# Question 30 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.30 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 30 Chapter 6 of +2-A

30. X, Y, and Z were partners in a firm sharing profits in the ratio of 2 : 2: 1. Their Balance Sheet as of 31st March 2019 was:

 Liabilities Amount Assets Amount Creditors 49,000 Cash 8,000 Reserve 18,500 Debtors 19,000 Capital A/cs Stock 42,000 X 82,000 Building 2,07,000 Y 60,000 Patents 9,000 Z 75,500 2,17,500 2,85,000 2,85,000

Y retired on 1st April 2019 on the following terms:
a) Goodwill of the firm was valued at 70,000 and was not to appear in the books.
b) Bad Debts amounted to 2,000 were to be written off.
c) Patents were considered valueless.
Prepare Revaluation Account, Partners’ Capital Accounts, and the Balance Sheet of X and Z after Y’s retirement.

## The solution of Question 30 Chapter 6 of +2-A: –

 Revaluation Account Particular Amount Particular Amount Bad Debts 2,000 Patents 9,000 Loss transferred to: X’s Capital 4,400 Y’s Capita 4,400 Z’s Capital 2,200 11,000 11,000 11,000

 Partners’ Capital Account Part. X Y Z Part. X Y Z To Revaluation 4,400 4,400 2,200 By Balance B/d 82,000 60,000 75,500 To Y’s Capital A/c 18,667 – 9,333 By Reserve Old Ratio 7,400 7,400 3,700 To Y’s Loan A/c – 91,000 – By X’s Capital A/c – 18,667 – By Z’s Capital A/c – 9,333 – To Balance c/d 66,333 – 67,667 89,400 95,400 79,200 89,400 95,400 79,200

 Balance Sheet Liabilities Amount Assets Amount Creditors 49,000 Cash 8,000 Y’s Loan 91,000 Debtors 19000 −2000 17,000 Capital: Stock 42,000 X 66,333 Building 2,07,000 Z 67,667 1,34,000 2,74,000 2,74,000

#### Calculation of Gaining Ratio

Old Ratio X, Y and Z = 2: 2: 1
Y retires from the firm
∴Gaining Ratio = 2 : 1

Goodwill of the firm = Rs 70,000

 Y’s Share of Goodwill = 70,000 X 2 5 = Rs 28,000

This share of goodwill is to be distributed between X and Z in their gaining ratio i. e. 2: 1

 X‘s Share = 28,000 X 2 3 = Rs 18,667

 Z‘s Share = 28,000 X 1 3 = Rs 9,333

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. 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