Question 36 Chapter 6 of +2- Part

Question 36 Chapter 6 of +2-Part-1

36. (Revaluation A/c/ Capital Ac/B/S/GST) X , Y and Z were partners in firm sharing profits in the proportions of 1/2 , 1/3 and 1/6 respectively. The Balance Sheet of the firm on 31st March 2013 was as follow :

LiabilitiesRs.AssetsRs. 
Sundry creditors15,000Cash at bank4,000
Provident fund 6,000Debtors                   40,000 
Reserve fund12,000Less Provision        2,00038,000
X’s capital65,000Stock30,000
Y’s capital30,000Investments 15,000
Z’s capital 20,000Patents10,000
  Plant & machinery 50,000
  Input GST1,000
 1,48,000 1,48,000

Z retired on the above date on the following terms :
(a) Goodwill of the firm was valued at Rs. 30,000
(b) Value of patents was to be reduced by 20% and that of the Plant & machinery by 10 %.
(c) Prevision for had debts was to be raised to 6%.
(d) Z took over the investment at the value of Rs. 17,600.
(e) Liability on the A/c of the provident fund was only Rs. 2,400.
Show the necessary journal entries for the treatment of the goodwill, prepare revaluation A/c, capital account of the partners & Balance sheet of X & Y after Z’s retirement.

The solution of Question 36 Chapter 6 of +2 Part-1: –

Z’s share in goodwill=30,000x1
6
     
 =Rs 5,000  
X’s gain=33
56
     
 =3  
 30  
Y’s gain=22
56
     
 =2  
 30  

Gaining ratio = 3 : 2

Journal
Date  Particulars
L.F.DebitCredit
 X’s Capital A/cDr. 3,000 
 Y’s capital A/cdr. 2,000 
 To Z’s Capital A/c   5,000
 (Being goodwill adjusted. )    
     
Revaluation account
Particulars
AmountParticularsAmount
To patents A/c 2,000By provident fund 2,600
To plant & Machinery A/c 5,000By investments A/c 3,600
To provision for doubtful debts A/c 400   
      
   By loss revaluation, A/c transferred to capital A/c  
   X600 
   Y400 
   Z2001,200
  7,400  7,400
Partners’ Capital Account 
ParticularsXYZParticularsXYZ
To Revaluation A/c600400200By Balance b/d65,00030,00020,000
To Z’s capital A/c3,0002,000 By reserve fund6,0004,0002,000
To Investments  17,600By X’s capital A/c  3,000
To Z’s loan A/c  9,200By Y’s capital A/c  2,000
       3,600
To Balance c/d 67,40031,600    
 71,00034,00027,000 71,00034,00027,000
Balance Sheet
Liabilities
AmountAssetsAmount
Sundry Creditors 19,200Cash at bank 4,000
Provident fund 32,800Stock 30,000
Z’s loan A/c 15,000Sundry Debtors40,000 
X’s Capital A/c  Less provision2,40037,600
Y’s Capital A/c  Patents 8,000
   Plant & Machinery 45,000
   Input IGST 1,000
  1,25,600  1,25,600

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 36 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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