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 Re valua tion 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 Work men Com pensa tion Reserve A/c* |
5,00,000 |
3,00,000 |
2,00,000 | ||||
| By P & L Sus pense 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 | ||||
Advertisement-X
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. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
