Z retires on 1st April, 2011 subject to the following adjustments:
(i) Freehold Property be valued at Rs. 5,80,000
(ii) Investments be valued at Rs. 47,000 and stocks be valued at Rs. 94,000
(iii) A provision of 5% be made for doubtful debts
(iv) Trade marks are valueless
(v) An item of Rs. 12,000 included in creditors is not likely to be claimed.
(vi) Goodwill be valued at one year's purchase of the average profit of the past three years. Profits ending 31st March were : 2009 Rs. 1,20,000, 2010 Rs. 1,00,000 and 2011 Rs. 95,000.
Pass journal entries, give capital accounts and the balance sheet of the remaining partners.
Building
Stock
Debtors
Cash at Bank
Profit and Loss Account
2,40,000
65,000
30,000
5,000
60,000
4,00,000
4,00,000
Punita died on 30th September 2016. She had withdrawn Rs. 44,000 from capital on July 1, 2016. According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profit of the last four year. The profit for the year ended 2012-13, 2013-14 and 2014-15 were Rs. 30,000 Rs. 70,000 and Rs. 80,000 respectively.
Prepare Punita 's account to be rendered to her executors .
Creditors
Provident Fund
Investment Fluctuation Fund
Capital A/c Lokesh 1,40,000
Masoor 80,000
Nihal 50,000
34,000
10,000
20,000
2,70,000
Cash
Stock
Debtors 98,000
Less : Provision 6,000
Investment
Goodwill
Profit and Loss
68,000
38,000
88,000
80,000
40,000
20,000
3,34,000
3,34,000
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :
(i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.
(ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and investments were brought down to Rs, 30,000.
(iii) Provision for Bad Debts was to be reduced by Rs.2,000.
(iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.
(v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.
Qureshi died on 1st July, 2014. The profit-sharing ratio of the partners was
On the death of a partner, the partnership deed provided for the following :
(i) His share in the profits of the firm till the date of his death will be calculated on the basis of average profits of last three completed years.
(ii) Goodwill of the firm will be calculated on the basis of total profit of last two years.
(iii) Interest on loan given by the firm to a partner will be charged at the rate of 6% p.a. or whichever is more.
(iv) Profits tor the last three years were Rs. 45,000, Rs. 48,000 and Rs. 33,000.
Prepare Qureshi's Capital Account to be rendered to his executors.
Sundry Creditors
General Reserve
A's Capital Accounts :
B's Capiatal Accounts
C's Capital Accounts
1,20,000
40,000
4,00,000
2,00,000
2,00,000
Land and Building
Stock
Debtors : 1,50,000
Less : Provision for
Doubtful Debts 30,000
Cash at Bank
5,00,000
2,40,000
1,20,000
1,00,000
9,60,000
9,60,000
C retires on 1st April, 2018 and A and B decide to share future profits in the ratio of 6 : 4. It is agreed that :
(i) Goodwill of the firm is valued at Rs. 80,000
(ii) Land & Building is undervalued by Rs. 1,00,000 and Stock is overvalued by 20%.
(iii) Provision for Doubtful Debts is to be decreased to Rs. 10,000.
(iv) Computer valued Rs. 30,000 was unrecorded in the books.
It was decided to pay off C by giving him this computer and the balance in annual instalments of Rs. 1,00,000 together with interest @ 10% p.a.
You are required to prepare :
(a) Revaluation Account,
(b) C's Capital Account, and
(c) C's Loan Account till it is finally closed.
Sundry Creditors
Employee's Provident Fund
X's Capital A/c
Y's Capital A/c
Z's Capital A/c
51000
9000
152000
148000
84000
Buildings
Machinery
Sundry Debtors 100000
Less: Provision : 10000
Stock
Cash at Bank
profit & Loss A/C
280000
80000
90000
40000
22000
12000
444000
444000
X retired on that date and it was decided to make the following adjustments :
(i) Stock to be depreciated by 40% and sale of old papers and materials realised Rs. l,000.
(ii) Provision for doubtful debts to be increased to 17% of Sundry Debtors.
(iil) Machinery be depreciated by 40% and buildings be appreciated by 20%.
(iv) Partners paid Rs. 10,000 to the family of an employee who died of an
heart-attack.
(v) Goodwill is valued at Rs. 30,000
(vi) Y and Z decided to share future profits in the ratio of 3 : 2.
(vi) Y and Z would introduce sufficient capital to pay off X and have thereafter a sum of Rs. 25,000 as Working Capital in a manner that their Capitals would be in proportion Of their new profit sharing ratio.
Prepare the necessary accounts.
X retired on 31st March, 2007 and Y and Z decided to share profits in future in the ratio of 2:3 respectively.
The other terms on retirement were as follows:
Goodwill of the firm is to be valued at Rs. 80,000
Fixed Assets are to be depreciated to Rs. 57,500.
Make a provision for Doubtful Debts at 5% on Debtors.
A liability for claim, included in Creditors for Rs. 10,000 is settled at Rs. 8,000.
The amount to be paid to X by Y and Z in such a way that their capitals are proportionate to their profit-sharing ratio and leave a balance of Rs. 15,000 in the Bank Account.
Prepare Profit and Loss Adjustment Account and Partners' Capital Accounts.
What does creditors written back mean ? Is it a profit or loss , according to the answers of the previous question I asked it's a loss and the creditors would increase, but in the actual answer creditors are decreased and it's a profit
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accountancy solution of together with
Distinguish between sacrificing ratio and gaining ratio.
do you have the solutions of book S.C Sharma?
cbse questions of D.K goyal
A, B and C were in partnership sharing profits in proportion to their capitals Their Balancd Sheet on 31-03-2008 was as follows:
LIABILITIES
Creditors: 15,600
Reserve: 6,000
A's Capital: 90,000
B's Capital: 60,000
C's Capital: 30,00
ASSET
Building: 1,00,000
Debtors: 48,000
Stock18,000
Debtors: 20,000
less: Prov for doubtful debts 400 =19,600
Cash 16,000
Total: 2,01,600
On the above date B retired owing to ill health and the following adjustments were agreed upon
P, Q and R were partners in a firm sharing profits in the ration of 2:3:5. On 31-03-2004, thier balance sheet was as follows
LIABILITIES
Creditors - 70,000
Capital Accounts:
P: 80,000
Q: 70,000
R: 60,000
Total : 2,80,000
ASSETS
Bank: 45000
Debtor: 40,000
Less 5000 = 35000
Stock: 50,000
Building 1,40,000
Profit And Loss A/c: 10,000
Total 2,80,000
On the above date, R retired from the firm due to illness on the following terms:
Prepare Revaluation Account, Partners Capital Accounts and the Balance Sheet of P and Q after R's Retirement.
how workmen compensation fund is treated if there is a liability in adj towards it
plz show me accounting treatment of joint life policy and different methods of treating jlp at the time of retirement and death.
What is the difference between liability written off and written back , and what does unclaimed liability written off mean , it's a profit or loss ?
General Reserve
Provident Fund
Capitals:
X 3,00,000
Y 2,00,000
X 2,00,000
60,000
20,000
7,00,000
Debtors
Stock
Investments (at cost)
Freehold Property
Trade Marks
Goodwill
2,00,000
1,00,000
50,000
4,00,000
20,000
33,000
(i) Freehold Property be valued at Rs. 5,80,000
(ii) Investments be valued at Rs. 47,000 and stocks be valued at Rs. 94,000
(iii) A provision of 5% be made for doubtful debts
(iv) Trade marks are valueless
(v) An item of Rs. 12,000 included in creditors is not likely to be claimed.
(vi) Goodwill be valued at one year's purchase of the average profit of the past three years. Profits ending 31st March were : 2009 Rs. 1,20,000, 2010 Rs. 1,00,000 and 2011 Rs. 95,000.
Pass journal entries, give capital accounts and the balance sheet of the remaining partners.
how to find sacrificing ratio of the partners
Q11. Following is the Balance Sheet of Punita, Rashi and Seema who are sharing profits in the ratio 2 : 1 : 2 as on 31st March 2016 :
Bills payable
Capitals :
Punita 1,44,000
Rashi 92,000
Seema 1,24,000
2,000
3,60,000
Stock
Debtors
Cash at Bank
Profit and Loss Account
65,000
30,000
5,000
60,000
Punita died on 30th September 2016. She had withdrawn Rs. 44,000 from capital on July 1, 2016. According to the partnership agreement, she was entitled to interest on capital @ 8% p.a. Her share of profit till the date of death was to be calculated on the basis of the average profits of the last three years. Goodwill was to be calculated on the basis of three times the average profit of the last four year. The profit for the year ended 2012-13, 2013-14 and 2014-15 were Rs. 30,000 Rs. 70,000 and Rs. 80,000 respectively.
Prepare Punita 's account to be rendered to her executors .
Q19. Lokesh, Mansoor and Nihal were partners in a firm sharing profit as 50%, 30% and 20% respectively. On 31st March, 2014, their Balance Sheet was as follows :
Provident Fund
Investment Fluctuation Fund
Capital A/c Lokesh 1,40,000
Masoor 80,000
Nihal 50,000
10,000
20,000
2,70,000
Stock
Debtors 98,000
Less : Provision 6,000
Investment
Goodwill
Profit and Loss
38,000
88,000
80,000
40,000
20,000
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :
(i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.
(ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and investments were brought down to Rs, 30,000.
(iii) Provision for Bad Debts was to be reduced by Rs.2,000.
(iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.
(v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.
Liabilities Rs. Assets Rs
Capital accounts bills receivables 15,000
A 40,000 machinery 82,000
B 61,000 furniture 4,000
C 24,000 debtors 70,000
Reserve 40,000 less: provision 3,000 67,000
Sundry creditors 50,000 stock 20,000
Profit and loss A/c 28,000 cash at bank 50,000
Bills payable 5,000 Advertisement suspense A/c 10,000
2,48,000 2,48,000
on 1st april 2014, B retires & A & C continued in partnership sharing profits and losses in the ratio 3:2. it was agreed that following adjustments were to be made on retirement of B:
A) The machinery was to be revalued at Rs.85,000
b) The stock was to be reduced by Rs.1,000
c) The furniture was to be reduced to Rs.1,600.
d) The provision for doubtful debts would be ^%
e) A provision of Rs.800 was to be made to outstanding expenses.
f) A liability n account of damages of Rs.7,000 included in creditors is settled at Rs.12,000.
The partnership agreement provides that in case of retirement of partner goodwill was to be valued at 3yrs purchase of a average profits which wRs.10,000but no goodwill is to be raised.
B was paid in full. A & C were to deposit such an amount in bank so as to make their capitals proportionate to the new profit sharing ratio, subject to the condition that a bank balance of Rs.40,000 was to be maintained as working capital.
Required: prepare revaluation account, partners capital account and balance sheet after retirement.
how is executors account loan is prepare when it is given for equally installment?
what will be the entry of "bad debts amounted to Rs 2,000 were to be written off" in revaluation?????
C retired on 1 april 2014 as per the following condition :
1. Goodwill of the firm is to be valued at three years purchase of the average profits if the year which were rs. 20000 , rs. 12000 rs. 30000 rs. (6000 ) and rs 34000.
2. machinery is to be reduced to 40000 and patents are valueless.
3. There is no need of any provision of doubtful debt.
4. An unclaimed liability of rs. 2000 is to be written off.
5. out of the total insurance premium paid rs. 1000 be treated as prepaid.
6. investments are revalued at rs. 16000 and these are taken by c at this value.
Entire sum payable to c is to be brought in by A and B in such a way so as to make their capitals proportionate to their new profit sharing ratio which is 2:1.
Prepare Revaluation Account , Capitals account and the opening balance sheet of A and B.
Ch - retirement
Question 44 pg 4.114
were partners in a firm was as under :
Qureshi died on 1st July, 2014. The profit-sharing ratio of the partners was
On the death of a partner, the partnership deed provided for the following :
(i) His share in the profits of the firm till the date of his death will be calculated on the basis of average profits of last three completed years.
(ii) Goodwill of the firm will be calculated on the basis of total profit of last two years.
(iii) Interest on loan given by the firm to a partner will be charged at the rate of 6% p.a. or whichever is more.
(iv) Profits tor the last three years were Rs. 45,000, Rs. 48,000 and Rs. 33,000.
Prepare Qureshi's Capital Account to be rendered to his executors.
Q. A, B and C are partners sharing profits in 4 : 3 : 3. Their Balance Sheet as at 31st March 2018 was as follows:
General Reserve
A's Capital Accounts :
B's Capiatal Accounts
C's Capital Accounts
40,000
4,00,000
2,00,000
2,00,000
Stock
Debtors : 1,50,000
Less : Provision for
Doubtful Debts 30,000
Cash at Bank
2,40,000
1,20,000
1,00,000
C retires on 1st April, 2018 and A and B decide to share future profits in the ratio of 6 : 4. It is agreed that :
(i) Goodwill of the firm is valued at Rs. 80,000
(ii) Land & Building is undervalued by Rs. 1,00,000 and Stock is overvalued by 20%.
(iii) Provision for Doubtful Debts is to be decreased to Rs. 10,000.
(iv) Computer valued Rs. 30,000 was unrecorded in the books.
It was decided to pay off C by giving him this computer and the balance in annual instalments of Rs. 1,00,000 together with interest @ 10% p.a.
You are required to prepare :
(a) Revaluation Account,
(b) C's Capital Account, and
(c) C's Loan Account till it is finally closed.
What will be the entry of "out of insurance which was debited to the profit & loss A/c, Rs. 1500 be carried forward as unexpired insurance." in revaluation A/c??? also tell me the reason ...........
give the journal entry to distribute ' WORKMEN COMPENSATION RESERVE' of Rs. 70,000 at the time of retirement of neeti when there is a claim of Rs. 25,000 against it. The firm has three partners raveena, neeti and rajat.
Please explain its treatment in revaluation accnt..partners capital account and balance sheet...and also the required journal entry..
In order to be successful an organization must change its goals according to the needs of the environment. Which characteristic of management is highlighted in the statement?
Nandan,John and Rosa are partners sharing profits inthe ratio of 4:3:2. On 1st April 2012,John gave a notice to retire from the firm. Nandan and Rosa decided to share future profits in the ratio of 1:1. The capital of Nandan and Rosa after all adjustments showed a balance of Rs 43,000 and Rs 80,500 respectively.
The total amount to be paid to John was Rs 95,500. This amount was to be paid by Nandan and Rosa in such a way that their capital become propor tionate to their new profit sharing ratio. Pass necessary journal entries in the books of the firm for the above transactions. Show your working notes clearly.
I need answer for TS grewal scanner questions. Chapter retirement . Meri book 2012 edition ki hai so quest no. alag hoga...still if u can help me...Three partners- vijay, vivek and vinay. Profit ratio- 2:2:1. It is under the topic "revaluation of assets n reassessment of liabilities..."
Pls tell me from where the bank balance of 22,920 has arisen? My b/s total differs by Rs. 400.
Q. Y and Z are partners sharing profits and losses in the ratiof 3:2:1.
The Balance Sheet as at 31st March. 2007 was as follows :
Employee's Provident Fund
X's Capital A/c
Y's Capital A/c
Z's Capital A/c
9000
152000
148000
84000
Machinery
Sundry Debtors 100000
Less: Provision : 10000
Stock
Cash at Bank
profit & Loss A/C
80000
90000
40000
22000
12000
X retired on that date and it was decided to make the following adjustments :
(i) Stock to be depreciated by 40% and sale of old papers and materials realised Rs. l,000.
(ii) Provision for doubtful debts to be increased to 17% of Sundry Debtors.
(iil) Machinery be depreciated by 40% and buildings be appreciated by 20%.
(iv) Partners paid Rs. 10,000 to the family of an employee who died of an
heart-attack.
(v) Goodwill is valued at Rs. 30,000
(vi) Y and Z decided to share future profits in the ratio of 3 : 2.
(vi) Y and Z would introduce sufficient capital to pay off X and have thereafter a sum of Rs. 25,000 as Working Capital in a manner that their Capitals would be in proportion Of their new profit sharing ratio.
Prepare the necessary accounts.
Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20%. On March 31st 2013 their Balance Sheet was as follows :
On this date, Madhur retired and Lalit and Neena agreed to continue on the following terms :
[a] The goodwill of the firm was valued at 51,000.
[b] There was a claim for workmen's compensation tothe extent of 6,000.
[c] Investment were brought down to 15,000.
[d] Provision for bad debts was reduced by 1,000.
[e] Madhur was paid 10,300 in cash and the balance was transferred to his loan account payable in two equal instalments together with interest @ 12% p.a.
Prepare Revalution A/C Partner's capital Accounts and Madhur's loan A/C till the loan is finally paid off.
amount of insurance which was debited entirely to profit and loss account Rs.1,292 be carried forward as unexpired insurance.
The other terms on retirement were as follows:
Prepare Profit and Loss Adjustment Account and Partners' Capital Accounts.
Pankaj, Naresh and Saurabh are partners sharing profits in the ratio of 3:2:1. Naresh retired from the firm due to his illness. On that date the Balance Sheet of the firm was as follows:
Books of Pankaj, Naresh and Saurabh
Balance Sheet as on March 31, 2007
Liabilities
Amount Rs
Assets
Amount Rs
General Reserve
12,000
Bank
7,600
Sundry Creditors
15,000
Debtors
6,000
Bills Payable
12,000
Less: Provision for Doubtful Debt
(400)
5,600
Outstanding Salary
2,200
Provision for Legal Damages
6,000
Stock
9,000
Capitals:
Furniture
41,000
Pankaj
46,000
Premises
80,000
Naresh
30,000
Saurabh
20,000
96,000
1,43,200
1,43,200
Additional Information
(i) Premises have appreciated by 20%, stock depreciated by 10% and provision for doubtful debts was to be made 5% on debtors. Further, provision for legal damages is to be made for Rs 1,200 and furniture to be brought up to Rs 45,000*.
(The amount of Rs 450 that is being given in the book for furniture is a mistake, as it should be Rs 45,000)
(ii) Goodwill of the firm be valued at Rs 42,000.
(iii) Rs 26,000 from Naresh’s Capital account be transferred to his loan account and balance be paid through bank; if required, necessary loan may be obtained from Bank.
(iv) New profit sharing ratio of Pankaj and Saurabh is decided to be 5:1.
Give the necessary ledger accounts and balance sheet of the firm after Naresh’s retirement.
at what rate is interest payable on the amount remaining unpaid to the executor of deceased partner?????
Question no 43 of TS Grewal. in this the bank balance in the answer is given 2,350 instead of 2,750 why ?
Liabilities: in Rs.
Reserves: 9000
sundry creditors 20000
l's capital 50000
M's capital 30000
N's capital 20000
Total 129000
Assets
cash 8000
Debtors 22000
stock 20000
Machinary 67000
Investments 12000
Total 129000
N died on 5 November 2015 and according to the partnership deed his executor was entitled to be paid as under:
a) the capital to his credit at the time of his death
and interest thereon @8%p.a.
b) his share of reserve
c) his share of profit for the intervening period will be based on the sales during that period which were calculated as Rs. 240000. The rate of profit during past 4 years had been 15% on sales
d) Goodwill according to his share of profit to be calculated by taking thrice the amount of the average profit of the last 4 years less 25% , The profit of past four years:
2012 Rs 10500
2013 Rs 12000
2014 Rs 12500
2015 Rs 13000
The investments were sold at par and his executors was paid out. pass the necessary journal entries and make the executor's account
Aman died on 30th september,2007.calculate the share of deceased partner in the profit for the period from 1st april,2007 to 30th november,2007, If the same is calculated :
(i) On the basis of sales which were Rs.8 lakh from 1st April,2007 to 30th November,2007.
(ii) On the basis of time.
ALSO pass the necessary journal entry for the share.
[Ans.aman's Share of profit :
On the basis of sales Rs.1,20,000
on the basis of sales Rs.1,00,000]
plz give answer today plz plz fast for my exan plz plz fast