CBSE Class 12 Accountancy Retirement And Death Of Partner Worksheet Set A

Short Answer Type Questions – I

RETIREMENT AND DEATH OF A PARTNER

Question : Define Gaining Ratio.

Question : Why is revaluation account prepared at the time of retirement of a partner?

Question : Calculate gaining ratio in the following cases:

(i) A, B & C are partners sharing profits & Losses in the ratio of 5:4:3. C retires from the firm.

(ii) X, Y & Z are partners sharing profits & losses in the ratio of 1/2, 3/10, & 1/5. Y decides to retire from the firm and X & Z decide to share future P&L in the ratio of 3:2.

Question : P, Q & R are partners sharing P&L in the ratio of 4:3:1. Q retires selling his share of profits to P & R for Rs 8100, Rs 3600 paid by P & Rs 4500 by R. The profits for the year after Q’s retirement were Rs 10500. Calculate the new profit sharing ratio & pass the necessary journal entries.

Question : Distinguish between gaining ratio & sacrificing ratio.

Question :  A, B & C are partners sharing P & L in the ratio of 1/2, 1/3 &1/6 respectively. B retires from the firm. A & C share future P & L equally. Their capitals after all necessary adjustment were A Rs 22400; B Rs 20200 & C Rs 11400. The cash balance as on that date was Rs 4000. Calculate the amount of cash to be brought in or to be withdrawn by the remaining partners in the following cases:

Question :  When is “Memorandum Revaluation Account” prepared?

(i) The entire capital of the firm as newly constituted is fixed at Rs 40000.

(ii) The entire capital of the new firm will be readjusted so that the future capitals are in new profit sharing ratio.

(iii) B is to be paid through cash brought in by A & C in such a way as to make their capitals proportionate to their new profit sharing ratio.

(iv) B is to be paid through cash brought in by A & C in such a way as to make their capitals proportionate to their new profit sharing ratio. Minimum cashbalance of Rs 3000 is to be maintained.

(v) Sufficient cash is to be brought in by A & C in such a way as to make their capitals proportionate to their new profit sharing ratio.

Question : What all items is the representative of the deceased partner entitled to?

Question : List the items that are debited to the deceased partners capital account.

Question : What are the two methods of calculation of profits of the deceased partner? Explain with the help of examples.

Question : What is the difference between retirement of a partner & death of a partner?

Question : Why is outgoing partner entitled to a share of goodwill of the firm?

Question : Where is the payment recorded for the executors share of profit on the death of a partner when

(i) remaining partners continue to share in old ratio

(ii) the new profit sharing ratio is given .

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