Question 50 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 50 Chapter 6 of +2-A

Question 50 Chapter 6 of +2-A

50. X, Y, and Z are partners sharing profits in the ratio of 5: 3: 2. Y retires on 1st April 2019 from the firm, on which date capitals of X, Y, and Z, after all, adjustments are 1,03,680, 87,840, and 26,880 respectively. The Cash and Bank balances on that date were 9,600. Y is to be paid through the amount brought in by X and Z in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be X 3/5 and Z 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of 7,200 was to be maintained and pass the necessary Journal entries.

The solution of Question 50 Chapter 6 of +2-A: –

Total Capital Before X retirement = 1,03,680 + 87,840 + 26,880

= 2,18,400

Availably of Cash = 9,600 – 7,200
= 2,400

Combined New Capital of X and Z = 2,18,400 – 2,400
= 2,16,000

X’s New Capital = Total Capital Before retirement X Z’s share
         
  = 2,16,000 X 3
5
         
  = Rs 1,29,600

 

Z’s New Capital = Total Capital Before retirement X Z’s share
         
  = 2,16,000 X 2
5
         
  = Rs 86,400

 

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 = 1,29,600 1,03,680
  = 25,920
/-
   

 

Addition/withdrawal by Z’s in/from Capital A/c = 86,400 26,880
  = 59,520/-    

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)

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

2 Book 1 min - Question 50 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.