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Question 38 Chapter 6 of +2-Part-1
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38 (Adjustment of Goodwill without raising Goodwill A/c Partner Loan A/c Journal) A B and C are carrying an business in partnership sharing profits and losses in the ratio of 3 :2: 1 respectively On 31st December, 2018, the Balance Sheet of the firm stood as follows:
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 13,590 | Cash | 5,900 |
| Capitals A | 15,000 | Debtors | 8,000 |
| B | 10,000 | Stock | 11,690 |
| C | 10,000 | Building | 23,000 |
| 48,590 | 48,590 |
B retired on the following terms:
(i)Building appreciated by Rs.7,000.
(ii) Provision for bad debts is to make at 5% on debtors.
(iii) Goodwill of the firm valued at Rs. 9,000 and adjustment in this respect be made without raising goodwill account..
(iv) Rs. 5,000 to be paid to B immediately and the balance due to him be treated as loan carrying interest @ 6% per annum.
Pass journal entries to record the above-mentioned transactions and show the Balance Sheet of the firm as it would appear immediately after B’s retirement.
The solution of Question 38 Chapter 6 of +2 Part-1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| Building A/c | Dr. | 7,000 | |||
| To Revaluation A/c | 7,000 | ||||
| (Being appreciated value of Building recorded in the books) | |||||
| Revaluation A/c | Dr. | 400 | |||
| To provision for doubtful debts A/c | 400 | ||||
| (Being Provision for doubtful debts created on Debtors) | |||||
| Revaluation A/c | Dr. | 6,600 | |||
| To A’s capital A/c | 3,300 | ||||
| To B’s capital A/c | 2,200 | ||||
| To C’s capital A/c | 1,100 | ||||
| (Being revaluation on profit ) | |||||
| A’s capital A/c | Dr. | 2,250 | |||
| C’s capital A/c | Dr. | 750 | |||
| To B’s capital A/c | 3,000 | ||||
| (Being adjustment of goodwill ) | |||||
| B’s capital A/c | Dr. | 5,000 | |||
| To cash A/c | 5,000 | ||||
| (Being part payment to B) | |||||
| B’s capital A/c | Dr. | 10,200 | |||
| To B’s loan A/c | 10,200 | ||||
| (Being settlement of B’s A/c) | |||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To B’s capital A/c | 2,250 | 750 | By Balance b/d | 15,000 | 10,000 | 10,000 | |
| To Cash | 5,000 | By Revaluation A/c | 3,300 | 2,200 | 1,100 | ||
| To B’s loan A/c | 10,200 | By A’s capital A/c | 2,250 | ||||
| By C’s capital A/c | 750 | ||||||
| To Balance c/d | 16,050 | – | 10,350 | ||||
| 18,300 | 15,200 | 11,100 | 18,300 | 15,200 | 11,100 | ||
| Balance Sheet | |||||
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 13,590 | Cash | 900 | ||
| B’s loan A/c | 10,200 | Debtors | 8,000 | ||
| Capital | Less Provision | 400 | 7,600 | ||
| A | 16,050 | Stock | 11,690 | ||
| C | 10,350 | 26,400 | Building | 30,000 | |
| 50,190 | 50,190 | ||||
Comment if you have any questions.
End of Solution
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The solution to all questions of Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 29 Chapter 6 of +2 Part- 1 – USHA Publication 12 Class
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Question 42 Chapter 6 of +2 Part- 1 – USHA Publication
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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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)
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Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication