# Question 75 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question No.75 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Question 75 Chapter 6 of +2-A

75. Sunny, Honey and Rupesh were partners in a firm. On 31st March 2014, their Balance Sheet was as follows:

 Liabilities Amount Assets Amount Creditors 10,000 Plant and Machinery 40,000 General Reserve 30,000 Furniture 15,000 Capital A/cs: Investments 20,000 Sunny 30,000 Debtors 20,000 Honey 30,000 Stock 20,000 Rupesh 20,000 80,000 Cash 25,000 1,20,000 1,20,000

Honey died on 31st December, 2014. The Partnership Deed provided that the representatives of the deceased partner shall be entitled to:
a Balance in the Capital Account of the deceased partner.
b Interest on Capital @ 6% per annum up to the date of his death.
c His share in the undistributed profits or losses as per the Balance Sheet.
d His share in the profits of the firm till the date of his death, calculated on the basis of the rate of net profit on sales of the previous year.
The rate of net profit on sales of the previous year was 20%. Sales of the firm during the year till 31st December 2014 was 6,00,000. Prepare Honey’s Capital Account to be presented to his executors.

## The solution of Question 75 Chapter 6 of +2-A: –

 Honey’s Capital A/c Particular Amount Particular Amount To Executor’s A/c 81,350 By Balance b/d 30,000 By Interest on Capital A/c 1,350 By General Reserve 10,000 By Profit and Loss Suspense A/c 40,000 81,350 81,350

Working Notes:

Calculation of Interest on Honey’s Capital

 Interest on capital = 30,000 X 6 X 9 100 12 = Rs 1,350

Calculation of Honey’s share in profits

 Profit = Sale X Rate of Profit 100
 = 6,00,000 X 20 100 = Rs 1,20,000

 Honey’s share in profits = 1,20,000 X 1 3 = Rs 40,000

Calculation of Honey’s Share in General Reserve

 Honey’s share in profits = 30,000 X 1 3 = Rs 10,000

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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