Question 59 Chapter 6 of +2-A
Table of Contents
59. X, Y and Z were partners sharing profits and losses in the ratio of 3: 2: 1. Y died on 30th June 2018. Profit from 1st April 2018 to 30th June 2018 was 3,60,000. X and Z decided to share the future profits in the ratio of 3: 2 respectively with effect from 1st July 2018. Pass the necessary journal entries to record Y’s share of profit up to the date of death.
The solution of Question 59 Chapter 6 of +2-A: –
| Date | Particulars |
L.F. | Debit | Credit | |
| X’s Capital A/c | Dr. | 36,000 | |||
| Z’s Capital A/c | Dr. | 84,000 | |||
| To Y’s Capital A/c | 1,20,000 | ||||
| (Being Proportionate profit dispensed to deceased partner) | |||||
Working Notes:
Y’s share=Firm’s Profit × Y’s Profit Share
| Y’s share | = | 3,60,000 | X | 2 |
| 6 | ||||
| = | 1,20,000 |
Calculation of Gaining Ratio
| X’s gain | = | 3 | – | 3 |
| 5 | 6 | |||
| = | 3 | |||
| 30 |
| Z’s Share | = | 2 | – | 1 |
| 5 | 6 | |||
| = | 7 | |||
| 30 |
| X’s share | = | 1,20,000 | X | 3 |
| 10 | ||||
| = | 36,000 |
| Z’s share | = | 1,20,000 | X | 7 |
| 10 | ||||
| = | 84,000 |
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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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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