Question 63 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 63 Chapter 6 of +2-A

63. A, B and C were partners sharing profits in the ratio of 3: 2: 1. The firm closes its books on 31st March every year. B died on 30th June 2018. On his death, Goodwill of the firm was valued at 6,00,000. B’s share in profit or loss till the date of death was to be calculated on the basis of the previous year’s profit which was 15,00,000 Loss. Pass necessary Journal entries for goodwill and his share of loss.

 

The solution of Question 63 Chapter 6 of +2-A: –

 

 

 

 

Date Particulars
L.F. Debit Credit
  A’s Capital A/c 2,00,000 × 3/4 Dr.   1,50,000  
  C’s Capital A/c 2,00,000 × 1/4 Dr.   50,000  
  To B’s Capital A/c       2,00,000
  (Being B’s share of goodwill adjusted in gaining ratio 3 : 1)      
  B’s Capital A/c Dr.   1,25,000  
  To Profit & Loss Suspense A/c       1,25,000
  (Being B’s Share of loss debited to his Capital)        

 

Working Notes:
Calculation of Gaining Ratio

Calculation of B’s Share of Goodwill

Goodwill = 6,00,000

 

B’s Share of Goodwill = 6,00,000 X 2
6
  = Rs 2,00,000    

 

Calculation of B’s Share of Loss till the date of his death i.e. 30 th June 2018

Previous year’s loss = 15,00,000
B’s share of loss till the date of death = Previous year’s loss × B’s Share of Loss × Months till the date of his death/12

  = 15,00,000 X 2 X 3
6 12
             
  = Rs 1,25,000        

 

 

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)

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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2 Book 1 min - Question 63 Chapter 6 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms