Death of a Partner

In case of death of a partner the profit may be estimated on the basis of ______ and_______.

(a)  

The balance in the capital account of the deceased partner is transferred to ______ account.

• [ Executor’s ]

• old partner

• all partner

• Remaining partner

Interest on drawings due from deceased partner till the date of the death is (a)   to his capital account.

Share of goodwill of the deceased partner is (a)   to his capital account.

Ram Mohan and Sohan are partner sharing profit in the ratio of 4:3:2 , Mohan died on 1st Oct 2019,new ratio will be 1:2 among Ram and Sohan , goodwill of the firm is valued at Rs. 6,00,000 (a)   amount will be transfer to Mohan capital A/c.

A, B, C were partners sharing Profit and Losses in the ratio of 3.2.1 Books are closed on 31stMarch every year. C dies on 30th, Nov 2018. Under the partnership deed, the executors of deceased partner are entitled to his share of profit up to the date of death, Profit as on ended 31st Mar 2018 was Rs. 2,40,000 C’s share of profit will be

• 26667

• 40000

• 30000

• 53333

If three partners A, B, C are sharing profit as 5:3:2,then on the death of a partner A, how much B and C will pay to A executor on account of goodwill. Goodwill is to be calculated on the basic of 2 years purchase of last 3 years average profit, profits for the last 3 years are Rs. 3,28,000 Rs. 3,46,000 and Rs. 4,00,000.

• Rs. 3,16,000 and Rs. 1,42,000

• Rs. 2,44,000 and Rs. 2,16,000

• Rs. 4,29,600 and Rs. 2,86,400

• Rs. 2,16,000and Rs. 1,44,000

An account prepared to ascertain the gain or loss at the time of death of a partner is called

• (a) A realisation Account

• (b) Executors Account

• (c) Revaluation Account

• (d) Decreased Partner

In the event of death of a partner of employees provided fund appears in the balance will be shown in

• Capital A/c (Cr.)

• Account (Dr.)

• Liability side [Balance Sheet]

• Asset side[Balance Sheet]

At the time death of a partner general reserve appearing in the balance sheet should be credited to:

• All partners including deceased partner in their old profit sharing ratio

• Remaining partners in the new profit sharing ratio

• Neither the decreased nor the remaining partners

• Remaining partner in gaining ratio