Question 60 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 60 Chapter 6 of +2- Part

Question 60 Chapter 6 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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.

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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