Answer in one sentence only. Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

 

Answer in one sentence only.

 

What is the gain ratio?

The profit-sharing ratio which is acquired by the surviving or continuing partners on account of the death of any partner is called gain ratio or benefit ratio.

 

In which ratio General Reserve is distributed on death of a partner?

General reserve is distributed on the death of a partner in their old profit sharing ratio.

 

To whom you distribute General Reserve on the death of a partner?

On death of a partner general reserve is distributed among all partners in their old profit and loss ratio.

 

How the death of a partner is a compulsory retirement?

After the death of a partner, business is not able to get any kind of services from a deceased partner and so we can say that the death of a partner is like a compulsory retirement.

 

To which account Profit is to be transferred upto the date of his death?

Profit of the deceased partner, up to the date of his death, is transferred to his Legal Heir's/Executor's Account.

Fill in the blank and rewrite the following sentence. Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

 

Fill in the blank and rewrite the following sentence.

 

Deceased partner's executor's account is shown on the Liabilities side of the Balance Sheet.

 

On the death of a partner, a ratio in which the continuing partners get more share of profits in the future is called as Gain ratio.

 

Deceased partner's share of profit up to the death is shown on assets side of the Balance Sheet.

 

Benefit ratio = New Ratio Old ratio

When Goodwill is raised at its full value and it is written off   Goodwill account is to be credited.

State whether the following statement is True or False with reason. Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

 

Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

  

State whether the following statement is True or False with reason.

  

A deceased partner is not entitled to the Goodwill of the firm. - False

Reason.

A deceased partner's contribution was there in the development of business and goodwill is the value of the business in terms of money. Hence, a deceased partner is entitled to receive the goodwill of the firm.

  

A deceased partner is entitled to his share of General Reserve.- True.

Reason

General reserve is created out of past undistributed profit. Past profit is earned due to the efforts and hard work of all the partners including a partner who is now dead. Hence a deceased partner has right on it and therefore a deceased partner is entitled to receive his share of General reserve.

 

If Goodwill is written off a deceased partner's capital account is debited. - False

Reason

When the benefits of goodwill are given to the deceased partner, his capital account is credited and when such goodwill is written off, capital accounts of remaining partners are debited.

  

After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner.- True.

Reason

After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner as he is the only person who has legal right on that amount.

  

For recording the Profit or Loss up to the date of death, Profit and Loss Appropriation Account is operated.- False.

Reason

For recording the profit or loss up to the death, Profit and Loss suspense Account is created and operated. This is because final accounts cannot be prepared on the date of the death of a partner. Till that period a separate account called Profit and Loss Suspense A/c is prepared.

Write a word, term, phrase, which can substitute the following statement Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

 

Write a word, term, phrase, which can substitute the following statement.

 

Excess of credit side over the debit side of profit and loss adjustment account.- Profit

 

Debit balance of Realisation account -Realisation Loss

 

A Person who represents the deceased partner on the death of the Partner.- Legal Heir's or Executor

 

Accumulated past profit kept in the form of reserve.- Reserve fund or General reserve.

 

The Partner who died.- Deceased partner.

 

The proportion in which the continuing partners benefit due to the death of a partner.- Gain/Benefit ratio

Select the most appropriate answer from the alternative given below and rewrite the sentence. Chapter 5 - Reconstitution of Partnership Death of Partner Latest edition

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board 

 

Chapter 5 - Reconstitution of Partnership (Death of Partner) [Latest edition]

 

Select the most appropriate answer from the alternative given below and rewrite the sentence.

 

Benefit Ratio is the Ratio in which _______________

The old partner gain on the admission of a new partner

The Goodwill of a new partner on admission is credited to old partners

The continuing partner's benefits on retirement or death of a partner

All partners are benefited

  

The ratio by which existing partners are benefited __________ 

Gain Ratio

Sacrifice Ratio

Profit Ratio

Capital Ratio

  

Profit and Loss Suspense Account is shown in the new Balance Sheet on _______________ side.

  

Debit

Credit

Asset

Liabilities

 

Death is a compulsory_____________

  

Dissolution

Admission

Retirement

Winding-up

 

The balance on the capital account of partners, on his death, is transferred to____________ account.

  

Relatives

Legal Heir's loan / Executors loan

Partner's capital

Partners Loan