Balbharati solutions for Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

Benefit Ratio is the Ratio in which ______.

The ratio by which existing partners are benefited ________.

Profit and Loss Suspense Account is shown in the new Balance Sheet on __________ side.

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.

Write a word, term, phrase, which can substitute the following statement.

The Partner who died.

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.

A deceased partner is entitled to his share of General Reserve.

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 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.

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.

What is the gain ratio?

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?

Answer in one sentence only.

To which account Profit is to be transferred upto the date of his death?

Rajesh, Rakesh, and Mahesh were equal Partner on 31st March 2019. Their Balance Sheet was as follows 31st March 2019.

Mr. Rajesh died on 30th June 2019 and the following adjustment were agreed as

1) Furniture was to be adjusted to its market price of 3,40,000

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 Mr. Rajesh is to be calculated on the basis of last years profit which was ₹1,80,000

Prepare:
1) Profit and Loss adjustment A/c
2) Partners capital account
3) Balance sheet of the continuing firm

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 31^st March 2017 was as follows.

On 1st October 2017, Ramesh died and the Partnership deed provided that

1. R.D.D. was maintained at 5% on Debtors
2. Plant and Machinery and Investment were valued at ₹ 80,000 and ₹ 4,10,000 respectively.
3. Of the creditors, an item of ₹ 6000 was no longer a liability and hence was properly adjusted.
4. 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.
5. Goodwill of the Firm was valued at two times the average profit of the last five years. Which were 
   

   2012-13	₹ 1,80,000
   2013-14	₹ 2,00,000
   2014-15	₹ 2,50,000
   2015-16	₹ 1,50,000
   2016-17	₹ 1,20,000

   Ramesh share in it was to be given to him
6. Salary 5,000 p.m. was payable to him
7. Interest on capital at 5% i.e. was payable and on Drawings ₹ 2000 were charged.
8. 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.

Keshav died on 31^st 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

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.

Mr. Virendra died on 31^st 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 31^st March were as follows -

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

The Balance Sheet of Sohan, Rohan and Mohan who were sharing profits and Losses in the ratio of 3:2:1 as follows.

Mr. Rohan died on 1^st October 2019 and the following adjustments were made.

1. Goodwill of the firm is valued at ₹ 30,000.
2. Land and Building and Machinery were found to be undervalued by 20%.
3. Investments are valued at ₹ 60,000
4. Stock to be undervalued by ₹ 5000 and a provision of 10% as debtors were required.
5. Patents were valueless.
6. 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.