Question 31 Chapter 6 – Unimax Class 12 Part 1 – 2021
31. P, Q and R are partners sharing profits in the proportion of one-half, one-third, and one sixth respectively. The firm’s balance sheet as on 31st December 2021 stood as under:
| Liabilities | Amount | Assets |
Amount | ||
| Sundry creditors | 19,000 | Cash | 2,500 | ||
| Bills payable | 5,000 | Debtors | 16,000 | ||
| Reserve fund | 12,000 | (-) prov. | 500 | 15,500 | |
| Capital accounts: | Stocks | 25,000 | |||
| P | 40,000 | Motor van | 8,000 | ||
| Q | 30,000 | Plant & machinery | 35,000 | ||
| R | 25,000 | 95,000 | Factory building | 45,000 | |
| 1,31,000 | 1,31,000 | ||||
R retires on 31st December 2021 to these adjustments:
- The goodwill of the firm is to be valued at ₹18000.
- Plant to be depreciated by 10% and motor vans by 15%.
- Stock to be appreciated by 20% and building by 10%
- Provision for doubtful debts To be increased by ₹1950.
- Liability for workmen‘s compensation to be the extent of ₹450 is to be brought into books .it was agreed that P and Q will share in future in the ratio of P 3/5, and Q 2/5.
Pass Journal entries, and prepare Memorandum Revaluation Account, Capital Accounts and Balance Sheet when the assets and liabilities are to continue to appear at their old figures.
The solution of Question 31 Chapter 6 – Unimax Class 12 Part 1: –
Memorandum Revaluation account
| Particulars | Rs. | Particulars | Rs. | ||
| To Plant a/c | 3500 | By building a/c | 4,500 | ||
| To Motor van a/c | 1200 | By Stock a/c | 5000 | ||
| To Provision for doubtful debts a/c | 1950 | ||||
| To Workmen’s compensation | 450 | ||||
| To profit on revaluation | |||||
| P | 1200 | ||||
| Q | 800 | ||||
| R | 400 | 2400 | |||
| 9,500 | 9,500 | ||||
| To stock a/c | 5000 | By plant a/c | 3500 | ||
| To building a/c | 4500 | By motor van a/c | 1200 | ||
| By provision for d.d a/c | 1950 | ||||
| By workmen’s compensation | 450 | ||||
| By loss on revaluation | |||||
| P | 1440 | ||||
| Q | 960 | 2400 | |||
| 9,500 | 9,500 |
Partners Capital accounts
| Particulars | P | Q | R | Particulars | P | Q | R |
| To loss on revaluation | 1,440 | 960 | By Balance b/d | 40,000 | 30,000 | 25,000 | |
| To R’s capital a/c | 3,000 | 2,000 | By Profit on revaluation | 1,200 | 800 | 400 | |
| To R’s loan a/c | 30,400 | By P’s capital a/c | 3,000 | ||||
| To balance c/d | 36,760 | 27,840 | By Q’s capital a/c | 2,000 | |||
| 41,200 | 30,800 | 30,400 | 41,200 | 30,800 | 30,400 |
Balance sheet (After retirement)
| Liabilities | Amount | Assets | Amount | ||
| S. Creditors | 19,000 | Cash | 2,500 | ||
| Bills payable | 5,000 | Debtors | 16,000 | ||
| Reserve fund | 12,000 | (-) prov. | 500 | 15,500 | |
| Capital a/c | Stock | 25,000 | |||
| P | 36,760 | Motor vans | 8,000 | ||
| Q | 27,840 | 64,600 | Plant and machinery | 35,000 | |
| R’s loan a/c | 30,400 | Building | 45,000 | ||
| 1,31,000 | 1,31,000 |
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 BookKeeping (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 BookKeeping (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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