Question 25 Chapter 6 – Unimax Class 12 Part 1 – 2021
25. The balance sheet of J, K and L, who were sharing profits in the ratio of 5 : 3 : 2 is given below :
Liabilities | Amount | Assets | Amount | |
Sundry Creditors | 78,600 | Land | 1,85,000 | |
Capital | Buildings | 2,87,000 | ||
J | 5,78,800 | Plant and Machinery | 3,86,000 | |
K | 3,47,800 | Stock | 1,85,000 | |
L | 2,37,900 | Debtors | 92,100 | |
Cash | 1,08,000 | |||
12,43,100 | 12,43,100 |
L retires on the above date and the following adjustments in the value of assets and liabilities were agreed upon :
- Land was undervalued by Rs. 120000; Plant and Machinery overvalued by Rs. 35000.
- Provision for doubtful debts was required for Rs. 6000.
- Goodwill was valued at Rs. 300000 and was to be adjusted against capitals of remaining partners.
L was paid Rs. 75000 immediately and the balance amount was to be transferred to his loan account.
Prepare necessary Revaluation a/c, Capital a/c and Balance Sheet of reconstitution firm as on above date.
The solution of Question 25 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation A/c
Particulars | Rs. | Particulars | Rs. | ||
To Plant and Machinery | 35,000 | By Land | 1,20,000 | ||
To Profit on revaluation | |||||
J | 39,500 | ||||
K | 23,700 | ||||
L | 15,800 | 79,000 | |||
To Provision for doubtful debts | 6,000 | ||||
1,20,000 | 1,20,000 |
Capital Accounts
Particulars | J | K | L | Particulars | J | K | L |
To L’s Capital a/c | 37,500 | 22,500 | By Balance b/d | 5,78,800 | 3,47,800 | 2,37,900 | |
To Cash | 75,000 | By J’s Capital a/c | ` | 37,500 | |||
To L’s Loan | 2,38,700 | By K’s Capital a/c | 22,500 | ||||
To Balance c/d | 5,80,800 | 3,49,000 | By Revaluation a/c (Profit) | 39,500 | 23,700 | 15,800 | |
6,18,300 | 3,71,500 | 3,13,,700 | 6,18,300 | 3,71,500 | 3,13,700 |
Balance Sheet (After Retirement)
Liabilities | Rs. | Assets | Rs. | ||
Sundry Creditors | 78,600 | Land | 3,05,000 | ||
Capital Accounts | Building | 2,87,000 | |||
A | 5,80,800 | Plant and Machinery | 3,51,000 | ||
B | 3,49,000 | Stock | 1,85,000 | ||
L’s Loan a/c | 2,38,700 | Debtors | 86,100 | ||
Cash | 33,000 | ||||
12,47,100 | 12,47,100 |
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)
- 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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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