Class 12 Accounts | Partnership Accounting| Death of a Partner | Master Question - All Adjustments скачать в хорошем качестве

Class 12 Accounts | Partnership Accounting| Death of a Partner | Master Question - All Adjustments

Topic: Death of a Partner – All Adjustments with Master Question Welcome to Lecture 48 of the Partnership Accounting Series for Class 12th. In this session, CA Shivam Mittal explains one of the most crucial topics of partnership accounting – Death of a Partner. This concept is equally important for CBSE, RBSE, and other State Boards, as well as for students preparing for CA Foundation and other commerce exams. 🔹 Introduction to Death of a Partner In a partnership firm, the death of a partner results in a change in the partnership agreement and the relationship among the partners. Unlike retirement, death is uncertain, so special accounting treatment is required. The deceased partner is entitled to his share of profits, goodwill, reserves, revaluation gains/losses, and settlement of capital account up to the date of death. His dues are usually transferred to the Executor’s Account, which is then settled by the firm. 🔹 Important Adjustments on Death of a Partner When a partner dies, the following adjustments are necessary: Revaluation of Assets and Liabilities A Revaluation Account is prepared. Any profit/loss is transferred to all partners in their old ratio, including the deceased partner. Distribution of Reserves and Accumulated Profits/Losses General Reserve, Profit & Loss A/c (credit balance), and Workmen Compensation Reserve (after necessary adjustment) are distributed in old ratio. Goodwill Adjustment The deceased partner is entitled to his share of goodwill. Surviving partners compensate in their gaining ratio. Share of Profit till the Date of Death Since final accounts are not prepared, profit is estimated: On the basis of last year’s profit, or On average profit of past years, or On turnover basis. Interest on Capital and Salary If partnership deed provides, interest on capital and salary is calculated up to the date of death. Joint Life Policy (JLP) Treatment If firm has JLP, the amount received is credited to partners in the ratio decided by the agreement. Deceased partner gets his share. Settlement of Capital Account Deceased partner’s capital account is credited with: Share of revaluation profit, reserves, goodwill, profit up to date of death, interest, salary. Debited with: Share of revaluation loss, drawings, interest on drawings. Balance is transferred to Executor’s Account. 🔹 Executor’s Account Executor is the legal representative of the deceased partner. The firm transfers the balance of deceased partner’s capital account to Executor’s Account. Payment may be immediate or in installments with interest. 🔹 Master Question – Comprehensive Illustration To strengthen your understanding, we solve a Master Question that includes all adjustments: Revaluation of assets & liabilities Goodwill adjustment Distribution of reserves Profit up to date of death Interest on capital & salary Settlement of Executor’s Account This approach ensures that you are exam-ready for any type of question from this chapter. ✔️Why study from Education insights? Education insights is an online education platform that helps give You NCERT/CBSE curriculum-based free full courses. so that you can perform well in any and all exams you give in your academic career. 👉 Contact us ➡️ Connect with us: ceoeducationinsights@gmail.com ➡️ Instagram:   / educationinsights   ➡️ Facebook:   / educationinsights-457474148332755   You can download our app 'EDUCATION INSIGHTS' from play store. Link for app: https://yeeuy.on-app.in/app/home?orgC... You can buy our book from amazon: Link : https://www.amazon.in/dp/B0CTH87DQY?r... #accountssolutions #partnershipaccounting #deathofapartner #partnershipaccounting #deathofapartenrpartneshipaccounting #partnershipaccounting