Question 58 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 58 Chapter 6 of +2-A

Question 58 Chapter 6 of +2-A

58. Ram, Manohar and Joshi were partners in a firm. Joshi died on 31st May 2018. His share of profit from the closure of the last accounting year till the date of death was to be calculated on the basis of the average of three completed financial years of profits before death. Profits for the years ended 31st March 2016, 2017 and 2018 were 7,000; 8,000 and 9,000 respectively. Calculate Joshi’s share of profit till the date of his death and pass necessary Journal entry for the same.

 

The solution of Question 58 Chapter 6 of +2-A: –

 

Average Profit = Profit of last 3 year
3
     
  = 7,000 + 8,000 +9,000
  3
     
  = Rs 8,000

 

Joshi’s Profit Share from April 01, 2018 to May 31, 2018 = 8,000 X 2 X 1
12 3
             
  = Rs 444        

 

Journal Entries

Date Particulars
L.F. Debit Credit
  Profit and Loss Suspense A/c Dr.   444  
  To Joshi’s Capital A/c       444
  (Being Joshi’s profit share credited to his capital account)      
           

 

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

 

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2 Book 1 min - Question 58 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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