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Question 44 Chapter 6 – Unimax Class 12 Part 1 – 2021
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Table of Contents
44. X and Y are partners. The partnership deed provides inter alia:
- The a/cs be balanced on 31st December, in each year.
- The The profits be divided as follows: X one-half, Y one-third and carried to a reserve account one-sixth.
- That in the event of death partner, his executors be entitled to be paid out:
- The capital to his credit at date of death.
- His proportion of profit to date of death based on the average profits of the last three completed years.
- By way of Goodwill, his proportion of the total profits for the three preceding years.
| Liabilities | Amount | Assets | Amount | |
| Capital a/c | Sundry assets | 21,000 | ||
| X | 9,000 | |||
| Y | 6,000 | 15,000 | ||
| Reserve | 3,000 | |||
| Creditors | 3,000 | |||
| 21,000 | 21,000 |
The profits for three years were 2019 ₹ 4200, 2020 ₹ 3900, 2021 ₹ 4500. Y died on 1st May , 2022. Prepare the necessary accounts.
The solution of Question 44 Chapter 6 – Unimax Class 12 Part 1: –
B’s capital account
| Particulars | Amount | Assets | Amount |
| To drawings a/c | 2,000 | By Balance b/d | 20,000 |
| To int. on drawings a/c 2000×5/100 | 100 | By JLP a/c 18000×1/3 | 6,000 |
| To B’s executors loan a/c | 32,500 | By salary a/c | 1,600 |
| By A‘s capital a/c | 1500 | ||
| By C’s capital a/c | 1,500 | ||
| By Interest on capital a/c 20000×5/100 | 1,000 | ||
| By P/L app. a/c 9000×1/3 | 3,000 | ||
| 34,600 | 34,600 |
1) B’s share of G.W.=8000/3+ 24000/3 -5000/3 ×1/3 = ₹27000/3×1/3 = ₹ 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