Question 30 Chapter 6 of +2- Part

Question 30 Chapter 6 of +2-Part-1

30. (Journal/Ledger A/c/Balance Sheet) A, B and C were partners sharing in 3:2:1. balance sheet was as under :

Liabilities Rs. Assets Rs. 
Creditors 13,590Cash 4,700
Capitals A15,000Debtors8,000
B10,000Stock 11,690
C10,000Building 23,000
  Profit & loss A/c 1,200
 48,590 48,590

B retired on the following terms:
(i)Building appreciated by Rs.7,000.
(ii) Provision for doubtful debts is to make at 5% of the debtors.
(iii) Goodwill of the firm valued at Rs. 18,000.
(iv) Rs. 3,000 to be paid to B immediately and balance transferred to his loan A/c.
Pass journal entries and prepare ledger accounts as well as Balance Sheet

The solution of Question 30 Chapter 6 of +2 Part-1: –

Revaluation account
Particulars
AmountParticularsAmount
To provision for doubtful debts 400By Building A/c 7,000
      
To profits transferred     
A3,300    
B2,200    
C1,1006,600   
  7,000  7,000
Partners’ Capital Account 
ParticularsA B C ParticularsA B C
To Profit & loss A/c600400200By Balance b/d15,00010,00010,000
To B’s capital A/c4,500 1,500By Revaluation A/c3,3002,2001,100
To Cash 3,000 By A’s capital A/c 4,500 
To B’s loan A/c 14,800 By C’s capital A/c 1,500 
To Balance c/d 13,2009,400    
 18,30018,20011,100 18,30018,20011,100
Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 19,590Cash 1,700
Capital  Debtors8,000 
A13,200 Less provision For debts4007,600
C9,40022,600Stock 11,690
B’s loan A/c 14,800Buildings 30,000
Rajan     
      
      
  50,990  50,990
Journal
Date  Particulars
L.F.DebitCredit
 Building A/cDr. 7,000 
 To Revaluation A/c   7,000
 (Being joint life policy & reserved A/c s closed )    
      
 Revaluation A/cDr. 400 
 To provision for doubtful debts A/c   400
 (Being provision made on debtors . )    
      
 Revaluation A/cDr. 6,600 
 To A’s capital A/c   3,300
 To B’s capital A/c   2,200
 To C’s capital A/c   1,100
 (Being revaluation on profit )    
      
 A’s capital A/cDr. 4,500 
 C’s capital A/cDr. 1,500 
 To B’s capital A/c   6,000
 (Being adjustment of goodwill )    
      
 A’s capital A/cDr. 600 
 B’s capital A/cDr. 400 
 C’s capital A/cDr. 100 
 To profit & loss A/c   1,200
 (Being accumulated loss transferred )    
      
 B’s capital A/cDr. 17,800 
 To cash A/c   3,000
 To B’s loan A/c   14,800
 (Being settlement of B’s A/c)    
     

Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 30 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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