Question 46 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
46. A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. The balance sheet as on 31st March, 2021 was as follows:
| Liabilities | Amount | Assets | Amount | |
| Creditors | 4,000 | Building | 20,000 | |
| Reserves | 6,000 | Plant and machinery | 16,000 | |
| Capital | Stock | 5,100 | ||
| A | 24,000 | Debtors | 6,000 | |
| B | 12,000 | Cash | 6,900 | |
| C | 8,000 | |||
| 54,000 | 54,000 |
A died on 30.9.2021. Under the partnership agreement the executors of a deceased partner were entitled to:
- Amount standing to the credit of partner’s capital a/c.
- Interest on capital at 12% p.a.
- Share of Goodwill on the basis of gourmet years purchase of last three years average profit.
- 4) Share of profit from the closing of last financial year to the date of death on the basis of last year profit. Profits for the year 2018-19, 2019-20, and 2020-21 were ₹8000, ₹ 12000 and ₹ 7000 respectively.
Prepare A’s capital a/c to be rendered to his executors.
The solution of Question 46 Chapter 6 – Unimax Class 12 Part 1: –
A’s capital account
| Particulars | Amount | Assets | Amount |
| To A’s executor loan a/c | 48,190 | By Balance b/d | 24,000 |
| By res. A/c 6000×3/6 | 3,000 | ||
| By int. On capital a/c 24000×12/100×6/12 | 1,440 | ||
| Capital | |||
| B | 12,000 | ||
| C | 6,000 | ||
| By p/L susp. a/c 3000×6/12×3/6 | 1,750 | ||
| 48,190 | 48,190 |
Working note:
A’s share of Goodwill = 8000/3+ 12000/3+ 7000/3 × 4 × 3/6 = ₹ 18000.
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