Advertisements
Advertisements
प्रश्न
Virendra, Devendra, and Narendra were partners sharing Profit and Losses in the ratio of 3:2:1. Their Balance Sheet as on 31st March 2019 was as follows.
| Balance Sheet as on 31st March 2019 | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Bank Loan | 25,000 | Furniture | 50,000 |
| Creditors | 20,000 | Land & Building | 50,000 |
| Bills Payable | 5,000 | Motor Car | 20,000 |
| Reserve Fund | 30,000 | Sundry Debtors | 50,000 |
| Capital Account: | Bills Receivable | 20,000 | |
| Virendra | 90,000 | Investments | 50,000 |
| Devendra | 60,000 | Cash at Bank | 20,000 |
| Narendra | 30,000 | ||
| 2,60,000 | 2,60,000 | ||
Mr. Virendra died on 31st August 2019 and the Partnership deed provided that. That the event of the death of Mr. Virendra his executors be entitled to be paid out.
1. The capital to his credit at the date of death.
2. His proportion of Reserve at the date of the last Balance sheet.
3. His proportion of Profits to date of death based on the average profits of the last four years.
4. His share of Goodwill should be calculated at two years purchase of the profits of the last four years for the year ended 31st March were as follows -
| 2016 | ₹ 40,000 |
| 2017 | ₹ 60,000 |
| 2018 | ₹ 70,000 |
| 2019 | ₹ 30,000 |
5. Mr. Virendra has drawn ₹ 3000 p.m. to date of death, There is no increase and Decrease the value of assets and liabilities.
Prepare Mr. Virendras Executors A/c
उत्तर
| Dr | In the books of the Partnership Firm Virendra’s Capital Account | Cr | |||
| Particulars | Amount (₹) | Particulars | Amount (₹) | ||
|
To Drawings A/c (₹ 3,000 × 5 months) |
15,000 | By Balance b/d | 90,000 | ||
| To Executor’s Loan A/c | 1,50,417 | By Goodwill A/c | 50,000 | ||
| By Profit and Loss Suspense A/c | 10,417 | ||||
| By reserve Fund A/c | 15,000 | ||||
| 1,65,417 | 1,65,417 | ||||
Working Notes:
(1) Calculation of share of profit :
(a) Average profit =`"Total profit"/"No. of years"`
=` (40,000 + 60,000 + 70,000 + 30,000)/ 4`
= `(2,00,000)/4`
= ₹ 50,000
(b) Goodwill = Average profit × No. of years
= 50,000 × 2
= ₹ 1,00,000
(c) Share of Goodwill to Virendra = Goodwill of the firm × Virendra’s share
= 1,00,000 ×`3/6`
= ₹ 50,000
(2) Share of profit due to Virendra
Share of profit = profit × Share of Virendra ratio × Period
= `50,000 xx3/6 xx 5/12`
= ₹ 10,417 (Profit and Loss Suspense A/c)
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
What is the gain ratio?
What is Gain Ratio?
Benefit Ratio is the Ratio in which ______.
Death is a compulsory ______.
The balance on the capital account of partners, on his death, is transferred to ______ account.
Write a word, term, phrase, which can substitute the following statement.
The proportion in which the continuing partners benefit due to the death of a partner.
State whether the following statement is True or False with reason.
A deceased partner is not entitled to the Goodwill of the firm.
State whether the following statement is True or False with reason.
If Goodwill is written off a deceased partner’s capital account is debited.
State whether the following statement is True or False with reason.
After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner.
State whether the following statement is True or False with reason.
For recording the Profit or Loss up to the date of death, Profit and Loss Appropriation Account is operated.
Deceased partners share of profit up to the death is shown on ____________ side of Balance Sheet.
Benefit ratio = New Ratio − __________.
When Goodwill is raised at its full value and it is written off __________ account is to be credited.
Answer in one sentence only.
In which ratio General Reserve is distributed on death of a partner?
Answer in one sentence only.
To whom you distribute General Reserve on the death of a partner?
Answer in one sentence only.
How the death of a partner is a compulsory retirement?
Ram, Madhav, and Keshav are partners sharing Profit and Losses in the ratio 5:3:2 respectively. Their Balance Sheet as on 31st March 2018 was as follows.
| Balance Sheet as on 31st March 2018 | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| General Reserve | 25,000 | Goodwill | 50,000 |
| Creditors | 1,00,000 | Loose Tools | 50,000 |
| Unpaid Rent | 25,000 | Debtor | 1,50,000 |
| Capital Accounts | - | Live Stock | 1,00,000 |
| Ram | 100000 | Cash | 25,000 |
| Madhav | 75000 | ||
| Keshav | 50000 | ||
| 3,75,000 | 3,75,000 | ||
Keshav died on 31st July 2018 and the following Adjustment were agreed by as per partnership deed.
1. Creditors have increased by 10,000
2. Goodwill is to be calculated at 2 years purchase of average profits of 5 years.
3. The Profits of the preceding 5 years was
| 2013-14 | ₹ 90,000 |
| 2014-15 | ₹ 1,00,000 |
| 2015-16 | ₹ 60,000 |
| 2016-17 | ₹ 50,000 |
| 2017-18 | ₹ 50,000 (Loss) |
Keshav's share in it was to be given to him.
4. Loose Tools and livestock were valued at ₹ 80,000 and ₹ 1,20,000 respectively
5. R.D.D. was maintained at ₹ 10,000
6. Commission's ₹ 2000 p.m. was payable to Keshav Profit for 2018 -19 was estimated at ₹ 45000 and Keshav's share in it up to the date of his death was given to him.
Prepare
Revaluation A/c, Keshav’s capital A/c showing the amount payable to his executors.
The Balance Sheet of Sohan, Rohan and Mohan who were sharing profits and Losses in the ratio of 3:2:1 as follows.
| Balance Sheet as on 31st March 2019 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Bank Overdraft | 18,000 | Bank | 48,000 |
| Creditors | 85,000 | Debtors | 30,000 |
| Bills payable | 40,000 | Land and Building | 40,000 |
| Bank Loan | 1,50,000 | Machinery | 80,000 |
| General Reserve | 27,000 | Investments | 40,000 |
| Capital Account: | Computers | 40,000 | |
| Sohan | 20,000 | Stock | 90,000 |
| Rohan | 20,000 | Patents | 12,000 |
| Mohan | 20,000 | ||
| 3,80,000 | 3,80,000 | ||
Mr. Rohan died on 1st October 2019 and the following adjustments were made.
- Goodwill of the firm is valued at ₹ 30,000.
- Land and Building and Machinery were found to be undervalued by 20%.
- Investments are valued at ₹ 60,000
- Stock to be undervalued by ₹ 5000 and a provision of 10% as debtors were required.
- Patents were valueless.
- Mr. Rohan was entitled to share in profits up to the date of death and it was decided that he may be allowed to retain his drawings as his share of profit. Rohan’s drawings till the date of death was ₹ 25000.
Prepare Partners' capital accounts.
Rakesh, Mahesh & Mukesh were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Balance Sheet as on 31st March, 2019 as under:
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/c: | Plant & Machinery | 40,000 | ||
| Rakesh | 30,000 | Motor Truck | 20,000 | |
| Mahesh | 20,000 | Investment | 18,000 | |
| Mukesh | 10,000 | |||
| Bank Loan | 20,000 | Debtors | 16,000 | 14,000 |
| Creditors | 8,000 | Less: RDD | 2,000 | |
| Bills Payable | 18,000 | Bank | 14,000 | |
| 1,06,000 | 1,06,000 |
Mukesh Died on 30th June, 2019 and following adjustments were made:
- Assets were revalued as: Plant & Machinery ₹ 44,000, Motor Truck ₹ 18,000, Investment ₹ 17,000.
- All debtors were good.
- Goodwill of the firm valued at two times the average profits of the last five years. No Goodwill account to be shown in the books of the firm.
- Mukesh's share of profit up to his death to be calculated on the basis of average profits last two years.
- Five years Profits were - I year ₹ 6,000, II year ₹ 11,000, III year ₹ 7,000, IV year ₹ 12,000, V year ₹ 24,000 respectively.
Prepare Revaluation A/c, Partners Capital A/c and Balance Sheet as on 1 st July, 2019.
Roohi, Mona, Meena were partners in a business sharing profits and losses in the ratio of 2 : 1 : 1 respectively. Their balance sheet as on 31st March, 2019.
| Balance sheet as on 31st March, 2019 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/c: | Plant & Machinery | 60,000 | ||
| Roohi | 60,000 | 1,64,000 | Debtors | 50,000 |
| Mona | 70,000 | Furniture stock | 30,000 | |
| Meena | 34,000 | Bank | 60,000 | |
| Creditors | 18,000 | |||
| Bills Payable | 2,000 | |||
| General Reserve | 16,000 | |||
| 2,00,000 | 2,00,000 | |||
Meena died on 1st July, 2019:
- Plant & machinery was to be revalued at ₹ 70,000 and RDD is to be created of ₹ 2,000.
- The drawings of Meena up to the date of her death amounted to ₹ 10,000.
- Charge interest on drawings ₹ 1,000.
- Her share of goodwill should be calculated at three year purchase of the profits for the last four years which were: I year ₹ 1,50,000, II year ₹ 1,30,000, III year ₹ 70,000. IV ₹ 50,000.
- The deceased partners' share of profit up to the date is to be calculated on the basis of average profit of last two years. (Ill & IV year)
Prepare Profit and Loss Adjustment account, Partners Capital Accounts and Balance Sheet of the continuing firm, give working note on share of profit and goodwill.
Deceased partner share of profit up to the death is shown on ______ side of Balance Sheet.
M, N and O were equal partners on 31st March, 2023. Their Balance Sheet was as follows 31st March, 2023.
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital Accounts : | Land and Building | 4,80,000 | |
| M | 6,00,000 | Furniture | 3,60,000 |
| N | 2,40,000 | Debtors | 3,60,000 |
| O | 2,40,000 | Stock | 1,20,000 |
| Sundry Creditors | 1,08,000 | Cash | 1,20,000 |
| Bills Payable | 72,000 | ||
| Bank Loan | 1,80,000 | ||
| 14,40,000 | 14,40,000 | ||
M died on 30th June, 2023 and the following adjustments were agreed as:
(1) Furniture was to be adjusted to its market price of ₹ 4,08,000.
(2) Land and Building was to be depreciated by 10%.
(3) Provide R.D.D. @ 5% on Debtors.
(4) The profit up to the date of death of M is to be calculated on the basis of last years profit which was ₹ 2, 16,000.
Prepare Profit and Loss Adjustment A/c, Partners' Capital Accounts A/c and Balance Sheet of the continuing firm.
Shah, Patel, Bhide were partners in a business sharing profits and losses in the ratio of 2 : 1 : I respectively. Their Balance sheet as on 31st March 2022 was as follows:
| Balance Sheet as on 31-03-2022 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital A/c: | Plant & Machinery | 84,000 | |
| Shah | 84,000 | Debtors | 70,000 |
| Patel | 98,000 | Furniture | 42,000 |
| Bhide | 47,600 | Bank | 84,000 |
| Creditors | 25,200 | ||
| Bills Payable | 2,800 | ||
| General Reserve | 22,400 | ||
| 2,80,000 | 2,80,000 | ||
Bhide died on 1st July, 2022:
(1) Plant and Machinery was to be revalued to ₹ 98,000 and R.D.D. is to be created of ₹ 2,800.
(2) The drawings of Bhide up to the date of his death amounted to ₹ 14,000.
(3) Charge interest on drawings ₹ 1,400.
(4) His share of goodwill should be calculated at three year purchase of the profits for the last four years which were I year ₹ 2,30,000, II year ₹ 1,82,000, III year ₹ 98,000, IV ₹ 70,000.
(5) The deceased partner's share of profit up to the date of death to be calculated on the basis of average profit of last two years (III & IV year).
Prepare: Profit and Loss Adjustment Account, Partner's Capital Accounts, Balance Sheet of the continuing firm. Give working note of profit up to the date of death of Bhide and Goodwill.
Answer in one sentence only:
What is New Profit Sharing Ratio?
Suresh, Naresh and Paresh were equal partners. On 31st March, 2019 their Balance sheet was as follows:
| Balance Sheet as on 31st March, 2019 | |||
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
| Capital Accounts: | Land and Building | 2,00,000 | |
| Suresh | 2,50,000 | Furniture | 1,50,000 |
| Naresh | 1,00,000 | Debtors | 1,50,000 |
| Paresh | 1,00,000 | Cash | 1,00,000 |
| Sundry creditors | 1,50,000 | ||
| 6,00,000 | 6,00,000 | ||
Suresh died on 30th June, 2019 and the following adjustments were agreed as:
- Furniture was to be adjusted to its market price of ₹ 1,70,000.
- Land and building was to be depreciated by 10%.
- Provide R.D.D. at 5% on debtors.
- The profit up to the date of death of Suresh is to be calculated on the basis of average profit of last year which was ₹ 90,000.
Prepare:
- Profit and loss adjustment account.
- Partners’ capital account.
- Balance sheet of the continuing firm.
