Question 60 Chapter 6 of +2-Part-1
60. (Journal Entries/Executor’s A/c) Bansal , Gupta and Goyal were partners, sharing profits and losses equally. Following was their Balance Sheet as on 31 March, 2018
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 4,000 | Cash at bank | 8,500 |
| General Reserve | 4,500 | Debtors | 8,000 |
| Capital A/c | Stock | 3,500 | |
| Bansal | 19,500 | Plant & Machinery | 8,000 |
| Gupta | 12,000 | Buildings | 20,000 |
| Goyal | 8,000 | ||
| 48,000 | 48,000 |
Goyal died on 1st August, 2018 The partnership deed provided that the executor of a deceased partner was entitled as follows :
(i) Balance of partner’s capital account and his share of general reserve.
(ii)Share of Goodwill calculated on the line of the three times of the average profits last four years. Goodwill account not to be opened.
(iii) Share of profit from the closure of the last accounting your, till the date of death on the of basis of the profit of the proceeding completed year , before death.
(iv) Interest on deceased’s capital @ 6% per year.
(v) Rs. 5,000 would be paid to the deceased executor immediately and the balance was to kept in his loan account.
(vi) Profits and losses for the proceeding years endings :
31.3.2015 Rs.8 ,000 (Profit) 31.3.2016 Rs. 10,000(loss), 31.3.2017 Rs. 12,000 (profit) and 31.3.2018 Rs. 18,000 (Profit).
Pass journal Entries and prepare Goyal Executor’s Account
The solution of Question 60 Chapter 6 of +2 Part-1: –
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| a) | General Reserve A/c | Dr. | 4,500 | ||
| To B’s capital A/c | 1,500 | ||||
| To G’s capital A/c | 1,500 | ||||
| To TGs capital A/c | 1,500 | ||||
| (Being reserve distributed ) | |||||
| b) | Bansal’s capital A/c | Dr. | 3,500 | ||
| Gupta’s capital A/c | Dr. | 3,500 | |||
| To Goyal’s capital A/c | 7,000 | ||||
| (Being goodwill adjusted ) | |||||
| c) | Profit & loss suspense A/c | Dr. | 2,000 | ||
| To Goyal’s capital A/c | 2,000 | ||||
| (Being Goyal’s share of profit ) | |||||
| d) | Interest on capital A/c | Dr. | 160 | ||
| To Goyal’s capital A/c | 160 | ||||
| (Being interest on capital ) | |||||
| e) | Goyal’s executor’s A/c | Dr. | 5,000 | ||
| To Bank A/c | 5,000 | ||||
| (Being part of amount paid to executors) | |||||
| f) | Goyal’s capital A/c | Dr. | 13,660 | ||
| To executors loan A/c | 13,660 | ||||
| (Being reserve distributed ) | |||||
Goyal’s Capital A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To bank A/c | 5,000 | By balance b/d | 8,000 | ||
| To executors A/c | 13,660 | By general reserve A/c | 1,500 | ||
| By profit & loss suspense A/c | 2,000 | ||||
| By interest on cap. A/c | 160 | ||||
| By R’s capital A/c | 3,500 | ||||
| By S’s capital A/c | 3,500 | ||||
| 18,660 | 18,660 | ||||
Comment if you have any questions.
End of Solution
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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)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
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