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Question 34 Chapter 6 of +2-Part-1
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34. (Profit & Loss Adjustment A/c/Partner Capital A/c A B & C are partners , sharing profits and losses in the proportion of 1/2 : 1/3:1/6 and in respectively. The firm’s balance sheet on March 31. 2015 was follows :
Liabilities | Rs. | Assets | Rs. |
Sundry creditors | 19,000 | Cash at bank | 2,500 |
Bills payable | 5,000 | Debtors 16,000 | |
Reserve fund | 12,000 | Less : provision 500 | 15,500 |
Capital A/c | Stock | 25,000 | |
A 40,000 | Motor vans | 8,000 | |
B 30,000 | Plant & machinery | 35,000 | |
C 25,000 | 95,000 | Factory Buildingd | 45,000 |
1,31,000 | 1,31,000 |
B retires on that date, subject to the following adjustments:
(i) The goodwill of the firm to be valued at Rs. 15,000
(ii) Plant and machinery to be depreciated by 10% and motor vans by 15% .
(iii) Stock to be appreciated by 20% and buildings by 10%.
(iv) Provision fir doubtful debts to be increased by Rs. 1,950.
Prepare the (1) Profit and loss adjustment account ; and (2) B’s capital account.
The solution of Question 34 Chapter 6 of +2 Part-1: –
Profit & Loss Adjustment account | |||||
Particulars | Amount | Particulars | Amount | ||
To plant & machinery A/c | 3,500 | By Factory Building A/c | 4,500 | ||
To motor vans A/c | 1,200 | By Stock A/c | 5,000 | ||
To provision for doubtful debts | 1,950 | ||||
To profits transferred | |||||
A | 1,425 | ||||
B | 950 | ||||
C | 475 | 2,850 | |||
9,500 | 9,500 |
B’s capital account | |||||
Particulars | Amount | Particulars | Amount | ||
To B’s loan A/c | 40,950 | By Balance b/d | 30,000 | ||
By Reserve fund A/c | 4,000 | ||||
By Profit & Loss adj. A/c | 950 | ||||
By A’s capital A/c | 4,500 | ||||
By C’s capital A/c | 1,500 | ||||
40,950 | 40,950 |
Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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