Advertisement

Question 57 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 57 Chapter 5 of +2-A
Question No.57 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 57 Chapter 5 of +2-A

Advertisement

57. X, Y and Z are partners sharing profits and losses in the ratio of 6 : 3 : 1. They admitted W into  partnership with effect from 1st April, 2019. New profit-sharing ratio between X, Y, Z and W was agreed to be 3 : 3 : 3 : 1. They also decide to record the effect of the following revaluations without affecting the book values of the assets and liabilities by passing an adjustment entry:

 Book Values ( )Revised Values ( )
Plant and Machinery3,50,0003,40,000
Land and Building5,00,0005,50,000
Trade Creditors1,00,000 90,000
Outstanding Expenses85,0001,00,000

Pass necessary adjustment entry.

The solution of Question 57 Chapter 5 of +2-A: –

 

DateParticulars
L.F.DebitCredit
 Z’s Capital A/cDr 7,000 
 W’s Capital A/cDr 3,500 
 To X’s Capital A/c   10,500
 (Being adjustment entry made)    

 

Advertisement-X

Working Note: –

Calculation of Provision for Doubtful Debts
Provision is always created on the Closing balance of Debtors

Gain/Loss=Land & Building + Trade Creditors – Plant & Machinery – Outstanding Expenses
 =50,000 + 10,000- 10,000 – 15,000
 =35,000
Total Provision For D/D=Closing balance of Debtors X Percentage of  Provision
 =70,000X5%
 =3,500
  
New Provision For D/D=Total Provision – (Old Provision – Bad Debts)

Advertisement-Y

 =3,500(8,000-6,000)
 =3,500
2,000
 =1,500  
Old Ratio of X, Y and Z=6 : 3 : 1
New Ratio of X, Y, Z and W=3 : 3 : 3 : 6

Sacrificing Share = Old Ratio – New Ratio

X’s Sacrificing/Gaining Share=63
1010
 =6 – 3
10
 =3Sacrifice
 10

 

Y’s Sacrificing/Gaining Share=33
1010
 =3 – 3
10
 =0
 10

 

Z’s Sacrificing/Gaining Share=13
1010

Advertisement-Y

 =1 – 3
10
 =-2Gain
 10

 

W’s Sacrificing/Gaining Share=1
10

Advertisement-X

Adjustment of Revaluation Profit

 

X will Get from Z & W=35,000X3
10
 =10,500
  

 

Z will pay to X=35,000X2
10
 =7,000
  

 

W will pay to X=35,000X1
10
 =3,500
  

 


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

Advertisement-X

 

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

Advertisement-Y

Advertisement

Advertisement

error: Content is protected !!