12th Accountancy - Book Back Answers - Unit 6 - English Medium Guides ~ Kalvi Tips

12th - Accountancy - Book Back Answers - Unit 6 - English Medium

Tamil Nadu Board 12th Standard Accountancy - Unit 6: Book Back Answers and Solutions

This post covers the book back answers and solutions for Unit 6 – from the Tamil Nadu State Board 12th Standard Accountancy textbook. These detailed answers have been carefully prepared by our expert teachers at KalviTips.com.

We have explained each answer in a simple, easy-to-understand format, highlighting important points step by step under the relevant subtopics. Students are advised to read and memorize these subtopics thoroughly. Once you understand the main concepts, you’ll be able to connect other related points with real-life examples and confidently present them in your tests and exams.

By going through this material, you’ll gain a strong understanding of Unit 6 along with the corresponding book back questions and answers (PDF format).

Question Types Covered:

1 Mark Questions: Choose the correct answer,
2 Mark Questions: Very Short Answer Questions
3, 4, and 5 Mark Questions: Short Answer Questions, Excercises

All answers are presented in a clear and student-friendly manner, focusing on key points to help you score full marks.

All the best, Class 12th students! Prepare well and aim for top scores. Thank you!

Topic: Unit 6 : Retirement And Death Of A Partner

I. Choose the correct Answer

Question 1.
A partner retires from the partnership firm on 30th June. He is liable for all the acts of the firm up to the …………………..
(a) End of the current accounting period
(b) End of the previous accounting period
(c) Date of his retirement
(d) Date of his final settlement
Answer Key:
(c) Date of his retirement

Question 2.
On the retirement of a partner from a partnership firm, accumulated profits and losses are distributed to the partners on the basis of …………………
(a) New profit sharing ratio
(b) Old profit sharing ratio
(c) Gaining ratio
(d) Sacrificing ratio
Answer Key:
(b) Old profit sharing ratio

Question 3.
On the retirement of a partner, general reserve will be transferred to the …………………..
(a) Capital account of all the partners
(b) Revaluation account
(c) Capital account of the continuing partners
(d) Memorandum revaluation account
Answer Key:
(a) Capital account of all the partners

Question 4.
On revaluation, the increase in liabilities leads to
(a) Gain
(b) Loss
(c) Profit
(d) None of these
Answer Key:
(b) Loss

Question 5.
At the time of retirement of a partner, determination of gaining ratio is required …………………..
(a) To transfer revaluation profit or loss
(b) To distribute accumulated profits and losses
(c) To adjust goodwill
(d) None of these
Answer Key:
(c) To adjust goodwill

Question 6.
The final amount due to a retiring partner is not paid immediately, it is transferred to …………………..
(a) Bank A/c
(b) Retiring partner’s capital A/c
(c) Retiring partner’s loan A/c
(d) Other partners’ capital A/c
Answer Key:
(c) Retiring partner’s loan A/c

Question 7.
‘A’ was a partner in a partnership firm. He died on 31st March 2019. The final amount due to him is RS 25,000 which is not paid immediately. It will be transferred to …………………..
(a) A’s capital account
(b) A’s loan account
(c) A’s Executor’s account
(d) A’s Executor’s loan account
Answer Key:
(d) A’s Executor’s loan account

Question 8.
A, B and C are partners sharing profits in the ratio of 2:2:1. On retirement of B, goodwill of the firm was valued as RS 30,000. Find the contribution of A and C to compensate B:
(a) RS 20,000 and RS 10,000
(b) RS 8,000 and RS 4,000
(c) RS 10,000 and RS 20,000
(d) RS 15,000 and RS 15,000
Answer Key:
(b) RS 8,000 and RS 4,000

Question 9.
A, B and C are partners sharing profits in the ratio of 4:2:3. C retires. The new profit sharing ratio between A and B will be ………………….
(a) 4:3
(b) 3:4
(c) 2:1
(d) 1:2
Answer Key:
(c) 2:1

Question 10.
X, Y and Z were partners sharing profits and losses equally. X died on 1st April 2019. Find out the share of X in the profit of 2019 based on the profit of 2018 which showed RS 36,000.
(a) RS 1,000
(b) RS 3,000
(c) RS 12,000
(d) RS 36,000
Answer Key:
(b) RS 3,000

II.Very short answer questions

1. What is meant by retirement of a partner?

When a partner leaves from a partnership firm, it is known as retirement. The reasons for the retirement of a partner may be illness, old age, better opportunity elsewhere, disagreement with other partners, etc.

2. What is gaining ratio?

T he continuing partners may gain a portion of the share of profit of the retiring partner. The gain may be shared by all the partners or some of the partners.
Share gained = New share – Old share
Gaining ratio = Ratio of share gained by the continuing partners

3. What is the purpose of calculating gaining ratio?

The purpose of finding the gaining ratio is to bear the goodwill to be paid to the retiring partner.
Share gained = New share – Old share
Gaining ratio = Ratio of share gained by the continuing partners

4. What is the journal entry to be passed to transfer the amount due to the deceased partner to the executor of the deceased partner?

Date

Particulars

L.F

Debit

Credit

Deceased partner’s capital A/c Dr.

To Deceased partner’s executor A/c

xxx

III. Short answer questions

1. List out the adjustments made at the time of retirement of a partner in a partnership firm.

Distribution of accumulated profits, reserves and losses
Revaluation of assets and liabilities
Determination of new profit-sharing ratio and gaining ratio
Adjustment for goodwill
Adjustment for current year’s profit or loss up to the date of retirement
Settlement of the amount due to the retiring partner

2. Distinguish between sacrificing ratio and gaining ratio.

Basis	Sacrificing ratio	Gaining ratio
1. Meaning	It is the proportion of the profit which is sacrificed by the old partners in favour of a new partner.	It is the proportion of the profit which is gained by the continuing partners from the retiring partner.
2. Purpose	It is calculated to determine the amount to be adjusted towards goodwill for the sacrificing partners.	It is calculated to determine the amount to be adjusted towards goodwill for the gaining partners.
3. Time of calculation	It is calculated at the time of admission of a new partner.	It is calculated at the time of retirement of a partner.
4. Method of calculation	Sacrificing ratio = Old profit sharing ratio – New profit sharing ratio	Gaining ratio = New profit sharing ratio - Old profit sharing ratio

3. What are the ways in which the final amount due to an outgoing partner can be settled?

Paying the entire amount due immediately in cash
Transfer the entire amount due, to the loan account of the partner
Paying part of the amount immediately in cash and transferring the balance to the loan account of the partner.

IV. Excercises

12th Accountancy