Question 56 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 56 Chapter 6 of Class 12 Part – 1 Usha Publication

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Question 56 Chapter 6 of Class 12 Part – 1 Usha Publication

56. (Journal Entries/Amount due to executors of deceased Partner) Following is the balance sheet of Black, Brown, and White as of 31st December 2018

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Liabilities Rs. Assets Rs.
Capital A/c   Plant & Machinery 10,000
Black 10,000 Stock 4,000
Brown 5,000 Sundry Debtors 6,000
White 5,000 Cash in hand 200
Sundry Creditors 2,000 Cash at bank 5,000
Reserve fund 3,200    
       
  25,200   25,200

White died on 31st March 2019. Under the terms of the partnership deed, the Executors of a deceased partner wore entitled:

  1. the amount standing to the credit of the partner’s capital account,
  2. share of goodwill on the basis of twice the average of the past three year’s profit; and
  3. share of profit from the closing of the last financial year to the death on the basis of the last years profits.
    Profits for 2016, 2017, and 2018 were respectively. Rs. 6,000, Rs. 8,000 and Rs. 7,000.Profits were shared in the ratio of capitals.
    Pass the necessary journal entries and show the amount due to the executors of White.

The solution of Question 56 Chapter 6 of Class 12 Part – 1 Usha Publication: –

We are providing a solution of Question 56 Chapter 6 of Class 12 Part – 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 55 to 56 Chapter no. 6 class 12 of Usha publication. To check the direct solution of question no. 56 from the flowing video by using time stamps of the video.

Day - 141 | Solution of Questions 55 to 56 Death of a Partner Chapter 6 Accounts class 12 PSEB

2. Check out the Solution of this question in Article Format:-

Journal
Date   Particulars
L.F. Debit Credit
a) Reserve fund A/c Dr.   3,200  
  To Black’s capital A/c       1,600
  To Brown’s capital A/c       800
  To White’s capital A/c       800
  (Being reserve fund transferred to the capital A/c in old profit sharing ratio )        
           
b) Black’s capital A/c Dr.   2,333  
  Brown’s capital A/c Dr.   1,167  
  To White’s capital A/c       3,500
  (Being goodwill A/c raised with the share of deceased partner )        
           
c) Profit & loss suspense A/c Dr.   438  
  To White’s capital A/c       438
  (Being white’s share of profit to the date of death )        
           
d) White’s capital A/c Dr.   9,738  
  To Executor’s of White loan A/c       9,738
  (Being amount due to white transferred to executors A/c )        
         
White’s Capital A/c
Particulars
Amount Particulars Amount
To executor’s loan A/c   9,738 By balance b/d   5,000
      By reserve fund   800
      By goodwill A/c   3,500
      By profit & loss Suspense A/c   438
    9,738     9,738

WORKING NOTES :

Valuation of goodwill

Year Profit
2016 6,000
2017 8,000
2018 7,000
Total 21,000
Average profit = 21,000
3
     
  = 7,000

Value of goodwill at 2 year’s purchase = 2 X 7,000 = Rs. 14,000

White’s share in goodwill = 1 x 14,000
3
         
  = Rs 3,500    

Calculation of share of profit of white till date of death
Profit of 2018 = Rs. 7,000

Profit for 3 months = 3 x 7,000
12
         
  = Rs 1,750    
White’s share of profit = 1 x 1,750
4
         
  = Rs 438    

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End of Solution


Check Out the Solution of all questions of this chapter:

The solution to all questions of Ch 6 Partnership Accounts V (Retirement and Death of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 9 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 21 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 33 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 45 Chapter 6 of Class 12 Part – 1 – 2024

Question 58 Chapter 6 of Class 12 Part – 1 Usha Publication

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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication

Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.

1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication

2. Advanced Accountancy Part 2 Class 12 by Unimax Publication

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