# 12th | Ts grewal 2022-2023 Question 11 to 15 | Death of A Partner

Question 11: Anil, Sunil and Hari were partners sharing profits equally. Sunil died on 31st December, 2020. In terms of the partnership deed, accounts were prepared for the period ended 31st December, 2020 and net profit was determined at `6,00,000. Pass the Journal entry for the profit share of the partners.

 Date Particulars L.F. (Dr.) ` (Cr.) ` 2020 31st Dec. Profit and Loss Appropriation A/c   To Anil’s Capital A/c   To Sunil’s Capital A/c   To Hari’s Capital A/c (Being profit distributed) Dr. 6,00,000 2,00,000 2,00,000 2,00,000

Working Notes:

Share of each partner is Equal (1:1:1)

Share of each partner = 6,00,000 × 1/3 = 2,00,000

#### Question 12:

A, B and C were partners in a firm sharing profits and losses in the ratio of 2:2:1. On 25th February, 2019, B died. B’s share of profit till the date of his death was calculated at ` 5,000. Pass the necessary Journal entry for the same in the books of the firm. (CBSE 2020)

 Date Particulars L.F. (Dr.) ` (Cr.) ` 2020 25th Feb. Profit and Loss Suspense A/c   To B’s Capital A/c   (Being profit distributed) Dr. 50,000 50,000

#### Question 13:

A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1. B died on 30th June, 2021. For the year ended 31st March, 2022, proportionate profit of 2021 is to be taken into consideration. During the year ended 31st March, 2022, bad debts of  ` 2,000 had to be adjusted. Profit for the year ended 31st March, 2021 was  `14,000 before adjustment of bad debts. Calculate B's share of profit till the date of his death.

Profit for the year 2020-21 before adjusting bad debts = ` 14,000

` 2,000

`.12,000

Proportionate profit of the firm (from April 01, 2021 to June 30, 2022)
=12,000×3/12=3,000

B’s share of profit (from April 01, 2021 to June 30, 2022)=
=3,000×2/6=1,000

Question 14: Ram, Manu and Hari were partners in a firm. Hari died on 30th June, 2022. His 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 financial years of profits before death. Profits for the years ended 31st March, 2020, 2021 and 2022 were ` 1,10,000; ` 1,20,000 and ` 1,30,000 respectively. Calculate Hari’s share of profit till the date of his death and pass necessary Journal entry for the same.

Total profit previous three years = 1,10,000 + 1,20,000  + 1,30,000 = 3,60,000

Average Profit previous three years = 3,60,000/3 = 1,20,000

Hari died on 30th June, 2022 after 3 month of beginning of the year (from 1 April 2021 to 30th June, 2022)

Hari’s share of Profit for 3 month = 1,20,000 × 3 × 1 ÷ 12 × 3 = ` 10,000

#### Question 15:

XY and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on 30th June, 2022. Profit from 1st April, 2022 to 30th June, 2022 was  ` 3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2 respectively with effect  from 1st July, 2021. Pass the necessary Journal entries to record Y's share of profit up to the date of death.

 Journal S.No. Particulars L.F. Debit  ( `) Credit ( `) X’s Capital A/c Dr. 36,000 Z’s Capital A/c Dr. 84,000 To Y’s Capital A/c 1,20,000 (Proportionate profit dispensed to deceased partner)

Working Notes:
WN1: Calculation of Y’s Share of Profit

Y's share=Firm's Profit×Y's Profit Share

Y's share=3,60,000×2/6=1,20,000 to be borne by gaining partners in gaining ratio

WN2: Calculation of Gaining Ratio

Gaining Ratio = New Ratio − Old Ratio

X's gain=3/5−3/6=3/30

Z's gain=2/5−1/6=7/30

Gaining Ratio=3:7

X's share=1,20,000×3/10=36,000

Z's share=1,20,000×7/10=84,000

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