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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A, B and C were partners in a firm sharing profits equally. A died on 31st March, 2025, and the Balance Sheet of the firm on that date showed Creditors ₹7,000, General Reserve ₹27,000, Workmen’s Compensation Reserve ₹10,000, Profit & Loss Account (Cr.) ₹6,000, Capitals – A ₹40,000, B ₹30,000, C ₹20,000; Cash at Bank ₹12,000, Debtors ₹32,000, Furniture ₹30,000, Plant ₹40,000, Patents ₹8,000, Deferred Advertisement Expenditure ₹18,000. On A’s death it was found that Patents were valueless, Furniture was to be brought down to ₹24,000, Plant was to be reduced by ₹10,000, and there was a liability of ₹7,000 on account of Workmen’s Compensation. Pass the necessary Journal entries for the above at the time of A’s death. (CBSE 2019, Modified)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Revaluation A/c Dr. | 24,000 | |||
| To Patents A/c | 8,000 | |||
| To Furniture A/c | 6,000 | |||
| To Plant A/c | 10,000 | |||
| (Decrease in value of assets debited to Revaluation A/c) | ||||
| A’s Capital A/c Dr. | 8,000 | |||
| B’s Capital A/c Dr. | 8,000 | |||
| C’s Capital A/c Dr. | 8,000 | |||
| To Revaluation A/c | 24,000 | |||
| (Loss on revaluation transferred to partners’ capitals in the ratio 1 : 1 : 1) | ||||
| General Reserve A/c Dr. | 27,000 | |||
| To A’s Capital A/c | 9,000 | |||
| To B’s Capital A/c | 9,000 | |||
| To C’s Capital A/c | 9,000 | |||
| (General Reserve distributed in the ratio 1 : 1 : 1) | ||||
| Workmen’s Compensation Reserve A/c Dr. | 10,000 | |||
| To Workmen’s Compensation Claim A/c | 7,000 | |||
| To A’s Capital A/c | 1,000 | |||
| To B’s Capital A/c | 1,000 | |||
| To C’s Capital A/c | 1,000 | |||
| (Workmen’s Compensation Reserve distributed in the ratio 1 : 1 : 1 after setting aside the claim) | ||||
| A’s Capital A/c Dr. | 6,000 | |||
| B’s Capital A/c Dr. | 6,000 | |||
| C’s Capital A/c Dr. | 6,000 | |||
| To Deferred Advertisement Expenditure A/c | 18,000 | |||
| (Deferred Advertisement Expenditure written off in the ratio 1 : 1 : 1) | ||||
| Profit & Loss Appropriation A/c Dr. | 6,000 | |||
| To A’s Capital A/c | 2,000 | |||
| To B’s Capital A/c | 2,000 | |||
| To C’s Capital A/c | 2,000 | |||
| (Accumulated profit distributed in the ratio 1 : 1 : 1) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 6 Q.29 - Death of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 6 - Death of a Partner.
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