Q.No.59 | Chapter 6 – Retirement/Death of a Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 59 Chapter 6 of +2-A

59. X, Y and Z were partners sharing profits and losses in the ratio of 3: 2: 1. Y died on 30th June 2018. Profit from 1st April 2018 to 30th June 2018 was 3,60,000. X and Z decided to share the future profits in the ratio of 3: 2 respectively with effect from 1st July 2018. Pass the necessary journal entries to record Y's share of profit up to the date of death.

 

The solution of Question 59 Chapter 6 of +2-A: -

Date	Particulars		L.F.	Debit	Credit
	X’s Capital A/c	Dr.		36,000
	Z’s Capital A/c	Dr.		84,000
	To Y’s Capital A/c				1,20,000
	(Being Proportionate profit dispensed to deceased partner)

 

Working Notes:

Y's share=Firm's Profit × Y's Profit Share

Y's share	=	3,60,000	X	2
				6
	=	1,20,000

Calculation of Gaining Ratio

X's gain	=	3	-	3
		5		6
	=	3
		30

 

Z’s Share	=	2	-	1
		5		6
	=	7
		30

 

 

X's share	=	1,20,000	X	3
				10
	=	36,000

 

Z's share	=	1,20,000	X	7
				10
	=	84,000

 

 

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

 

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