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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

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Question 54 Chapter 6 of +2-A

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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 AmountAssetsAmount
Capital A/cs:  Building18,00,000
A11,00,000 Investments4,00,000
B11,40,000 Stock6,00,000
C7,60,00030,00,000Debtors10,00,000
Workmen Compensation Reserve 10,00,000Cash and Bank6,00,000
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:

Year2013-142014-152015-162016-172017-18
Profits4,00,0005,00,0006,00,0008,00,0007,00,000

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.

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

 

Revaluation Account
Particular
AmountParticularAmount
To Investments1,00,000By Building4,00,000
  Stock2,00,000
Profit transferred to:    
A’s Capital A/c2,50,000    
B’s Capital A/c1,50,000    
C’s Capital A/c1,00,0005,00,000   
  6,00,000  6,00,000

 

Partners’ Capital Account
Part.XYZ

Part.

XYZ
To C’s Capital A/c1,50,00090,000By Balance B/d11,00,00011,40,0007,60,000
To C’s Loan A/c13,35,000By Re
valua
tion A/c
2,50,0001,50,0001,00,000
    By A’s Capital A/c1,50,000
    By B’s Capital A/c90,000
    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 17,00,00015,00,000    
 18,50,00015,90,00013,35,000 18,50,00015,90,00013,35,000

 

Balance Sheet
Liabilities
AmountAssetsAmount
Creditors2,00,000Building 22,00,000
Employees’ Provident Fund2,00,000Investments 3,00,000
C’s Loan A/c 13,35,000Stock 8,00,000
Capital:  Debtors 10,00,000
A17,00,000 Cash and Bank 6,00,000
B15,00,00032,00,000P&L Suspense Account35,000
  49,35,000  49,35,000

 

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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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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