Class 12 Chapter 3 Accountancy: Death of a Partner NCERT Solutions

The chapter Death of a Partner deals with several accounting adjustments that need to be made when a partner dies. Questions can involve goodwill, revaluation of assets and liabilities, reserves, accumulated profits or losses, and the amount payable to the deceased partner.

Understanding the treatment of each adjustment is important because these concepts often come together in numerical questions. The Class 12 Accountancy Chapter 3 NCERT Solutions below provide step-by-step solutions to selected important questions so you can follow the calculations and understand how each adjustment affects the accounts.

Important Numericals: Death of a Partner Class 12 NCERT Solutions

The following solutions cover important numerical questions from Chapter 3. Use them to revise the accounting treatment and check your approach after attempting each question yourself.

Question 1

Aparna, Manisha and Sonia share profits in the ratio 3:2:1. Manisha retires. Goodwill is valued at Rs. 1,80,000, and Aparna and Sonia decide to share future profits in the ratio 3:2. Pass the necessary journal entries.

Solution:

Old ratio = 3:2:1

New ratio of Aparna and Sonia = 3:2

Aparna's gain:

= 3/5 − 3/6
= 18/30 − 15/30
= 3/30

Sonia's gain:

= 2/5 − 1/6
= 12/30 − 5/30
= 7/30

Gaining ratio = 3:7

Manisha's share of goodwill:

= Rs. 1,80,000 × 2/6
= Rs. 60,000

Aparna's share:

= Rs. 60,000 × 3/10
= Rs. 18,000

Sonia's share:

= Rs. 60,000 × 7/10
= Rs. 42,000

Journal Entry:

Answer: Aparna's Capital A/c Dr. Rs. 18,000, Sonia's Capital A/c Dr. Rs. 42,000 and Manisha's Capital A/c Cr. Rs. 60,000.

Question 2

Sangeeta, Saroj and Shanti share profits in the ratio 2:3:5. Goodwill already appears in the books at Rs. 60,000. Sangeeta retires, and the new goodwill is valued at Rs. 90,000. Saroj and Shanti decide to share future profits equally.

Solution:

Old ratio = 2:3:5

New ratio of Saroj and Shanti = 1:1

First, existing goodwill of Rs. 60,000 is written off in the old ratio:

• Sangeeta = Rs. 60,000 × 2/10 = Rs. 12,000

• Saroj = Rs. 60,000 × 3/10 = Rs. 18,000

• Shanti = Rs. 60,000 × 5/10 = Rs. 30,000

Sangeeta's share of new goodwill:

= Rs. 90,000 × 2/10
= Rs. 18,000

Gaining ratio:

Saroj = 1/2 − 3/10 = 2/10

Shanti = 1/2 − 5/10 = 0

Therefore, Saroj alone gains and compensates Sangeeta.

Journal Entries:

Question 3

Himanshu, Gagan and Naman share profits in the ratio 3:2:1. Naman retires. The assets are revalued as follows:

• Building appreciates by 20%.

• Plant and Machinery depreciates by 10%.

• Provision for doubtful debts is created at 5% of debtors.

• Stock is valued at Rs. 18,000.

• Investments are valued at Rs. 35,000.

Solution:

Profit on Revaluation:

= 20,000 + 5,000 − 4,000 − 1,000 − 2,000
= Rs. 18,000

Distribution in 3:2:1:

• Himanshu = Rs. 9,000

• Gagan = Rs. 6,000

• Naman = Rs. 3,000

Journal Entries:

Question 4

Naresh, Raj Kumar and Bishwajeet are equal partners. Raj Kumar retires. The Balance Sheet shows General Reserve of Rs. 36,000 and a debit balance of Profit and Loss Account of Rs. 15,000. Pass the necessary journal entries.

Solution:

General Reserve is distributed equally:

Rs. 36,000 ÷ 3 = Rs. 12,000 each

P&L debit balance:

Rs. 15,000 ÷ 3 = Rs. 5,000 each

Journal Entries:

Question 5

Digvijay, Brijesh and Parakaram share profits in the ratio 2:2:1. Brijesh retires. Goodwill is valued at Rs. 70,000, bad debts of Rs. 2,000 are written off and patents become valueless. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet.

Solution:

Revaluation loss:

= Bad debts Rs. 2,000 + Patents Rs. 9,000
= Rs. 11,000

Loss distributed in 2:2:1:

• Digvijay = Rs. 4,400

• Brijesh = Rs. 4,400

• Parakaram = Rs. 2,200

Brijesh's share of goodwill:

= Rs. 70,000 × 2/5
= Rs. 28,000

Since Digvijay and Parakaram gain Brijesh's share in the ratio 2:1:

• Digvijay bears = Rs. 18,667

• Parakaram bears = Rs. 9,333

Reserve of Rs. 18,500 is distributed in 2:2:1:

• Digvijay = Rs. 7,400

• Brijesh = Rs. 7,400

• Parakaram = Rs. 3,700

Final Capital Balances:

• Digvijay = Rs. 66,333

• Parakaram = Rs. 67,667

Brijesh's amount is transferred to his Loan Account because a sufficient balance is not available for immediate settlement.

Answer:

• Loss on Revaluation = Rs. 11,000

• Digvijay's Capital = Rs. 66,333

• Parakaram's Capital = Rs. 67,667

• Balance Sheet Total = Rs. 2,74,000

Question 6

Radha, Sheela and Meena share profits in the ratio 3:2:1. Sheela retires. Goodwill is Rs. 13,500, expenses owing are reduced from Rs. 4,500 to Rs. 3,750, machinery and loose tools are reduced by 10%, and factory premises are revalued at Rs. 24,300.

Solution:

Revaluation:

• Expenses owing decrease = Rs. 750 gain

• Factory premises increase = Rs. 1,800 gain

• Machinery decrease = Rs. 800 loss

• Loose Tools decrease = Rs. 400 loss

Profit on Revaluation:

= 750 + 1,800 − 800 − 400
= Rs. 1,350

Distributed in 3:2:1:

• Radha = Rs. 675

• Sheela = Rs. 450

• Meena = Rs. 225

General Reserve of Rs. 13,500:

• Radha = Rs. 6,750

• Sheela = Rs. 4,500

• Meena = Rs. 2,250

Sheela's share of goodwill:

= Rs. 13,500 × 2/6
= Rs. 4,500

Gaining ratio of Radha and Meena = 3:1.

Therefore:

• Radha bears = Rs. 3,375

• Meena bears = Rs. 1,125

Final Capital Balances:

• Radha = Rs. 19,050

• Meena = Rs. 16,350

• Sheela's Loan = Rs. 24,450

Balance Sheet Total = Rs. 71,100

Question 7

Pankaj, Naresh and Saurabh share profits in the ratio 3:2:1. Naresh retires. The revaluation terms include appreciation of premises, depreciation of stock, adjustment of provisions and furniture, goodwill of Rs. 42,000, and a new ratio of 5:1 for Pankaj and Saurabh.

Solution:

As per the NCERT solution:

Profit on Revaluation = Rs. 18,000

Distributed in 3:2:1:

• Pankaj = Rs. 9,000

• Naresh = Rs. 6,000

• Saurabh = Rs. 3,000

Naresh's share of goodwill:

= Rs. 42,000 × 2/6
= Rs. 14,000

Pankaj alone gains Naresh's share under the new ratio, so Pankaj's Capital A/c is debited by Rs. 14,000.

General Reserve of Rs. 12,000:

• Pankaj = Rs. 6,000

• Naresh = Rs. 4,000

• Saurabh = Rs. 2,000

As directed by the question:

• Rs. 26,000 is transferred from Naresh's Capital A/c to his Loan A/c.

• Rs. 28,000 is paid through Bank.

• Bank Loan required = Rs. 20,400.

Final figures as given by NCERT:

• Profit on Revaluation = Rs. 18,000

• Pankaj's Capital = Rs. 47,000

• Saurabh's Capital = Rs. 25,000

• Total amount at credit of Naresh's Capital = Rs. 54,000

• Balance Sheet Total = Rs. 1,54,800

Question 8

Puneet, Pankaj and Pammy share profits in the ratio 2:2:1. Pammy dies on September 30. His capital is Rs. 40,000. The deed provides for his share of reserve, goodwill based on three years' purchase of average profits, profit up to death, drawings and interest on capital.

Solution:

Pammy's share of reserve:

= Rs. 50,000 × 1/5
= Rs. 10,000

Average profit:

= (Rs. 80,000 + Rs. 50,000 + Rs. 40,000 + Rs. 30,000) / 4
= Rs. 50,000

Goodwill:

= Rs. 50,000 × 3
= Rs. 1,50,000

Pammy's share of goodwill:

= Rs. 1,50,000 × 1/5
= Rs. 30,000

Share of profit up to September 30:

= Rs. 30,000 × 6/12 × 1/5
= Rs. 3,000

Interest on capital:

= Rs. 40,000 × 12% × 6/12
= Rs. 2,400

Drawings = Rs. 10,000

Amount due:

= 40,000 + 10,000 + 30,000 + 3,000 + 2,400 − 10,000
= Rs. 75,400

Answer: Total amount due to Pammy's executors = Rs. 75,400.

Question 9

Rockey dies on June 30. The executors are entitled to his capital, interest at 5%, share of goodwill based on twice the average of the past three years' profits, share of profit up to death, and his share of the General Reserve.

Solution:

Capital ratio:

Prateek : Rockey : Kushal
= 30,000 : 20,000 : 20,000
= 3:2:2

Rockey's share = 2/7.

Average profit:

= (12,000 + 16,000 + 14,000) / 3
= Rs. 14,000

Goodwill:

= Rs. 14,000 × 2
= Rs. 28,000

Rockey's share of goodwill:

= Rs. 28,000 × 2/7
= Rs. 8,000

Interest on capital:

= Rs. 20,000 × 5% × 3/12
= Rs. 250

Share of profit:

= Rs. 14,000 × 3/12 × 2/7
= Rs. 1,000

Share of General Reserve:

= Rs. 16,000 × 2/7
= Rs. 4,571

Total amount:

= 20,000 + 250 + 1,000 + 4,571 + 8,000
= Rs. 33,821

Answer: Rockey's Executor's Account = Rs. 33,821.

Question 10

Narang, Suri and Bajaj share profits in the ratio 1/2:1/6:1/3. Bajaj retires. Assets and liabilities are revalued, goodwill is Rs. 21,000, and the continuing partners adjust their capitals in their new ratio.

Solution:

Revaluation:

• Freehold premises gain = Rs. 8,000

• Stock gain = Rs. 3,300

• Machinery loss = Rs. 3,000

• Furniture loss = Rs. 840

• Increase in bad debt provision = Rs. 500

Profit on Revaluation:

= 8,000 + 3,300 − 3,000 − 840 − 500
= Rs. 6,960

Old ratio:

1/2 : 1/6 : 1/3 = 3:1:2

Distribution of revaluation profit:

• Narang = Rs. 3,480

• Suri = Rs. 1,160

• Bajaj = Rs. 2,320

Bajaj's share of goodwill:

= Rs. 21,000 × 1/3
= Rs. 7,000

Gaining ratio of Narang and Suri = 3:1

Therefore:

• Narang bears = Rs. 5,250

• Suri bears = Rs. 1,750

Bajaj's Capital:

= 28,000 + 4,000 + 2,320 + 7,000
= Rs. 41,320

As per the NCERT answer after capital adjustment:

• Narang's Capital = Rs. 49,230

• Suri's Capital = Rs. 16,410

• Bajaj's Capital/Loan = Rs. 41,320

• Profit on Revaluation = Rs. 6,960

Question 11

Rajesh, Pramod and Nishant share profits in proportion to their capitals. Pramod retires. Assets are revalued, goodwill is Rs. 10,000, and the new firm's capital is fixed at Rs. 30,000 in the ratio 3:2. Pramod's balance is transferred to his Loan Account.

Solution:

Old capital ratio:

20,000 : 15,000 : 15,000
= 4:3:3

Revaluation:

• Stock decrease = Rs. 1,550

• Factory Building increase = Rs. 1,440

• Increase in provision for doubtful debts = Rs. 25

• Legal charges provision = Rs. 265

Loss on Revaluation:

= 1,550 + 25 + 265 − 1,440
= Rs. 400

Distribution:

• Rajesh = Rs. 160

• Pramod = Rs. 120

• Nishant = Rs. 120

General Reserve of Rs. 2,750:

• Rajesh = Rs. 1,100

• Pramod = Rs. 825

• Nishant = Rs. 825

Pramod's share of goodwill:

= Rs. 10,000 × 3/10
= Rs. 3,000

Gaining ratio of Rajesh and Nishant = 2:1

Therefore:

• Rajesh bears = Rs. 2,000

• Nishant bears = Rs. 1,000

Pramod's amount:

= 15,000 + 825 − 120 + 3,000
= Rs. 18,705

Therefore, Pramod's Loan Account = Rs. 18,705.

NCERT final figures:

• Loss on Revaluation = Rs. 400

• Rajesh's Capital = Rs. 18,940

• Nishant's Capital = Rs. 14,705

• Pramod's Loan = Rs. 18,705

• Balance Sheet Total = Rs. 65,220

Question 12

Jain, Gupta and Malik share profits in the ratio 5:3:2. Malik retires. Assets are revalued, goodwill is Rs. 9,000, and Rs. 16,500 is paid to Malik in cash. The remaining amount is treated as a loan.

Solution:

Revaluation:

• Stock gain = Rs. 1,900

• Plant and Machinery gain = Rs. 3,300

• Office Furniture loss = Rs. 4,000

• Land and Building loss = Rs. 6,000

• Provision for doubtful debts = Rs. 1,700

Loss on Revaluation:

= 4,000 + 6,000 + 1,700 − 1,900 − 3,300
= Rs. 6,500

Distributed in 5:3:2:

• Jain = Rs. 3,250

• Gupta = Rs. 1,950

• Malik = Rs. 1,300

Accumulated profit of Rs. 16,750:

• Jain = Rs. 8,375

• Gupta = Rs. 5,025

• Malik = Rs. 3,350

Malik's share of goodwill:

= Rs. 9,000 × 2/10
= Rs. 1,800

Gaining ratio of Jain and Gupta = 5:3

Goodwill adjustment:

• Jain = Rs. 1,125

• Gupta = Rs. 675

After the adjustments and cash payment:

• Jain's Capital = Rs. 53,900

• Gupta's Capital = Rs. 69,000

• Malik's Loan = Rs. 7,350

• Balance Sheet Total = Rs. 1,59,300

Question 13

Arti, Bharti and Seema share profits in the ratio 3:2:1. Bharti dies on June 12. Her executors are entitled to her capital, interest, reserve, profit based on sales, goodwill and her share of the gain on sale of investments.

Solution:

Bharti's share = 2/6.

Share of General Reserve:

= Rs. 12,000 × 2/6
= Rs. 4,000

Average profit:

= (8,200 + 9,000 + 9,800) / 3
= Rs. 9,000

Goodwill:

= Rs. 9,000 × 2 × 80%
= Rs. 14,400

Bharti's share of goodwill:

= Rs. 14,400 × 2/6
= Rs. 4,800

Profit on sales:

= Rs. 1,00,000 × 10%
= Rs. 10,000

Bharti's share:

= Rs. 10,000 × 2/6
= Rs. 3,333 approximately

Interest on capital is calculated according to the period specified up to June 12.

Investment gain:

= Rs. 16,200 − Rs. 13,250
= Rs. 2,950

Bharti's share:

= Rs. 2,950 × 2/6
= Rs. 983 approximately

NCERT final answer:

Total amount paid to Bharti's executors = Rs. 23,436.

Question 14

Nithya, Sathya and Mithya share profits in the ratio 5:3:2. Mithya dies on August 1. Goodwill is valued at 2.5 times the average profits of four years. Patents, machinery and premises are revalued, Mithya's share of profit is calculated on the basis of the previous year's profit, and the amount is settled through an immediate payment and four half-yearly instalments.

Solution:

Average profit:

= (13,000 + 12,000 + 16,000 + 15,000) / 4
= Rs. 14,000

Goodwill:

= Rs. 14,000 × 2.5
= Rs. 35,000

Mithya's share of goodwill:

= Rs. 35,000 × 2/10
= Rs. 7,000

Revaluation:

• Patents increase = Rs. 2,000

• Machinery decrease = Rs. 5,000

• Premises increase = Rs. 5,000

Profit on Revaluation:

= 2,000 − 5,000 + 5,000
= Rs. 2,000

Mithya's share = Rs. 400.

Reserve Fund:

= Rs. 6,000 × 2/10
= Rs. 1,200

Mithya's share of profit is calculated using the profit of the previous financial year as specified in the question.

After giving effect to the adjustments and the immediate payment of Rs. 4,200:

Amount transferred to Mithya's Executors' Loan Account = Rs. 25,400

The balance is paid in four equal half-yearly instalments with interest at 10% per annum.

Principal instalment:

= Rs. 25,400 ÷ 4
= Rs. 6,350 per instalment

Interest for each half-year is calculated at 5% of the outstanding principal.

NCERT final answer: Amount transferred to Mithya's Executors' Loan Account = Rs. 25,400.

Death of a Partner Class 12 NCERT Solutions PDF

If you want to revise all the selected solutions together, you can use the Death of a Partner Class 12 NCERT Solutions PDF. Download the PDF and refer to the detailed solutions while practising the chapter.

How to Use Chapter 3 Accountancy NCERT Solutions for Revision?

Solving the questions yourself before checking the solutions can make your revision more useful.

• Attempt Before Checking: Try each numerical on your own before referring to the solution.

• Check the Adjustments: Pay attention to how goodwill, revaluation, reserves, and other adjustments are treated.

• Understand the Working Notes: Do not skip the calculations used to arrive at the final amount.

• Review Your Mistakes: Compare your working with the solution and identify where your approach differed.

• Practise Similar Questions: After understanding a solution, attempt another question based on the same concept.

Practising important numericals can help you understand how different adjustments are combined in Death of a Partner questions.

Use the Class 12 Accountancy Chapter 3 NCERT Solutions to check your calculations, understand the working steps, and revise the chapter before your exams.