DK Goel Solutions for Class 12 Accountancy Vol 1 Chapter 4 Retirement or Death of a Partner

DK Goel Accountancy Class 12 Solutions Chapter 4 Retirement or Death of a Partner which is outlined by expert Accountancy teachers from the latest version of DK Goel Accountancy Class 12 textbook solutions. We at BYJUâ€™S provide DK Goel Solutions to assist students to comprehend all the theories in particular. Learn more concepts in Accountancy, however, the concepts of Admission of a partner, Accounting Ratios and Cash Flow Statement (As per AS – 3 Revised) is required.

DK Goel Solutions Class 12 – Chapter 4 – Part A

Question 1

X, Y, and Z are associates sharing profits and losses in the ratio 3:2: 1. Calculate the new ratios when (i) X retires (ii) Y retires (iii) Z retires

Solution: The new ratio of the left partners will be calculated by striking out the share of the retiring partners. Therefore,

(i) When X retires, the new ratio between Y and Z is 2:1

(ii) When Y retires, the new ratio between X and Z is 3:1

(III) When Z retires, the new ratio between X and Y is 3:2

Question 2

A, B, and C are associates in a company sharing profits in the ratio 5:4:3. B retired and his share was distributed evenly between A and C. Determine the new profit-sharing ratio of A and C.

Solution: Bâ€™s share will be divided between A and C in the ratio of 1:1.

$A\, will\, gain\, \frac{1}{2}\: of\, \frac{4}{12}=\, \frac{2}{12}$

$Hence,\, A’s\, new\, share\, =\, \frac{5}{12}\, +\, \frac{2}{12}\, =\, \frac{7}{12}$

$C\, will\, gain\, \frac{1}{2}\, of\, \frac{4}{12}\, =\, \frac{2}{12}$

$Hence,\, C’s\, new\, share\, =\, \frac{3}{12}\, +\, \frac{2}{12}\, =\, \frac{5}{12}$

$New\, Ratio\, =\, A\frac{7}{12}\, :\, C\frac{5}{12}\, or\, 7:5$

Question 3

A, B, C, and D are associates sharing profits in the ratio of 3:4:3:2. On the retirement of C, the goodwill was valued at â‚¹6,00,000. A, B and D decided to show future profits equally. Pass the necessary journal entry for the retirement of goodwill.

Solution: Calculation of Gaining Ratio:

$Gaining\, Ratio\, of\, A\, =\, \frac{1}{3}\, -\, \frac{3}{12}\, =\, \frac{4-3}{12}\, =\, \frac{1}{12}$

$Gaining\, Ratio\, of\, B\, =\, \frac{1}{3}\, -\, \frac{4}{12}\, =\, \frac{4-4}{12}\, =\, 0$

$Gaining\, Ratio\, of\, D\, =\, \frac{1}{3}\, -\, \frac{2}{12}\, =\, \frac{4-2}{12}\, =\, \frac{2}{12}$

 Date Particulars L.F Dr. (â‚¹) Cr. (â‚¹) Aâ€™s Capita lA/c Dâ€™s Capital A/c Dr. Dr. 50,000 1,00,000 To Câ€™s Capital A/c (Câ€™s share of goodwill debited to the account of A and D in the gaining ratio 1:2) 1,50,000

Question 4

A, B and C were partners sharing profits in the ration of 5:4:3. C retired and his share was taken up by A and B in the ratio of 3:2. Find out the new ratio.

Solution:

Câ€™s share will be divided between A and B in the ratio of 3:2

$A\, will\, gain\, \frac{3}{5}\, of\, \frac{3}{12}\, =\, \frac{9}{60}$

$Hence,\, A’s\, new\, share\, =\, \frac{5}{12}\, +\, \frac{9}{60}\, =\, \frac{34}{60}$

$B\, will\, gain\, \frac{2}{5}\, of\, \frac{3}{12}\, =\, \frac{6}{60}$

$Hence,\, B’s\, new\, share\, =\, \frac{4}{12}\, +\, \frac{6}{60}\, =\, \frac{26}{60}$

$New\, Ratio\, =\, A\frac{34}{60}\,:\, B\, \frac{26}{60}\, or\, 17:13$

Also Check:Â Important Questions for Retirement/Death of a Partner

Stay tuned to BYJUâ€™S for more DK Goel solutions, question papers, sample papers, syllabus and Commerce notifications.

 DK Goel Accountancy Solutions Class 12 â€“ Part A (Chapter wise) Chapter 1 Accounting for Partnership Firms â€“ Fundamentals Chapter 2 Change in Profit Sharing Ratio Among the Existing Partners Chapter 3 Admission of a partner Chapter 5 Dissolution of a Partnership Firm

 Important Topics in Accountancy: