Question 51 Chapter 6 - Unimax Class 12 Part 1 - 2021

Question 51 Chapter 6 – Unimax Class 12 Part 1 – 2021

Table of Contents

The solution of Question 51 Chapter 6 – Unimax Class 12 Part 1: –

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

51. The following is the balance sheet of Ram, Mohan and Sohan as on 31st December, 2016:

Liabilities	Amount	Assets	Amount
S. Creditors	10,000	Tools	3,000
Res. Fund	7,500	Furniture	18,000
Capitals		Stock	16,000
Ram	20,000	Debtors	12,000
Mohan	10,000	Cash at Bank	8,000
Sohan	10,000	Cash in hand	500

	57,500		57,500

Ram, Mohan and Sohan shared profits and losses in the ratio of 2:2:1. Sohan died on 31st March, 2017. Under the partnership agreement the executor of Sohan was entitled to:

Amount standing to the credit of his capital a/c.
Interest on capital which amounted to ₹150.
His share of Goodwill ₹ 5000.
His share of profit from the closing of last financial year to the date of death which amounted to ₹ 750.
Sohan’s executor was paid ₹ 1400. On 1st April 2017 and the balance in four equal yearly installments from 31st March 2018 with interest @6%p.a.

Pass necessary Journal entries and draw up Sohan’s a/c To be rendered to his executor and Sohan’s executor’s a/c till it is finally paid.

The solution of Question 51 Chapter 6 – Unimax Class 12 Part 1: –

Sohan’s Capital Account

Particulars	Amount	Particulars	Amount
To Sohan’s executor’s a/c	17,400	By balance b/d	10,000
		By res. Fund a/c (7500×1/5)	1,500
		By interest. On cap. A/c	150
		Capital
		Ram (1:1)	2,500
		Mohan	2500
		By P/L susp. a/c	750

	17,,400		17,400

Sohan’s executor’s a/c

Particulars	Amount	Particulars	Amount
To cash a/c	1,400	By Sohan’s capital a/c	17,400
To cash a/c (4000+960)	4,960	By interest a/c (6%)	960
To balance c/d	12,000		18,360
	18,360

To cash a/c (4000+720)	4,720	By bal. b/d	12,000
To bal. b/d	8,000	By interest a/c(6%)	720
	12,720		12,720

To cash a/c (4000+480)	4,480	By balance b/d	8,000
To balance c/d	4,000	By interest a/c(6%)	480
	8,480		8,480

		By balance b/d	4,000
To cash a/c( 4000+240)	4,240	By interest a/c(6%)	240
	4,240		4,240