T.S. Grewal Class 12 Chapter 6 Q.22 - Death of a Partner

Question 22

Akhil, Bikram and Charu were partners sharing profits and losses in the ratio of 3 : 2 : 1. Bikram died on 30th September, 2024. Loss from the beginning of the accounting year till the date of death was estimated at ₹3,60,000. Akhil and Charu decided to share future profits in the ratio of 3 : 2 with effect from 1st October, 2024. Pass the necessary Journal entry to record Bikram’s share of loss up to the date of death.

Solution

Bikram’s share of loss = 3,60,000 × 2/6 = ₹1,20,000.

JOURNAL

Date	Particulars	L.F.	Dr. (₹)	Cr. (₹)
2024 Sep 30	Bikram’s Capital A/c    Dr.		1,20,000
	To Akhil’s Capital A/c			36,000
	To Charu’s Capital A/c			84,000
	(Bikram’s share of loss borne by the gaining partners Akhil and Charu in gaining ratio 3 : 7)

Working Note (Gaining Ratio): Old shares Akhil = 3/6, Charu = 1/6. New ratio (w.e.f. 1st October, 2024) Akhil : Charu = 3 : 5. Akhil’s gain = 3/5 – 3/6 = 3/30; Charu’s gain = 2/5 – 1/6 = 7/30 → Gaining Ratio = 3 : 7. Akhil’s share = 1,20,000 × 3/10 = ₹36,000; Charu’s share = 1,20,000 × 7/10 = ₹84,000.