Question 44 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 44 Chapter 6 - Unimax Class 12 Part 1 - 2021

44. X and Y are partners. The partnership deed provides inter alia:

1. The a/cs be balanced on 31st December, in each year.
2. The The profits be divided as follows: X one-half, Y one-third and carried to a reserve account one-sixth.
3. That in the event of death partner, his executors be entitled to be paid out:
   1.  The capital to his credit at date of death.
   2. His proportion of profit to date of death based on the average profits of the last three completed years.
   3. By way of Goodwill, his proportion of the total profits for the three preceding years.

Liabilities		Amount	Assets	Amount
Capital a/c			Sundry assets	21,000
X	9,000
Y	6,000	15,000
Reserve		3,000
Creditors		3,000
		21,000		21,000

The profits for three years were 2019 ₹ 4200, 2020 ₹ 3900, 2021 ₹ 4500. Y died on 1st May , 2022. Prepare the necessary accounts.

The solution of Question 44 Chapter 6 - Unimax Class 12 Part 1: -

B's capital account

Particulars	Amount	Assets	Amount
To drawings a/c	2,000	By Balance b/d	20,000
To int. on drawings a/c 2000×5/100	100	By JLP a/c 18000×1/3	6,000
To B’s executors loan a/c	32,500	By salary a/c	1,600
		By A‘s capital a/c	1500
		By C’s capital a/c	1,500
		By Interest on capital a/c 20000×5/100	1,000
		By P/L app. a/c 9000×1/3	3,000
	34,600		34,600

1) B’s share of G.W.=8000/3+ 24000/3 -5000/3 ×1/3 = ₹27000/3×1/3 = ₹ 3000.

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