Question 35 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 35 Chapter 6 - Unimax Class 12 Part 1 - 2021

35. The balance sheet of X, Y and Z who are sharing profits in proportion to their capital stood as follows on 31st December 2021.

Liabilities		Amount	Assets		Amount
Sundry creditors		3,500	Cash at Bank		780
Capital			Debtors	2,500
X		12500	Less:prov. For d.d.	50	2,450
Y		10,000	Stock		5,000
Z		7,500	Plant and machinery		5,750
			Land and building		12,500
		33,500			33,500

Y retires and the following adjustments of assets and liabilities have been agreed upon
Stock be depreciated by 5%. That provision for doubtful debts be increased to 6%on Debtors. Land and building be appropriated by 20%. Goodwill of the firm be fixed at₹8100 and Y’s share of the same be adjusted into the account of X and Z (no Goodwill account to be raised). Prepare revaluation account, Partners capital accounts and revised
balance sheet after Y’s retirement. 

The solution of Question 35 Chapter 6 - Unimax Class 12 Part 1: -

Revaluation account

Particulars		Rs.	Particulars	Rs.
To stock a/c		250	By land and building a/c	2,500
To provision for d.d. a/c		100
To profit on revaluation
X	896
Y	717
Z	537	2,150
		2,500		2,500

Partners Capital accounts

Particulars	X	Y	Z	Particulars	X	Y	Z
To Y’s capital a/c	1687		1,013	By balance c/d	12,500	10,000	7,500
To Y’s loan a/c		13,417		By profit on revaluation	896	717	537
To balance c/d	11,709		7,024	By X’s capital a/c		1,687
				By Z’s capital a/c		1,013
	13,396	13,417	8,037		13,396	13,417	8,037

Balance sheet 

Liabilities		Amount	Assets		Amount
Sundry creditors		3,500	Cash (18000-42650-48200-2450)		7,800
Capital			Debtors	2,500
X	11,709		(-)reserves	150	2,350
Z	7,024	18,733	Stock		4,750
Outstanding claim		13,417	Plant and machinery		5,750
			Land and building		15,000
		35,650			35,650

 

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