Question 47 Chapter 6 – Unimax Class 12 Part 1 – 2021
Table of Contents
47. A, B and C were partners sharing profits and losses in the ratio of 5:3:2 respectively. On 31st March 2021 their balance sheet was as under:
| Liabilities | Amount | Assets | Amount | |
| S. Creditors | 11,000 | Building | 20,000 | |
| Reserve fund | 6,000 | machinery | 30,000 | |
| Capital | Stock | 10,000 | ||
| A | 30,000 | Patents | 11,000 | |
| B | 25,000 | Debtors | 8,000 | |
| C | 15,000 | 70,000 | Cash at Bank | 8,000 |
| 87,000 | 87,000 |
A died on 1st October, 2021 it was agreed between his executors and the remaining partners that:
- Goodwill be valued at 2 ½ years purchase of average profit of last four years profits which were 2017-18, 2018-19 , 2019-20 and 202-21 and the amounts were ₹13000 ,₹12000, ₹20000, ₹15000 respectively.
- Patents to be valued at ₹8000; Machinery to be valued at ₹ 28000; Building at ₹25000.
- Profit for the year 2021-22 be taken as having accured at the same rate as that of the previous year.
- Interest on capital be provided at 10% p.a.
- Half of the amount due to A to be paid immediately to the executor and the balance transferred to his executors loan a/c.
Prepare A’s capital a/c and A’s executors a/c as on 1st October 2021.
The solution of Question 47 Chapter 6 – Unimax Class 12 Part 1: –
Revaluation Account
| Particulars | Amount | Assets | Amount |
| To Patent a/c | 3,000 | By building a/c | 5,000 |
| To machinery a/c | 2,000 | ||
| 5,000 | 5,000 |
A’s capital Account
| Particulars | Amount | Assets | Amount |
| To A’s executor‘s a/c | 57,000 | By balance b/d | 30,000 |
| By res. A/c (6000 × 5/10) | 3,000 | ||
| By B’s capital a/c (18750) | 11,250 | ||
| By C’s capital a/c | 7,500 | ||
| By int. on cap.a/c (30000×10/100×6/12) | 1,500 | ||
| By P/L susp. a/c (15000×6/12×5/10) | 3,750 | ||
| 57,000 | 57,000 |
A’s executor‘s account
| Particulars | Amount | Assets | Amount |
| To cash a/c | 28,500 | By A’s capital a/c | 57,000 |
| To A‘s executor‘s loan a/c | 28,500 | ||
| 57,000 | 57,000 |
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
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