Question 18 Chapter 6 - Unimax Class 12 Part 1

Question 18 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 18 Chapter 6 – Unimax Class 12 Part 1: –

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

18. B retires from the firm of A, B and C sharing profits in the ratio of 3 : 2 : 1. For the purpose of B’s retirement goodwill of the firm has been valued at Rs. 10800 and B’s share of the same is adjusted into the capital accounts of A and C who are going to share profits equally in future. Pass necessary journal entries to record this.

The solution of Question 18 Chapter 6 – Unimax Class 12 Part 1: –

Date	Particulars		L.F.	Debit	Credit

	C’s Capital a/c	Dr.		3,600
	To B’s Capital A/c				3,600
	(Being retiring partner N compensated by L and M in their gaining ratio)

	New Share	Old Share	Difference

A	1	3	1	–	3	=	0	(no gain, no loss)
A	2	6	2	–	6	=	0	(no gain, no loss)

B	1	1	1	–	1	=	2	(Gain)
B	2	6	2	–	6	=	6	(Gain)

Gaining partner B will transfer Rs. 3,600 (10,800 X 2/6) from his capital a/c to retiring partners capital a/c.

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 18 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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