Question 29 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
29. Sun, moon and star are partners sharing profits and losses in the ratio of 4:2:1. Their sheet as on 31st December, 2021 was as follows:
| Liabilities | Amount | Assets | Amount | |
| Sun | 45,000 | Goodwill | 14,000 | |
| Moon | 30,000 | Stock | 22,500 | |
| Star | 25,000 | 1,00,000 | Debtors | 16,500 |
| Bills payable | 3,000 | Land and building | 30,000 | |
| General reserve | 10,500 | Machinery | 39,750 | |
| Creditors | 22,500 | Motor van | 7,750 | |
| Cash | 5,500 | |||
| 1,36,000 | 1,36,000 | |||
On the same date, Moon retired from the business and the following adjustments were made:
- Firm’s goodwill was valued at ₹21000.respectively.
- Assets and liabilities are to be revalued as follows:
Stock₹18000; Land and building ₹33900; Debtors ₹15750; Machinery ₹37500; Creditors ₹21000. - Sun to bring ₹ 30000 and Star ₹ 7500 as additional capital.
- Moon was to be paid ₹24300 in cash and the balance of his capital Account to be transferred to his loan account.
Prepare Revaluation account, Partners capital account, cash account, and balance sheet of firm after Moon’s retirement.
The solution of Question 29 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation A/c
| Particulars | Rs. | Particulars | Rs. | ||
| To stock | 4,500 | By Land and building | 48,000 | ||
| To Debtors | 750 | By creditors | |||
| To machinery | 2,250 | By loss on revaluation | |||
| Transferred to capital account | |||||
| Sun (4/7) | 1200 | ||||
| Moon (2/7) | 600 | ||||
| Star (1/7) | 300 | 2100 | |||
| 7,500 | 7,500 |
Partners capital accounts
| Particulars | Sun | Moon | Stars | Particulars | Sun | Moon | Stars |
| To revaluation a/c (loss) | 1,200 | 600 | 300 | By Balance b/d | 45,000 | 30,000 | 25,000 |
| To goodwill | 8,000 | 4,000 | 2,000 | By general reserve | 6,000 | 3,000 | 1,500 |
| To Moon’s capital a/c | 4,800 | 1,200 | By Sun’s capital a/c | 4,800 | |||
| To cash a/c | 24,300 | By star’s capital a/c | 1,200 | ||||
| To Moon’s loan a/c | 10,100 | By cash a/c | 30,000 | 7,500 | |||
| To balance c/d | 67,000 | 30,500 | |||||
| 81,000 | 39,000 | 34,000 | 81,000 | 39,000 | 34,000 |
Balance Sheet (after Retirement)
| Liabilities | Amount | Assets | Amount | |
| Creditors | 21,000 | Stock | 18000 | |
| Bills payable | 3,000 | Debtors | 15750 | |
| Moon’s loan a/c | 10,100 | Land and building | 33900 | |
| Sun | 67,000 | Machinery | 37500 | |
| Star | 30,500 | 97,500 | Motor van | 7750 |
| cash | 18700 | |||
| 1,31,600 | 131600 |
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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