Question 60 Chapter 6 of +2- Part

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 4,000Cash at bank8,500
General  Reserve4,500 Debtors8,000
Capital A/c  Stock 3,500
Bansal 19,500Plant & Machinery  8,000
Gupta 12,000Buildings 20,000
Goyal 8,000  
    
    
 48,000 48,000

Gopal 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.DebitCredit
a)General Reserve A/cDr. 4,500 
 To R’s capital A/c   1,500
 To S’s capital A/c   1,500
 To T’s capital A/c   1,500
 (Being reserve distributed )    
      
b)Bansal’s capital A/cDr. 3,500 
 Gupta’s capital A/cDr. 3,500 
 To Goyal’s capital A/c   7,000
 (Being goodwill adjusted )    
      
c)Profit & loss suspense A/cDr. 2,000 
 To Goyal’s capital A/c   2,000
 (Being Goyal’s share of profit )    
      
d)Interest on capital A/cDr. 160 
 To Goyal’s capital A/c   160
 (Being interest on capital )    
      
e)Goyal’s executor’s A/cDr. 5,000 
 To Bank A/c   5,000
 (Being part of amount paid to executors)    
      
f)Goyal’s capital A/cDr. 13,660 
 To executors loan A/c   13,660
 (Being reserve distributed )    
     

Goyal’s Capital A/c

Particulars
AmountParticularsAmount
To bank A/c 5,000By balance b/d 8,000
To executors A/c 13,660By 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.

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 60 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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