Retire Death Dissolution Sheet

1.A, B and C were partners sharing profits in the ratio of 5:3:2.
B
retired on 31st March 2021 with A and C agreeing to share the profits
in future in the ratio of 6:4. Find the gaining ratio.
2.A, B and C were partners in a firm sharing profits in the ratio of 8:

4:3 B retires and his share is taken up equally by A and C. Find the
new profit-sharing ratio.
3.P, Q and R are equal partners in a firm. Goodwill has been valued at
₹36,000; on R's retirement from the firm, P and Q agree to share
profits in the ratio of 3:2. Pass necessary journal entry for treatment of
R's share of goodwill.
4.Amar, Ram, Mohan and Sohan were partners in a firm sharing

profits in the ratio of 2 : 2: 2: 1. On 31st March 2021 Sohan retired. On
his retirement the goodwill of the firm was valued at ₹70,000. The new
profit sharing ratio among the continued partner agreed as 5: 1: 1.
Give entry for the treatment of Goodwill.
5.David and John were partners in a firm sharing profits in 4:1 ratio.
David died three months after the date of the
last balance sheet. According to the partnership deed, legal
representative of deceased partner is entitled to the
following payment:
(i) His capital ₹3,00,000 as per the last balance sheet.
(ii) Interest on capital @12% per annum upto the date of death.
(iii) His share of profits to the date of death is to be calculated on the
basis of the average profits of last three years. The net
profits of the last three years were ₹2,00,000; ₹3,00,000 and
₹4,00,000.
Find out his Interest on capital and His share of profit.
6.Amit, Bony and Chetak were partners sharing profits in the ratio of
2:3:5. Chetak died on 31st August 2020. The sales and profit for the
year ending 31st March 2020 were ₹10,00,000 and ₹2,00,000
respectively. The sales upto 31st August 2020 were amounted to
₹3,75,000. Calculate Chetak's share of profit and give adjustment
entry for the same.
7. (When there is loss) Rony, Mony and Tony were partners sharing
profits in the ratio of 4:3:2. Months died after 4 months of the last
balance sheet. As per partnership agreement, in the case of death of
a partner , his share is to be calculated on the basis of last year's
profit/loss. Loss of the last year was ₹1,35,000.
Pass necessary journal entry to record Mony's share of profit/loss up
to the date of his death.
8. Pass the necessary journal entry for treatment of Partner's Loan

appearing on the assets side of the Balance Sheet in case of
Dissolution of a Partnership firm.
9.Parul, Payal, and Priyanka are partners in a firm. They decided to

dissolve their firm. Pass necessary journal entries for the following
after various assets (other than Bank balance) and outside liabilities
have been transferred to Realization Account:
(i) Total debtors were of ₹76,000. A provision for doubtful debt also
stood in the books at ₹6,000. ₹12,000 debtors proved bad and rest
were paid the amount due.
(ii) Parul agreed to pay off her husband' loan 7,000 at a discount of
5%.
(iii) A machine which was not recorded in the books was taken over by
Payal at ₹3,000; whereas its expected value was ₹5,000.
(iv) A contingent liability (not provided for) of ₹4,000 was also
discharged.
(v) The firm had a debit balance of ₹27,000 in the Profit and Loss
Account on the date of dissolution.
(vi) Priyanka paid the realisation expenses of ₹15,000 out of her
pocket on behalf of the firm and she was to get a remuneration of
₹18,000 for completing the dissolution process.
10.Kumar, Shyam and Ratan were partners in a firm sharing profits in

the ratio of 5 3 2 respectively. They decided to dissolve the firm with
effect from 01-04-2021. On that date the Balance Sheet of the firm
was as follows:
Liabilities Amount Assets Amount

Capitals: Kumar 68,000 Plant 80,000
Shyam 50,000 Furniture 45,000
Ratan 27,000 1,45,000 Motor Van 25,000
Trade Creditors 1,20,000 Stock 30,000
Debtors 71,000
Cash 14,000
_______ ________
2,65,000 2,65,000
The dissolution resulted in the following:

(1) Plant of ₹ 40,000 was taken over by Kumar at an agreed value of
₹45,000 and remaining plant realised ₹50,000.
(ii) Furniture realised ₹40,000.
(iii) Motor van was taken over by Shyam for ₹30,000.
(iv) Debtors realised ₹1,000 less.
(v) Creditors for ₹20,000 were untraceable and the remaining creditors
were paid in full.
(vi) Realisation expenses amounted to ₹5,000.
11.Ram and Shyam were partners in a firm sharing profits in the ratio
of 2 : 3 respectively. their firm was dissolved and the balance sheet
was as follows at the time of dissolution:

Creditors 65,000 Goodwill 10,000
Bills Payable 35,000 Land 1,20,000
Capitals: Ram 75,000 1,50,000 Machinery 65,000
Shyam 75,000 Stock 25,000
Debtors 20,000
Bank 10,000
_______ ________
2,50,000 2,50,000
Ram paid the creditors at a discount of 15% and Shyam paid Bills
Payable in full. Assets realised as follows:
Land at 20% less; Machinery at ₹35,000; Stock at 25% less and
Debtors at₹ 12,500. Expenses on realisation ₹1,750 were paid by
Shyam. Prepare Realisation Account, Partners Capital Accounts and
BankAccount.
12.A, B and C were partners in a firm. Their Balance Sheet as at 31st

March, 2019 was as follows:
Bills Payable 20,000 Bank 20,000
Creditors 40,000 Furniture 28,000
General Reserve 30,000 Stock 20,000
Workmen Compensation 6,000 Sundry Debtors 45,000
Reserve Less: Provision for
Capitals : A 60,000 Doubtful Debts 5,000 40,000
B 40,000 Land and Building 1,20,000
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 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 Account, Partners' Capital Accounts and Bank
Account.
13. Prem, Kumar and Aarti were partners sharing profits in the ratio of
5: 3: 2. Their Balance Sheet as at 31st March, 2019 was as under :

Capitals : Prem 30,000 Building 25,000
Kumar 20,000 Plant and Machinery 15,000
Aarti 20,000 70,000 Investment 10,000
General Reserve 8,000 Debtors 10,000
Investment Fluctuation 2,000 Stock 5,000
Reserve Cash in hand 25,000
Sundry Creditors 10,000
________ _______
90,000 90,000
On the above date, Kumar retired. The terms of retirement were:

(1) Kumar sold his share of goodwill to Prem for ₹8,000 and to Aarti
for ₹4,000.
(ii) Stock was found to be undervalued by ₹1,000 and building by
₹7,000.
(iii) Investments were sold for ₹11,000.
(iv) There was an unrecorded creditor of ₹7,000.
(v) An amount of ₹30,000 was paid to Kumar in cash which was
contributed by Prem and Aarti in the ratio of 2: 1. The balance amount
of Kumar was settled by accepting a Bill of Exchange in favour of
Kumar.
Prepare the Revaluation Account, Capital Accounts of partners and
the Balance Sheet of the reconstituted firm.

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1.A, B and C were partners sharing profits in the ratio of 5:3:2.

2.A, B and C were partners in a firm sharing profits in the ratio of 8:

4.Amar, Ram, Mohan and Sohan were partners in a firm sharing

8. Pass the necessary journal entry for treatment of Partner's Loan

9.Parul, Payal, and Priyanka are partners in a firm. They decided to

10.Kumar, Shyam and Ratan were partners in a firm sharing profits in

Liabilities Amount Assets Amount

The dissolution resulted in the following:

Liabilities Amount Assets Amount

12.A, B and C were partners in a firm. Their Balance Sheet as at 31st

B retired on 1st April, 2019. A and C decided to share profits in the

Liabilities Amount Assets Amount

On the above date, Kumar retired. The terms of retirement were:

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