Question 26 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Q-26 - CH-6 - T.S. Grewal +2 Book 2019 - Solution-min

Question 26 Chapter 6 of +2-A

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)

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 26 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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