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प्रश्न
Write the Word/Term/Phrase which can substitute the following statement:
Debit balance of revaluation Account.
उत्तर
Loss on revaluation
APPEARS IN
संबंधित प्रश्न
Answer in one sentence only.
What is the gain ratio?
What is Gain Ratio?
The ratio by which existing partners are benefited ________.
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.
Excess of credit side over the debit side of profit and loss adjustment account.
Write a word, term, phrase, which can substitute the following statement.
A Person who represents the deceased partner on the death of the Partner.
Write a word, term, phrase, which can substitute the following statement.
Accumulated past profit kept in the form of reserve.
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.
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 partner’s executor's account is shown on the ___________ side of the Balance Sheet.
On the death of a partner, a ratio in which the continuing partners get more share of profits in future is called as _________ ratio.
Benefit ratio = New Ratio __________.
Answer in one sentence only.
In which ratio General Reserve is distributed on death of a partner?
Answer in one sentence only.
How the death of a partner is a compulsory retirement?
Answer in one sentence only.
To which account Profit is to be transferred upto the date of his death?
Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3: 2: 1 respectively. Their balance sheet as on 31st March 2017 was as follows.
| Balance Sheet as on 31st March 2017 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital Account: | Debtors | 1,00,000 | ||
| Rahul | 2,20,000 | Less: R.D.D. | 10,000 | 90,000 |
| Rohit | 2,10,000 | Plant and Machinery | 85,000 | |
| Ramesh | 2,40,000 | Investment | 3,50,000 | |
| Creditors | 80,000 | Motor lorry | 1,00,000 | |
| Bills Payable | 7,000 | Building | 80,000 | |
| General Reserve | 96,000 | Bank | 1,48,000 | |
| 8,53,000 | 8,53,000 | |||
On 1st October 2017, Ramesh died and the Partnership deed provided that
- R.D.D. was maintained at 5% on Debtors
- Plant and Machinery and Investment were valued at ₹ 80,000 and ₹ 4,10,000 respectively.
- Of the creditors, an item of ₹ 6000 was no longer a liability and hence was properly adjusted.
- Profit for 2017-18 was estimated at ₹ 120,000 and Ramesh share in it up to the date of his death was given to him.
- Goodwill of the Firm was valued at two times the average profit of the last five years. Which were
Ramesh share in it was to be given to him2012-13 ₹ 1,80,000 2013-14 ₹ 2,00,000 2014-15 ₹ 2,50,000 2015-16 ₹ 1,50,000 2016-17 ₹ 1,20,000 - Salary 5,000 p.m. was payable to him
- Interest on capital at 5% i.e. was payable and on Drawings ₹ 2000 were charged.
- Drawings made by Ramesh up to September 2017 were ₹ 5,000 p.m.
Prepare Ramesh’s Capital A/c showing the amount payable to his executors
Give Working of Profit and Goodwill
Ramesh’s executors loan A/c ₹ 3,41,000
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.
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
Anil, Sunil and Mohit were partners sharing profits and losses in the proportion of their capital Their Balance Sheet as on 31st March, 2019 was as follows:
| Balance Sheet as on 31st March, 2019 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital Accounts: | Land and Building | 80,000 | ||
| Anil | 60,000 | Motor Lorry | 40,000 | |
| Sunil | 40,000 | Debtors | 32,000 | 28,000 |
| Mohit | 20,000 | Less: R.D.D. | (4,000) | |
| Creditors | 50,000 | Furniture | 36,000 | |
| Outstanding Salary | 6,000 | Bank | 28,000 | |
| Reserve fund | 36,000 | |||
| 2,12,000 | 2,12,000 | |||
Mohit died on 1st August. 2019 and the following adjustments were made:
(1) Assets to be revalued as under:
| Land and Building | ₹ 88,000 |
| Motor Lorry | ₹ 36,000 |
| Furniture | ₹ 34,000 |
(2) All debtors were good.
(3) Goodwill of the firm valued at two times the average profit of lost 4 years' profit.
(4) Mohit's share of profit is to be calculated on the basis of average profit of the last three years.
(5) Profit for four years 1st year ₹ 12,000, 2nd year ₹ 24,000, 3rd year ₹ 14,000, 4th year ₹ 22,000.
Prepare:
- Mohit's capital account showing amount payable to his executor.
- Give working note of Mohit's share of goodwill and profit up to the date of his death.
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.
Arun, Varun and Karun were partners in a business sharing profits and losses in the ratio of 2 : 2: 1 respectively. Their Balance sheet as on 31st March, 2019 was as under :
| Balance Sheet as on 31st March,2019 | ||||
| Liabilities | Amount ₹ | Assets | Amount ₹ | |
| Capital Account: | Land and Building | 27,900 | ||
| Arun | 20,000 | Investment | 15,000 | |
| Varun | 20,000 | Furniture | 8,000 | |
| Karun | 10,000 | Debtors | 10,400 | 10,000 |
| Creditors | 16,000 | Less: R.D.D | 400 | |
| Bank Loan | 4,000 | Bank | 4,100 | |
| Goodwill | 5,000 | |||
| 70,000 | 70,000 | |||
On 1st July, 2019 Karun died and the following adjustments were made:
- All the debtors were considered as good.
- Bank Loan were paid off.
- Furniture was depreciated by ₹ 550.
- Investments were sold out in the Market at 10% profit.
- Goodwill of the firm was valued at ₹ 7,500. It was to be raised in the books.
- Karun was entitled to get his share in the profit up to the date of his death. Profit for 2019-2020 was estimated at ₹ 5,000.
- The amount due to Karun’s Executor was paid by NEFT.
Prepare:
- Profit and Loss Adjustment A/c.
- Partners’ Capital Account.
- Balance sheet of New 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?
Het, Heet and Hari are partners sharing profits and losses in the ratio 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March, 2023 was as follows:
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| General Reserve | 35,000 | Goodwill | 70,000 |
| Creditors | 1,40,000 | Loose Tools | 70,000 |
| Unpaid Rent | 35,000 | Debtors | 2,10,000 |
| Capital Accounts: | Livestock | 1,40,000 | |
| Het | 1,40,000 | Cash | 35,000 |
| Heet | 1,05,000 | ||
| Hari | 70,000 | ||
| 5,25,000 | 5,25,000 | ||
Hari died on 3lst July, 2023 and the following adjustments were agreed by as per partnership deed:
(1) Creditors have increased by ₹ 14,000.
(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
| 2018-19 | ₹ 1,26,000 |
| 2019-20 | ₹ 1,40,000 |
| 2020-21 | ₹ 84,000 |
| 2021-22 | ₹ 70,000 |
| 2022-23 | ₹ 70,000 (Loss) |
Hari's share in it was to be given to him.
(4) Loose Tools and Livestock were valued at ₹ 1,12,000 and ₹ 1,68,000 respectively.
(5) R.D.D. was maintained at ₹ 14,000.
( 6) Commission ₹ 2,800 p.m. was payable to Hari. Profit for 2023-24 was estimated at ₹ 63,000 and Bari's share in it up to the date of his death was given to him.
Prepare Revaluation Ale, Bari's Capital Ale showing the amount payable to his executors.
