Question 25 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Q-25 - CH-6 - T.S. Grewal +2 Book 2019 - Solution-min

Question 25 Chapter 6 of +2-A

25. Ramesh wants to retire from the firm. The gain profit on revaluation on that date was 12,000. Mohan and Rahul want to share this in their new profit-sharing ratio of 3: 2. Ramesh wants this to be shared equally. How is the profit to be shared? Give reasons.

The solution of Question 25 Chapter 6 of +2-A: –

Note:- Revaluation of assets and liabilities is made at the time of Ramesh’s retirement and not after his retirement. Therefore, profits on revaluation will be distributed among all the partners in their old profit sharing ratio. In the absence of a partnership deed, profits are distributed equally among all the partners.

Journal Entries

Date Particulars
L.F. Debit Credit
           
  Revaluation A/c Dr.   12,000  
  To Ramesh’s Capital A/c       4,000
  To Mohan’s Capital A/c       4,000
  To Rahul’s Capital A/c       4,000
  (Being Revaluation profit transferred to Partners′ Capital Accounts)      
           

 

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 25 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

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