Question 36 Chapter 6 – Unimax Class 12 Part 1 – 2021
36. Akash and Badal are partners sharing profits and losses equally on 30th june2021 their balance sheet was as under:
| Liabilities | Amount | Assets |
Amount | ||
| Trade creditors | 10,500 | Building | 4,500 | ||
| Capital : | Machinery | 2,250 | |||
| Akash | 7,500 | Stock | 4,875 | ||
| Badal | 6,000 | Sundry debtors | 12,225 | ||
| Bank balance | 150 | ||||
| 24,000 | 24,000 | ||||
It is agreed that Akash shall retire as on 30 june 2021 and that Badal shall take over the business on the following terms :
- The goodwill of the firm to be agreed as worth rs.1500.
- The stock to be agreed as worth rs.4125.
- Aprovision for doubtful debts (4% on the sundry debtors) to be made.
- Machinery to be value at rs.3000.
- Akash to be paid out as to rs.3000 of the amount due tohim by mortgage at 5% per annum secured on the building and as to the balance by a bill of exchange (without interest )at 3 months.
Set Out Journal Enteries Recording above matters and the balance sheet of Badal as on 30th june 2021 after the adjustment have been made.
The solution of Question 36 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation account
| Particulars | Rs. | Particulars | Rs. | ||
| To stock a/c | 750 | By machinery a/c | 750 | ||
| To provision for d.d. a/c | 489 | By loss transferred to capital a/c | |||
| Akash | 244 | ||||
| Badal | 245 | 489 | |||
| 1,239 | 1,239 |
Partners Capital accounts
| Particulars | Akash | Badal | Particulars | Akash | Badal |
| To loss on rev. | 244 | 245 | By balance b/d | 7,500 | 6,000 |
| To Akash’s capital a/c | 750 | By Badal’s capital a/c | 750 | ||
| To cash a/c | 3,000 | ||||
| To B/P a/c | 5,006 | ||||
| To balance c/d | 5,005 | ||||
| 8,250 | 6,000 | 8,250 | 6,000 |
Balance sheet
| Liabilities | Amount | Assets | Amount | ||
| Trade creditors | 10,500 | Building | 4,500 | ||
| Mortgage loan | 3,000 | Machinery | 3,000 | ||
| Bills payable | 5,006 | Stock | 4,125 | ||
| Badal’s capital a/c | 5,005 | S. debtors | 12,225 | ||
| (-) reserve | 489 | 11,736 | |||
| Bank balance (150+3000-3000) | 150 | ||||
| 23,511 | 23,511 |
Journal
| Revaluation a/c | Dr. | 1,239 | ||
| To Stock a/c | 750 | |||
| To Provision for d.d | 489 | |||
| Machinery a/c | Dr. | 750 | ||
| To Revaluation a/c | 750 | |||
| Akash’s capital a/c | Dr. | 244 | ||
| Badal’s capital a/c | Dr. | 245 | ||
| To Revaluation a/c | 489 | |||
| Badal’s capital a/c | Dr. | 750 | ||
| To Akash’s capital a/c | 750 | |||
| Cash a/c | Dr. | 3,000 | ||
| To 5% Mortgage (loan) Dr. | 3,000 | |||
| Akash’s capital a/c | Dr. | 3,000 | ||
| To cash a/c | 3000 | |||
| Akash’s capital a/c | Dr. | 5,006 | ||
| To B/P a/c | 5,006 |
WORKING NOTE:
1) Cash has been brought on account of loan rs. 3000.
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Retirement of a Partner – Explained with Illustration
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication