# Question 54 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.54 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 54 Chapter 6 of +2-A

54. A B and C are partners sharing profits in the ratio of 5 : 3: 2. Their Balance Sheet as on 31st March 2018 is given below:

 Liabilities Amount Assets Amount Capital A/cs: Building 18,00,000 A 11,00,000 Investments 4,00,000 B 11,40,000 Stock 6,00,000 C 7,60,000 30,00,000 Debtors 10,00,000 Workmen Compensation Reserve 10,00,000 Cash and Bank 6,00,000 Creditors 2,00,000 Employees’ Provident Fund 2,00,000 44,00,000 44,00,000

C retires on 30th June, 2018 and it was mutually agreed that:
a Building be valued at 22,00,000.
b Investments to be valued at 3,00,000.
c Stock be taken at 8,00,000.
d Goodwill of the firm be valued at two years’ purchase of the average profit of the past five years.
e C’s share of profits up to the date of retirement be calculated on the basis of average profit of the preceding three years.
The profits of the preceding five years were as under:

 Year 2013-14 2014-15 2015-16 2016-17 2017-18 Profits 4,00,000 5,00,000 6,00,000 8,00,000 7,00,000

f Amount payable to C to be transferred to his Loan Account carrying interest @ 10% p.a. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet as at 30th June, 2018.

## The solution of Question 54 Chapter 6 of +2-A: –

 Revaluation Account Particular Amount Particular Amount To Investments 1,00,000 By Building 4,00,000 Stock 2,00,000 Profit transferred to: A’s Capital A/c 2,50,000 B’s Capital A/c 1,50,000 C’s Capital A/c 1,00,000 5,00,000 6,00,000 6,00,000

 Partners’ Capital Account Part. X Y Z Part. X Y Z To C’s Capital A/c 1,50,000 90,000 – By Balance B/d 11,00,000 11,40,000 7,60,000 To C’s Loan A/c – – 13,35,000 By Revaluation A/c 2,50,000 1,50,000 1,00,000 By A’s Capital A/c – – 1,50,000 By B’s Capital A/c – – 90,000 By Workmen Compensation Reserve A/c* 5,00,000 3,00,000 2,00,000 By P & L Suspense A/c – – 35,000 To Balance c/d 17,00,000 15,00,000 – 18,50,000 15,90,000 13,35,000 18,50,000 15,90,000 13,35,000

 Balance Sheet Liabilities Amount Assets Amount Creditors 2,00,000 Building 22,00,000 Employees’ Provident Fund 2,00,000 Investments 3,00,000 C’s Loan A/c 13,35,000 Stock 8,00,000 Capital: Debtors 10,00,000 A 17,00,000 Cash and Bank 6,00,000 B 15,00,000 32,00,000 P&L Suspense Account 35,000 49,35,000 49,35,000

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