Read and download free pdf of CBSE Class 12 Accountancy Retirement And Death Of Partner Worksheet Set B. Students and teachers of Class 12 Accountancy can get free printable Worksheets for Class 12 Accountancy in PDF format prepared as per the latest syllabus and examination pattern in your schools. Standard 12 students should practice questions and answers given here for Accountancy in Grade 12 which will help them to improve your knowledge of all important chapters and its topics. Students should also download free pdf of Class 12 Accountancy Worksheets prepared by school teachers as per the latest NCERT, CBSE, KVS books and syllabus issued this academic year and solve important problems provided here with solutions on daily basis to get more score in school exams and tests
Retirement And Death Of Partner Class 12 Accountancy Worksheet Pdf
Class 12 Accountancy students should refer to the following printable worksheet in Pdf for Retirement And Death Of Partner in standard 12. This test paper with questions and answers for Grade 12 Accountancy will be very useful for exams and help you to score good marks
Class 12 Accountancy Worksheet for Retirement And Death Of Partner
Question : On retirement of a partner, the retiring Partner’s Capital Account will be credited with :
(a) His/her share of goodwill (b) Goodwill of the firm
(c) Share of goodwill of remaining partners (d) None of these.
Answer : A
Question : A, B and C are partners. On retirement of A, the goodwill already appears in the Balance Sheet at Rs. 24,000. The goodwill will be written off:
(a) By debiting all Partners’ Capital Accounts in their old profit-sharing ratio
(b) By debiting remaining Partners’ Capital Accounts in their new profit-sharing ratio
(c) By debiting retiring Partner’s Capital Account from his share of goodwill
(d) None of these.
Answer : A
Question : The meaning of the retirement of a partner is :
(a) Incoming of a partner in a firm (b) Outgoing of a partner from a firm
(c) Outgoing of all the partners from the firm (d) Death of all the partners.
Answer : B
Question : The meaning of gaining ratio is :
(a) Increase in the share of profits of remaining partners in case of outgoing of a partner
(b) Decrease in the share of profit of old partners in case of incoming of a partner in the firm
(c) New profit sharing ratio
(d) Old profit sharing ratio
Answer : A
Question : A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. C retires and his share was taken by A and B in the ratio of 3 : 2. The new profi t sharing ratio of A and B will be :
(a) 3 : 5 (b) 1 : 1 (c) 5 : 3 (d) 3 : 2
Answer : D
Very Short Answer Type Questions
Question : How is new profit ratio calculated on retirement of a partner?
Answer : New Share = Old Share + Acquired Share/Gaining Ratio.
Question : What are the rights of a retiring partner?
Answer : A retiring partner has the following rights : (i) Right to get back his capital along with his share in the accumulated profits of the firm; and (ii) Right to get his share in the goodwill of the firm.
Question : Explain the treatment of reserves and accumulated profi ts at the time of retirement of a partner.
Answer : At the time of retirement or death of a partner, the balance sheet of the fi rm may show general reserve or undistributed profi ts (Cr. balance of Profit and Loss Account). Such accounts are credited to all partners (including the retiring partner) in their old profi t sharing ratio.
General Reserve A/c Dr. _____
Profi t & Loss A/c Dr. _____
To All Partner’s Capital A/c (Old Ratio)
Question : X, Y and Z are partners sharing profits in the ratio of 5 : 4 : 3. Y retires and X and Z decide to share future profits equally. What will be the Gaining Ratio?
Answer : Gaining Ratio will be 1 : 3.
Short Answer Type Questions
Question : What do you mean by Retirement of a Partner?
Answer : Usually, a partner has the right of retiring from the fi rm by giving suitable notice. Technically, on retirement the old partnership comes to an end and a new one forms among the remaining partners. However, the fi rm as such continues.
Question : Under what circumstances a partner retires from the firm?
Answer : Section 32(1) of the Partnership Act, 1932 lays down that a partner can retire from a firm in any of the following circumstances :
(i) When all the remaining partners gave their consent ;
(ii) When all the remaining partners enter into an express agreement in this connection; or
(iii) When the partnership at will, by giving a notice in writing to all the remaining partners.
There may be certain other reasons for retirement from a firm, for example old age of a partner, his ill health, misunderstanding with other partners, unlawful activities by other partners, lunacy of any partner, insolvency of a partner etc.
Question : Give any two points of distinction between ‘Gaining Ratio’ and ‘Sacrificing Ratio.
Answer : (i) Sacrificing ratio is calculated at the time of admission of a new partner but gaining ratio is calculated at the time of death/retirement of a partner.
(ii) Sacrificing ratio is calculated by deducting new ratio from old ratio but gaining ratio is calculated just reverse.
Question : What Journal entry will be made for writing off the goodwill already existing in Balance Sheet?
Answer : All Partners’ Capital A/cs Dr. (In old profi t-sharing ratio)
To Goodwill A/c
(Being Existing Goodwill A/c written off in old ratio)
Short Answer Type Questions -II
Question : Differentiate between Sacrificing Ratio and Gaining Ratio on any three bases.
Answer : Difference between Sacrificing Ratio and Gaining Ratio
Question : A, B and C were partners in a firm sharing profits in 3 : 2 : 1 ratio. The firm closes its books on 31st March every year. B died on 12-06-2009. On B’s death the Goodwill of the firm was valued at Rs.60,000. On B’s death his share in the profits of the firm till the time of his death was to be calculated on the basis of previous year’s profit which was Rs.1,50,000. Calculate B’s share in the profit of the firm. Pass necessary journal entries for the treatment of goodwill and B’s share of the profit at the time of his death.
Question : A, B and C are partners sharing profits equally. On 30th Sep.2014 B died. B’s share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed years’ profits before death. Profits for the years ended 31st March 2012, 2013 and 2014 were Rs.50,000, Rs.60,000 and Rs.70,000 respectively. Calculate B’s Share of profit till the date of death and pass journal entries for the same.
Question : A, B and C are partners sharing profits and losses in the ratio 3:2:1. A died on 30th June 2014 Profits and turnover for the year ended 31st Dec 2013 were Rs.1,20,000 and Rs.10,00,000 respectively. The Turnover till 30th June 2014 were Rs.3,60,000. Calculate A’s share of profit and pass journal entries under Turnover or Sales basis.
Question : Enumerate the items for which the representatives of decreased partners are entitled to receive.
Question : Ramesh wants to retire from the firm .The profits on Revaluation on that date were Rs.12,000. Mohan and Rahul want to share this in their new profit sharing ratio 3:2.Ramesh wants this to be shared equally. How are the Profits to be shared? Give reasons.
Question : From the following particulars. Calculate the new profit –sharing ratio of the partners:-
(a) A , B and C are partners in a firm sharing profits and losses in the ratio of 5:3:2 B died and his share was taken up by A and C in the ratio of 2:1.
(b) P , Q and R were partners sharing profits in the ratio of 5:4:1. P Died.
Question : What are the methods of ascertaining the amount of profit to be given to the executors of deceased partner , if the death of a partner occurs on any day during the year .Explain.
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