Question 30 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 30 Chapter 6 – Unimax Class 12 Part 1 – 2021

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The solution of Question 30 Chapter 6 – Unimax Class 12 Part 1: –

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

30. P, Q and R were in partnership sharing profits and losses in the ratio of 3:2:1. The draft balance sheet as on 31st March 2021 was as follows:

Liabilities	Amount	Assets		Amount
P’s capital a/c	24,000	Building		12,000
Q’s capital a/c	12,000	Plant and machinery		18,800
R’s capital a/c	6,000	Stock		9,200
P’s current a/c	1,920	Debtors	12,400
Q’s current a/c	1,680	Less: Provision	1,200	11,200
R’s current a/c	1,120	Cash at Bank		16,120
P’s loan a/c	5,000
Creditors	15,600

	67,320			67,320

P retired on 31st March 2021and Q and R continued in partnership sharing profits and losses in the ratio of 2:1. P’s loan was repaid on 1st April 2021 and it was agreed that the remaining balance due to him, other than that of the current a/c, should remain as loan to the partnership.

For the purpose of P’s retirement, it was agreed that:

Building be revalued at ₹ 24000 and Plant and Equipment at ₹ 15800.
The provision for bad debts was to be increased by ₹400.
A provision of ₹ 500 included in creditors was no longer to be repaid.
₹1200 was to be written off from the stock in respect of damaged items
included there in.
A provision of ₹4240 made in respect of outstanding legal charges.
The goodwill of the firm to be valued at ₹14400.

• You are required to prepare revaluation account, capital a d current accounts of partners, balance sheet of Q, R as on 1st April 2021.

The solution of Question 30 Chapter 6 – Unimax Class 12 Part 1: –

Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To plant and machinery		3,000	By building	12,000
To provision for bad debts		400	By creditors	500
To stock		1200
To provision for outstanding legal charges		4,240
To profit on revaluation transferred to current a/c
P (3/6)	1830
Q (2/6)	1220
R (1/6)	610	3,660

		12,500		12,500

Partners current accounts

Particulars	P	Q	R	Particulars	P	Q	R
To P’s current a/c		4,800	2,400	By Balance b/d	1,920	1,680	1,120
To cash a/c	10,950			By revaluation a/c (profit)	1,830	12,220	610
				By Q’s current a/c	4,800
				By R’s current a/c	2,400
				By balance c/d		1,900	670

	10,950	4,800	2,400		10,950	4,800	2,400

Partners capital accounts

Particulars	P	Q	R	Particulars	P	Q	R
To P’s loan a/c	24,000			By Balance b/d	24,000	12,000	6,000
To balance c/d		12,000	6,000

	24,000	12,000	6,000		24,000	12,000	6,000

Balance sheet (After retirement)

Liabilities	Amount	Assets		Amount
Creditors	15,100	Building		24,000
P’s loan a/c	24,000	Plant and machinery		15,800
Q’s capital a/c	12,000	Stock		8,000
R’s capital a/c	6,000	Debtors	12,400
Outstanding legal charges	4,240	(-) prov.	1,600	10,800
		Cash at Bank (16120-5000-10950)		170
		Q’s current a/c		1,900
		R’s current a/c		670

	61,340			61,340