Question 83 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 83 Chapter 6 of +2-A

Question 83 Chapter 6 of +2-A

83. X, Y and Z were partners in a firm sharing profits in the ratio of 2: 2: 1. On 31st March 2018, their Balance Sheet was as follows:

Liabilities   Amount Assets Amount
Trade Creditors   1,20,000 Cash at Bank 1,80,000
Bills Payable   80,000 Stock 1,40,000
General Reserve   60,000 Sundry Debtors 80,000
Capital A/cs:      Building 3,00,000
X 7,00,000   Advance to Y 7,00,000
Y 7,00,000   Profit and Loss A/c 3,20,000
Z 60,000 14,60,000    
    17,20,000   17,20,000

Y died on 30th June 2018. The Partnership Deed provided for the following on the death of a partner:
i Goodwill of the business was to be calculated on the basis of 2 times the average profit of the past 5 years. Profits for the years ended 31st March, 2018, 31st March, 2017, 31st March, 2016, 31st March, 2015 and 31st March, 2014 were 3,20,000 Loss; 1,00,000; 1,60,000; 2,20,000 and 4,40,000 respectively.
ii Y’s share of profit or loss from 1st April 2018 till his death was to be calculated on the basis of the profit or loss for the year ended 31st March 2018. You are required to calculate the following:
a Goodwill of the firm and Y’s share of goodwill at the time of his death.
b Y’s share in the profit or loss of the firm till the date of his death.
c Prepare Y’s Capital Account at the time of his death to be presented to his executors.

 

The solution of Question 83 Chapter 6 of +2-A: –

 

Y’s Capital Account
Particular
Amount Particular Amount
Profit & Loss A/c 1,28,000 Balance b/d 7,00,000
Profit & Loss Suspense Share of Loss 32,000 General Reserve 24,000
Advance to Y 7,00,000 X’s Capital A/c   64,000
      Z’s Capital A/c   32,000
    8,20,000     8,20,000

Working Notes:

Calculation of Share in General Reserve

Reserve = 60,000 X 2
5
         
  = Rs 24,000    

 

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)

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

2 Book 1 min - Question 83 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 82 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 82 Chapter 6 of +2-A

Question 82 Chapter 6 of +2-A

82. X, Y and Z are partners in firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March 2018 was as follows:

Liabilities   Amount Assets   Amount
Sundry Creditors   18,000 Goodwill   12,000
Investments Fluctuation Reserve   7,000 Patents   52,000
Workmen Compensation Reserve   7,000 Machinery   62,400
Capital A/cs:     Investment   6,000
X 1,35,000   Stock   20,000
Y 95,000   Sundry Debtors 24,000  
Z 74,000 3,04,000 Less: Provision for Doubtful Debts 4,000 20,000
      Loan to Z   1,000
      Cash at Bank   600
      Profit and Loss A/c   1,50,000
      Z’s Drawings   12,000
    3,36,000     3,36,000

Z died on 1st April 2018, X and Y decide to share future profits and losses in the ratio of 3: 5. It was agreed that:
i Goodwill of the firm be valued 212 years’ purchase of average of four completed years’ profits which were: 2014-15— 1,00,000; 2015-16— 80,000; 2016-17— 82,000.
ii Stock is undervalued by 14,000 and machinery is overvalued by 13,600.
iii All debtors are good. A debtor whose dues of 400 were written off as bad debts paid 50% in full settlement.
iv Out of the amount of insurance premium debited to Profit and Loss Account, 2,200 be carried forward as prepaid insurance premium.
v 1,000 included in Sundry Creditors is not likely to arise.
vi A claim of 1,000 on account of Workmen Compensation to be provided for. vii Investment is sold for 8,200 and a sum of 11,200 be paid to executors of Z immediately. The balance to be paid in four equal half-yearly instalments together with interest @ 8% p.a. at half-year rest.
Show Revaluation Account, Capital Accounts of Partners and the Balance Sheet of the new firm

 

 

The solution of Question 82 Chapter 6 of +2-A: –

 

Revaluation Account
Particular
Amount Particular Amount
Machinery 13,600 Creditors 1,000
    Stock 14,000
    Provision for Doubtful Debts   4,000
Profit transferred to:     Investment   2,200
X’s Capital A/c 5,000   Bad Debts Recovered   200
Y’s Capital A/c 3,000   Prepaid Insurance   2,200
Z’s Capital A/c 2,000 10,000      
    23,600     23,600

 

Partners’ Capital Account
Part. X Y Z

Part.

X Y Z
To Goodwill A/c 6,000 3,600 2,400 By Balance B/d 1,35,000 95,000 74,000
To Drawing A/c 12,000 By Revaluation A/c 5,000 3,000 2,000
To Profit & Loss A/c 75,000 45,000 30,000 By IFR 3,500 2,100 1,400
To X’s Capital A/c 8,750 By Y’s Capital A/c 8,750 14,000
To Z ’s Capital A/c 14,000 By WFC 3,000

1,800

1,200
To Loan to Z     1,000 By P & L Suspense A/c 35,000
To Executors A/c     47,200        
To Balance c/d 74,250 30,550        
  1,55,250 1,01,900 92,600   1,55,250 1,01,900 92,600

 

Z’s Executors Account
Particular Amount Particular Amount
Bank A/c 11,200 Z’s Capital A/c 47,200
Z’s Executors Loan Account 36,000    
  47,200     47,200

 

Balance Sheet
Liabilities
Amount Assets Amount
Creditors 17,000 Patents   52,000
Z’s Executors Loan A/c 36,000 Machinery   48,800
Workmen Compensation Claim   1,000 Stock   34,000
Capital:     Debtors   24,000
X 74,250   Prepaid Insurance   2,200
30,550 30,550    
Bank Overdraft 600 + 8,200- 11,200 + 200   2,200    
    1,61,000     1,61,000

 

 

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)

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

2 Book 1 min - Question 82 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 81 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 81 Chapter 6 of +2-A

Question 81 Chapter 6 of +2-A

81. X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3 : 2: 1. Z died on 30th June 2018. The Balance Sheet of the firm as at that 31st March 2018 is as follows:

Liabilities   Amount Assets Amount
X’s Capital A/c 2,40,000   Machinery 2,40,000
Y’s Capital A/c 1,60,000   Furniture 1,50,000
Z’s Capital A/c 80,000 4,80,000 Investments 40,000
X’s Current A/c   16,000 Stock 64,000
Y’s Current A/c   5,000 Sundry Debtors 50,000
Reserve   60,000 Bills Receivable 22,000
Bills Payable   34,000 Cash at Bank 37,000
Sundry Creditors   40,000 Cash in Hand 22,000
      Z’s Current A/c 10,000
    6,35,000   6,35,000

 

The following decisions were taken by the remaining partners:
a A Provision for Doubtful Debts is to be raised at 5% on Debtors.
b While Machinery to be decreased by 10%, Furniture and Stock are to be appreciated by 5% and 10% respectively.
c Advertising Expenses 4,200 are to be carried forward to the next accounting year and, therefore, it is to be adjusted through the Revaluation Account.
d Goodwill of the firm is valued at 60,000.
e X and Y are to share profits and losses equally in future.
f Profit for the year ended 31st March 2018 was 8,16,000 and Z’s share of profit till the date of death is to be determined on the basis of profit for the year ended 31st March 2018.
g The Fixed Capital Method is to be converted into the Fluctuating Capital Method by transferring the Current Account balances to the respective Partners’ Capital Accounts. Prepare the Revaluation Account, Partners’ Capital Accounts and prepare C’s Executors’ Account to show that C’s Executors were paid in two half-yearly instalments plus interest of 10% p.a. on the unpaid balance.
The first instalment was paid on 31st December 2018.

 

 

The solution of Question 81 Chapter 6 of +2-A: –

 

Revaluation Account
Particular
Amount Particular Amount
Machinery 1,00,000 Furniture 7,500
Provision for Doubtful Debts 2,500 Stock 6,400
    Prepaid Advertisement Expenses   4,200
      Loss transferred to    
      X’s Capital A/c 4,200  
      Y’s Capital A/c 2,800  
      Z’s Capital A/c 1,400 8,400
    26,500     26,500

 

Partners’ Capital Account
Part. X Y Z

Part.

X Y Z
To Current A/c 10,000 By Balance B/d 2,40,000 1,60,000 80,000
To Revaluation A/c 4,200 2,800 1,400 By Current A/c 16,000 5,000
To Z’s Capital A/c 10,000 By Reserve 30,000 20,000 10,000
To Z’s Capital A/c 34,000 By Y’s Capital A/c 34,000
To Executors A/c 1,22,600 By Y’s Capital A/c

10,000
           
To Balance c/d 2,81,800 1,38,200        
  2,86,000 1,85,00 1,34,000   2,86,000 1,85,00 1,34,000

 

T’s Executor’s Account
Date Particular Amount Date Particular Amount
2018          
Dec. 31 To Bank A/c 61,300 + 6,130 67,430 Jun. 30 By Z’s Capital A/c 1,22,600
2019          
Mar. 31 To Balance c/d 62,832.5 Dec. 31 By Interest (1,22,600×10100×612   6,130
      Mar. 31 By Interest (61,300×10100×312)   1,532.5
    1,30,262.5       1,30,262.5
2019            
Jun. 30 To Bank 61,300 + 3,065 28,750 April 01 By Balance b/d   62,832.5
2020            
Jan. 31 To Cash A/c 25,000 + 2,500 27,500 Jun. 30 By Interest (61,300×10100×312   1,532.5
             
             
    64,365       64,365

 

 

Working Notes:

Calculation of Profit & Loss Suspense

Profit & loss Suspense = 8,16,000 X 1 X 6
3 12
             
  = Rs 34,000        

 

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)

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

2 Book 1 min - Question 81 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 80 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 80 Chapter 6 of +2-A

Question 80 Chapter 6 of +2-A

80. X, Y and Z were partners in a firm sharing profits and losses in the 5 : 4 : 3. Their Balance Sheet on 31st March, 2018 was as follows:

Liabilities   Amount  Assets Amount
Creditors   2,00,000 Building 2,00,000
Employees’ Provident Fund   1,50,000 Machinery 3,00,000
General Reserve   36,000 Furniture 1,10,000
Investment Fluctuation Reserve   14,000 Investment Market value 86,000 1,00,000
Capital A/cs:     Debtors 80,000
X 3,00,000   Cash at Bank 1,90,000
Y 2,50,000   Advertisement Suspense 1,20,000
Z 1,50,000 7,00,000    
    11,00,000   11,00,000

X died on 1st October 2018 and Y and Z decide to share future profits in the ratio of 7: 5. It was agreed between his executors and the remaining partners that:
i Goodwill of the firm be valued at 212 years’ purchase of average of four completed years’ profit which were:

Years 2014-15 2015-16 2016-17 2017-18
Profit 1,70,000 1,80,000 1,90,000 1,80,000

ii X’s share of profit from the closure of last accounting year till date of death be calculated on the basis of last years’ profit.
iii Building undervalued by 2,00,000; Machinery overvalued by 1,50,000 and Furniture overvalued by 46,000.
iv A provision of 5% be created on Debtors for Doubtful Debts.
v Interest on Capital to be provided at 10% p.a.
vi Half of the net amount payable to X’s executor was paid immediately and the balance was transferred to his loan account which was to be paid later.
Prepare Revaluation Account, X’s Capital Account and X’s Executor’s Account as on 1st October, 2018.

 

The solution of Question 80 Chapter 6 of +2-A: –

 

Revaluation Account
Particular Amount Particular Amount
To Machinery 1,50,000 By Building 2,00,000
To Furniture 46,000    
To Provision for Doubtful Debts 4,000     27,000
  2,00,000     2,00,000

 

X’s Capital Account
Particular Amount Particular Amount
To Advertisement Suspense A/c 50,000 By Balance b/d 3,00,000
To X’s Executors A/c 5,05,000 By General Reserve 15,000
    By Y’s Capital A/c   1,12,500
    By Z’s Capital A/c   75,000
    By Profit & Loss Suspense   37,500
    By Interest on Capital   15,000
  5,55,000     5,55,000

 

X’s Executors Account
Particular Amount Particular Amount
To Bank A/c 2,52,500 By X’s Capital A/c 5,05,000
To X’s Executors Loan Account 2,52,500    
  5,05,000     5,05,000

 

Working Notes:

Calculation of Share in General Reserve

Reserve = 36,000 X 5
12
         
  = Rs 15,000    

 

Calculation of Interest on Capital

Interest on capital = 3,00,000 X 10 X 6
100 12
             
  = Rs 15,000        

Calculation of Profit & Loss Suspense

Profit & Loss Suspense = 1,80,000 X 5 X 6
12 12
             
  = Rs 37,500        


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)

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

2 Book 1 min - Question 80 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 79 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 79 Chapter 6 of +2-A

Question 79 Chapter 6 of +2-A

79. The Balance Sheet of X, Y and Z as at 31st March, 2018 was

Liabilities   Amount  Assets Amount
Bills Payable   2,000 Cash at Bank 5,800
Employees’ Provident Fund   5,000 Bills Receivable 800
Workmen Compensation Reserve   6,000 Stock 9,000
General Reserve   6,000 Sundry Debtors 16,000
Loans   7,100 Furniture 2,000
Capital A/cs:     Plant and Machinery 6,500
X 22,750   Building 30,000
Y 15,250   Advertising Suspense 6,000
Z 12,000 50,000    
    76,100   76,100

The profit-sharing ratio was 3 : 2 : 1. Z died on 31st July, 2018. The Partnership Deed provides that:
a Goodwill is to be calculated on the basis of three years’ purchase of the five years’ average profit. The profits were: 2017-18: 24,000; 2016-17: 16,000; 2015-16: 20,000 and 2014- 15: 10,000 and 2013-14: 5,000.
b The deceased partner to be given a share of profits till the date of death on the basis of profits for the previous year.
c The Assets have been revalued as: Stock 10,000; Debtors 15,000; Furniture 1,500; Plant and Machinery 5,000; Building 35,000. A Bill Receivable for 600 was found worthless. d A Sum of 12,233 was paid immediately to Z’s Executors and the balance to be paid in two equal annual instalments together with interest @ 10% p.a. on the amount outstanding. Give Journal entries and show the Z’s Executors’ Account till it is finally settled

 

The solution of Question 79 Chapter 6 of +2-A: –

 

Date Particulars
L.F. Debit Credit
  Workmen’s Compensation Reserve Dr.   6,000  
  To X’s Capital A/c       3,000
  To Y’s Capital A/c       2,000
  To Z’s Capital A/c       1,000
  (Being Workmen’s Compensation Reserve distributed among partners in their old ratio)      
  General Reserve A/c Dr.   6,000  
  To Z’s Capital A/c       3,000
  To Y’s Capital A/c       2,000
  To Z’s Capital A/c       1,000
  (Being General Reserve distributed among partners in their old ratio)        
  X’ Capital A/c Dr.   3,000  
  Y’s Capital A/c Dr.   2,000  
  Z’s Capital A/c Dr.   1,000  
  To Advertisement Suspense A/c       6,000
  (Being Goodwill written off among partners in their old ratio)        
  X’s Capital A/c Dr.   4,500  
  Y’s Capital A/c Dr.   3,000  
  To Z’s Capital A/c       7,500
  (Being T’s share of goodwill adjusted)        
  Revaluation A/c Dr.   3,600  
  To Sundry debtors A/c       1,000
  To Furniture A/c       500
  To Plant and Machinery A/c       1,500
  To Bills Receivable A/c       600
  (Being Decrease in value of Assets transferred to Revaluation Account)        
  Stock A/c Dr.   1,000  
  Building A/c Dr.   5,000  
  To Revaluation A/c       6,000
  (Being Increase in value of Assets transferred to Revaluation Account)        
  Revaluation A/c Dr.   2,400  
  To X’ Capital A/c       1,200
  To Y’s Capital A/c       800
  To Z’s Capital A/c       400
  (Being Revaluation profit distributed among partners in their old ratio )        
  Profit and Loss Suspense A/c Dr.   1,333  
  To Z’s Capital A/c       1,333
  (Being Z’s share of profit transferred his capital account)        
  Z’s Capital A/c Dr.   22,233  
  To Z’s Executor’s A/c       22,233
  (Being Amount due to Z transferred to his Executor’s Account)        
  (Being Amount due to Z transferred to his Executor’s Account)        
  Z’s Executor’s A/c Dr.   12,333  
  To Bank A/c       12,333
  (Being Amount paid to Z’s Executor)        

 

Z’s Executor’s Account
Date Particular Amount Date Particular Amount
2018          
July 31 To Bank A/c 12,233 July 31 By Z’s Capital A/c 22,233
2019          
Mar. 31 To Cash A/c 25,000 + 5,000 10,667 Mar. 31 By Interest 10,000 × 10% for 8 months   5,000
    22,900       22,900
2019            
July. 01 To Bank A/c 5,000 + 667 + 333 6,000 Aug. 01 By Balance b/d   10,667
2020            
Mar. 31 To Balance c/d 5,333 Aug. 01 By Interest 75,000 × 10% for 4 months   333
      Mar. 31 By Interest 5,000 × 10% for 8 month   333
    11,333       11,333
2020            
Aug. 01 To Bank A/c 5,000 + 333 + 167 5,500 Aug. 01 By Balance b/d   5,333
      Aug. 01 By Interest 25,000 × 10% for 4 months   167
    5,500       5,500



 

 

Working Notes:

Calculation of Goodwill

Goodwill = Average Profit × Number of Year’s Purchase

Average Profit = 24,000 + 16,000 + 20,000 + 10,000 + 5,000
5
     
  = Rs 15,000

∴ Goodwill = Average Profit × Number of Years’ Purchase
=15,000 × 3 = Rs 45,000

Adjustment of Goodwill

Old Ratio = 3 : 2 : 1
Z died.
∴ New Ratio X and Y = 3 : 1
Gaining Ratio = 3 : 2

Z’s Share in Goodwill = 45,000 X 1
6
         
  = Rs 7,500    

This share of goodwill is to be distributed between X and Y in their gaining ratio i.e. 3 : 1.


X’s Share in Goodwill = 7,500 X 3
5
         
  = Rs 4,500    

 

Y’s Share in Goodwill = 7,500 X 2
5
         
  = Rs 3,000    

 

Calculation Z’s Share of Prof

Profit for 2017-18 Immediate Previous Year = Rs 24,000

∴ Z’s Profit Share = 24,000 X 1 X 4
6 12
             
  = Rs 1,333        
Revaluation Account
Particular Amount Particular Amount
To Sundry Debtors 1,000 By Balance b/d 80,000
To Furniture 500 By Interest on Capital A/c 1,600
To Plant and Machinery 1,500      
To Bills Receivable 600      
Profit transferred to:        
X’s Capital A/c 1,200      
Y’s Capital A/c 800      
Z’s Capital A/c 400      
  6,000     6,000


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)

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

2 Book 1 min - Question 79 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 78 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 78 Chapter 6 of +2-A

Question 78 Chapter 6 of +2-A

78. B, C and D were partners in firm sharing profits in the ratio of 5 :3: 2. On 31st December 2008, their Balance Sheet was as follows:

Liabilities   Amount  Assets Amount
Creditors   43,000 Cash 10,200
Bills Payable   17,000 Stock 24,500
General Reserve   70,000 Debtors 27,300
Capital A/csp:     Land and Building 1,40,000
B 40,000   Profit and Loss A/c 70,000
C 50,000      
D 52,000 1,42,000    
    2,72,000   2,72,000

B died on 31st March 2009. The Partnership Deed provided for the following on the death of a partner:
a Goodwill of the firm was to be valued at 3 years’ purchase of the average profit of the last 5 years. The profits for the years ended 31st December 2007, 31st December 2006, 31st December 2005, and 31st December 2004 were 70,000; 60,000; 50,000 and 40,000 respectively.
b B’s share of profit or loss till the date of his death was to be calculated on the basis of the profit or loss for the year ended 31st December 2008. You are required to calculate the following:
i Goodwill of the firm and B’s share of goodwill at the time of his death.
ii B’s share in the profit or loss of the firm till the date of his death.
iii Prepare B’s Capital Account at the time of his death to be presented to his Executors.

 

The solution of Question 78 Chapter 6 of +2-A: –

 

(i) Calculation of Goodwill

Goodwill = Average Profit × Number of Year’s Purchase

Average Profit = (-70,000 + 70,000 + 60,000 + 50,000 +40,000)
5
     
  = Rs 30,000

∴ Goodwill = Average Profit × Number of Years’ Purchase
= 30,000 × 3 = Rs 90,000

Old Ratio B, C and D = 5 : 3 : 2
B Died
New Ratio C and D = 3 : 2

B’s Share in Goodwill = 90,000 X 5
10
         
  = Rs 45,000    

This share of goodwill is to be distributed between C and D in their gaining ratio i.e. 3 : 2

C’s Share in Goodwill = 45,000 X 3
5
         
  = Rs 27,000    
D’s Share in Goodwill = 45,000 X 2
5
         
  = Rs 18,000    

(ii) Calculation of B’s Share of Profit or Loss

Loss for the Year 2008 = Rs 70,000

Sunil’s share of Profit = 70,000 X 5 X 3
10 12
             
  = Rs 8,750        

 

B’s Capital Account
Particular Amount Particular Amount
To Profit and Loss A/c 35,000 By Balance b/d 40,000
To Profit and Loss Suspense A/c 8,750 By General Reserve 35,000
    By C’s Capital A/c Goodwill   27,000
To B’s Executor’s A/c 76,250 By D’s Capital A/c Goodwill   18,000
  1,20,000     1,20,000

 


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)

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

2 Book 1 min - Question 78 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 77 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 77 Chapter 6 of +2-A

Question 77 Chapter 6 of +2-A

77. Akhil, Nikhil and Sunil were partners sharing profits and losses equally. Following was their Balance Sheet as at 31st March, 2018:

Liabilities   Amount  Assets Amount
Trade Creditor   40,000 Building 2,00,000
General Reserve   45,000 Plant and Machinery 80,000
Capital A/cs:     Stock 35,000
Akhil 1,95,000   Debtors 80,000
Nikhil 1,20,000   Cash at Bank 85,000
Sunil 80,000 3,95,000    
    4,80,000   4,80,000

Sunil died on 1st August 2018. The Partnership Deed provided that the executor of a deceased partner was entitled to:
a Balance of Partners’ Capital Account and his share of the accumulated reserve.
b Share of profits from the closure of the last accounting year till the date of death on the basis of the profit of the preceding completed year before death.
c Share of goodwill calculated on the basis of three times the average profit of the last four years.
d Interest on deceased partner’s capital @ 6% p.a.
e 50,000 to be paid to deceased’s executor immediately and the balance to remain in his Loan Account. Profits and Losses for the preceding years were: 2014-15 − 80,000 Profit; 2015-16 − 1,00,000 Loss; 2016-17 − 1,20,000 Profit; 2017-18 − 1,80,000 Profit.
Pass necessary Journal entries and prepare Sunil’s Capital Account and Sunil’s Executor Account.

 

The solution of Question 77 Chapter 6 of +2-A: –

 

Date Particulars
L.F. Debit Credit
  General Reserve A/c Dr.   45,000  
  To Akhil’s Capital A/c       15,000
  To Nikhil’s Capital A/c       15,000
  To Sunil’s Capital A/c       15,000
  (Being General Reserve distributed among partners in their old ratio)      
  Akhil’s Capital A/c Dr.   35,000  
  Nikhil’s Capital A/c Dr.   35,000  
  To Sunil’s Capital A/c       70,000
  (Being Sunil’s share of goodwill adjusted)        
  Interest on Capital A/c Dr.   1,600  
  To Sunil’s Capital A/c       1,600
  (Being Interest allowed on Sunil’s Capital)        
  Profit and Loss Suspense A/c Dr.   20,000  
  To Sunil’s Capital A/c       20,000
  (Being Sunil’s profit share transferred to his capital account)        
  Sunil’s Capital A/c Dr.   1,86,600  
  To Sunil’s Executor’s A/c       1,86,600
  (Being Amount due to Sunil after all adjustments transferred to his Executor’s Account)        
  Sunil’s Executor’s A/c Dr.   50,000  
  To Bank A/c       50,000
  (Being Amount paid to Sunil’s Executor )        

 

Sunil’s Capital Account
Particular Amount Particular Amount
To Executor’s A/c 1,86,600 By Balance b/d 80,000
    By Interest on Capital A/c 1,600
    By General Reserve   15,000
    By Profit and Loss Suspense A/c   20,000
    By Akhil’s Capital A/c Goodwill   35,000
    By Nikhil’s Capital A/c Goodwill   35,000
  1,86,600     1,86,600



Sunil’s Executor Account
Particular Amount Particular Amount
To Bank A/c 1,86,600 By Sunil’s Capital A/c 1,86,600
         
  1,26,000     1,26,000

 

 

Working Notes:

Calculation of Sunil’s Share of Profit

Profit for 2017-18 = Rs 1,80,000

Sunil’s share of Profit = 1,80,000 X 1 X 4
3 12
             
  = Rs 20,000        

 

Calculation of Goodwill

Goodwill = Average Profit × Number of Year’s Purchase

Average Profit = (80,000 -1,00,000 + 1,20,000 + 1,80,000 )
4
     
  = Rs 70,000

∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 3 = Rs 2,10,000

Adjustment of Goodwill

Old Ratio = 1 : 1 : 1
Sunil died
∴ New Ratio = 1 : 1
Gaining Ratio = 1 : 1

Sunil’s Share in Goodwill = 2,10,000 X 2
10
         
  = Rs 70,000    

This share of goodwill is to be distributed between Akhil and Nikhil in their gaining ratio i.e. 1 : 1


Akhil’s Share in Goodwill = 70,000 X 1
2
         
  = Rs 35,000    

 

Nikhil’s Share in Goodwill = 70,000 X 1
2
         
  = Rs 35,000    

 

Calculation of Interest on Sunil’s Capital

Sunil’s Capital Balance = Rs 80,000

Interest on Capital = 80,000 X 6 X 4
100 12
             
  = Rs 1,600        

 


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)

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

2 Book 1 min - Question 77 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 76 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 76 Chapter 6 of +2-A

Question 76 Chapter 6 of +2-A

76. R, S and T were partners sharing profits and losses in the ratio of 5 : 3 : 2 respectively. On 31st March, 2018, their Balance Sheet stood as:

Liabilities   Amount  Assets Amount
Sundry Creditors   40,000 Goodwill 25,000
Bills Payable   15,000 Leasehold 1,00,000
Workmen Compensation Reserve   30,000 Patents 30,000
Capital A/cs:     Machinery 1,50,000
R 1,50,000   Stock 50,000
S 1,25,000   Debtors 40,000
T 75,000 3,50,000 Cash at Bank 40,000
    4,35,000   4,35,000

T died on 1st August 2018. It was agreed that:
a Goodwill be valued at 212 years’ purchase of average of last 4 years’ profits which were: 2014-15: 65,000; 2015-16: 60,000; 2016-17: 80,000 and 2017-18: 75,000.
b Machinery be valued at 1,40,000; Patents be valued at 40,000; Leasehold be valued at 1,25,000 on 1st August, 2018.
c For the purpose of calculating T’s share in the profits of 2018-19, the profits in 2018-19 should be taken to have accrued on the same scale as in 2017-18.
d A sum of 21,000 to be paid immediately to the Executors of T and the balance to be paid in four equal half-yearly instalments together with interest @ 10% p.a.
Pass necessary Journal entries to record the above transactions and T’s Executors’ Account.

 

The solution of Question 76 Chapter 6 of +2-A: –

 

Date Particulars
L.F. Debit Credit
  Revaluation A/c Dr.   75,000  
  To Machinery A/c       75,000
  (Being Decrease in value of Machinery transferred to Revaluation Account)      
  Patents A/c Dr.   10,000  
  Leasehold A/c Dr.   25,000  
  To Revaluation A/c       35,000
  (Being Increase in value Patents and Leasehold transferred to Revaluation Account)        
  Revaluation A/c Dr.   25,000  
  To R’s Capital A/c       12,500
  To S’s Capital A/c       7,500
  To T’s Capital A/c       5,000
  (Being Revaluation profit distributed among partners in their old ratio)        
  R’ Capital A/c Dr.   12,500  
  S’s Capital A/c Dr,   7,500  
  T’s Capital A/c Dr.   5,000  
  To Goodwill A/c       25,000
  (Being Goodwill written off among partners in their old ratio)        
  R’s Capital A/c Dr.   21,875  
  S’s Capital A/c Dr.   13,125  
  To T’s Capital A/c       35,000
  (Being T’s share of goodwill adjusted)        
  Profit and Loss Suspense A/c Dr.   5,000  
  To T’s Capital A/c       5,000
  (Being T’s share of profit transferred to his capital account)        
  Workmen’s Compensation Reserve A/c Dr.   30,000  
  To R’s Capital A/c       15,000
  To S’s Capital A/c       9,000
  To T’s Capital A/c       6,000
  (Being Workmen’s Compensation Reserve distributed among partners in their old ratio)        
  T’s Capital A/c Dr.   1,21,000  
  To T’s Executors A/c       1,21,000
  (Being Amount due to T after all adjustments transferred to his Executor’s Account)        
  T’s Executor’s A/c Dr.   21,000  
  To Bank A/c       21,000
  (Being Amount due to T after all adjustments transferred to his Executor’s Account)        

 

 

T’s Executor’s Account
Date Particular Amount Date Particular Amount
2018          
Aug. 01 To Cash A/c 21,000 Aug. 01 By T’s Capital A/c 1,21,000
2019          
Jan. 31 To Cash A/c 25,000 + 5,000 30,000 Aug. 01 By Interest 1,00,000 ×10% for 6 months   5,000
Mar. 31 To Balance c/d 76,250 Mar. 31 By Interest 75,000 ×10% for 2 months   1,250
    1,27,250       1,27,250
2019            
Aug. 01 To Cash A/c 25,000 + 1,250 + 2,500 28,750 Aug. 01 By Balance b/d   76,250
2020            
Jan. 31 To Cash A/c 25,000 + 2,500 27,500 Aug. 01 By Interest 75,000 × 10% for 4 months   2,500
Mar. 31 To Balance c/d 25,417 Mar. 31 By Interest 50,000 × 10% for 6 months   2,500
      Mar. 31 By Interest 25,000 × 10% for 2 months   417
    81,667       81,667
2020            
Aug. 01 To Cash A/c 25,000 + 417 + 833 26,250 Aug. 01 By Balance b/d   25,417
      Aug. 01 By Interest 25,000 × 10% for 4 months   833
    26,250       26,250

 

Working Notes:

Calculation of Goodwill

Goodwill = Average Profit × Number of Year’s Purchase

Average Profit = 65,000 +60,000 +80,000 + 75,000
4
     
  = Rs 70,000

∴ Goodwill = Average Profit × Number of Years’ Purchase
= 70,000 × 2.5 = Rs 1,75,000

Adjustment of Goodwill

Old Ratio R, S and T = 5 : 3: 2
T died.
∴ New Ratio R and S = 5 : 3
Gaining Ratio = 5 : 3

T’s Share in Goodwill = 1,75,000 X 2
10
         
  = Rs 35,000    

This share of goodwill is to be distributed between R and S in their gaining ratio i.e. 5 : 3.


R’s Share in Goodwill = 35,000 X 5
8
         
  = Rs 21,875    

 

S’s Share in Goodwill = 35,000 X 3
8
         
  = Rs 13,125    

 

Calculation of T’s Share of Profit

Profit for 2017-18 = Rs 75,000

T’s Share of Profit for 2018-19 = 75,000 X 2 X 4
10 12
             
  = Rs 5,000        

 

Revaluation Account
Particular Amount Particular Amount
To Machinery 10,000 By Patents 10,000
Profit transferred to:   By Leasehold 25,000
R’s Capital A/c 12,500      
S’s Capital A/c 7,500      
T’s Capital A/c 5,000      
  81,350     81,350



T’s Capital Account
Particular Amount Particular Amount
To Executor’s A/c 1,21,000 By Balance b/d 75,000
To Goodwill A/c 5,000 By Workmen’s Compensation Reserve 6,000
    By Profit and Loss Suspense A/c   5,000
    By R’s Capital A/c   21,875
    By S’s Capital A/c   13,125
    By Revaluation A/c Profit   5,000
  1,26,000     1,26,000

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)

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

2 Book 1 min - Question 76 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 75 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 75 Chapter 6 of +2-A

Question 75 Chapter 6 of +2-A

75. Sunny, Honey and Rupesh were partners in a firm. On 31st March 2014, their Balance Sheet was as follows:

Liabilities   Amount  Assets Amount
Creditors   10,000 Plant and Machinery 40,000
General Reserve   30,000 Furniture 15,000
Capital A/cs:     Investments 20,000
Sunny 30,000   Debtors 20,000
Honey 30,000   Stock 20,000
Rupesh 20,000 80,000 Cash  25,000
    1,20,000   1,20,000

Honey died on 31st December, 2014. The Partnership Deed provided that the representatives of the deceased partner shall be entitled to:
a Balance in the Capital Account of the deceased partner.
b Interest on Capital @ 6% per annum up to the date of his death.
c His share in the undistributed profits or losses as per the Balance Sheet.
d His share in the profits of the firm till the date of his death, calculated on the basis of the rate of net profit on sales of the previous year.
The rate of net profit on sales of the previous year was 20%. Sales of the firm during the year till 31st December 2014 was 6,00,000. Prepare Honey’s Capital Account to be presented to his executors.

 

The solution of Question 75 Chapter 6 of +2-A: –

 

Honey’s Capital A/c
Particular
Amount Particular Amount
To Executor’s A/c 81,350 By Balance b/d 30,000
    By Interest on Capital A/c 1,350
    By General Reserve 10,000
      By Profit and Loss Suspense A/c   40,000
    81,350     81,350

 

Working Notes:

Calculation of Interest on Honey’s Capital

Interest on capital = 30,000 X 6 X 9
100 12
             
  = Rs 1,350        

 

Calculation of Honey’s share in profits

Profit = Sale X Rate of Profit
100
  = 6,00,000 X 20
100
         
  = Rs 1,20,000    

 

Honey’s share in profits = 1,20,000 X 1
3
         
  = Rs 40,000    


Calculation of Honey’s Share in General Reserve

Honey’s share in profits = 30,000 X 1
3
         
  = Rs 10,000    

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)

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

2 Book 1 min - Question 75 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 74 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 74 Chapter 6 of +2-A

Question 74 Chapter 6 of +2-A

74. Babita, Chetan and David are partners in a firm sharing profits in the ratio of 2 : 1 : 1 respectively. Firm closes its accounts on 31st March every year. Chetan died on 30th September, 2012. There was a balance of 1,25,000 in Chetan’s Capital Account in the beginning of the year. In the event of death of any partner, the Partnership Deed provides for the following:
a Interest on capital will be calculated at the rate of 6% p.a.
b The executor of deceased partner shall be paid 24,000 for his share of goodwill.
c His share of Reserve Fund of 12,000, shall be paid to his executor.
d His share of profit till the date of death will be calculated on the basis of sales. It is also specified that the sales during the year 2011-12 were 4,00,000. The sales from 1st April, 2012 to 30th September, 2012 were 1,20,000. The profit of the firm for the year ending 31st March, 2012 was 2,00,000. Prepare Chetan’s Capital Account to be presented to his executor.

 

 

The solution of Question 74 Chapter 6 of +2-A: –

 

A’s Capital Account
Particular
Amount Particular Amount
To Chetan’s Executor’s A/c 1,79,750 By Capital 1,25,000
    By Interest on Capital for 6 months 3,750
    By Babita’s Share Capital A/c* 16,000
      By David’s Share Capital A/c*   8,000
      By Share of Reserve   12,000
      By P & L Suspense A/c**   15,000
    1,79,750     1,79,750

 

 

Working Notes:

Calculation of Interest on Capital

Chetan’s Share of goodwill = Rs 24,000

Babita’s Share of contribution = 24,000 X 2
3
         
  = Rs 16,000    

 

David’s Share of contribution = 24,000 X 1
3
         
  = Rs 8,000    

 

**Sales in the year 2011-12 = 4,00,000
Profit for year 2011-12 = 2,00,000 = 50% of Sales
Therefore, Profit for the Period Apr 01 to 30 th Sep = 50% of Sales of the same period
Share of Profit to be divided = 50% of Rs 1,20,000 = Rs 60,000
Chetan’s Share of Profit = 1/4 th of Rs 60,000 = Rs 15,000

 

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)

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

2 Book 1 min - Question 74 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms