# Question 49 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 49 Chapter 6 of +2-A

Question 49 Chapter 6 of +2-A

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:

1. 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.
2. Fixed Assets be appreciated by 20%.
3. Stock be reduced to 75,000.
4. 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

 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. 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

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