Samacheer Kalvi solutions for Accountancy [English] Class 12 TN Board chapter 6 - Retirement and death of a partner [Latest edition]

A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the ______.

On the retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners on the basis of ______.

On the retirement of a partner, general reserve will be transferred to the ______.

On revaluation, the increase in liabilities leads to ______.

At the time of retirement of a partner, determination of gaining ratio is required ______.

The final amount due to a retiring partner is not paid immediately, it is transferred to ______.

‘A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is ₹ 25,000 which is not paid immediately. It will be transferred to ______.

A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as ₹ 30,000. Find the contribution of A and C to compensate B:

A, B and C are partners sharing profits in the ratio of 4:2:3. C retires. The new profit sharing ratio between A and B will be ______.

X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed ₹ 36,000.

What is meant by the retirement of a partner?

What is gaining ratio?

What is the purpose of calculating gaining ratio?

What is the journal entry to be passed to transfer the amount due to the deceased partner to the executor of the deceased partner?

List out the adjustments made at the time of retirement of a partner in a partnership firm.

Distinguish between sacrificing ratio and gaining ratio.

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

Dheena, Surya, and Jankai are partners sharing profits and losses in the ratio of 5:3:2. on 31.3.2018, Dheena retired. On the date of retirement, the books of the firm showed a reserve fund of ₹ 50,000. The pass journal entry to transfer the reserve fund.

Rosi, Rathi and Rani are partners of firm sharing profits and losses equally. Rathi retired from the partnership on 1.1.2018. On that date, their balance sheet showed accumulated loss of ? 45,000 on the asset side of the balance sheet. Give the journal entry to distribute the accumulated loss.

Akash, Mugesh and Sanjay are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their balance sheet as on 31st March, 2017 is as follows:

Pass journal entry to transfer accumulated Profit and prepare the capital account of the partners.

Roja, Neela and Kanaga are partners sharing profits and losses in the ratio of 4:3:3. On 1st April 2017, Roja retires and on retirement, the following adjustments are agreed upon:

1. Increase the value of building by ₹ 30,000.
2. Depreciate stock by ₹ 5,000 and furniture by ₹ 12,000.
3. Provide an outstanding liability of ₹ 1,000.

Pass journal entries and prepare revaluation account.

Vinoth, Karthi and Pranav are partners sharing profits and losses in the ratio of 2:2:1. Pranav retires from partnership on 1st April 2018. The following adjustments are to be made:

1. Increase the value of land and building by ₹ 18,000
2. Reduce the value of machinery by ₹ 15,000
3. A provision would also be made for outstanding expenses for ₹ 8,000.
   Give journal entries and prepare a revaluation account.

Chandru, Vishal and Ramanan are partners in a firm sharing profits and losses equally. Their balance sheet as on 31st March, 2018 is as follows:

Ramanan retired on 31 st March 2019 subject to the following conditions:

1. Machinery is valued at ₹ 1,50,000
2. Value of furniture brought down by ₹ 10,000
3. Provision for doubtful debts should be increased to ₹ 5,000
4. Investment of ₹ 30,000 not recorded in the books is to be recorded now.

Pass necessary journal entries and prepare revaluation account and capital account of partners.

Kayal, Mala and Neela are partners sharing profits in the ratio of 2:2:1. Kayal retires and the new profit sharing ratio between Nila and Neela is 3:2. Calculate the gaining ratio.

Sunil, Sumathi and Sundari are partners sharing profits in the ratio of 3:3:4. Sundari retires and her share is taken up entirely by Sunil. Calculate the new profit sharing ratio and gaining ratio.

Ramu, Somu and Gopu are partners sharing profits in the ratio of 3:5:7. Gopu retires and the share is purchased by Ramu and Somu in the ratio of 3:1. Find the new profit sharing ratio and gaining ratio.

Navin, Ravi and Kumar are partners sharing profits in the ratio of 1/2, 1/4 and 1/4 respectively. Kumar retires and his share is taken up by Navin and Ravi equally. Calculate the new profit sharing ratio and gaining ratio.

Mani, Gani and Soni are partners sharing the profits and losses in the ratio of 4:5:6. Mani retires from the firm. Calculate the new profit sharing ratio and gaining ratio.

Rajan, Suman and jegan were partners in 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 ₹ 45,000. Pass necessary journal entries for goodwill on the assumption that the fluctuating capital method is followed.

Balu, Chandru and Nirmal are partners in a firm sharing profits and losses in the ratio of 5:3:2 on 31st March 2018, Nirmal retires from the firm. On the date of Nirmal’s retirement, goodwill appeared in the books of the firm at ₹ 60,000 By assuming fluctuating capital account, pass the necessary journal entry if the partners decide to

1. write off the entire amount of existing goodwill
2. write off half of the existing goodwill.

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; ₹ 20,000; 2016; ₹ 18,000 and 2017; ₹ 32,000.
Find out the share of profit of Rathi for the year 2018 till the date of retirement if

1. profit is to be distributed on the basis of the previous year’s profit
2. 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.

Kavin, Madhan, and Ranjith are partners sharing profits and losses in the ratio of 4:3:3 respectively. Kavin retires from the firm on 31st December 2018. On the date of retirement, his capital account shows a credit balance of ₹ 1,50,000. Pass journal entries if:

1. The amount due is paid off immediately.
2. The amount due is not paid immediately.
3. ₹ 1,00,000 is paid and the balance in the future.

Manju, Chara’and Lavanya are partners in firm sharing profits and losses in the ratio of 5:3:2. The balance sheet as of 31st March, 2018 was as follows:

Manju retired from the partnership firm on 31.03.2018 subject to the following adjustments:

1. Stock to be depreciated by ₹ 10,000
2. Provision for doubtful debts to be created for ₹ 3,000.
3. Buildings to be appreciated by ₹ 28,000

Prepare revaluation account and capital accounts of partners after retirement.

Kannan, Rahim, and John are partners in a firm sharing profits and losses in the ratio of 5:3:2. The balance sheet as of 31st December 2017 was as follows:

John retires on 1st January 2018, subject to the following conditions :

1. To appreciate building by 10%
2. Stock to be depreciated by 5%
3. To provide ₹ 1,000 for bad debts
4. An unrecorded liability of ₹ 8,000 has been noticed.
5. The retiring partner shall be paid immediately.

Prepare revaluation account, partner’s capital account, and the balance sheet of the firm after retirement.

Saran, Arun, and Karan are partners in firms sharing profits and losses in the ratio of 4:3:3. The balance sheet as of 31.12.2016 was as follows:

Karan retires on 1.1.2017, subject to the following conditions:

1. Goodwill of the firm is valued at ₹ 21,000 %
2. Machinery to be appreciated by 10%
3. Building to be valued at ₹ 80,000
4. provision for bad debts to be raised to ₹ 2,000
5. Stock to be depreciated by ₹ 2,000
6. The final amount due to Karan is not paid immediately.

Prepare the necessary ledger accounts and show the balance sheet of the firm after retirement.

Rajesh, Sathish and Mathan are partners sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31.3.2017 is given below.

Mathan retires on 31st March, 2017 subject to the following conditions :

1. Rajesh and Sathis will share profits and losses in the ratio of 3:2
2. Assets are to be revalued as follows;
   Machinery ₹ 4,50,000, Stock ₹ 2,90,000 , Debtors ₹ 1,52,000
3. Goodwill of the firm is valued at ₹ 1,20,000.

Prepare the necessary ledger accounts and the balance sheet immediately after the retirement of Mathan.

Janani, Janaki and Jamuna are partners sharing profits and losses in the ratio of 3:3:1 respectively. Janaki died on 31st December, 2017. Final amount due to her showed a credit balance of ₹ 1,40,000. Pass journal entries if,

1. The amount due is paid off immediately.
2. The amount due is not paid immediately.
3. ₹ 75,000 is paid and the balance in future.

Varsha, Shanthi and Madhuri are partners, sharing profits in the ratio of 5:4:3. Their balance sheet as on 31st December 2017 is as under:

Balance Sheet as on 31.12.2018

On 1.1.2018, Madhuri died and on her death the following arrangements are made:

1. Stock to be depreciated by ₹ 5,000
2. Premises is to be appreciated by 20%
3. To provide ₹ 4,000 for bad debts
4. The final amount due to Madhuri was not paid.

Prepare revaluation account, partners’ capital account and the balance sheet of the firm after death.

Vijayan, Sudhan, and Suman are partners who share profits and losses; in the capital ratio. Their balance sheet as of 31st December 2018 is as follows:

Balance Sheet as on 31.12.2018

Suman died on 31.3.2019. On the death of Suman, the following adjustments are made:

1. Building is to be valued at ₹ 1,00,000
2. Stock to be depreciated by ₹ 5,000
3. Goodwill of the firm is valued at ₹ 36,000
4. Share of profit from the closing of the last financial year to the date of death on the basis of the average of the three completed year’s profit before death.

Profit for 2016, 2017 and 2018 were ₹ 40,000,₹ 50,000 and ₹ 30,000 respectively.

Prepare the necessary ledger accounts and the balance sheet immediately after the death of Suman.