Reconstitution of a Partnership Firm – Retirement/Death of a Partner - Class 12 Accountancy - Chapter 3 - Notes, NCERT Solutions & Extra Questions
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Extra Questions - Reconstitution of a Partnership Firm – Retirement/Death of a Partner | NCERT | Accountancy | Class 12
Neetu, Meetu, and Teetu were partners in a firm. On 1st January 2018, Meetu retired. On Meetu's retirement, the goodwill of the firm was valued at Rs 4,20,000. Pass necessary journal entry for the treatment of goodwill on Meetu's retirement.
Solution
When Meetu retired, the goodwill of the firm was assessed at Rs 4,20,000. The remaining partners, Neetu and Teetu, need to adjust Meetu's share of goodwill, typically adjusted in their capital accounts based on their gaining ratios (assuming they share gains equally for simplicity). The journal entry to record this transaction on January 1, 2018, is as follows:
Date | Particulars | Debit | Credit |
---|---|---|---|
2018 Jan 1 | Neetu's Capital A/c | Rs X | |
Teetu's Capital A/c | Rs Y | ||
To Meetu's Capital A/c | Rs 4,20,000 | ||
(Being Meetu's share of goodwill adjusted among Neetu and Teetu in their gaining ratio) |
- X and Y are the amounts debited from Neetu's and Teetu's capital accounts respectively, which sum up to the total goodwill value of Rs 4,20,000, representing Meetu's share in the goodwill.
The exact values of X and Y will depend on the agreed upon gaining ratios of Neetu and Teetu.
When there is a vacancy due to the resignation or death of the sitting vice president, an election to fill the vacancy must be held:
जब उप-राष्ट्रपति के इस्तीफे या मृत्यु के कारण पद रिक्त होता है, तो रिक्ति पद को भरने के लिए चुनाव आयोजित किया जाना चाहिए:
As soon as possible after the occurrence of the vacancy. रिक्ति होने के बाद जितनी जल्दी हो सके।
Within six months from the date of occurrence of such vacancy. रिक्ति होने की तारीख से छह महीने के भीतर।
Within one year from the date of occurrence of such vacancy. रिक्ति होने की तारीख से एक साल के भीतर।
None of the above (D) उपर्युक्त में से कोई नहीं
The correct answer is Option A: As soon as possible after the occurrence of the vacancy.
If the office of the vice-president falls vacant due to reasons like resignation, removal, or death, the election to fill the vacancy should be conducted as soon as possible after the vacancy occurs. The newly elected vice-president serves for a full term of five years, starting from the date they assume office.
Is a sleeping partner liable for the acts of the other partner?
Yes, a sleeping partner is indeed liable due to the principle of mutual agency. This principle implies that each partner acts as both an agent and principal for the other partners, including those not actively involved in the business's daily operations. Thus, a sleeping partner, despite their non-active role, is still legally responsible for the actions of the other partners.
A man has a property worth ₹2,00,00,000. He distributed $\frac{1}{5}$th of the property to each of his 2 sons. $\frac{1}{2}$ of the remaining property for charity and the rest for his wife. How much is left for his wife?
A) ₹65,00,000 B) ₹10,00,000 C) ₹80,00,000 D) ₹60,00,000
Solution
The correct answer is Option D: ₹60,00,000.
The total property value is: $$ ₹2,00,00,000 $$
Each son receives $\frac{1}{5}$ of the property. Since there are two sons, together they receive: $$ \frac{1}{5} + \frac{1}{5} = \frac{2}{5} $$
Calculating the value distributed to the sons: $$ ₹2,00,00,000 \times \frac{2}{5} = ₹80,00,000 $$
Remaining property after distribution to the sons: $$ ₹2,00,00,000 - ₹80,00,000 = ₹1,20,00,000 $$
$\frac{1}{2}$ of the remaining property is given to charity: $$ ₹1,20,00,000 \times \frac{1}{2} = ₹60,00,000 $$
Amount left for the wife is the rest of the remaining property: $$ ₹1,20,00,000 - ₹60,00,000 = ₹60,00,000 $$
Therefore, ₹60,00,000 is left for the wife.
Amit, Sumit, and Punit share profits and losses in the ratio of 3:2:1, respectively. Amit retires, and the remaining partners decide to take Amit's share in the existing ratio, i.e., 2:1. Calculate the new ratio.
A) None of the above B) 2:1 C) 1:2 D) 1:1
The correct answer is B) 2:1.
Existing Shares of Profit or Loss:
- Sumit: $$ \frac{2}{6} $$
- Punit: $$ \frac{1}{6} $$
When Amit, who has a share of $$ \frac{3}{6} $$ (reduced from 3 parts out of a sum of parts for all, yielding 3/6 as his fraction of the whole), retires, Sumit and Punit decide to split Amit's share in the ratio of 2:1.
Distribution of Amit's Share:
- Sumit receives: $$ \frac{3}{6} \times \frac{2}{3} = \frac{6}{18} = \frac{1}{3} $$
- Punit receives: $$ \frac{3}{6} \times \frac{1}{3} = \frac{3}{18} = \frac{1}{6} $$
Adding these to their existing shares:
- Sumit's New Share: $$ \frac{2}{6} + \frac{1}{3} = \frac{4}{6} = \frac{2}{3} $$
- Punit's New Share: $$ \frac{1}{6} + \frac{1}{6} = \frac{2}{6} = \frac{1}{3} $$
New Profit-Sharing Ratio between Sumit and Punit is therefore 2:1.
In the context of succession plans of any empire, coparcenary inheritance means
A handing over the kingdom to the eldest son.
B handing over the kingdom to the most capable son.
C handing over the kingdom to the youngest son.
D dividing the kingdom among all the sons.
The correct answer to the question is Option D, which states handing over the kingdom by dividing it among all sons.
The reason for this is that coparcenary inheritance refers to the division of an estate among all the heirs rather than bestowing it upon the eldest son, which is known as primogeniture. This system allows for a more equitable, albeit possibly more fragmentary, distribution of authority and territory among the successors. As an example, the Mughals notable did not practice primogeniture; instead, they followed a system of coparcenary inheritance, dividing the empire among all the sons.
The ratio in which the remaining partners acquire the outgoing partner's share of profit is called Gaining Ratio.
None of the above
Old Ratio
Gaining Ratio
Sacrificing Ratio
The correct option is C: Gaining Ratio
Gaining Ratio is defined as the ratio in which the remaining partners acquire the outgoing partner's share of profit.