Question 57 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 57 Chapter 6 of Class 12 Part – 1 Usha Publication

Advertisement

VDO+ Tag:

Question 57 Chapter 6 of Class 12 Part – 1 Usha Publication

57. (Journal Entries/Deceased Partner’s Executor A/c) A, B and Care partners sharing profits and loss in the ratio of 3:2 1 respectively. On 31st December, 2017 their balance sheet was as under :

Advertisement

Video Tag:
Liabilities Rs. Assets Rs.
Creditors 19,860 Cash in hand 1,210
General reserve 3,000 Stock 10,750
Capital A/c   Debtors 10,750
A 10,000 Investments 10,430
B 6,000 Buildings 8,000
C 4,000    
       
  42,860   42,860

B died on 28th Feb, 2018 and according to partnership agreement his legal representative is entitled to be paid out as follows:

  1. The capital to his credit at the time of his death and interest up to the time of death @ 6 % p.a.
  2. His appropriate share in general reserve.
  3. His share of profit for the period based on the figure of the profit of the previous year.
  4. Goodwill according to his share of profit to be calculated by taking twice the amount of average profit of the last three years. The profits for three years were 2015 Rs. 7,800, 2016 Rs. 9,000 and 2017 Rs. 9,600.
    Is legal representative was paid off by selling the investments for Rs. 16,020.
    Pass journal entries and write B’s executor’s account

The solution of Question 57 Chapter 6 of Class 12 Part – 1 Usha Publication: –

We are providing a solution of Question 57 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 number 57 Chapter no. 6 class 12 of Usha publication. To check the direct solution of question no. 57 from the flowing video by using time stamps of the video.

Day - 142 | Solution of Question 57 Death of a Partner Chapter 6 Accounts class 12 PSEB

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

1.) interest in on capital = 6 x 2 x 6,000
100 12
             
  = Rs 60        
2.) B’s share of the profit  Rs
Previous year profits 9,600
Profit of the firm for 2 months 1,600
B’s share of the profit [(1600X2)/6]= Rs. 533 (app)  
3.) B’s share of the profit on sale of investment : Rs
Realized 16,020
Book value 10,430
Profit 5,590

B’s share of the profit [(5,590 X 2)/6]= Rs. 1863 (app.)

4.) B’s share of goodwill : Rs
Three years profit (7800+9000+9600) 26,400
Average profit (26,400/3) 8,800
Twice the average profit (8,800X 2) 17,600

B’s share of goodwill [(17600 X2 )/6]= 5,867 (app.)

B’s Capital A/c
Particulars
Amount Particulars Amount
To cash A/c   15,323 By B’s capital A/c   6,000
      By general reserve   1,000
      By Revaluation A/c (Int.)   60
      By profit & loss Suspense A/c   533
      By A’s capital A/c   4,400
      By B’s capital A/c   1,467
      By Revaluation A/c   1,863
    15,323     15,323
Journal
Date   Particulars
L.F. Debit Credit
1. Revaluation A/c Dr.   60  
  To B’s capital A/c       60
  (Being interest on Capital provided to B)      
           
2. General Reserve A/c Dr.   3,000  
  To A’s capital A/c       1,500
  To B’s capital A/c       1,000
  To C’s capital A/c       500
  (Being General Reserve transferred to the capital A/c in old profit sharing ratio)      
           
3. Profit & loss suspense A/c Dr.   533  
  To B’s capital A/c       533
  (Being the profit for the Interim period transferred to B’s Capital Account)      
           
4. A’s capital A/c Dr.   4,400  
  C’s capital A/c Dr.   1,467  
  To B’s capital A/c       5,867
  (Being adjustment of goodwill made through capital A/cs)      
         
5. Cash A/c Dr.   16,020  
  To Investment A/c       10,430
  To Revaluation A/c       5,590
  (Being Investment sold on profit)      
         
6. Revaluation A/c Dr.   5,590  
  To A’s capital A/c       2,795
  To B’s capital A/c       1,863
  To C’s capital A/c       932
  (Being profit on revaluation A/c transferred to the capital A/c in old profit sharing ratio)      
         

Thanks, Please Like and share with your friends  

Comment if you have any questions.


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 11 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 23 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 35 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 48 Chapter 6 of Class 12 Part – 1 Usha Publication

Question 60 Chapter 6 of Class 12 Part – 1 Usha Publication

Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.

Thanks again.

Download a PDF of Ch 6 Partnership Accounts V (Retirement and Death of A Partner):

If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.

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

Leave a Reply

Your email address will not be published. Required fields are marked *