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# Question 57 Chapter 6 of +2 Part- 1 – USHA Publication

Q-57 - CH-6 - Usha +2 Book 2018 - Solution

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Question 57 Chapter 6 of +2-Part- 1

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57. (Journal Entries/Deceased Partner’s Executor A/c) A, B and Care partners sharing profits and loss in the ratio of 3:2 1 respectively. On 31st December, 2017 their balance sheet was as under :

 Liabilities Rs. Assets Rs. Creditors 19,860 Cash in hand 1,210 General reserve 3,000 Stock 10,750 Capital A/c Debtors 10,750 A 10,000 Investments 10,430 B 6,000 Buildings 8,000 C 4,000 42,860 42,860

B died on 28th Feb, 2018 and according to partnership agreement his legal representative is entitled to be paid out as follows:

1. The capital to his credit at the time of his death and interest up to the time of death @ 6 % p.a.
2. His appropriate share in general reserve.
3. His share of profit for the period based on the figure of the profit of the previous year.
4. Goodwill according to his share of profit to be calculated by taking twice the amount of average profit of the last three years. The profits for three years were 2015 Rs. 7,800, 2016 Rs. 9,000 and 2017 Rs. 9,600.
Is legal representative was paid off by selling the investments for Rs. 16,020.
Pass journal entries and write B’s executor’s account

## The solution of Question 57 Chapter 6 of +2 Part-1: –

Day - 142 | Solution of Question 57 Death of a Partner Chapter 6 Accounts class 12 PSEB

 1.) interest in on capital = 6 x 2 x 6,000 100 12 = Rs 60
 2.) B’s share of the profit Rs Previous year profits 9,600 Profit of the firm for 2 months 1,600 B’s share of the profit [(1600X2)/6]= Rs. 533 (app)
 3.) B’s share of the profit on sale of investment : Rs Realized 16,020 Book value 10,430 Profit 5,590

B’s share of the profit [(5,590 X 2)/6]= Rs. 1863 (app.)

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 4.) B’s share of goodwill : Rs Three years profit (7800+9000+9600) 26,400 Average profit (26,400/3) 8,800 Twice the average profit (8,800X 2) 17,600

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B’s share of goodwill [(17600 X2 )/6]= 5,867 (app.)

 B’s Capital A/c Particulars Amount Particulars Amount To cash A/c 15,323 By B’s capital A/c 6,000 By general reserve 1,000 By Revaluation A/c (Int.) 60 By profit & loss Suspense A/c 533 By A’s capital A/c 4,400 By B’s capital A/c 1,467 By Revaluation A/c 1,863 15,323 15,323
 Journal Date Particulars L.F. Debit Credit 1. Revaluation A/c Dr. 60 To B’s capital A/c 60 (Being interest on Capital provided to B) 2. General Reserve A/c Dr. 3,000 To A’s capital A/c 1,500 To B’s capital A/c 1,000 To C’s capital A/c 500 (Being General Reserve transferred to the capital A/c in old profit sharing ratio) 3. Profit & loss suspense A/c Dr. 533 To B’s capital A/c 533 (Being the profit for the Interim period transferred to B’s Capital Account) 4. A’s capital A/c Dr. 4,400 C’s capital A/c Dr. 1,467 To B’s capital A/c 5,867 (Being adjustment of goodwill made through capital A/cs) 5. Cash A/c Dr. 16,020 To Investment A/c 10,430 To Revaluation A/c 5,590 (Being Investment sold on profit) 6. Revaluation A/c Dr. 5,590 To A’s capital A/c 2,795 To B’s capital A/c 1,863 To C’s capital A/c 932 (Being profit on revaluation A/c transferred to the capital A/c in old profit sharing ratio)

Comment if you have any questions.

End of Solution

## Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 03 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 09 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 15 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 21 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 27 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 33 Chapter 6 of +2 Part- 1 – USHA Publication

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Question 39 Chapter 6 of +2 Part- 1 – USHA Publication

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Question 48 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 54 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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Question 60 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

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### Download a PDF of Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner):

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## Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

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Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

## Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 2 Class 12 by Unimax Publication

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