# Question no 43 of TS Grewal. in this the bank balance in the answer is given 2,350 instead of 2,750 why ?

The closing Bank Balance should be Rs 2,350 and not Rs 2,750. Check out the following solution for further clarifications.

 Revaluation Account Dr. Cr. Particulars AmountRs Particulars AmountRs Stock (4,000 × 6%) 240 Factory Building (12,500 × 20%) 2,500 Provision for Doubtful debts (125 – 50) 75 Reserve for Legal Charges 385 Profit transferred to Capital A/c: A 800 B 600 C 400 2,500 2,500

 Partners’ Capital Accounts Dr. Cr. Particulars A B C Particular A B C B’s Capital (Goodwill) 1,200 600 Balance b/d 10,000 7,500 5,000 Revaluation 800 600 400 B’s Loan 9,900 A’s Capital (Goodwill) 1,200 C’s Capital (Goodwill) 600 Balance c/d 9,600 4,800 10,800 9,900 4,800 10,800 9,900 5,400 Bank 267 133 Balance 9,600 4,800 Balance c/d (adjusted) 9,333 4667 9,600 4,800 9,600 4,800

 Balance Sheetas on March 31,2012 after Y’s retirement Liabilities AmountRs Assets AmountRs Bills Payable 1,000 Bank Balance 2,350 Sundry Creditors 2,450 Debtors 2,500 Reserve for Legal Charges 385 Less: 5% Provision for Doubtful debts (125) 2,375 B’s Loan 9,900 Stock (4,000 – 240) 3,760 Capital A/c Plant and Machinery 4,250 A 9,333 Factory Building (12,500 + 2,500) 15,000 C 4,667 14,000 27,735 27,735

 Bank Account Dr. Cr. Particulars AmountRs Particular AmountRs Balance b/d 2,750 A’s Capital 267 B’s Capital 133 Balance c/d 2,350 2,750 2,750

Working Notes:

1.

2. Proportionate Capital of A and C after B’s retirement