Question 26 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
P,Q and R were partners in a firm sharing profits in the ratio of 2:3:5 on 31 March 2021, Balance sheet was as follows:
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 70,000 | Bank | 45,000 | ||
| Capital | Debtors | 40,000 | |||
| P | 80,000 | (-)Provision of doubtful debts | 5,000 | 35,000 | |
| Q | 70,000 | Stock | 50,000 | ||
| R | 60,000 | 2,10,000 | Building | 1,40,000 | |
| Profit and loss a/c | 10,000 | ||||
| 2,80,000 | 2,80,000 |
• On the above date R retired from the firm due to his illness on the following terms:
- Building was to be depreciated by ₹40000.
- Provision for doubtful debts was to be maintained at 20%on Debtors
- Salary outstanding ₹5000was to be recorded and creditors ₹4000
will not be claimed. - Goodwill of firm was valued at ₹72000.
- R was to be ₹ 15000 in cash through bank and balance wasto be
transferred to his loan account.
You are required to prepare revaluation account, partners capital account and balance sheet of P and Q after R’s retirement.
The solution of Question 26 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation A/c
| Particulars | Rs. | Particulars | Rs. | ||
| To building | 40,000 | By creditors | 4,000 | ||
| To provision for doubtful debts | 3,000 | By loss on revaluation | |||
| To salary outstanding | 5,000 | P | 8,800 | ||
| Q | 13,200 | ||||
| R | 22,000 | 44,000 | |||
| 48,000 | 48,000 |
Partners capital accounts
| Particulars | P | Q | R | Particulars | P | Q | R |
| To R’s capital account | 14,400 | 21,600 | By balance b/d | 80,000 | 70,000 | 60,000 | |
| To revaluation a/c (loss) | 8,800 | 13,200 | 22,000 | By P’s capital a/c | ` | 14,400 | |
| To profit & loss a/c | 2,000 | 3,000 | 5,000 | By Q’s capital a/c | 21,600 | ||
| To cash a/c | 15,000 | ||||||
| To R’s loan a/c | 54,000 | ||||||
| To Balance c/d | 54,800 | 32,200 | |||||
| 80,000 | 70,000 | 96,000 | 80,000 | 70,000 | 96,000 |
Balance Sheet (After Retirement)
| Liabilities | Rs. | Assets | Rs. | ||
| Creditors (70000-4000) | 66,000 | Stock | 50,000 | ||
| Salary outstanding | 5,000 | Debtors | 40,000 | ||
| R’s loan | 54,000 | (-) Provision | 8,000 | 32,000 | |
| Capital a/c | Bank | 30,000 | |||
| P | 54,800 | Building | 1,00,000 | ||
| Q | 32,200 | 87,000 | |||
| 2,12,000 | 2,12,000 |
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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