Question 35 Chapter 6 of +2- Part

Question 35 Chapter 6 of +2-Part-1

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 & machinery20,000
X            25,000 Stock 15,000
Y            20,00045,000Sundry Creditors 20,000
Reserve 10,000Cash in hand0
Sundry Creditors 15,000Cash 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.DebitCredit
 X’s Capital A/cDr. 10,000 
 To Y’s Capital A/c   10,000
 (Being goodwill adjusted. )    
      
 Reserve Fund A/cDr. 10,000 
 To X’s capital A/c   6,000
 To Y’s capital A/c   4,000
 (Being reserve fund transferred )    
      
 Revaluation A/cDr. 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/cDr. 1,800 
 Y’s capital A/cDr. 1,200 
 To Revaluation A/c   3,000
 (Being loss on revaluation transferred to the capital A/c of partners in old ratio )    
     
Revaluation account
Particulars
AmountParticularsAmount
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
AmountParticularsAmount
To Y’s Capital A/c 10,000By balance b/d 25,000
To revaluation A/c 1,800By reserve fund 6,000
      
To balance c/d 19,200   
  31,000  31,000
Y’s capital account
Particulars
AmountParticularsAmount
To revaluation A/c (loss) 1,200By 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
AmountAssetsAmount
Sundry Creditors 19,200Machinery 18,000
X’s Capital A/c 32,800Stock 15,000
Y’s loan A/c 15,000Sundry Debtors20,000 
   Less provision1,00019,000
   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: –

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 35 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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