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 | Amount Rs | Particulars | Amount Rs |
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 |
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Balance Sheet as on March 31,2012 after Y’s retirement | |||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
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 | Amount Rs | Particular | Amount Rs |
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
3. Adjustment of Goodwill
B’s share of Goodwill
A’s gain in Goodwill
C’s gain in Goodwill