Q. 74 DK Goel Retirement of Partner Solutions Class 12 CBSE (2024-25)

Here are the solutions of Question number 74 of Retirement of Partner chapter 5 of DK Goel Class 12 CBSE (2024-25)

You are given the Balance Sheet of A, B and C who are partners sharing profits in the ratio of 2 : 2 : 1 as at March 31, 2022.

Liabilities	₹	Assets	₹
Creditors	40,000	Goodwill	30,000
Reserve Fund	25,000	Fixed Assets	60,000
Capitals: A B C	30,000 25,000 15,000	Stock	10,000
		Sundry Debtors	20,000
		Cash at Bank	15,000
	1,35,000		1,35,000

B died on June 15, 2022. According to the deed, his legal representatives are entitled to:

(a) Balance in Capital Account;

(b) Share of goodwill valued on the basis of thrice the average of the past 4 year’s profits;

(c) Share in profits up to the date of death on the basis of average profits for the past 4 years;

(d) Interest on capital account @ 12% p.a.

Profits for the years ending on March 31 of 2019, 2020, 2021, 2022 respectively were ₹ 15,000, ₹ 17,000, ₹ 19,000 and ₹ 13,000.

B’s legal representatives were to be paid the amount due. A and C continued as partners by taking over B’s share equally. Work out the amount payable to B’s legal representatives.

[Ans. Amount paid to B’s representatives ₹ 44,158.]

Hints: (1) Share in profits for 2.5 months ₹ 1,333.

(2) B’s share of profit ₹ 1,333 will be credited to B and debited to A and C in their gaining ratio i.e., equally.

Solution:-