Question 58 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 58 Chapter 6 of +2- Part

Question 58 Chapter 6 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

58. (Deceased Partner’s Ac) Following is the balance sheet of Tony, Sony and Remy as on March 31, 2019 :

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

Sony died on June 30, 2019. Under the terms of the partnership deed, the executors of a deceased partner were entitled to:

  1. Amount standing to the credit of the partner’s capital account.
  2. Interest an capital at 5% per annum.
  3. Share of goodwill on the basis of twice the average of the past three years’ profit and
  4. Share of profit from the closing of the last financial year to the date of death on the basis of the last three year’s profit.
    Profits for 2013-14, 2014-15 and 2015-16 were Rs. 12,000, Rs. 16,000 and Rs. 14.000 respectively.
    Profits were shared in the ratio of capitals. Draw up the Sony’s Account to be rendered to his executors .

The solution of Question 58 Chapter 6 of +2 Part-1: –

Sony’s Capital A/c
Particulars
Amount Particulars Amount
To Sony ‘s executor’s A/c   33,821 By balance b/d   20,000
      By general reserve   4,571
      By interest on capital A/c   250
      By Tony’s capital A/c   4,800
      By Romy’s capital A/c   3,200
      By profit & loss A/c   1,000
    33,821     33,821

Working notes :

1.) Interest on capital :

1.) interest in on capital  = 5 x 3 x 20,000
100 12
             
  = Rs 250        

1.) Share of goodwill :

Total goodwill of firm = 12,000+16,000+14,000
3
     
  = Rs 28,000
Sony’s share being 2/7 = 2 x 28,000
7
         
  = Rs 8,000    
Tony’s gain = 3 x 8,000
5
         
  = Rs 4,800    
Romy’s gain = 2 x 8,000
5
         
  = Rs 3,200    
3.) Interest on capital : = 2 x 3 x 14,000
7 12
             
  = Rs 1,000        

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 58 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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