ATOMIC ENERGY CENTRAL SCHOOL -3, RAWATBHATA

ACCOUNTANCY
CLASS XII-2020-2021
Retirement and Death of Partner
Worksheet III

1. A, B and C are partners sharing profits in the ratio of 4/9:3/9:2/9. B

retires and his capital after making adjustments for reserves and gain
(profit) on revaluation stands at ₹ 1, 39,200. A and C agreed to pay him
₹ 1, 50,000 in full settlement of his claim. Record necessary journal
entry for adjustment of goodwill if the new profit-sharing ratio is
decided at 5: 3.

2. Asha, Naveen and Shalini were partners in a firm sharing profits in the
ratio of 5:3:2. Goodwill appeared in their books at a value of ₹ 80,000
and General Reserve at ₹ 40,000. Naveen decided to retire from the
firm. On the date of his retirement, goodwill of the firm was valued at ₹
1, 20,000. The new profit ratio decided among Asha and Shalini is 2: 3.
Record necessary journal entries on Naveen’s retirement.

3. Ram, Laxman and Bharat are partners sharing profits in the ratio of
3: 2: 1. Goodwill is appearing in the books at a value of ₹ 1, 80,000.
Laxman retires and at the time of his retirement, goodwill is valued at ₹
2, 52,000. Ram and Bharat decided to share future profits in the ratio of
2:1. The Profit for the first year after Laxman’s retirement amount to ₹
1, 20,000. Give the necessary journal entries to record goodwill and to
distribute the profit. Show your calculations clearly.

4. X, Y and Z are partners in a firm sharing profits and losses in the ratio of
3: 2:1. Z retires from the firm on 31st March, 2018. On the date of Z’s
retirement, the following balances appeared in the books of the firm:
General Reserve – ₹ 1,80,000
Profit and Loss Account (Dr.) – ₹ 30,000
Workmen Compensation Reserve – ₹ 24,000, which was no more
required
Employees Provident Fund – ₹ 20,000.
Pass necessary journal entries for the adjustment of these items on Z’s
retirement.