Question 49 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 49 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 49 Chapter 6 – Unimax Class 12 Part 1: –

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

49. X, Y and Z were partners in a firm sharing profits in the ratio of 3:2:1. The firm closes it’s a/cs on 31st March every year. X died on 30-9-2021. On that date credit balance in his capital a/c was ₹30000. The firm had general reserves of ₹ 16000 on that date .The partnership deed provided that on the death of a partner:

Interest on capital @10% p.a. shall be allowed.
Goodwill will be calculated on the basis of 3 years purchase of four years average profits which were as follows: Profits for the year ending 31st March 2020, 2019, 2018, and 2017 were ₹ 14000, ₹ 16000, ₹ 20000 and ₹ 10000 respectively.
The deceased partner‘s share of profit upto the date of death will be calculated on the
basis of last year’s profits.

Prepare X’s capital a/c To be shown to his executors.

The solution of Question 49 Chapter 6 – Unimax Class 12 Part 1: –

X’s capital Account

Particulars	Amount	Assets	Amount
To X’s executors loan a/c	65,500	By balance b/d	30,000
		By reserve a/c (16000×3/6)	8,000
		By interest on capital a/c (30000×10/100×6/12)	1,500
		By Y‘s capital a/c (22500)	15,000
		By Z’s capital a/c	7,500
		By P/L susp. a/c (14000×6/12×3/6)	3,500

	65,500		65,500