**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:**

**Solution 8:**

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:**

**Solution 10:**

Old Share 4:3:3

New Share 4:3 and Gain 4:3

**Solution 11:**

Old Share 6:3:2

new share 3:2 Gain 3:2

**Solution 12:**

**Solution 13:**

**Solution 14:**

**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

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

**Solution 17:**

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:**

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:**

**Solution 20:**

**Solution 21:**

**Solution 22:**

**Solution 23:**

Old Share 3:2:5

New Share 1:1 given and Gain: only Ram is gainer

**First Alternative of preparing Capital Account and Balance Sheet**

**Second Alternative of preparing Capital Account and Balance Sheet**

**Solution 24:**

Old Share 7:2:1 and New share 3:2 —- Sacrifice of Sonu 1/10 and Tonu’s Gain 3/10

**First Alternative of preparing Capital Account and Balance Sheet**

**Second Alternative of preparing Capital Account and Balance Sheet**

**Solution 25:**

**Solution 26:**

**Solution 27:**

Goodwill = Average profit 36,000 x 2.5 = 90,000 x 5/10 = 45,000

**Solution 28:**

**Solution 29:**

### Brilliant Problems

**Solution 1:**

Goodwill = Average profit 7,000 x 2.5 = 17,500 x 2/10 = 3,500

**Solution 2:**

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

**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:**

**Solution 5:**

**Solution 6:**

**First Alternative of preparing Capital account and balance sheet**

**Second Alternative for preparing Partners capital account and Balance Sheet**

**Solution 7:**

**First Alternative to prepare Partners Capital Account and Balance Sheet**

**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

**Solution 8:**

**Solution 9:**

**Solution 10:**

**Solution 11:**

**Solution 12:**

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## Comments by Paras