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Standard XII

Accountancy

Partnership Deed

X, Y and Z ar...

Question

X, Y and Z are partners sharing the profits in the ratio of 3 : 4 : 1. X becomes bankrupt and Y and Z continued the business without settling accounts with his estate. X s estate claims 3/8th of the profits made from the dat of As insolvency? Will this claim sustain?

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Solution

Solution: Section to which the given problem relates: Section 37.
Decision: Yes.
Reason: Section 37 speafically entitles to claim as such.

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Similar questions

D and H are partners in a firm sharing profits in the ratio of 3 : 2. They admit A as a partner for 1/4th share in the profits. A acquires his share from D and H in the ratio of 1 : 2. The new profit-sharing ratio will be:

Q. X, Y and Z are partners in a business sharing profits and losses equally. X dies and the firm is dissolved. On the date of dissolution, the capitals of X, Y and Z were Rs. 20,000, Rs. 15,000 and Rs. 10,000 respectively and the outside liabilities amounted to Rs. 65,000. The assets of the firm realised Rs. 15,000. The private estate and debts of each partners were as follows:Private estate Rs. 1,00,000 Rs. 2,00,000, Rs. 3,00,000 Private debt Rs. 1,10,000, Y Rs. 1,90,000, Z Rs. 3,10,000 The outside creditors claim that the deficiency of Rs. 50,000 (i.e., Rs. 65,000 -Rs. 15,000) should be contributed by the partners out of their private estate which amounted to 6,00,000 because the partners are jointly and severally liable to
pay firms debts. Discuss the validity of their claim.

Q. N and S are partners in a firm sharing profits in the ratio of 4 : 1. They admit M as a partner for 1/

4^{th}

share in the profits. M acquires his share from N and S in the ratio of 3 : 2. The new profit-sharing ratio will be:

[0.88 marks]

Q. A,B and C were partners in a firm sharing profits in the ratio of

5 : 3 : 2

. On

31 - 3 - 2015

their Balance Sheet was as follows:
On the above date B retired and A and C agreed to continue the business on the following terms :
(1) Goodwill of the firm was valued at Rs.

1, 53, 000

.
(2) Provision for bad debts was to be reduced by

R s . 3, 000

. (3) There was a claim of Rs.

12, 000

for workmen compensation.
(4) B will be paid

R s . 24, 600

in cash and the balance will be transferred to his loan account which will be paid in four equal yearly installments together with interest

@ 10 %

p.a.
(5) The new profit sharing ratio between A and C will be

3 : 2

and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.
Prepare Revaluation Account Partners' Capital Accounts and the Balance Sheet of A and C.

X

and

Y

are partners in a firm sharing profits and losses in the ratio of

3 : 2

Z

is admitted as partner with

1 / 4

share in profit.

Z

acquires his share from

X

and

Y

in the ratio of

2 : 1

.
Calculate the new profit sharing ratio.

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X, Y and Z are partners sharing the profits in the ratio of 3 : 4 : 1. X becomes bankrupt and Y and Z continued the business without settling accounts with his estate. X s estate claims 3/8th of the profits made from the dat of As insolvency? Will this claim sustain?

Solution: Section to which the given problem relates: Section 37.Decision: Yes.Reason: Section 37 speafically entitles to claim as such.

Solution: Section to which the given problem relates: Section 37.
Decision: Yes.
Reason: Section 37 speafically entitles to claim as such.