Question 33 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
33. A, B and C are partners in a firm whose balance sheet as on 31st December 2021 was as follows:
| Liabilities | Amount | Assets |
Amount | ||
| Creditors | 7,000 | Cash at Bank | 6,400 | ||
| General reserves | 3,000 | Debtors | 9,000 | ||
| Capital: | Stock | 10,600 | |||
| A | 8,000 | Furniture | 2,000 | ||
| B | 6,000 | ||||
| C | 4,000 | 18,000 | |||
| 28,000 | 28,000 | ||||
B retired on that date and in this connection it was decided to make the following adjustments:
- To reduce stock and furniture by 5% and 10% respectively.
- To provide for doubtful debts at 5% on debts.
- Rent outstanding (not provided for as yet) was ₹ 260.
- Goodwill was valued at₹4200.
A and C decided:
- To share profit and loss in 5:3 respectively.
- Not to show Goodwill in the books.
- To readjust their capitals in profit sharing ratio.
- To bring in sufficient cash to pay off B immediately and cash in hand will beb ₹1000.
The solution of Question 33 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation account
| Particulars | Rs. | Particulars | Rs. | ||
| To stock a/c | 530 | By loss on revaluation | |||
| To furniture a/c | 200 | A | 480 | ||
| To provision for d.d | 450 | B | 480 | ||
| To rent outstanding | 260 | C | 480 | 1,440 | |
| 1,440 | 1,440 |
Partners Capital accounts
| Particulars | A | B | C | Particulars | A | B | C |
| To loss on revaluation | 480 | 480 | 480 | By balance b/d | 8,000 | 6,000 | 4,000 |
| To B’s capital a/c | 1,225 | 175 | By G.R a/c | 1,000 | 1,000 | 1,000 | |
| To cash a/c | 7,920 | By A’s capital a/c | 1,225 | ||||
| To balance a/c | 8,850 | 5,310 | By C’s capital a/c | 175 | |||
| By cash a/c | 1,555 | 965 | |||||
| 10,555 | 8,400 | 5,965 | 10,555 | 8,400 | 5,965 |
Balance sheet
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 7,000 | Cash at Bank (6400-1555-965-7920) | 1,000 | ||
| Capital A/C | Debtors | 9,000 | |||
| A | 8,850 | (-)prov. | 450 | 8,550 | |
| B | 5,310 | 14,160 | Stock | 10,070 | |
| Rent outstanding | 260 | Furniture | 1,800 | ||
| 21,420 | 21,420 |
Working note:
Calculations of capital of firm
Total capital= (A’s and C’s balance c/d)+required cash to be paid to B
Total capital =(7295+4345+2520)
Retirement of a Partner – Explained with Illustration
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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. 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 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication