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Question 60 Chapter 6 of +2-Part-1
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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 |
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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. | Debit | Credit | |
| a) | General Reserve A/c | Dr. | 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/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.
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
