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Ultimate Book of Accountancy Class 12 Part A Solutions – Death of Partner

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Ultimate Book of Accountancy Class 12 Part A Solutions – Death of Partner

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Practical Problems

Solution 1:
Calculation of Share of Profit of Deceased partner:
28,000 + 32,000 + 36,000 = 96,000/3 = 32,000
32,000 x 6/12 = 16,000 x 1/5 = 3,200

Solution 2:
Percentage of last year’s profit = 5,000/50,000 x 100 = 10%
Three months profit = 15,000 x 10/100 = 1,500
Mukesh’s share = 1,500 x 1/5 = 300

Solution 3:
Percentage of profit last year = 10,000/50,000 x 100 = 20%
Three months Turnover = 25,000 x 3/12 = 6,250
Three months profit = 6,250 x 20/100 = 1,250
Gupta’s share = 1,250 x 1/5 = 250

Solution 4:
Average Profit = 7,000 + 8,000 + 9,000 = 24,000/3 = 8,000
Two months profit = 8,000 x 2/12 = 1,333
Anoop’s Share = 1,333 x 1/3 = 444.44

Solution 5:
Old Share 5:3:2
New Share 1:1 and Gain 2:3
X’s Share of Goodwill = 50,000 x 5/10 = 25,000

Y’s Capital A/c Dr. 10,000
Z’s Capital A/c Dr. 15,000
To X’s Capital A/c 25,000

Solution 6:
Old Share 5:4:3
New Share 3:2 and Gain 11:9
T’s share of goodwill = 2,40,000 x 4/12 = 80,000

Solution 7:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q7

Solution 8:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q8
Note: Share of profit = 30,000 x 2/12 x 2/5 = 2,000
Interest on capital = 80,000 x 12/100 x 2/12 = 1,600
Salary for 2 months = 12,000/12 = 1,000 per month so 1,000 x 2 = 2,000

Solution 9:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q9

Solution 10:
Old Share 4:3:3
New Share 4:3 and Gain 4:3
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q10

Solution 11:
Old Share 6:3:2
new share 3:2 Gain 3:2
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q11

Solution 12:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q12

Solution 13:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q13

Solution 14:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q14

Solution 15:
Old Share 3:2:1
New Share 3:1 and Gain 3:1
Goodwill = 22,000 + 26,000 + 12,000 = 60,000/3 = 20,000 x 3 = 60,000
Bhanu’s share = 60,000 x 2/6 = 20,000
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q15
Share of profit = 12,000 x 3/12 x 2/6 = 1,000

Solution 16:
Goodwill = 40,000 + 40,000 + 30,000 + 40,000 + 50,000 = 2,00,000/5 = 40,000 x 3 = 1,20,000
X’s share of goodwill = 1,20,000 x 3/6 = 60,000
Share of profit = 40,000 + 50,000 = 90,000/2 = 45,000 x 2/12 x 3/6 = 3,750
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q16

Solution 17:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q17
Cash available = 12,000 + 13,250 (investment sold) = 25,250 – 9,450 = 34,700
Share of profit = 1,20,000 x 10/100 x 2/6 = 4,000
Goodwill = 8,200 + 9,000 + 9,800 = 27,000 x 2 = 54,000 – 20% = 43,200
43,200 x 2/6 = 14,400
Interest on capital = 12,000 x 10/100 x 3/12 = 300

Solution 18:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q18
Share of profit = 45,000 x 6/12 x 5/10 = 11,250
Interest on capital = 90,000 x 10/100 x 6/12 = 4,500

Solution 19:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q19

Solution 20:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q20

Solution 21:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q21

Solution 22:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q22

Solution 23:
Old Share 3:2:5
New Share 1:1 given and Gain: only Ram is gainer
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q23-i
First Alternative of preparing Capital Account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q23-ii
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q23-iii
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q23-iv
Second Alternative of preparing Capital Account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q23-v

Solution 24:
Old Share 7:2:1 and New share 3:2 —- Sacrifice of Sonu 1/10 and Tonu’s Gain 3/10
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q24-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q24-ii
First Alternative of preparing Capital Account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q24-iii
Second Alternative of preparing Capital Account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q24-iv
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q24-v

Solution 25:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q25

Solution 26:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q26

Solution 27:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q27-i
Goodwill = Average profit 36,000 x 2.5 = 90,000 x 5/10 = 45,000
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q27-ii

Solution 28:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q28-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q28-ii

Solution 29:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q29-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-q29-ii

Brilliant Problems

Solution 1:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q1-i
Goodwill = Average profit 7,000 x 2.5 = 17,500 x 2/10 = 3,500
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q1-ii

Solution 2:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q2-i
Goodwill = Average profit = 18,000 x 1/3 = 6,000
Manoj’s share of profit = 18,000 x 3/12 x 1/3 = 1,500
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q2-ii
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q2-iii

Solution 3:
Goodwill = Profit of last 4 years 3,20,000 x 3/8 = 1,20,000
Profit credited to Doly in last 4 years = 1,20,000
Half of which is treated as goodwill = 1,20,000 x 1/2 = 60,000
Bad debts recovered (Doly’s share) = 8,000 x 3/8 = 3,000

Solution 4:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q4

Solution 5:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q5

Solution 6:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q6-i
First Alternative of preparing Capital account and balance sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q6-ii
Second Alternative for preparing Partners capital account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q6-iii
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q6-iv
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q6-v

Solution 7:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q7-i
First Alternative to prepare Partners Capital Account and Balance Sheet
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q7-ii
Second Alternative to prepare Partners Capital Account and balance sheet
Sonu is sacrificing 1/10 and Tonu is gainer 3/10
So entry for Monu’s share of profit will not be done with P/L suspense because there is change in new ratio of the continuing partners.
Tonu’s Capital A/c 2,400
To Sonu’s Capital A/c 800
To Monu’s Capital A/c 1,600
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q7-iii

Solution 8:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q8-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q8-ii

Solution 9:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q9-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q9-ii

Solution 10:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q10-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q10-ii

Solution 11:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q11

Solution 12:
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q12-i
ultimate-book-of-accountancy-class-12-part-a-solutions-death-of-partner-bp-q12-ii

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