35. (Journal/Ledger A/c/Balance Sheet) A, B and C were partners sharing in 3:2:1. balance sheet was as under :
Liabilities
Rs.
Assets
Rs.
Capitals
Plant & machinery
20,000
X 25,000
Stock
15,000
Y 20,000
45,000
Sundry Creditors
20,000
Reserve
10,000
Cash in hand
0
Sundry Creditors
15,000
Cash at bank
5,000
70,000
70,000
B retired on the following terms: (i)Building appreciated by Rs.7,000. (ii) Provision for doubtful debts is to make at 5% of the debtors. (iii) Goodwill of the firm valued at Rs. 18,000. (iv) Rs. 3,000 to be paid to B immediately and balance transferred to his loan A/c. Pass journal entries and prepare ledger accounts as well as Balance Sheet
The solution of Question 35 Chapter 6 of +2 Part-1: –
Journal
Date
Particulars
L.F.
Debit
Credit
X’s Capital A/c
Dr.
10,000
To Y’s Capital A/c
10,000
(Being goodwill adjusted. )
Reserve Fund A/c
Dr.
10,000
To X’s capital A/c
6,000
To Y’s capital A/c
4,000
(Being reserve fund transferred )
Revaluation A/c
Dr.
3,000
To Plant & Machinery A/c
2,000
To provision for doubtful debts
1,000
(Being decrease in the value of assets on revaluation)
X’s capital A/c
Dr.
1,800
Y’s capital A/c
Dr.
1,200
To Revaluation A/c
3,000
(Being loss on revaluation transferred to the capital A/c of partners in old ratio )
Y’s Capital A/c
Dr.
32,800
To Y’s loan A/c
32,800
(Being Balance in Y’s Capital transferred to his loan A/c)
Revaluation account
Particulars
Amount
Particulars
Amount
To plant & machinery transferred
2,000
To provision for doubtful debts
1,000
By loss revaluation, A/c transferred to capital A/c
X
1,800
Y
1,200
3,000
3,000
X’s capital account
Particulars
Amount
Particulars
Amount
To Y’s Capital A/c
10,000
By balance b/d
25,000
To revaluation A/c
1,800
By reserve fund
6,000
To balance c/d
19,200
31,000
31,000
Y’s capital account
Particulars
Amount
Particulars
Amount
To revaluation A/c (loss)
1,200
By balance b/d
20,000
By reserve fund
4,000
To X’s Capital A/c
10,000
To Y’s loan A/c
32,800
34,000
34,000
Balance Sheet
Liabilities
Amount
Assets
Amount
Sundry Creditors
15,000
Machinery
18,000
X’s Capital A/c
19,200
Stock
15,000
Y’s loan A/c
32,800
Sundry Debtors
20,000
Less provision
1,000
19,000
Cash in hand
10,000
Cash at Bank
5,000
67,000
67,000
Comment if you have any questions. Also, Check out the solved question of previous Chapters: –