CBSE 12th Accountancy Reconstitution of a Partnership Firm - Retirement - Death of a Partner Important Questions And Answers Study Material - QB365 Set A | QB365

12th Standard CBSE Syllabus & Materials

12th Standard CBSE

CBSE 12th Economics Government Budget and the Economy Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Interface Python with MySQL - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Database Concept - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Communication - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Data Structures - New Previous year Question Papers Study Material - QB365 Set A

NEW

12th Standard CBSE

CBSE 12th Computer Science Functions - New Previous year Question Papers Study Material - QB365 Set A

CBSE 12th Accountancy Reconstitution of a Partnership Firm - Retirement - Death of a Partner Important Questions And Answers Study Material - QB365 Set A

Published on: 20/08/2026

Download CBSE Class 12th Standard CBSE Accountancy question papers, sample papers, important questions, and previous year solved papers in PDF format. Get free study materials, NCERT solutions, and exam preparation resources for Class 12th Standard CBSE Accountancy

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard CBSE - Accountancy

chapter: Reconstitution of a Partnership Firm - Retirement - Death of a Partner - Important Questions And Answers

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

Questions:

Generic 6

2 x 6 = 12

The Balance Sheet of Rahat,Uma and Saral, who were sharing profits in the ratio of 4:3:1 as on 31st March 2012 was as follows:

Liabilities		RS	Assets	RS
General Reserve		75,000	Cash	49,000
Bills Payable		35,000	Stock	98,000
Loan		39,000	Bills Receivables	1,25,000
Capital :			Furniture	82,000
Rahat	1,60,000		Machinery	1,00,000
Uma	1,10,000		Uma's Loan	50,000
Saral	85,000	3,55,000
		5,04,000		5,04,000

(a) Goodwill of the firm was to be valued at two years purchase of average profits for the last three years which were RS.88,000.Uma died on 31st July, 2012. The partnership deed provided for the following on the death of a partner:
(b) Uma's share of profit till the date of her death was to be calculated on the basis of sales. Sales for the year ended 31st March, 2012 amounted to RS.1,50,000 and that from 1st April to 31st July, 2012 to RS.90,000. The profit for the year ended 31st March, 2012 was RS.50,000.
(c) Interest on capital was to be provided @ 7% p.a.
(d) According to Uma's will, the executor should donate her share to 'Maitri Chaya-an orphanage for girls'.
Prepare Uma's Capital Account to be rendered to her executor. Also identify the value being highlighted in the question.

Arun,Varun and Karan were partners in a firm sharing profits in the ratio of 4:3:3. On 31.03.2014, their Balance Sheet was as follows:

Liabilities		RS	Assets	RS
Creditors		17,000	Cash	8,000
Bills Payable		12,000	Debtors	13,000
Karan's loan		28,000	Bills Receivables	9,000
Capitals:			Furniture Machinery	27,000
Arun	70,000		Karan's Capital	1,25,000
Varun	68,000	1,38,000		13,000
		1,95,000		1,95,000

On 30.09.2014, Karan died. The Partnership Deed provided for the following to the executors of the deceased partner:
(a) His share in the goodwill of the firm calculated on the basis of three years' purchase of the average profits of the last four years. The profits of the last four years were RS.1,90,000; RS.1,70,000; RS.1,60,000 respectively.
(b) His share in the profits of the firm till the date of his death calculated on the basis of the average profits of the last four years.
(c) Interest @ 8% p.a. on the credit balance, if any, in his Capital Account.
(d) Interest on his loan @ 12% p.a.
Prepare Karan's Capital Account to be presented to his executors, assuming that his loan and interest on loan were transferred to his Capital Account.

Generic 8

3 x 8 = 24

Following is the balance sheet of P, Q and R as at at 31st March, 2015, who have agreed to share profits and losses in proportion of their capitals.

**Balance Sheet as at 31st March, 2015**
Liabilities		Amt (Rs)	Asseets		Amt(Rs)
Capital A/cs			Land and Building		2,00,000
P	2,00,000		Machinery		3,00,000
Q	3,00,000		Closing Stock		1,00,000
R	2,00,000	7,00,000	sundry Debtors	1,00,000
General Reserve		35,000	(-)Provision for Doubtful Debts	(10,000)	1,00,000
Workmen's Compesation Fund		15,000	Cash at Bank		1,00,000
sundry Creditors		50,000
		8,00,000			8,00,000

On 31st March, 2015, P desired to retire from the firm and the remaining partners decided to carry on the business.It was agreed to revalue the assets and reassess the liabilities on the following basis.
(i) Land and Building to be appreciated by 30%
(ii) Machinery be depreciated by 20%
(iii) There were bad debts of Rs.17,000
(iv) The claim on account of workmen 's compensation was estimated at Rs.8000.
(v) Goodwill of the firm was valued at Rs.1,40,000 and P's share of goodwill be adjusted against the capital accounts of the continuing partners Q and R who have decided to share future profits in the ratio of 4:3 respectively.
(vi) Capital of the new firm in total will be the same as before the retirement of P and will be in the new profit sharing ratio of the continuing partners.
(vii) Amount due to P be settled by paying Rs.50,000 in cash and the balance by transferring to her loan account which will be paid later on.
Prepare revaluation account, capital accounts of partners and balance sheet of the firm after P's retirement.

Amit, Balan and Chander were partners in a firm sharing profits in the proportion of\({1\over2},{1\over3},{1\over 6}\) respectively.Chander retired on 1st April, 2015.The balance sheet of the firm on the date of Chander's retirement was as follows

Liabilities		Amt(Rs)	Assets		Amt(Rs)
Sundry Creditors		12,000	Bank		4,100
Provident Fund		3,000	Debtors	30,000
General Reserve		9,000	(-)Provision for Doubtful Debts	(1000)	29,000
Capital A/cs			Stock		25,000
Amit	40,000		Investments		10,000
Balan	36,500		Patents		5,000
Chander	20,000	96,500	Machinery		48,000
		1,21,100			1,21,100

It was agreed that
(i)Goodwill will be valued at Rs.27,000
(ii)Depreciation of 10% was to be provided on machinery.
(iii)Patents were to reduced by 20%.
(iv)Liability on account of provident fund was estimated at s.2,400
(v)Chander took over investments for Rs.15,800.
(vi)Amit and Balan decided to adjust their capital accounts in proportion of their profit sharing ratio by opening current accounts.
Prepare revaluation account and partners' capital accounts on Chander's retirement.

H, I and J were partners in a firm with profit sharing ratio of 1/2, 1/3 and 1/6 respectively.The balance sheet of the firm at 31st March, 2015 was as follows

**Balance Sheet as at 31st March, 2018**
Liabilities		AMt(Rs)	Assets		Amt(Rs)
Sundry Creditors		42,000	Goodwill		12,000
Workmen Compensation Reserve		24,000	Cash at Bank		11,500
Employees' Provident Fund		12,000	Debtors	80,000
Investment Fluctuation reserve		12,000	(-)Provision for Doubtful Debts Stock	(4,000)	76,000
Capital A/cs			Stock		75,300
H	1,36,000		Investment(Market value Rs.35,200)		30,000
I	64,000		Patents		20,000
J	42,000	2,42,000	Machinery		1,00,000
			Advertisement Expenditure A/c		7,200
		3,32,000			3,32,000

J retired on 1st April, 2015 on the following terms.
(i) Goodwill of the firm was valued at Rs.60,000.
(ii) Value of patents was to be reduced by 20% and that of machinery to 90%
(iii) Provision for doubtful debt was to be raised to 6%
(iv) Liability on account of provident fund was only Rs.6,000
(v) Liability for workmen compensation to the extent of Rs.12,000 is to be created
(vi) J took over the investment at market value.
(viii) Amount due to J is to be settled on the following basis
50% on retirement, 50% of the balance within one year and the balance by a bill of exchange at 3 months.
You are required to show entires for the treatment of goodwill, revaluation account, partners' capital accounts sheet of H and I after J's retirement.

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

Answers Key:

Generic 6

2 x 6 = 12

(a) Balance of Uma's Capital A/c transferred to Uma's Executors A/c RS.1,67,942 i.e., RS.1,10,000 (Balance) + RS.28,125 (Reserve) + RS.66,000 (share of goodwill) + RS.11,250 (share of profit) + RS.2,567 (interest) - RS.50,000 (Loan to Uma).
(b) Value involved: (i) Fulfilment of social responsibility.
(i) Support/Sympathy towards orphan girls.

Balance of Karan's Capital transferred to Karan's executors Rs.2,00,430 i.e., 1,57,500 (share of goodwill) + Rs.26,250 (Share of profit) + 29,680 (Loan+Interest) - Rs.13,000 (Dr.Balance of Capital)
[Hint: (i) Gaining ratio between Arun and Varun 4:3 (ii) Interest on capital will not be allowed being Debit balance of capital.]

Generic 8

3 x 8 = 24

Dr Revaluation Account Cr

Particulars	Amt(Rs)	Particulars		Amt(Rs)
To Machinery a/c	60,000	By Land and Building A/c		60,000
To Bad A/c (WN1)	7,000	By Loss transferred to
		P's Capital A/c	2,000
		Q's Capital A/c	3,000
		R's Capital A/c	2,000	7,000
	67,000			67,000

Dr Partner's Capital Account Cr

Particulars	P(Rs)	Q(Rs)	R(Rs)	Particulars	P(Rs)	Q(Rs)	R(Rs)
To Revaluation A/c (Loss)	2,000	3,000	2,000	By Balance b/d	2,00,000	3,00,000	2,00,000
To P's Capital A/c	-	20,000	20,000	By General Reserve A/c	10,000	15,000	10,000
(Goodwill) (WN 3)				By Workmen's
To Bank A/c	50,000	-	-	Compensation Fund A/c	2,000	3,000	2,000
To P's Loan A/c	2,00,000	-	-	(WN 2)
To Balnce c/d (WN 5)	-	4,00,000	3,00,000	By Q's Capital A/c	20,000	-	-
				By R's Capital A/c	20,000	-	-
				By Bank A/c	-	1,05,000	1,10,000
	2,52,000	4,23,000	3,22,000		2,52,000	4,23,000	3,22,000

Balance Sheet
as at 31st March, 2015

Liabilities		Amt(Rs)	Assets	Ant(Rs)
Capital A/cs			Land and Building	2,60,000
Q	4,00,000		machinery	2,40,000
R	3,00,000	7,00,000	Closing stock	1,00,000
P's loan		2,00,000	sundry debtors	92,000
Sundry Creditors		50,000
		9,58,000		9,58,000

Dr Revaluation Account Cr

Particulars		Amt(Rs)	Particulars	Amt(Rs)
To Machinery A/c		4,800	By Provident A/c	600
To Patents A/c		1,000	By Investment A/c	5,800
To Profit Transferred to Capital A/cs
Amit	300
Balan	200
Chander	100	600
		6,400		6,400

Dr Partners' Capital Account Cr

Particulars	Amit (Rs)	Balan(Rs)	Chander (Rs)	Particulars	Amit(Rs)	Balan(Rs)	Chander(Rs)
To Investment A/c	-	-	15,800	By Balanced b/d	40,000	38,500	20,000
To Chander's Capital A/c	2,700	1,800	-	By Revaluation A/c (Profit)	300	200	100
To Chander's Loan A/c	-	-	10,300	By General Reserve A/c	4,500	3,000	1,500
To Amit's current A/c	-	5,900	-	By Amit's Capital A/c	-	-	2,700
To Balance c/d	48,000	32,000	-	By Balan's Capital A/c	-	-	1,800
				By Balan's Current A/c	5,900	-	-
	50,700	39,700	26,100		50,700	39,700	26,100

Journal

Date	Particular		Amt(Dr)	Amt(Cr)
2015
Apr1	H's Capital A/c	Dr	6,00
	I's Capital A/c	Dr	4,000
	J's Capital A/c	Dr	2,000
	To Goodwill A/c			12,000
	(Being the existing goodwill written-off)
	H's Capital A/c	Dr	6,000
	I's Capital A/c	Dr	4,000
	To J's Capital A/c			10,000
	(Being J's share of goodwill credited to him by debiting gaining partners in their gaining ratio of 3:2)

Dr Revaluation Account Cr

Particular	Amt(Rs)	Particular		Amt(Rs)
To Patners A/c	4,000	By Investment A/c(Rs.35,200 - Rs.30,000)		5,200
To Machinery	10,000	By Employees's Provident Fund A/c		6,000
To Provision for Doubtful Debts A/c	800	By Loss on Revaluation Transferred to
		H's Capital A/c	1,800
		iI's Capital A/c	1,200
		J's Capital A/c	600	3600
	14,000			14,800

Dr Partners's Capital Account Cr

Particular	H(Rs)	J(Rs)	J(Rs)	Particular	H(Rs)	I(Rs)	J(Rs)
To Goodwill A/c	6,000	4,000	2,000	By Balance b/d	1,36,000	64,000	42,000
To J's Capital A/c	6,000	4,000	-	By Workmen Compensation
To Revaluation A/c (Loss)	1,800	1,200	600	Reserve A/c (WN 3)	6,000	4,000	2,000
To Advertisement				By Investment Fluctuation
Expenditure A/c	3,600	2,400	1,200	Reserve A/c (WN 4)	6,000	4,000	2,000
To Investment A/c	-	-	35,200	By H's Capital A/c	-	-	6,000
To Bank A/c (WN 2)	-	-	8,500	By I's Capital A/c	-	-	4,000
To J's Loan A/c (WN 2)	-	-	4,250
To Bills Payable A/c (WN 2)	-	-	4,250
To Balance c/d	1,30,600	60,400	-
	1,48,000	72,000	56,000		1,48,000	72,000	56,000

Balance Sheet
as at 1st April, 2015

Liabilities		Amt(Rs)	Assets		Amt (Rs)
sundry Creitors		42,000	Cash at Bank (Rs.11,500-Rs.8,500)		3,000
Workmen Compensation Reserve		12,000	Debtors	80,000
Employees' Provident Fund		6,000	(-) Provision for Doubtful Debts	(4,800)	75,200
Bills Payable		4,250	stock		75,300
J's Loan		4,250	Patents		16,000
Capital			Machinery		90,000
H	1,30,600
I	60,400	1,91,000
		2,59,500			2,59,500