Question 26 Chapter 6 of +2-A - T.S. Grewal 12 Class Part

Question 26 Chapter 6 of +2-A

Table of Contents

The solution of Question 26 Chapter 6 of +2-A: –

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

26. X, Y, and Z are partners in firm sharing profits and losses in the ratio of 3: 2: 1. Z retires from the firm on 31st March 2019. On the date of Z’s retirement, the following balances appeared in the books of the firm:
General Reserve 1,80,000
Profit and Loss Account Dr. 30,000
Workmen Compensation Reserve 24,000 which was no more required
Employees’ Provident Fund 20,000.
Pass necessary Journal entries for the adjustment of these items on Z’s retirement

The solution of Question 26 Chapter 6 of +2-A: –

Journal Entries

Date	Particulars		L.F.	Debit	Credit
	General Reserve A/c	Dr.		1,80,000
	Workmen Compensation Reserve A/c	Dr.		24,000
	To X’s Capital A/c				1,02,000
	To Y’s Capital A/c				68,000
	To Z’s Capital A/c				34,000
	(Being balance of reserve transferred to Partners′ Capital Accounts in their old ratio i.e. 3:2:1)

	X’s Capital A/c	Dr.		1,80,000
	Y’s Capital A/c	Dr.		24,000
	Z’s Capital A/c	Dr.		24,000
	To Profit and Loss A/c				34,000
	(Being Debit balance of P&L transferred to Partners′ Capital Accounts in their old ratio i.e. 3:2:1)

Note: – Employees’ Provident Fund is the liability for the business so it can not be transferred to Partners’ Capital Account

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

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