## 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:  