Question 32 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 32 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 32 Chapter 6 – Unimax Class 12 Part 1: –

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

32. A, B and C distribute profits in the ratio of their capitals. B retires on 31st December 2021 prepare a journal and new balance sheet transferring the amount payable to B to his loan account:

Liabilities	Amount	Assets		Amount
Capital		Land and building		2,00,000
A	1,80,000	Machinery		50,000
B	1,20,000	Stock		64,000
C	60,000	Furniture		18,000
Creditors	55,200	Debtors	40,000
		(-) reserves	800	39,200
		Bank balance		44,000

	4,15,200			4,15,200

Insurance premium (previously debited to profit and loss account ) ₹6000 to be treated as unexpired.
Provision for doubtful debtsto be brouhaha upto 5% on Debtors. Land and building be appreciated by 20%. Provision for repair be maintained at ₹8000. Goodwill of the firm be valued at ₹43200. B’s share shall be adjusted
through capital accounts of A and C whose future profit ratio lies 3:1. • Total capital of the new firm to be ₹224000 in proportion to the sharing ratio (actual cash to be paid off or to be brought in.)

The solution of Question 32 Chapter 6 – Unimax Class 12 Part 1: –

Revaluation account

Particulars		Rs.	Particulars	Rs.
To provision for d.d		1,200	By prepaid insurance a/c	6,000
To provision for repairs		8,000	By building a/c	40,000
To profit on revaluation
A	18,400
B	12,267
C	6,133	36,800

		46,000		46,000

Partners Capital accounts

Particulars	A	B	C	Particulars	A	B	C
To B’s capital a/c	10,800		3,600	By balance b/d	1,80,000	1,20,000	60,000
To B’s loan a/c		14,6667		By profit on revaluation	18,400	12,267	6, 133
To bank a/c	19,600		6,533	By A’s capital a/c		10,800
To balance c/d	1,68,000		56,000	By C’s capital a/c		3,600

	1,98,400	14,6667	66,133		1,98,400	1,46,667	66,133

Balance sheet

Liabilities		Amount	Assets		Amount
Capital a/c			Prepaid insurance		6000
A	1,68000		Land and building		24000
B	56,000	2,24,000	Machinery		50000
B’s loan account		1,46,667	Stock		64000
Creditors		55,200	Furniture		18000
Provision for repairs		8,000	Debtors	40000
			(-)reserves	2000	38000
			Bank (44000-19600-6533)		17867

		4,33,867			4,33,867