[DK Goel] Q. 71, 72 Retirement of Partner Solutions Class 12 CBSE (2026-27)

Here are the solutions of Question number 71 and 72 of Retirement of Partner chapter 5 of DK Goel Class 12 CBSE (2026-27)

Q. 71. A, B and C are in partnership, sharing profits in the proportion of two-thirds, one-sixth and one-sixth respectively.

A died on the 30th June, 2022, three months after the annual accounts had been prepared and in accordance with the partnership agreement, his share of the profits to the date of death was estimated on the basis of the profit for the preceding year. in addition to this, the agreement provided for interest on capital at 5 percent per annum on the balance standing to the credit of the capital account at the date of the last Balance Sheet, and also for goodwill, which was to be brought into account at two year’s purchase of the average profits for the last three years.

A’s Capital on 31st March, 2022 stood at ₹ 1,20,000, and his drawings from then to the date of death amounted to ₹ 9,000.

The net profits of the business for the three preceding years amounted to ₹ 33,500; ₹ 41,500 and ₹ 40,500, respectively.

You are required to prepare A’s Capital Account as at the date of death, for a settlement with his executors.

[Ans. Amount payable to A’s executors ₹ 1,70,583].

Solution:-

Q. 72. 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:-