Question 12 Chapter 6 - Unimax Class 12 Part 1

Question 12 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

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

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

12. P, Q and R are partners sharing profits and losses in the ratio of 2 : 3 : 4. R retires and for this purpose goodwill is valued at one and half year’s purchase of average super profits of last three years, which are as under :

First Year	Rs. 50000
Second Year	Rs. 55000
Third Year	Rs. 75000

The normal profits for similar firms is Rs. 45000, Record the necessary journal entry.

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

Journal

Date	Particulars		L.F.	Debit	Credit

	P’s Capital a/c	Dr.		4000
	Q’s Capital A/c	Dr.		6000
	To R’s Capital a/c				10,000
	(Being R’s share of goodwill Rs. 10000 transferred to his capital account by P and Q in gaining ratio)

Working Note:
Calculation of value of goodwill :

Average profits of 3 years =	50000 + 55000 + 75000	= Rs. 60000
	3

Normal profits per year = Rs. 45000
Super profits = Rs. 60000 – Rs. 45000 = Rs. 15000

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)

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

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

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)

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