✓ Board-verified
Accountancy · 2023 · 4 marks
Reconstitution of a Partnership Firm – Retirement/Death of a PartnerDeath of a Partner4 marksshort answer
CBSE 2023 · Region 5 · Set 3 · Q22
P, Q and R were partners in a water dispenser manufacturing firm. They were sharing profits and losses in the ratio of 2: 2: 1. On 31" March, 2022,…
P, Q and R were partners in a water dispenser manufacturing firm. They were sharing profits and losses in the ratio of $\displaystyle 2$ : $\displaystyle 2$ : 1. On $\displaystyle 31$" March, $\displaystyle 2022$, their Balance Sheet was as follows :
Balance Sheet of P, Q and R as on $\displaystyle 315$* March, $\displaystyle 2022$
Q died on $\displaystyle 30$*h June, 2022. According to the partnership deed, his legal representatives were entitled to : (i) Interest on capital @ $\displaystyle 12$% p.a. (ii) ₹ $\displaystyle 12,000$ for his share of Goodwill. (iii) His share of profit till the date of death was to be calculated on the basis of sales. The sales from 1st April, $\displaystyle 2022$ to 30th June, $\displaystyle 2022$ were ₹ $\displaystyle 62$,500. The sales and profits of the firm for the year ending 31st March, $\displaystyle 2022$ was ₹ $\displaystyle 5,00,000$ and ₹ $\displaystyle 1,25,000$ respectively. Prepare Q's Capital Account to be rendered to his legal representatives.
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Plant and Machinery | $\displaystyle 1,25,000$ | |
| P - $\displaystyle 50,000$ | Land and Building | $\displaystyle 1,50,000$ | |
| Q - $\displaystyle 1,25,000$ | Debtors | $\displaystyle 40,000$ | |
| R - $\displaystyle 1,00,000$ | $\displaystyle 2,75,000$ | Stock | $\displaystyle 35,000$ |
| General Reserve | $\displaystyle 1,25,000$ | Cash at Bank | $\displaystyle 75,000$ |
| Sundry Creditors | $\displaystyle 25,000$ | ||
| $\displaystyle 4,25,000$ | $\displaystyle 4,25,000$ |
Marking-scheme solution
Dr. Q’s Capital Account Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Q’s $\displaystyle 1,97,000$ By Balance b/d $\displaystyle 1,25,000$
Legal Representatives A/c By General Reserve A/c $\displaystyle 50,000$
By Interest on Capital A/c $\displaystyle 3,750$
By P’s Capital A/ $\displaystyle 8,000$
By R’s Capital A/c $\displaystyle 4,000$
By P&L Suspense A/c $\displaystyle 6,250$
$\displaystyle 1,97,000$ $\displaystyle 1,97,000$
Working Notes
• Interest on Q’s Capital = $\displaystyle 1,25,000$ x $\displaystyle 12$/$\displaystyle 100$ x $\displaystyle 3$/$\displaystyle 12$ = ₹$\displaystyle 3,750$
• Q’s Share of Profit = $\displaystyle 1,25,000$ x $\displaystyle 62,500$ x $\displaystyle 2$ = ₹$\displaystyle 6,250$
$\displaystyle 5,00,000$ $\displaystyle 5$
All Reconstitution of a Partnership Firm – Retirement/Death of a Partner questions2023 question paperPractice Reconstitution of a Partnership Firm – Retirement/Death of a Partner →
More from Reconstitution of a Partnership Firm – Retirement/Death of a Partner
- Saurabh, Reena and Deepak were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. Saurabh died on 318 December, 2024. As per the…2025
- Kiran, Raveena and Hina were partners in a firm sharing profits and losses in the ratio of 5: 3: 2. The firm closes its books on 31st March every…2026
- Sona, Mona and Raghav were partners in a firm sharing profits and losses in the ratio of 4: 3: 2. Raghav retired. The balance in Ra '. t. ' ts on…2025
- Anchal, Prabhat and Karan were partners in a firm sharing profits and losses in the ratio of 3: 2: 1. On 31st March, 2025, Anchal retired. The…2026
- Vimal, Bose and Ghosh were partners in a firm sharing profits and losses equally. On 1st April, 2024, Bose retired from the firm and the new profit…2025
- Aditi, Sukriti and Niti were partners sharing profits in the ratio of 2: 2 1 1. Sukriti died on 30th June, 2023. Net profit for the year ended 31st…2024
- P, Q and R were partners in a firm sharing profits and losses in the ratio of 2:1:2. Their balance sheet on 31st March, 2022 was as follow: Balance…2023
- Anmol, Badal and Cheenu were partners in a firm sharing profits and losses in the ratio of 5: 4: 3. Badal retired. Anmol and Cheenu decided to share…2024
CBSE Class 12 Accountancy past-paper question from the 2023 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.