Class 12 Accountancy

Chapter 3 Solutions — Reconstitution of a Partnership Firm — Retirement/Death of a Partner

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Overview

Step-by-step NCERT solutions for Reconstitution of a Partnership Firm — Retirement/Death of a Partner (Chapter 3, CBSE Class 12 Accountancy) — every question and answer worked out in full, not just the final result. You can also read the Reconstitution of a Partnership Firm — Retirement/Death of a Partner textbook chapter.

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What these solutions cover

All 23 questions in Reconstitution of a Partnership Firm — Retirement/Death of a Partner are solved in the PDF. Here's what's inside, exercise by exercise:

Short & Long Answer Questions

What are the different ways in which a partner can retire from the firm.
Write the various matters that need adjustments at the time of retirement of a partners.
Distinguish between sacrificing ratio and gaining tab.
Why do firm revaluate assets and reassers their liabilities on retirement or on the event of death of a partner.
Why a retiring/deceased partner is entitled to a share of goodwill of the firm.
Explain the modes of payment to a retiring partner.
How will you compute the amount payable to a deceased partner?
Explain the treatment of goodwill at the time of retirement or on the event of death of a partner?
Discuss the various methods of computing the share in profits in the event of death of a partner.

Numerical Questions

Aparna, Manisha and Sonia are partners sharing profits in the ratio of 3 : 2 : 1. Manisha retires and goodwill of the firm is valued at Rs. 1,80,000. Aparna and Sonia decided to share future profits in the ratio of 3 : 2. Record necessary journal entries.
Sangeeta, Saroj and Shanti are partners sharing profits in the ratio of 2 : 3 : 5. Goodwill is appearing in the books at a value of Rs. 60,000. Sangeeta retires and goodwill is valued at Rs. 90,000. Saroj and Shanti decided to share future profits equally. Record necessary journal entries.
3.
Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3 : 2 : 1. On March 31, 2019, Naman retires. Assets and liabilities on that date: Cash Rs. 10,000; Building Rs. 1,00,000; Plant and Machinery Rs. 40,000; Stock Rs. 20,000; Debtors Rs. 20,000; Investments Rs. 30,000. Terms agreed:
- (i) Building to be appreciated by 20%;
- (ii) P&M depreciated by 10%;
- (iii) Provision of…
Naresh, Raj Kumar and Bishwajeet are equal partners. Raj Kumar decides to retire. On the date of his retirement, the Balance Sheet of the firm showed: General Reserves Rs. 36,000 and Profit and Loss Account (Dr.) Rs. 15,000. Record the necessary journal entries.
Digvijay, Brijesh and Parakaram were partners in a firm sharing profits in the ratio of 2 : 2 : 1. Their Balance Sheet as on March 31, 2020 showed: Creditors Rs. 49,000; Reserves Rs. 18,500; Digvijay's Capital Rs. 82,000; Brijesh's Capital Rs. 60,000; Parakaram's Capital Rs. 75,500 (Total Rs. 2,85,000). Assets: Cash Rs. 8,000; Debtors Rs. 19,000; Stock Rs. 42,000; Buildings Rs. 2,07,000; Patents…
Radha, Sheela and Meena were in partnership sharing profits and losses in the proportion of 3 : 2 : 1. On April 1, 2019, Sheela retires. Balance Sheet on that date: Trade Creditors Rs. 3,000; Bills Payable Rs. 4,500; Expenses Owing Rs. 4,500; General Reserve Rs. 13,500; Capitals: Radha Rs. 15,000, Sheela Rs. 15,000, Meena Rs. 15,000 (Total Rs. 70,500). Assets: Cash-in-Hand Rs. 1,500; Cash at…
Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3 : 2 : 1. Naresh retired on September 30, 2017. Balance Sheet on that date: General Reserve Rs. 12,000; Sundry Creditors Rs. 15,000; Bills Payable Rs. 12,000; Outstanding Salary Rs. 2,200; Provision for Legal Damages Rs. 6,000; Capitals: Pankaj Rs. 46,000, Naresh Rs. 30,000, Saurabh Rs. 20,000 (Total Rs. 1,43,200). Assets…
Puneet, Pankaj and Pammy are partners sharing profits and losses in the ratio of 2 : 2 : 1. Balance Sheet as on March 31, 2019: Sundry Creditors Rs. 1,00,000; Capitals: Puneet Rs. 60,000, Pankaj Rs. 1,00,000, Pammy Rs. 40,000; Reserve Rs. 50,000 (Total Rs. 3,50,000). Assets: Cash at Bank Rs. 20,000; Stock Rs. 30,000; Sundry Debtors Rs. 80,000; Investments Rs. 70,000; Furniture Rs. 35,000…
Balance Sheet of Prateek, Rockey and Kushal as on March 31, 2020: Sundry Creditors Rs. 16,000; General Reserve Rs. 16,000; Capitals: Prateek Rs. 30,000, Rockey Rs. 20,000, Kushal Rs. 20,000 (Total Rs. 1,02,000). Assets: Bills Receivable Rs. 16,000; Furniture Rs. 22,600; Stock Rs. 20,400; Sundry Debtors Rs. 22,000; Cash at Bank Rs. 18,000; Cash in Hand Rs. 3,000 (Total Rs. 1,02,000). Rockey died…
Narang, Suri and Bajaj are partners sharing profits and losses in proportion of 1/2, 1/6 and 1/3 respectively. Balance Sheet on April 1, 2020: Bills Payable Rs. 12,000; Sundry Creditors Rs. 18,000; Reserves Rs. 12,000; Capitals: Narang Rs. 30,000, Suri Rs. 30,000, Bajaj Rs. 28,000 (Total Rs. 1,30,000). Assets: Freehold Premises Rs. 40,000; Machinery Rs. 30,000; Furniture Rs. 12,000; Stock Rs…
Balance Sheet of Rajesh, Pramod and Nishant sharing profits in proportion to capitals (ratio 4 : 3 : 3) as on March 31, 2015: Bills Payable Rs. 6,250; Sundry Creditors Rs. 10,000; General Reserves Rs. 2,750; Capitals: Rajesh Rs. 20,000, Pramod Rs. 15,000, Nishant Rs. 15,000 (Total Rs. 69,000). Assets: Factory Building Rs. 12,000; Debtors Rs. 10,500 less Provision Rs. 500 = Rs. 10,000; Bills…
Balance Sheet of Jain, Gupta and Malik as on March 31, 2020 — profit ratio 5 : 3 : 2: Sundry Creditors Rs. 19,800; Telephone Bills Outstanding Rs. 300; Accounts Payable Rs. 8,950; P&L A/c (Cr.) Rs. 16,750; Capitals: Jain Rs. 40,000, Gupta Rs. 60,000, Malik Rs. 20,000 (Total Rs. 1,65,800). Assets: Land and Building Rs. 26,000; Bonds Rs. 14,370; Cash Rs. 5,500; Bills Receivable Rs. 23,450; Sundry…
Arti, Bharti and Seema are partners sharing profits in proportion 3 : 2 : 1. Balance Sheet as on March 31, 2020: Bills Payable Rs. 12,000; Creditors Rs. 14,000; General Reserve Rs. 12,000; Capitals: Arti Rs. 20,000, Bharti Rs. 12,000, Seema Rs. 8,000 (Total Rs. 78,000). Assets: Buildings Rs. 21,000; Cash in Hand Rs. 12,000; Bank Rs. 13,700; Debtors Rs. 12,000; Bills Receivable Rs. 4,300; Stock…
Nithya, Sathya and Mithya were partners sharing profits in ratio 5 : 3 : 2. Balance Sheet as on March 31, 2020: Creditors Rs. 14,000; Reserve Fund Rs. 6,000; Capitals: Nithya Rs. 30,000, Sathya Rs. 30,000, Mithya Rs. 20,000 (Total Rs. 1,00,000). Assets: Investments Rs. 10,000; Goodwill Rs. 5,000; Premises Rs. 20,000; Patents Rs. 6,000; Machinery Rs. 30,000; Stock Rs. 13,000; Debtors Rs. 8,000…

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