Assignment – Retirement of a Partner
CLASS – XII
ACCOUNTANCY
Q1. Anand, Bahadur and Chandar are partners, Sharing profit equally. On
Chandar’s retirenment, his share is acquired by Anand and Bahadur in the
ratio of 3 : 2. The New Profit Sharing Ratio between Anand and Bahadur
will be –
(a) 8 : 7 (b) 4 : 5 (c) 3 : 2 (d) 2 : 3
Q2. On retirenment/death of a partners, the retiring/decreased partner’s capital
account will be credited with
(a) his/her share of goodwill. (b) goodwill of the firm
(c) shares of goodwill of remaining partners (d) none of these
Q3. Chaman, Raman and Suman are partners sharing profits in the ratio of 5 : 3
: 2. Raman retires, the new profit sharing ratio between Chaman and
Suman will be 1 : 1. The goodwill of the firm is valued at Rs. 1,00,000
Raman’s share of goodwill will be adjusted
(a) by debiting Chaman’s Capital account and Suman’s Capital Account
with Rs. 15,000 each.
(b) by debiting Chaman’s Capital account and Suman’s Capital account with
Rs. 21,429 and Rs. 8,571 respectively.
(c) by debiting only Suman’s Capital Account with Rs. 30,000
(d) by debiting Raman’s Capital account with Rs. 30,000.
Q4. On retirenment/death partner, the remaining partner(s) who have gained
due to change in profit sharing ratio should compensate the
(a) retiring partners only (b) remaining partners only.
(c) remaining partners (who have sacrificed) as well as retiring partners.
(d) none of these
Q5. In the absence of any information regarding the acquisition of share in
profit of the retiring/deceased partner by the remaining partners, it is
assumed that they will acquire his/her share:-
(a) Old Profit sharing Ratio (b) New Profit Sharing Ratio
(c) Equal Ratio (d) None of these
Q6. Shyam, Gagan and Ram are partners sharing profits in the ratio of 2 : 2 :
1. Their Balance Sheet as on March 31, 2019 are as under:
Liabilities Rs. Assets Rs.
Sundry Creditors 49,000 Cash 8,000
Reserves 14,500 Debtors 19,000
Capital: Stock 42,000
Shyam 80,000 Profit &Loss 10,000
Gagan 62,500 Machinery 85,000
Ram 75,000 2,17,500 Buildings 1,22,000
Employees’ Provident Fund 4,000 Patents 9,000
Workmen compensation fund 15,000 Goodwill 5,000
3,00,000 3,00,000
As Gagan got a very good break at an MNC, so he decided to retire on
that date and it was decided that Shyam and Ram would share the future
profits in the ratio of 5 : 3. Goodwill was valued at Rs. 70,000;
Machinery at Rs. 78,000; Buildings at Rs. 1,52,000; Stock at Rs. 30,000;
and bad debts amounting to Rs. 1,550 were to be written off. Record
journal entries in the books of the firm .(7)
Q7. The Balance Sheet of Mohit, Neeraj and Sohan who are partners in a firm
sharing profits according to their capitals as on March 31 st 2018 was as
under:
Liabilities Rs. Assets Rs.
Creditors 21,000 Buildings 1,00,000
Mohit’s Capital 80,000 Machinery 50,000
Neeraj’s Capital 40,000 Stock 18,000
Sohan’s Capital 40,000 Debtors
General Reserve 20,000 20,000 19,000
Profit &loss A/c 12,000 Less: Provision for B.B 14,000
Employee 1,000 24,000
Provident Fund 12,000 Cash at Bank 20,000
Workmen Goodwill
Compensation Fund 20,000 Advertisement suspense
2,45,000 2,45,000
On that date Neeraj decided to retire from the firm and was paid for his
share in the firm subject to the following:
1. Buildings to be appreciated by 20%.
2. Provision for bad debts to be increased to 15% on Debtors.
3. Machinery to be depreciated by 20%.
4. Goodwill of the firm is valued at Rs. 72,000 and the retiring partner’s
share is adjusted through the capital accounts of remaining partners. 5.
Workmen compensation liability estimated at Rs. 32,000 6. .
Prepare Revaluation Account, Capital Accounts of the partners, and the Balance
Sheet after retirenment of Neeraj.(8)
