1.

Bakul, Champak and Darshan were partners in a firm sharing profits in the ratio of
5:4:1. The profit of the firm for the year ending on March 31, 2020 was Rs.1,00,000.
Champak died on June 30, 2020. Calculate Champak’s share of profit on the basis of
previous years profit.

2. X, Y and Z were partners sharing profits and losses in the ratio of 3 : 2 : 1. Y died on
30th June, 2020. Profit from 1st April, 2020 to 30th June, 2020 was
₹3,60,000. X and Z decided to share the future profits in the ratio of 3 : 2
respectively with effect from 1st July, 2020. Pass the necessary Journal entries to
record Y's share of profit up to the date of death.

3. DK, PK and GK were partners in a firm sharing profits and losses in the ratio of
5:3:2. PK died on 31st May, 2020. His share of profit from the closure of the last
accounting year till the date of death, was to be calculated on the basis of the average
of three completed years of profits before death. Profits for the years ended 31st
December, 2017, 2018 and 2019 were Rs.17,000; Rs.15,000 and Rs.13,000
respectively. Calculate PK’s share of profit till his death and pass the necessary
Journal entry for the same.

4. Ram, Manohar and Joshi were partners in a firm. Joshi died on 31st May, 2016. His
share of profit from the closure of the last accounting year till the date of death was
to be calculated on the basis of the average of three completed years of profits before
death. Profits for the years ended 31st March, 2014, 2015 and 2016 were Rs.7,000;
Rs.8,000 and Rs.9,000 respectively. Calculate Joshi’s share of profit till his death and
pass necessary Journal entry.

5. A, B and C were partners sharing profits and losses in the ratio of 2:2:1. C died on
31st March 2020. Profits and Sales for the calendar year 2019 were Rs.1,00,000 and
Rs.10,00,000 respectively. Sales during January to March 2020 were Rs.1,50,000 .
You are required to calculate share of profit of C up to the death.

6. From the following information, estimate share of the deceased partner in profits
from the accounting date till the date of death:
Sales for the year 2019 – Rs.4,00,000; Profit for the year 2019 – Rs.80,000; Date of
death 1.4.2020; Sales from 1.1.2020 to 31.3.2020- Rs.70,000; Share of deceased
partner-2/5.
7. P, Q and R were partners sharing profits in the ratio of 2 : 2 : 1. The firm closes its
books on March 31 every year. On June 30, 2017, R died. His share in the profit of
the firm till the date of death, to be calculated on the basis of the rate of Net Profit on
Sales of the previous year, which was 25 %. The Sales of the firm till June 30, 2017
were Rs. 6,00,000. Prepare R’s Capital Account on his death to be presented to his
executors.

8. X, Y and Z were partners in a firm sharing profit in 3 : 2 : 1. The firm closes its books
on 31st March every year. Y died on 30th June, 2018. On Y's death goodwill of the
firm was valued at ₹ 60,000. Y's share in the profit of the firm till the date of his
death was to be calculated on the basis of previous year's profit which was ₹
1,50,000.
Pass necessary Journal entries for goodwill and Y's share of profit at the time of his
death.

9. A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. The firm closes its
books on 31st March every year. B died on 30th June, 2018. On his death, Goodwill
of the firm was valued at ₹ 6,00,000. B's share in profit or loss till the date of death
was to be calculated on the basis of previous year's profit/loss which was ₹
15,00,000 (Loss). Pass necessary Journal entries for goodwill and his share of loss.
10. P, Q and R were partners in a firm sharing profits in 2 : 2 : 1 ratio. The Partnership
Deed provided that on the death of a partner his executors will be entitled to the
following:
(a) Interest on Capital @ 12% p.a.
(b) Interest on Drawings @ 18% p.a.
(c) Salary of ₹ 12,000 p.a.
(d) Share in the profit will be calculated on the basis of previous year.
Year 2014-15 2015-16 2016-17 2017-18
Profits (₹) 1,50,000 1,00,000 50,000 30,000
P died on 31st May, 2018. His capital was ₹ 80,000. He had withdrawn ₹ 15,000
and interest on his drawings was calculated as ₹ 1,200.
Prepare P's Capital Account to be rendered to his executors.

11. Vikas, Gagan and Momita were partners in a firm sharing profits in the ratio of
2 : 2 : 1. The firm closes its books on 31st March every year. On 30th September,
2014 Momita died. According to the provisions of Partnership Deed the legal
representatives of a deceased partner are entitled for the following in the event of
his/her death:
(a) Capital as per the last Balance Sheet.
(b) Interest on capital at 6% per annum till the date of her death.
(c) Her share of profit to the date of death calculated on the basis of average profit of
last four years.
(d) Her share of goodwill to be determined on the basis of three years' purchase of
the average profit of last four years. The profits of last four years were:
 Year 2010-11 2011-12 2012-13 2013-14
Profit (₹ ) 30,000 50,000 40,000 60,000

The balance in Momita's Capital Account on 31st March, 2014 was ₹ 60,000
and she had withdrawn ₹ 10,000 till date of her death. Interest on her
drawings was ₹ 300.

Prepare Momita's Capital Account to be presented to her executors.

12. Danish, Ana and Pranjal are partners in a firm sharing profits and losses in
the ratio of 5:3:2. Their books are closed on March 31st every year. Danish
died on September 30th , 2019, The executors of Danish are entitled to:-
i. His share of Capital i.e. ₹ 5,00,000 along-with his share of goodwill.
The total goodwill of the firm was valued at ₹ 60,000.
ii. His share of profit up to his date of death on the basis of sales till date of
death. Sales for the year ended March 31, 2019 was ₹ 2,00,000 and
profit for the same year was 10% on sales. Sales shows a growth trend of
20% and percentage of profit earning is reduced by 1%.
iii. Amount payable to Danish was transferred to his executors.
Pass necessary Journal Entries and show the workings
clearly.
13. Punita, Rashi and Seema who are sharing profits in the ratio 2:1:2. Tha
balance of Punitas capital was 1,44,000 as on 31st March 2019. Punita died
on 30th September 2019. She had withdrawn 44,000 from her capital on July
1, 2019.
According to the partnership agreement, she was entitled to interest on capital
@8% p.a. Her share of profit till the date of death was to be calculated on the
basis of the average profits of the last three years. Goodwill was to be calculated
on the basis of three times the average profits of the last 3 years. The profits for
the years ended 2016-17, 2017-18 and 2018-19 were `30,000, `70,000 and
`80,000 respectively.
Prepare Punita’s account to be rendered to her executors.
14. The Balance Sheet of A, B and C who were sharing profits in the ratio
of 3 : 3 : 4 as at 31 st March, 2019 was as follows
Liabilities Amount Assets Amount
General Reserve 40,000 Cash 4,000
Bills Payable 15,000 Stock 43,000
Loan from Bank 30,000 Investments 70,000
 Capitals : Land and Buildings 1,58,000
A 60,000
B 90,000
C 40,000
A died on 1 st October, 2019. The partnership deed provided for the
following on the death of a partner:
(i) Goodwill of the firm be valued at two years’ purchase of average
profits for the last three years.
(ii) The profit for the year ending 31st March, 2019 was 50,000.
(iii) Interest on capital was to be provided @ 6% p.a.
(iv) The average profits of the last three years were 35,000.
Prepare A’s Capital Account to be rendered to his executors