Question 35 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 35 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 35 Chapter 6 – Unimax Class 12 Part 1: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

35. The balance sheet of X, Y and Z who are sharing profits in proportion to their capital stood as follows on 31st December 2021.

Liabilities	Amount	Assets		Amount
Sundry creditors	3,500	Cash at Bank		780
Capital		Debtors	2,500
X	12500	Less:prov. For d.d.	50	2,450
Y	10,000	Stock		5,000
Z	7,500	Plant and machinery		5,750
		Land and building		12,500

	33,500			33,500

Y retires and the following adjustments of assets and liabilities have been agreed upon
Stock be depreciated by 5%. That provision for doubtful debts be increased to 6%on Debtors. Land and building be appropriated by 20%. Goodwill of the firm be fixed at₹8100 and Y’s share of the same be adjusted into the account of X and Z (no Goodwill account to be raised). Prepare revaluation account, Partners capital accounts and revised
balance sheet after Y’s retirement.

The solution of Question 35 Chapter 6 – Unimax Class 12 Part 1: –

Revaluation account

Particulars		Rs.	Particulars	Rs.
To stock a/c		250	By land and building a/c	2,500
To provision for d.d. a/c		100
To profit on revaluation
X	896
Y	717
Z	537	2,150

		2,500		2,500

Partners Capital accounts

Particulars	X	Y	Z	Particulars	X	Y	Z
To Y’s capital a/c	1687		1,013	By balance c/d	12,500	10,000	7,500
To Y’s loan a/c		13,417		By profit on revaluation	896	717	537
To balance c/d	11,709		7,024	By X’s capital a/c		1,687
				By Z’s capital a/c		1,013

	13,396	13,417	8,037		13,396	13,417	8,037

Balance sheet

Liabilities		Amount	Assets		Amount
Sundry creditors		3,500	Cash (18000-42650-48200-2450)		7,800
Capital			Debtors	2,500
X	11,709		(-)reserves	150	2,350
Z	7,024	18,733	Stock		4,750
Outstanding claim		13,417	Plant and machinery		5,750
			Land and building		15,000

		35,650			35,650