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Question 36 Chapter 6 of +2-Part-1
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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 :
| Liabilities | Rs. | Assets | Rs. |
| Sundry creditors | 15,000 | Cash at bank | 4,000 |
| Provident fund | 6,000 | Debtors 40,000 | |
| Reserve fund | 12,000 | Less Provision 2,000 | 38,000 |
| X’s capital | 65,000 | Stock | 30,000 |
| Y’s capital | 30,000 | Investments | 15,000 |
| Z’s capital | 20,000 | Patents | 10,000 |
| Plant & machinery | 50,000 | ||
| Input GST | 1,000 | ||
| 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 the goodwill | = | 30,000 | x | 1 |
| 6 | ||||
| = | Rs 5,000 |
| X’s gain | = | 3 | – | 3 |
| 5 | 6 | |||
| = | 3 | |||
| 30 |
| Y’s gain | = | 2 | – | 2 |
| 5 | 6 | |||
| = | 2 | |||
| 30 |
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Gaining ratio = 3 : 2
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| X’s Capital A/c | Dr. | 3,000 | |||
| Y’s capital A/c | dr. | 2,000 | |||
| To Z’s Capital A/c | 5,000 | ||||
| (Being goodwill adjusted. ) | |||||
Revaluation account | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Patents A/c | 2,000 | By Provident fund | 3,600 | ||
| To plant & Machinery A/c | 5,000 | By investments A/c | 2,600 | ||
| To provision for doubtful debts A/c | 400 | ||||
| By loss revaluation, A/c transferred to capital A/c | |||||
| X | 600 | ||||
| Y | 400 | ||||
| Z | 200 | 1,200 | |||
| 7,400 | 7,400 | ||||
| Partners’ Capital Account | |||||||
| Particulars | X | Y | Z | Particulars | X | Y | Z |
| To Revaluation A/c | 600 | 400 | 200 | By Balance b/d | 65,000 | 30,000 | 20,000 |
| To Z’s capital A/c | 3,000 | 2,000 | By reserve fund | 6,000 | 4,000 | 2,000 | |
| To Investments | 17,600 | By X’s capital A/c | 3,000 | ||||
| To Z’s loan A/c | 9,200 | By Y’s capital A/c | 2,000 | ||||
| 3,600 | |||||||
| To Balance c/d | 67,400 | 31,600 | – | ||||
| 71,000 | 34,000 | 27,000 | 71,000 | 34,000 | 27,000 | ||
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| Balance Sheet | |||||
| Liabilities | Amount | Assets | Amount | ||
| Sundry Creditors | 15,000 | Cash at bank | 4,000 | ||
| Provident fund | 2,400 | Stock | 30,000 | ||
| Z’s loan A/c | 9,200 | Sundry Debtors | 40,000 | ||
| X’s Capital A/c | 67,400 | Less provision | 2,400 | 37,600 | |
| Y’s Capital A/c | 31,600 | 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
- Chapter No. 1 – Accounting Not for Profit Organisations
- Chapter No. 2 – Partnership Accounts – I (Introduction)
- Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
- Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
