Question 34 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 34 Chapter 6 of +2- Part

Question 34 Chapter 6 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 34 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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