan account for the year ending 31.03.2007 and 31.03.2008.

Riya, Shreya and Niya are partners sharing profits in the ratio of 1:2:3. Niya retires and her capital, after making adjustments for reserves and profits on revaluation stands at Rs.4,40,000.Riya and Shreya agreed pay her Rs.5,00,000 in full settlement of her claim.Record necessary journal entry for the treatment of good will, if the new profit sharing ratio is decided at 1:3

P, Q and R were partners in a firm sharing profits in the ratio of 5:3:2.n 31st March, 2015, their balance sheet was as under

                          Balance Sheet
                    as at 31st March, 2015

R died on 1st October, 2015.t was agreed between his executors and the remaining partners that
(i) Good will be valued at 2years' purchase of the average profits of the previous five years, which were: 2011=Rs.50,000, 2012=Rs.1,30,000, 2013=Rs.1,20,000, 2014=Rs.1,50,000 and 2015=Rs.2,00,000.
(ii)Patents be valued at Rs.80,000, investment at 2,80,000, furniture at Rs.3,00,000.
(iii)Profit for the year 2015-16 be taken as having accrued at the same rate as the previous year.
(iv)Interest on capital be provided at 10% per annum.
(v)A sum of Rs.77,500 was paid to his executors immediately.
Prepare R's capital account and his executor's account at the time of his death.