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PEAK PERFORMANCE
BAS MASTERY WORKSHEET
ITNA
KARLO ACCOUNTANCY
CLASS 12
Chapter 6: Death of a Partner
1. On death of a partner, the deceased partners’ executor is entitled to: 1
(a) Amount standing to the credit of deceased Partner’s Capital and Current A/c
(b) His share of goodwill of the firm.
(c) His share in accumulated profits and reserves
(d) All of these
2. In case of death of a partner, the amount of General Reserve is transferred to Partners’ Capital A/cs in: 1
(a) Old ratio (b) New ratio
(c) gaining ratio (d) Capital ratio
3. A, B and C share profits and losses of the firm equally. B dies and his share is taken by A and C in the
ratio of 2 : 3. New profit sharing ratio between A and C would be: 1
(a) 1 : 1 (b) 2 : 2
(c) 7 : 8 (d) 3 : 5
4. A, B and C are sharing profits in the ratio 2 : 2 : 1. B died on 30th June 2018. Accounts are closed
on 31st March each year. Sales and profits for the year ended 31st March 2023 were ₹28,00,000 and
₹ 8,40,000 respectively. The sales of firm amounted to ₹12,00,000 between the period from 1st April
2023 to 30th June 2023. The amount of profit to be credited to B’s capital A/c will be: 1
(a) ₹72,000 (b) ₹1,80,000
(c) ₹1,44,000 (d) ₹1,54,000
5. P, Q and R are partners sharing profits in the ratio 3 : 2 : 1. R died on 30thSeptember, 2023. The profit
earned during this period was estimated to be ₹1,20,000. The profit credited to R’s Executors A/c will
be:1
(a) ₹10,000 (b) ₹20,000
(c) ₹15,000 (d) ₹8,000
6. A, B and C are partners in a firm sharing profits in the ratio 4 : 3 : 2. A died on 30.06.2023. Profits of the
accounting year 2017–18 were ₹72,000. This year profit is assumed to accrue in same rate. How much
share in profits for the period of 1st April, 2023 to 30th June, 2023 will be credited to A’s account? 1
(a) ₹8,000 (b) ₹32,000
(c) ₹16,000 (d) ₹18,000
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7. A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. B died on 1st
July, 2023. The losses from 1.04.2023 to 1.07.2023 amounted ₹ 45,000. A and C decided to share the
future profits in the ratio 3 : 2 respectively with effect from 1.4.2023. Give the necessary Journal entry
to record the B’s share of loss to the date of death. 1
8. After the death of a partner, amount payable is received by: 1
(a) Government
(b) Firm
(c) Executor of the deceased partner
(d) None of these
9. X, Y and Z are equal partners. X died and remaining partners, Y and Z, decided to share the profits in
the ratio 5 : 4. The goodwill of the firm is valued at ₹90,000. Which entry will be passed for adjustment
of 1
10. The profit sharing ratio among A, B and C was 4 : 3 : 2. The new profit sharing ratio of A and C, after
B’s death is 5 : 4. The gaining ratio of A and C is: 1
(a) 3 : 2 (b) 2 : 1
(c) 1 : 1 (d) 1 : 2
11. Kumar, Verma and Naresh were partners in a firm sharing profit and loss in the ratio of 3 : 2 : 2. On 23rd
January, 2023, Verma died. Verma’s share of profit till the date of his death was calculated ₹2,350. Pass
necessary journal entry for the same in the books of the firm. 1
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12. On the death of a partner, his share in the of the firm till the date of his death is transferred to the: 1
(a) Debit of Profit and Loss Account
(b) Credit of Profit and Loss Account
(c) Debit of Profit and Loss Suspense Account
(d) Credit of Profit and Loss Suspense Account
13. D, E, F, P and Z were partners in a firm sharing profits and losses in the ratio of 5 : 4 : 3 : 2 : 1 respectively.
Unfortunately, P and Z met with a tragic car accident in which both of them died on the spot.
The goodwill of the firm was valued at ₹1,50,000 and D, E and F decided to share future profits and
losses in the ratio of
4 : 6 : 5 respectively. Give Journal Entry to record the goodwill. 3
14. A, B and C are partners sharing profits and losses in the ratio 3 : 2 : 1. They close books of their firm
on 31st March every year. B died on 30th June, 2023. On this date the firm had Profit and Loss Account
(Credit balance) of 30,000 and Advertisement suspense of 15,000. The goodwill of the firm is valued
at 90,000. A and C decided to continue the firm sharing profits equally. Pass necessary journal entries
for settling the above accounts. 3
15. Vijay, Lakshmi and Narayan are partners sharing profits equally. Vijay died on 30th April 2023. The firm
had workmens’ compensation reserve of 20,000, against which there is claim of 2,000 on this date.
The firm has investment of market value 1,90,000 appearing in the books at 2,00,000. Investment
fluctuation fund appear at 40,000. Pass journal entries for treatment of these reserves. 3
16. X, Y and Z are equal partners in a firm whose books are closed on March 31st each year. X died on 31st
July, 2023 and his share of profit till the date of death was to be calculated on the basis of sales. Sales
for the year ended 31st March, 2023 amounted to 2,00,000 and that from 1st April to 31st July, 2023 to
75,000. The profit for the year ended 31st March, 2023 was 50,000. Y and Z decided to share future
profit in the ratio of 7:8. Calculate X’s share of the profits upto the date of death and pass necessary
Journal entry. 3
17. Gagan , Aman and Chaman were partners in a firm sharing profits and losses in the ratio of 2: 3: 5.
Chaman died on 30th June 2023. As per partnership deed Chaman’s executors are entitled to his share
of profit till the date of death on the basis of sales turnover. Sale for the year ending 31st March 2023
was ₹ 20,00,000 and profit for the same year was ₹ 6,00,000. Sales show a negative trend of 10% every
year and percentage of profit is increased by 5% every year. Pass the Journal entry for share of profit of
Chaman.4
18. A, B and C are in partnership sharing profits and losses in the ratio of 5 : 3 : 2. B dies three months after
the date of the last balance sheet. His share of profit or loss to date of death is to be calculated on the basis
of 1st year profits or losses. The net profit in 3rd year 34,000, 2nd year 56,000 and net loss for 1st year
60,000. Calculate share of profit/loss of deceased partner and give necessary Journal entry. 4
19. A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. B died on 1st
July, 2023. The losses from 1.04.2023 to 1.07.2023 amounted 45,000. A and C decided to share the
future profits in the ratio 3 : 2 respectively with effect from 1.4.2023. Give the necessary Journal entry
to record the B’s share of loss to the date of death. 4
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20. Albert, Boris and Cyril are partners sharing profits and losses in the ratio of 3 : 2 : 1 and their balance
sheet as at 31st March 2023 stood as under :
Albert died on 1st July, 2023 and the following decisions were taken by the surviving partners. According
to the partnership deed, his executors were entitled to: 6
(a) The deceased partner’s capital as appearing in the last balance sheet and interest thereon at 6% per
annum upto the date of death.
(b) His share of profit for the period he was alive should be based on the figure of 31st March 2023.
(c) Goodwill according to his share of profit to be calculated by taking twice the amount of the average
profit of the last three years. The profits of the previous year’s were :
31st March 2023 – 11,000; 31st March 2022- 15,000; 31st March 2021- 10,000.
(d) Assets were to be revalued :
Building – 80,000
Stock – 30,000
Provision for bad debts @ 10%
Assuming that all the above changes are to be incorporated in the new firm and are not to be written
off. Prepare the Revaluation Account, Partner’s Capital Account and the Balance Sheet as at 1st
July 2023.
21. Pranav, Karan and Rahim were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. On
31st March, 2023 their Balance Sheet was as follows:
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Karan died on 12.6.2023. According to the partnership deed, the legal representatives of the deceased
partner were entitled to the following:
(i) Balance in his Capital Account.
(ii) Interest on Capital @ 12% p.a.
(iii) Share of goodwill. Goodwill of the firm on Karan’s death was valued at 60,000.
(iv) Share in the profits of the firm till the date of his death, calculated on the basis of last year’s profit.
The profit of the firm for the year ended 31.3.2023 was 5,00,000.
Prepare Karan’s Capital Account to be presented to his representatives. 6
23. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.03.2023 their
Balance Sheet was as follows:
Z died on 31.7.2023. It was agreed that : 8
(a) Goodwill be valued at 2½ year’s purchase of the average profits of the last four years, which were
as follows:
(b) Machinery be valued at ₹ 70,000; Patents at ₹ 20,000 and Building at ₹ 62,500.
(c) For the purpose of calculating Z’s share of profits in the year of his death, the profits in 2023-2024
should be taken to have been accrued on the same scale as in 2022–2023.
(d) A sum of ₹ 17,500 was paid immediately to the executors of Z and the balance was paid in four half
yearly instalments together with interest at 12% p.a. starting from 31.1.2024.
Give necessary journal entries to record the above transactions and Z’s executors’ account till the
payment of instalment due on 31.01.2024.
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24. A, B and C are partners in a firm sharing profits in 3 : 2 : 1. The firm closes its books on 31st March
every year. B died on 12.06.2023. On B’s death the goodwill of the firm was valued at 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 1,50,000. Fill the missing figures in the following journal entries.
6
25. Virad, Vishad and Roma were partners in a firm sharing profits in the ratio of 5 : 3 : 2 respectively. On
March 31st, 2023, their Balance Sheet was as under :
Virad died on October 1st 2023. It was agreed between his executors and the remaining partner’s that:
(a) Goodwill of the firm be valued at 2½ years purchase of average profits for the last three years. The
average profits were 1,50,000.
(b) Interest on capital be provided at 10% p.a.
(c) Profit for the year 2022-23 be taken as having accrued at the same rate as that of the previous year
which was 1,50,000.
(d) Vishad and Roma decide to share future profits equally.
Fill the following missing figures in Virad’s Capital Account.
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6
26. Ashok, Babu and Chetan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. The firm closes its
books on 31st March every year. On 31st December, 2023 Ashok died. The partnership deed provided
that on the death of a partnership executors will be entitled for the following:
(i) Balance in his capital account. On 01.04.2023 there was a balance of 90,000 in Ashok’s Capital
Account.
(ii) Interest on Capital @ 12% per annum.
(iii) His share of profit of the firm in the year of his death which will be calculated on the basis of rate of
net profits on sales of the previous year, which was 25%. The sales of the firm till 31st December,
2023 were 4,00,000.
(iv) His share in the goodwill of the firm. The goodwill of the firm on Ashok’s death was valued at
4,50,000.
The partnership deed also provided that the following deduction will be made from the amount payable
to the executor of the deceased partner:
(i) His drawings in the year of his death. Ashok’s drawing till 31-12-2023 was 15,000.
(ii) Interest on drawing @ 12% per annum which was calculated as 1,500.
The accountant of the firm prepared Ashok’s Capital Account to be presented to the executor of Ashok
but in a hurry he left it incomplete. Ashok’s Capital Account as prepared by Accountant is given below:
You are required to complete Ashok’s Capital Account. 6
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CBSE SAMPLE PAPER 1 (2023-24)
DEATH OF A PARTNER
1. Sandeep, Maheep and Amandeep were partners in a firm sharing profits in the ratio of 2 : 2 : 1. The
firm closes its books on 31st March every year. On 30th June, 2020 Maheep died. The partnership deed
provided that on the death of a partner his executors will be entitled to the following:
(a) Balance in his capital account which amounted to ₹ 1,15,000 and interest on capital till date of
death which amounted to ₹ 5,000.
(b) His share in the profits of the firm till the date of his death amounted to ₹ 20,000.
(c) His share in the goodwill of the firm. The goodwill of the firm on Maheep’s death was valued at
₹ 1,50,000.
(d) Loan to Maheep amounted ₹ 20,000.
It was agreed that the amount will be paid to his executor in three equal yearly instalments with
interest @ 10% p.a. The first instalment was to be paid on 30.06.2021.
Calculate the amount to be transferred to Maheep’s Executors’ Account and prepare the Executors’
Account till it is finally settled.
CBSE SAMPLE PAPER 2 (2023-24)
DEATH OF A PARTNER
1. Ester, Emma and Lucy were partners in a firm sharing profits in the ratio of 2: 2: 1. The firm closes its
books on 31st March every year. On 30th September, 2022 Lucy died. The partnership deed provided
that on the death of a partner her executors will be entitled to the following:
(a) Balance in her capital account which amounted to Rs. 3,15,000 and interest on capital @9%.
(b) Her share in the profits of the firm till the date of her death amounted to Rs.70,000.
(c) Her share in the goodwill of the firm. The goodwill of the firm on Lucy’s death was valued at Rs.
1,50,000.
You are required to calculate the amount to be transferred to Lucy’s Capital A/c.
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