Question 28 Chapter 6 - Unimax Class 12 Part 1

Question 28 Chapter 6 – Unimax Class 12 Part 1 – 2021

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The solution of Question 28 Chapter 6 – Unimax Class 12 Part 1: –

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

R, S and Pare partners with capitals ₹50000; ₹30000; and ₹20000 respectively. They share profits in the ratio of 5:3:2. As from. 1st April 2021 S retires and following revaluations were made :

Land and building to increased by ₹48000.
Stock, Furniture and machinery– values to be reduced by ₹4000; ₹1000 and ₹4600
respectively.
Create a reserve of ₹200for doubtful debts.
Goodwill of firm is agreed at ₹30000.

Prepare S’s account and find the amount due.

The solution of Question 28 Chapter 6 – Unimax Class 12 Part 1: –

Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To stock		4,000	By land and building	48,000
To furniture		1,000
To machinery		4,600
To provision for doubtful debts		2,00
To profit transferred to capital accounts
R (5/10)	19,100
S (3/10)	11,460
P (2/10)	7,640	38,200

		48,000		48,000

S’s Capital account

Particulars	Amount	Particulars	Amount
To S’s loan account	50,460	By Balance b/d	30,000
		By revaluation a/c (profit)	11,460
		By R’s capital a/c	6,429
		By P’s capital a/c	2,571

	50,460		50,460

Working note: –

S’s hare of goodwill =3/10 × ₹30000 = ₹9000
Entry for adjustment of goodwill

Particulars		L.F.	Credit	Debit
R’s capital a/c	Dr.		6,429
P’s capital a/c	Dr.		2,571
To S’s capital a/c				9,000
(Being S’s share of good adjusted to remaining partners in their gaining ratio)