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Question 69 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 69 Chapter 5 of +2-A
Question No.69 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

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Question 69 Chapter 5 of +2-A

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69. A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as at 31st March, 2019 is as follows:

Liabilities  Assets 
Capital A/cs:  Land and Building50,000
A60,000 Plant and Machinery40,000
B60,000 Furniture30,000
C40,0001,60,000Stock20,000
Creditors 30,000Debtors30,000
Bills Payable 10,000Bills Receivable20,000
   Bank10,000
  80,535 80,535

D is admitted as a partner on 1st April, 2019 for equal share. His capital is to be 50,000. Following adjustments are agreed on D’s admission:
(a) Out of the Creditors, a sum of 10,000 is due to D, it will be adjusted against his capital. |
(b) Advertisement Expenses of 1,200 are to be carried forward as Prepaid Expenses.
(c) Expenses debited in the Profit and Loss Account includes a sum of 2,000 paid for B’s personal expenses.
(d) A Bill of Exchange of 4,000, which was previously discounted with the bank, was dishonoured on 31st March, 2019 but entry was not passed for dishonour.
(e) A Provision for Doubtful Debts @ 5% is to be created against Debtors.
(f) Expenses on Revaluation amounted to 2,100 is paid by A. Prepare necessary Ledger Accounts and Balance Sheet after D’s admissio

 

The solution of Question 69 Chapter 5 of +2-A: –

Revaluation Account
Liabilities
AmountAssetsAmount
Provision for doubtful Debts 1,700Prepaid Advt. Expense 1,200
A’s Capital (Rev. Exp. 2,100B’s Capital (Personal Exp.) 2,000
   Loss transferred to  
   A Capita300 
   B Capita200 
   C Capita100600
  3,800  3,800

 

Partners’ Capital Account
the year ended 31st March, 2019

Particulars

A

BCD
Revaluation2,000
Revaluation (Loss300200100
     
     
To Balance c/d 61,800
57,80039,90050,000
 62,10060,00040,00050,000

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Particulars

A
BCD
By Balance B/d60,00060,00040,000
Creditors10,000
Cash40,000
Revaluation (Exp.)2,100
     
 62,10060,00040,00050,000

 

 

Balance Sheet
Liabilities
AmountAssetsAmount
Sundry Creditors30,000 Land and Building 53,110
Less: D’s Capital10,00020,000Sundry Debtors30,000 
Bill Payable 10,000Add: B/R dishonor4,000 
Capital:  Less: Provision for Doubtful Debt(1,700)32,300
A61,800 Plant and Machinery 40,000
B57,800 Furniture 30,000
C39,900 Prepaid Advt. Expenses 1,200
D50,0002,09,500Stock 20,000
   Bills Receivable 20,000
   Bank(10,000 + 40,000 – 4,000)46,000
  2,39,500  2,39,500

Working Note:-

Distribution of Loss on Revaluation

A’s Capital will be debited by=600X3
6
 =300
  

 

B’s Capital will be debited by=600X2
6
 =200
  

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C’s Capital will be debited by=600X1
6
 =100
  

 

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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