Advertisement

Question 82 Chapter 6 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 82 Chapter 6 of +2-A
Question No.82 Chapter No.6 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 82 Chapter 6 of +2-A

Advertisement

82. X, Y and Z are partners in firm sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 31st March 2018 was as follows:

Liabilities AmountAssets Amount
Sundry Creditors 18,000Goodwill 12,000
Investments Fluctuation Reserve 7,000Patents 52,000
Workmen Compensation Reserve 7,000Machinery 62,400
Capital A/cs:  Investment 6,000
X1,35,000 Stock 20,000
Y95,000 Sundry Debtors24,000 
Z74,0003,04,000Less: Provision for Doubtful Debts4,00020,000
   Loan to Z 1,000
   Cash at Bank 600
   Profit and Loss A/c 1,50,000
   Z’s Drawings 12,000
  3,36,000  3,36,000

Z died on 1st April 2018, X and Y decide to share future profits and losses in the ratio of 3: 5. It was agreed that:
i Goodwill of the firm be valued 212 years’ purchase of average of four completed years’ profits which were: 2014-15— 1,00,000; 2015-16— 80,000; 2016-17— 82,000.
ii Stock is undervalued by 14,000 and machinery is overvalued by 13,600.
iii All debtors are good. A debtor whose dues of 400 were written off as bad debts paid 50% in full settlement.
iv Out of the amount of insurance premium debited to Profit and Loss Account, 2,200 be carried forward as prepaid insurance premium.
v 1,000 included in Sundry Creditors is not likely to arise.
vi A claim of 1,000 on account of Workmen Compensation to be provided for. vii Investment is sold for 8,200 and a sum of 11,200 be paid to executors of Z immediately. The balance to be paid in four equal half-yearly instalments together with interest @ 8% p.a. at half-year rest.
Show Revaluation Account, Capital Accounts of Partners and the Balance Sheet of the new firm

 

 

The solution of Question 82 Chapter 6 of +2-A: –

Advertisement-X

 

Revaluation Account
Particular
AmountParticularAmount
Machinery13,600Creditors1,000
  Stock14,000
  Provision for Doubtful Debts 4,000
Profit transferred to:  Investment 2,200
X’s Capital A/c5,000 Bad Debts Recovered 200
Y’s Capital A/c3,000 Prepaid Insurance 2,200
Z’s Capital A/c2,00010,000   
  23,600  23,600

 

Partners’ Capital Account
Part.XYZ

Part.

XYZ
To Goodwill A/c6,0003,6002,400By Balance B/d1,35,00095,00074,000
To Drawing A/c12,000By Revaluation A/c5,0003,0002,000
To Profit & Loss A/c75,00045,00030,000By IFR3,5002,1001,400
To X’s Capital A/c8,750By Y’s Capital A/c8,75014,000
To Z ’s Capital A/c14,000By WFC3,000

1,800

1,200
To Loan to Z  1,000By P & L Suspense A/c35,000
To Executors A/c  47,200    
To Balance c/d 74,25030,550    
 1,55,2501,01,90092,600 1,55,2501,01,90092,600

 

Z’s Executors Account
ParticularAmountParticularAmount
Bank A/c11,200Z’s Capital A/c47,200
Z’s Executors Loan Account36,000  
 47,200  47,200

 

Balance Sheet
Liabilities
AmountAssetsAmount
Creditors17,000Patents 52,000
Z’s Executors Loan A/c36,000Machinery 48,800
Workmen Compensation Claim 1,000Stock 34,000
Capital:  Debtors 24,000
X74,250 Prepaid Insurance 2,200
30,55030,550  
Bank Overdraft 600 + 8,200- 11,200 + 200 2,200  
  1,61,000  1,61,000

 

 

Advertisement-X

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

Advertisement-Y

Advertisement

Advertisement

error: Content is protected !!