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12th Standard English Medium Accountancy Subject Retirement and Death of a Partner Book Back 5 Mark Questions with Solution Part - I Question Bank Software Jun-03 , 2021

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12th Standard English Medium Accountancy Subject Retirement and Death of a Partner Book Back 5 Mark Questions with Solution Part - I

12th Standard English Medium Accountancy Subject Retirement and Death of a Partner Book Back 5 Mark Questions with Solution Part - I

12th Standard

    Reg.No. :
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Accountancy

Time : 00:30:00 Hrs
Total Marks : 25

    Part I

    5 x 5 = 25

  1. John, James and Raja are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2019 is as follows:
    Raja retired on 31st March, 2019 subject to the following conditions:
    (i) Machinery is valued at Rs. 1,30,000
    (ii) Value of office equipment is brought down by Rs. 2,000
    (iii) Provision for doubtful debts should be increased to Rs. 3,000
    (iv) Investment of Rs. 25,000 not recorded in the books is to be recorded now
    Pass necessary journal entries and prepare revaluation account.

  2. Charles, Muthu and Sekar are partners, sharing profits in the ratio of 3 : 4 : 2. Their balance sheet as on 31st December, 2018 is as under:

    Liabilities Rs. Rs. Asset Rs.
    Capital accounts:     Furniture 20,000
    Charles 30,000   Stock 40,000
    Muthu 40,000   Debtors 30,000
    Sekar 20,000 90,000 Cash at bank 42,000
    Workmen compensation fund   27,000 Profit and loss A/c (loss)    18,000
    Sundry creditors   33,000    
        1,50,000   1,50,000

    On 1.1.2019, Charles retired from the partnership firm on the following arrangements.
    (i) Stock to be appreciated by 10%
    (ii) Furniture to be depreciated by 5%
    (iii) To provide Rs. 1,000 for bad debts
    (iv) There is an outstanding repairs of Rs. 11,000 not yet recorded
    (v) The final amount due to Charles was paid by cheque
    Prepare revaluation account, partners’ capital account and the balance sheet of the firm after retirement.

  3. Muthu, Murali and Manoj are partners in a firm and sharing profits and losses in the ratio 3 : 1 : 2. Their balance sheet as on 31st December, 2018 is given below:

    Liabilities Rs. Rs. Asset Rs. Rs.
    Capital accounts:     Machinery   45,000
    Muthu 20,000   Furniture   5,000
    Murali 25,000   Debtors   30,000
    Manoj 20,000 65,000 Stock   20,000
    General reserve   6,000      
    Creditors   29,000      
        1,00,000     1,00,000

    Manoj retires on 31st December, 2018 subject to the following conditions:
    (i) Muthu and Murali will share profits and losses in the ratio of 3 : 2
    (ii) Assets are to be revalued as follows:
    Machinery Rs. 43,000, stock Rs. 27,000, debtors Rs. 28,000.
    (iii) Goodwill of the firm is valued at Rs. 30,000
    (iv) The final amount due to Manoj is not paid immediately
    Prepare necessary ledger accounts and the balance sheet immediately after the retirement of Manoj.

  4. Ramesh, Ravi and Akash are partners who share profits and losses in their capital ratio. Their balance sheet as on 31.12.2017 is as follows:

    Balance Sheet as on 31st December, 2017
    Liabilities Rs. Rs. Asset Rs. Rs.
    Capital accounts:     Plant and machinery   45,000
    Ramesh 30,000   Stock   22,000
    Ravi 30,000   Debtors   15,000
    Akash 20,000 80,000 Cash at bank   10,000
    General reserve   8,000 Cash in hand   4,000
    Creditors   8,000      
        96,000     96,000

    Akash died on 31.3.2018. On the death of Akash, the following adjustments are made:
    (i) Plant and machinery is to be valued at Rs. 54,000
    (ii) Stock is to be depreciated by Rs. 1,000
    (iii) Goodwill of the firm is valued at Rs. 24,000
    (iv) Share of profit of Akash is to be calculated from the closing of the last financial year to the date of death on the basis of the average of the three completed years’ profit before death. Profit for 2015, 2016 and 2017 were Rs. 66,000, Rs. 60,000 and Rs. 66,000 respectively.
    Prepare the necessary ledger accounts and the balance sheet immediately after the death of Akash.

  5. Manju, Charu and Lavanya are partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. Their balance sheet as on 31st March, 2018 is as follows:

    Liabilities Rs Rs Asset Rs Rs
    Capital accounts:     Buildings   1,00,000
    Manju 70,000   Furniture   80,000
    Charu 70,000   Stock   60,000
    Lavanya 70,000 2,10,000 Debtors   40,000
    Sundry creditors   40,000 Bills receivable   50,000
    Profit and loss A/c   50,000 Cash at bank   20,000
        3,00,000     3,00,000

    Manju retired from the partnership firm on 31.03.2018 subject to the following adjustments:
    (i) Stock to be depreciated by Rs. 10,000
    (ii) Provision for doubtful debts to be created for Rs. 3,000.
    (iii) Buildings to be appreciated by Rs. 28,000
    Prepare revaluation account and capital accounts of partners after retirement

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