# Question 68 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.68 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 68 Chapter 6 of +2-A

68. On 31st March 2014, the Balance Sheet of Pooja, Qureshi and Ross, who were partners in a firm was as under:

 Liabilities Amount Assets Amount Sundry Creditors 2,50,000 Building 2,60,000 Reserve Fund 2,00,000 Investment 1,10,000 Capital A/c Qureshi’s Loan 1,00,000 Pooja 1,50,000 Debtors 1,50,000 Qireahi 1,00,000 Stock 1,20,000 Ross 1,00,000 3,50,000 Cash 60,000 8,00,000 8,00,000

Qureshi died on 1st July 2014. The profit-sharing ratio of the partners was 2 : 1: 1. On the death of a partner, the partnership deed provided for the following:
i His share in the profits of the firm till the date of his death will be calculated on the basis of average profits of the last three completed years.
ii Goodwill of the firm will be calculated on the basis of the total profit for the last two years.
iii Interest on loan given by the firm to a partner will be charged at the rate of 6% p.a. or 4,000, whichever is more.
iv Profits for the last three years were 45,000; 48,000 and 33,000.
Prepare Qureshi’s Capital Account to be rendered to his executors

## The solution of Question 68 Chapter 6 of +2-A: –

 Qureshi’s Capital A/c Particular Amount Particular Amount To Drawings A/c 1,04,000 By Balance b/d 1,00,000 To  Executor’s A/c 68,875 By Pooja’s Capital A/c WN1 13,500 By Ross’s Capital A/c WN1 6,750 By Profit & Loss Suspense A/c WN2 2,625 By Reserve Fund A/c 2,00,000 × 1/4 50,000 1,72,875 1,72,875

Working Notes:

Calculation of Qureshi’s Share of Goodwill

Goodwill = 48,000 + 33,000 = 81,000
Qureshi’s Share of Goodwill = 81,000 × 1/4 = 20,250
Gaining Ratio = Pooja : Ross = 2 : 1

 Amount debited to Pooja’s Capital A/c = 20,250 X 2 3 = Rs 13,500

 Amount debited to Ross’s Capital A/c = 20,250 X 1 3 = Rs 6,750

Calculation of Qureshi’’s Share of Loss till the date of his death

Average Profit of the last three years = 45,000 + 48,000 + 33,000/3 = 42,000
Qureshi’s share of loss till the date of death = Previous year’s loss × Qureshi’s Share of Loss × Months till the date of his death/12

 = 42,000 X 1 X 3 4 12 = Rs 2,625

Calculation of Amount due on account of Loan given to Qureshi

Loan given to Qureshi by a firm = 1,00,000

 Amount of interest till 1st July, 2014 = 1,00,000 X 6 X 3 100 12 = Rs 1,500

 Total Amount due to firm on 1st July = Loan amount + Amount of Interest = 1,00,000 + 4,000 = Rs 1,04,000

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)

• 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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