SUNIL PANDA COMMERCE CLASSES (SPCC)

CHAPTERWISE IMPORTANT QUESTIONS COLLAGE

XII ACCOUNTS TERM 02
RETIREMENT OF A PARTNER

Q.1) X, Y, Z are partners sharing profit & losses in ratio of 4:3:2. Y retires find out new ratio
& gaining ratio.
Q.2) Ram, Shyam, & Mohan are partners in a firm Shyam retires from the firm find out the
new ratio & gaining ratio
Q.3) A, B, & C are partners sharing profits in the ratio of 3:2:1. B retires and new ratio
between A and C is 5:3 find out gaining ratio.
Q.4) X, Y & Z were partners sharing profit and losses in ratio of 4:3:3. Z retires has share is
taken up by X and Y equally. Find out new ratio of X and Y.
Q.5) Anil, Nikhil & Sushil are partners sharing profits & losses in the ratio of 4:3:2. Nikhil
retires and the goodwill of the firm is 3,60,000. Pass the necessary journal entries for
goodwill. Anil & Sushil decided to share future profits in the ratio of 5:3. Goodwill appear in
old books 1,80,000.
Q.6) Suresh, Ramesh and Tushar were partners of a firm sharing profits in the ratio of 6:5:4.
Ramesh retired and his capital after making adjustments on account of reserves, revaluation
of assets and reassessment of liabilities stood at ₹ 2,50,400. Suresh and Tushar agreed to
pay him ₹ 2,90,000 in full settlement of his claim. Pass necessary journal entry for the
treatment of goodwill. Show workings clearly.
Q.7) R, S & T are partners in a firm sharing profit & loss in the ratio of 2:2:1. T Retires and his
balance in capital a/c after adjustment for reserve & revaluation of assets & liabilities comes
out to be Rs. 50,000. R &S agree to pay him Rs. 60,000. Give journal entry for the
adjustment of goodwill.

Q.8) A,B,C are partners in a firm sharing profits in the ratio of 6:5:4. Their capital were A
1,00,000; B 80,000; C 60,000 respectively. On 1st April 2009, A retired from the firm and the
new profits sharing ratio between B and C was decided as 1:4. On A’s retirement the
goodwill of the firm was valued at 1,80,000. Showing your calculation clearly pass the
necessary journal entry for the treatment of goodwill on A’s retirement.
Q.9) Gita, Radha and Garv were partners in a firm sharing profits and losses in the ratio of
3:5:2. On 31st march 2019, their balance sheet was as follows:
 Balance sheet Gita, Radha and Garv as on 31st march,2019

Liabilities Amount ₹ Assets Amount ₹

Sundry creditors 60,000 Cash 50,000
General reserve 40,000 Stock 80,000
Capitals: Debtors 40,000
Gita 3,00,000
Radha 2,00,000
Garv 1,00,000 6,00,000
Investment 30,000
Buildings 5,00,000
7,00,000 7,00,000
Radha retired on the above the date and it was agreed that:
a) Goodwill of the firm be valued at ₹3,00,000 and Radha’s share be adjusted through
the capital accounts of Gita and Garv.
b) Stock was to be appreciated by 20%.
c) Buildings were found undervalued by ₹1,00,000.
d) Investments were sold for ₹34,000.
Pass the Necessary Journal entries on the Retirement of Radha.
Q.10) A, B,C are partners in a firm. Their balance sheet as at 31 st march,2019 was as follows:
Balance sheet of A,B and C as at 31st march,2019

Liabilities amount Assets Amount

Bill payables 20,000 Bank 20,000
Creditors 40,000 Furniture 28,000
General reserve 30,000 Stock 20,000
Workmen compensation 6,000 Debtors 45,000
reserve Less PFDD 5,000 40,000
Capital Land and building 1,20,000
A 60,000
B 40,000
C 32,000 1,32,000
2,28,000 2,28,000

B retired on 1st April,2019. A and C decided to share profits in the ratio of 2:1. The following
terms were agreed upon:
i) Goodwill of the firm was valued at 30,000
ii) Bad debts 4,000 were written off. The provision for doubtful debts was to be
maintained 10%
iii) Land and building was to be increased to 1,32,000
iv) Furniture was sold for 20,000 and the payment was received by cheque
v) Liability towards workmen compensation was estimated at 1,500
 vi) B was to be paid 20,000 through a cheque and the balance was transferred to his
loan account
Prepare Revaluation A/c & Partners capital A/c
Q.11) Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2:2:1.
On 31st march,2018 their blance sheet was as followss:
Balance sheet of Akul, Bakul and Chandan as at 31 march,2018

Liabilities Amount Asssets Amount

Sundry creditors 45,000 Cash at bank 42,000
Employee’s provident fund 13,000 Debtors 60,000
Less: PFDD (2,000) 58,000
General reserve 20,000 Stock 80,000
Capitals: Furniture 90,000
Akul 1,60,000
Bakul 1,20,000
Chandan 92,000 3,72,000
Plant and machinery 1,80,000
4,50,000 4,50,000
Bakul retired on the above date and it was agreed that:
i) Plant and machinery was undervalued by 10%
ii) Provision for doubtful debts was to be increased to 15% on debtors
iii) Furniture was to be decreased to 87,000
iv) Goodwill of the firm was valued at 3,00,000 and Bakul’s share was to be adjusted
through the capital account of Akul and Chandan
Prepare Revaluation account & Partners’ Capital accounts
Q.12) Kanika, Disha and Kabir were partners sharing profits in the ratio of 2:1:1. On 31-3-
2016, their Balance sheet was as under:

Liabilities Amount Assets Amount

Trade creditors 53,000 Bank 60,000
Employees provident fund 47,000 Debtors 60,000
Kanika capital 2,00,000 Stock 1,00,000
Disha capital 1,00,000 Fixed assets 2,40,000
Kabir capital 80,000 Profit and loss a/c 20,000
4,80,000 4,80,000
Kanika retired on 1-4-2016. For this purpose, the following adjustment were agreed upon:
i) Goodwill of the firm was valued at 2year purchase of average profits of three
completed years preceding the date of retirement. The profits for the year, 2013-
14 were 1,00,000 and 2014-15 were 1,30,000.
ii) Fixed assets were to be increased to 3,00,000
iii) Stock was to be valued at 120%
iv) The amount payable to Kanika was transferred to her loan account.
 Prepare Revaluation account, Capital account of the partner and the Balance sheet of
the reconstituted firm.
Q.13) Mohan, Vinay and Nitya were partners in a firm sharing in a firm sharing profit and
losses in the proportion of ½,1/3,1/6 respectively. On 31-march,2018 their balance sheet
was as follows:
Balance sheet of Mohan, Vinay and Nitya as at 31-3-2018

Liabilities Amount Assets Amount

Creditors 48,000 Cash at bank 31,000
Employees provident fund 1,70,000 Bill receivables 54,000
Contingency reserve 30,000 Book debts 63,000
Less PFDD (2,000) 61,000
Capital Plant and machinery 1,20,000
Mohan 1,20,000
Vinay 1,00,000
Nitya 90,000 3,10,000
Land and building 2,92,000
5,58,000 5,58,000
Mohan retired on the above date and it was agreed that:
i) Plant and machinery will be depreciated by 5%
ii) An old computer previously written off was sold for 4,000
iii) Bad debts amounting to 3,000 will be written off and a provision of 5% on
debtors for bad and doubtful debts will be maintained.
iv) Goodwill of the firm was valued at 1,80,000 and Mohan share of the same was
credited in his account by debiting Vinay and Nitya accounts
v) Vinay and Nitya will share future profit in the ratio of 3:2.
Pass the necessary Journal Entries on the Retirement of Mohan.
Q.14) A, B and C were partners in a firm. Their balance sheet as at 31-3-2019 was as
follow:
Balance sheet of A, B and C as at 31-3-2019

Liabilities Amount Assets Amount

Bill payables 20,000 Bank 20,000
Creditors 40,000 Furniture 28,000
General reserve 30,000 Stock 20,000
Workmen compensation 6,000 Debtors 45,000
reserve Less: (PFDD) (5,000) 40,000
Capitals Land and building 1,20,000
A 60,000
B 40,000
C 32,000 1,32,000
2,28,000 2,28,000
B retired on 1st April,2019. A and C decided to share profits in the ratio of 2:1. The
following terms were agreed upon:
i) Goodwill of the firm was valued at 30,000
ii) Bad debts 4,000 were written off. The provision for doubtful debts was to be
maintained 10% on debtors
iii) Land and building were to be increased to 1,32,000
iv) Furniture was sold for 20,000 and the payment was received by cheque
v) Liability towards workmen compensation was estimated at 1,500
vi) B was to be paid 20,000 through a cheque and the balance was transferred to his
loan account.
Prepare Revaluation account & partners’ capital accounts