X.Y and Z are in partners sharing profits in the ratio of 5:3:2.Their balance sheet on 1.1.10 the yY decided to retire was as follows:-

LIABILITIES ASSET

X's capital 30000 Building 25000

Y's capital 20000 Plant and Machinery 15000

Z's capital 20000 Investment 10000

General Reserve 10000 Joint Life Policy 15000

creditors 7000 Debtors 10000

Bills Payable 3000 Stock 5000

Cash 10000

90000 90000

the terms of retirement are:-

(a)Y sells share of goodwill to X for Rs.8000 and to Z for Rs.4000

(b)Stock to be appreciated by 20% and building by 5000

(c)J.L.P was surrendered to the insurance co. for Rs.7000 and investment were sold for 22000

(d)Y is paid off in cash

prepare revaluation a/c,capital a/c of partners and balance sheet.

Revaluation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Joint Life Policy (15,000 – 7,000)

8,000

Stock

1,000

Profit on revaluation transferred to:

 

Building

5,000

   X’s Capital A/c

5,000

 

Investment

12,000

 Y’s Capital A/c

3,000

 

 

 

   Z’s Capital A/c

2,000

10,000

 

 

 

18,000

 

18,000

 

 

 

 

 

Partners’ Capital Account

Dr.

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Y’s Capital A/c (Goodwill)

8,000

 

4,000

Balance b/d

30,000

20,000

20,000

Cash A/c

 

38,000

 

General Reserve

5,000

3,000

2,000

 

 

 

 

X’s Capital A/c (Goodwill)

 

8,000

 

 

 

 

 

Z’s Capital A/c (Goodwill)

 

4,000

 

Balance c/d

32,000

 

20,000

Revaluation (Profit)

5,000

3,000

2,000

 

 

 

 

 

 

 

 

 

40,000

38,000

24,000

 

40,000

38,000

24,000

 

 

 

 

 

 

 

 

 

Balance Sheet

Liabilities

Amount

Rs

Assets

Amount

Rs

Capital A/cs :

 

Building (25,000 + 5,000)

30,000

  X

32,000

Plant and Machinery

15,000

  Z

20,000

Debtors

10,000

Creditors

7,000

Stock (5,000 + 1,000)

6,000

Bills Payable

3,000

Cash (WN)

1,000

 

62,000

 

62,000

 

 

 

 

Working Notes

Cash Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Balance b/d

10,000

Y’s Capital A/c

38,000

Joint Life Policy

7,000

Balance c/d

1,000

Investments

22,000

 

 

 

 

 

 

 

39,000

 

39,000

 

 

 

 

  • 7

profit of revaluation = 18000
and capital a/c i got
x = 39500 , z = 23000
plz send me answr for reference i got baffled in balance
whether to show jlp or not

:(

  • -3

but the safest thing is tht it is not in syllabus :P
cheers...........:P

  • -1

may be JLP treatment is 
gaining  dr.
to sacrificing
in this format

  • -5

who said that this topic is not in our syllabus........

  • -5

check out syllabus thn

  • 3

JLP is deleted this year..

  • -2
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