Question 30 Chapter 6 - Unimax Class 12 Part 1 - 2021

For the purpose of P’s retirement, it was agreed that:

1. Building be revalued at ₹ 24000 and Plant and Equipment at ₹ 15800.
2. The provision for bad debts was to be increased by ₹400.
3. A provision of ₹ 500 included in creditors was no longer to be repaid.
4. ₹1200 was to be written off from the stock in respect of damaged items
   included there in.
5. A provision of ₹4240 made in respect of outstanding legal charges.
6. The goodwill of the firm to be valued at ₹14400.

• You are required to prepare revaluation account, capital a d current accounts of partners, balance sheet of Q, R as on 1st April 2021.

The solution of Question 30 Chapter 6 - Unimax Class 12 Part 1: -

Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To plant and machinery		3,000	By building	12,000
To provision for bad debts		400	By creditors	500
To stock		1200
To provision for outstanding legal charges		4,240
To profit on revaluation transferred to current a/c
P (3/6)	1830
Q (2/6)	1220
R (1/6)	610	3,660
		12,500		12,500

Partners current accounts

Particulars	P	Q	R	Particulars	P	Q	R
To P’s current a/c		4,800	2,400	By Balance b/d	1,920	1,680	1,120
To cash a/c	10,950			By revaluation a/c (profit)	1,830	12,220	610
				By Q’s current a/c	4,800
				By R’s current a/c	2,400
				By balance c/d		1,900	670
	10,950	4,800	2,400		10,950	4,800	2,400

Partners capital accounts

Particulars	P	Q	R	Particulars	P	Q	R
To P’s loan a/c	24,000			By Balance b/d	24,000	12,000	6,000
To balance c/d		12,000	6,000
	24,000	12,000	6,000		24,000	12,000	6,000

Balance sheet (After retirement)

Liabilities	Amount	Assets		Amount
Creditors	15,100	Building		24,000
P’s loan a/c	24,000	Plant and machinery		15,800
Q’s capital a/c	12,000	Stock		8,000
R’s capital a/c	6,000	Debtors	12,400
Outstanding legal charges	4,240	(-) prov.	1,600	10,800
		Cash at Bank (16120-5000-10950)		170
		Q’s current a/c		1,900
		R’s current a/c		670
	61,340			61,340

https://tutorstips.com/retirement-of-a-partner-explained-with-illustration/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication