Question 49 Chapter 6 of +2-A
Table of Contents
49. Balance Sheet of X, Y, and Z who shared profits in the ratio of 5 : 3: 2, as of 31st March 2019 was as follows:
| Liabilities | Amount | Assets | Amount | ||
| Sundry Creditors | 39,750 | Bank (Minimum Balance) | 15,000 | ||
| Employees’ Provident Fund | 5,250 | Debtors | 97,500 | ||
| Workmen Compensation Reserve | 22,500 | Stock | 82,500 | ||
| Capital A/cs: | Fixed Assets | 1,87,500 | |||
| X’s Capital | 1,65,000 | ||||
| Y’s Capital | 84,000 | ||||
| Z’s Capital | 66,000 | 3,15,000 | |||
| 3,82,500 | 3,82,500 | ||||
Y retired on 1st April 2019 and it was agreed that:
- Goodwill of the firm is valued at 1,12,500 and Y’s share of it be adjusted into the accounts of X and Z who are going to share future profits in the ratio of 3: 2.
- Fixed Assets be appreciated by 20%.
- Stock be reduced to 75,000.
- Y be paid amount brought in by X and Z so as to make their capitals proportionate to their new profit-sharing ratio.
Prepare Revaluation Account, Capital Accounts of all partners, and the Balance Sheet of the New Firm.
The solution of Question 49 Chapter 6 of +2-A: –
| Revaluation Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Stock A/c | 7,500 | By Fixed Assets A/c | 37,500 | ||
| To Profit transferred to | |||||
| X’s Capital A/c | 15,000 | ||||
| Y’s Capital A/c | 9,000 | ||||
| Z’s Capital A/c | 6,000 | 30,000 | |||
| 37,500 | 37,500 | ||||
| Partners’ Capital Account |
|||||||
| Part. | X | Y | Z |
Part. |
X | Y | Z |
| To Y’s Capital A/c | 11,250 | – | 22,500 | By Balance B/d | 1,65,000 | 84,000 | 66,000 |
| By General Reserve A/c | 11,250 | 6,750 | 4,500 | ||||
| To Bank A/c | By Revaluation A/c | 15,000 | 9,000 | 6,000 | |||
| By X’s Capital A/c | – | 11,250 | – | ||||
| By Z’s Capital A/c | 22,500 | ||||||
| To Balance c/d | 2,20,500 | – | 1,47,000 | By Bank A/c | 40,500 | 93,000 | |
| 2,31,750 | 1,33,500 | 1,69,500 | 2,31,750 | 1,33,500 | 1,69,500 | ||
| Balance Sheet |
|||||
| Particular |
Amount | Particular | Amount | ||
| Sundry Creditor | 39,750 | Bank | 15,000 | ||
| Employees Provident Fund | 5,250 | Debtors | 97,500 | ||
| Stock | 75,000 | ||||
| Fixed Assets | 2,25,000 | ||||
| Capital A/cs | |||||
| X’s Capital | 2,20,500 | ||||
| Z’s Capital | 1,47,000 | 3,67,500 | |||
| 4,12,500 | 4,12,500 | ||||
Working Note:-
Total Capital Before X retirement = 1,80,000+ 54,000+ 1,33,500
= 3,67,500
| Y’s New Capital | = | Total Capital Before X retirement | X | Z’s share |
| = | 3,67,500 | X | 3 | |
| 5 | ||||
| = | Rs 2,20,500 |
| Z’s New Capital | = | Total Capital Before X retirement | X | Z’s share |
| = | 3,67,500 | X | 2 | |
| 5 | ||||
| = | Rs 1,47,500 |
Calculation of Addition/withdrawal of Capital by the Y and Z
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| Addition/withdrawal in/from Capital A/c | = | New Capital Amount | – | Balance of Capital Amount after all adjustments |
| Addition/withdrawal by X’s in/from Capital A/c | = | 2,20,500 | – | 1,80,000 |
| = | 40,500/- |
| Addition/withdrawal by Z’s in/from Capital A/c | = | 1,47,500 | – | 54,000 |
| = | 93,000/- |
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
