12th Standard English Medium Accountancy Subject Retirement and Death of a Partner Book Back 3 Mark Questions with Solution Part - I | QB365

12th Standard Syllabus & Materials

12th Standard

TN 12th Computer Applications மின்னணு தரவு பரிமாற்றம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிக பாதுகாப்பு அமைப்புகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின்னணு செலுத்தல் முறைகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிகம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications திறந்த மூல கருத்துருக்கள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications வலையமைப்பு வடமிடல் Sample Question Papers Study Material - QB365 Set A

12th Standard English Medium Accountancy Subject Retirement and Death of a Partner Book Back 3 Mark Questions with Solution Part - I

Published on: 03/06/2021

QB365 provides detailed and simple solution for every Book back Questions in class 12 Accountancy Subject. It will helps to get more idea about question pattern in every book back questions with solution.

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Accountancy

chapter: - Book back Questions

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 3

4 x 3 = 12

Janani, Janaki and Jamuna are partners sharing profits and losses in the ratio of 3:3:1 respectively. Janaki died on 31^st December, 2017. Final amount due to her showed a credit balance of Rs. 1,40,000. Pass journal entries if,
(a) The amount due is paid off immediately.
(b) The amount due is not paid immediately.
(c) Rs. 75, 000 is paid and the balance in future.

Rani, Jaya and Rathi are partners sharing profits and losses in the ratio of 2 : 2 : 1. On 31.3.2018, Rathi retired from the partnership. Profit of the preceding years is as follows: 2014: 10,000; 2015: Rs. 20,000; 2016: Rs.18,000 and 2017: Rs. 32,000 Find out the share of profit of Rathi for the year 2018 till the date of retirement if
(a) Profit is to be distributed on the basis of the previous year’s profit
(b) Profit is to be distributed on the basis of the average profit of the past 4 years
Also pass necessary journal entries by assuming partners capitals are fluctuating.

Rajan, Suman and Jegan were partners in a firm sharing profits and losses in the ratio of 4:3:2. Suman retired from partnership. The goodwill of the firm on the date of retirement was valued at Rs. 45,000. Pass necessary journal entries for goodwill on the assumption that the fluctuating capital method is followed.

What are the ways in which the final amount due to an outgoing partner can be settled?

Generic 5

1 x 5 = 5

Roja, Neela and Kanaga are partners sharing profits and losses in the ratio of 4:3:3. On 1^st April 2017, Roja retires and on retirement, the following adjustments are agreed upon.
(i) Increase the value of building by Rs. 30,000.
(ii) Depreciate stock by Rs. 5,000 and furniture by Rs. 12,000.
(iii) Provide an outstanding liability of Rs. 1,000
Pass journal entries and prepare revaluation account.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 3

4 x 3 = 12

Journal entries
Date	Particular		Debit Rs	Credit Rs
31st	(a)Janaki's Executor's A/c		1,40,000
Dec 2017	To BankA/c			1,40,000
	(Amount due paid immediately)
31st	(b) Janaki's Executor's A/c	Dr	1,40,000
Dec 2017	To Janakis Executor's loan A/c			1,40,000
	(Amount due transferred to loan account)
31st	(c) Janaki's Executor's A/c	Dr
Dec 2017	To Bank A/c		1,40,000	75,000
	To Janaki's Executor's loan A/c			65,000
	(Rs. 75,000 paid and the balance transferred to loan account)

(a) If profit is to be distributed on the basis of the previous year's profit
Rathi's share of profit for 3 months
= \(32,000\cfrac { 3 }{ 12 } \times \cfrac { 1 }{ 5 } =Rs.100\)

Particulars		Debit Rs	Creditl Rs
Profit and loss suspense A/c	Dr	1,600
To Rathi's capital A/c			1,600
(Profit is to be distributed as the basis of previous year profit)

(b) If profit is to be distributed on the basis of average profit of the past 4 years
Average profit = \(\cfrac { 10,000+20,00+18,000+32,000 }{ 4 } \)
= \(\cfrac { 80,000 }{ 4 } =Rs20,000\)
Rathi's share of profit for 3 months
= \(20,000\times \cfrac { 1 }{ 5 } \times \cfrac { 3 }{ 13 } =Rs.1000\)

Date	Particulars		Debit Rs	Credit Rs
2018	Profit and loss suspense A/c	Dr.	1,000
March 31	To Rathi's capital A/c			1,000
	(Rathi's current year share of profit credited to her capital account)

As the new profit sharing ratio and gain made by the continuing partner is not mentioned, it is assumed that they gain in their old profit sharing ratio of 4:2. Therefore, gaining ratio
Suman's share goodwill = \(45000\times \cfrac { 3 }{ 9 } =Rs.15,000\)

Journal entry
Particulars		Debit Rs	Credit Rs
Rajan's capital A/c (15,000 x 4/6)	Dr	10,000
lagan's capital A/c (15,000 x 2/6)	Dr	5,000
To Suman's capital A/c			15,000
(Suman's share of goodwill is adjusted)

The amount due to the retiring partner may be settled in one of the following ways.
(i) Paying the entire amount due immediately in cash.
(ii) Transfer the entire amount due to the loan account of the partner.
(iii) Paying part of the amount immediately in cash and transferring the balance to the loan account of the partner.
The journal entries to be made are as follows
(a) When the amount due is paid in cash immediately

Date	Particulars	L.F	Debit Rs	Credit Rs
	Retiring partner's capital A/c Dr		XXX
	To Cash I Bank A/C			XXX

(b) When the amount due is not paid immediately in cash

Date	Particulars	L.F	Debit Rs	Credit Rs
	Retiring partner's capital A/c Dr		XXX
	To Retiring partner's loan Ale			XXX

Particulars	Debit Rs	Credit Rs
Retiring partner's captalAlc Dr	XXX
To Cash I Bank A/c (amount paid)		XXX
To Retiring partner's loan Alc		XXX

Retiring partner's loan account will appear on the liabilities side o the balance sheet prepared after retirement till it is completely settled

Generic 5

1 x 5 = 5

Journal entries
Date	Particulars		Debit Rs	Credit Rs
2017	Building A/c	Dr	30,000
April 1	To Revaluation A/c			30,000
	(Value of building inreased)
2017	Revaluation A/c	Dr	18,000
April1	To Stock A/c			5,000
	To Furniture A/c			12,000
	To Outstanding liability A/c			1,000
	(Decrease in value of assets and outstanding liability recorded
2017	Revaluation A/c	Dr	12,000
April1	To Roja's capital A/c			4,800
	To Neela's capital A/c			3,600
	To Kanaga's capital A/c			3,600
	(profit on recaluation distributed)

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Stock A/c		5,000	By Building A/c	30,000
To Furniture A/c		12,000
To Outstanding liability A/c		1,000

To Profit on revaluation transferred to
Roja's capital A/c	4,800
Neela's capital A/c	3,600
Kanaga's capital A/c	3,600
		12,000
		30,000		30,000