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.
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.
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 She had withdrawn Rs. 44,000 from capital on July 1, 2016.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.
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.
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. 1,000.
(ii) Provision for doubtful debts to be increased to 17% of Sundry Debtors.
(iii) 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.
vii) 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.
Capitals : Vinod
Mohan
Sohan
Creditors
Bills Payable
General Reserve
40,000
40,000
30,000
30,000
16,000
12,000
Cash in hand
Debtors 25,000
Less : provision 3,000
Stock
Furniture
Machinery
Goodwill
18,000
22,000
18,000
30,000
70,000
10,000
1,68,000
1,68,000
Mohan retired on 1st January ,2015 on the following terms:
(i) Provision for doubtful debts will be raised by Rs. 1,000.
(ii) Stock will be depreciated by 10% and furniture by 5%.
(iii) There is an outstanding claim for damages of Rs. 1,100 and it is to be provided for in the books.
(iv) Creditors will be written back by Rs. 6,000.
(v) Goodwill of the firm is valued at Rs. 22,000, which is not to be shown in the books of new firm.
(vi) Mohan is paid in full with the cash brought in by Vinod and Sohan in such a manner that their capitals are in proportion to their profit sharing ratio of 3:2
Prepare Revaluation Account , Partners Capital Account and B/S of the new firm.
Mithya dies on May 1, 2002. The agreement between the executors of Mithya and the partners stated that:
(a) Goodwill of the firm be valued at times the average profits of last four years. The profits of four years were : in 1998, Rs 13,000; in 1999, Rs 12,000; in 2000, Rs 16,000; and in 2001, Rs 15,000.
(b) The patents are to be valued at Rs 8,000, Machinery at Rs 25,000 and Premises at Rs 25,000.
(c) The share of profit of Mithya should be calculated on the basis of the profit of 2002.
(d) Rs 4,200 should be paid immediately and the balance should be paid in 4 equal half-yearly instalments carrying interest @ 10%.
Record the necessary journal entries to give effect to the above and write the executor’s account till the amount is fully paid. Also prepare the Balance Sheet of Nithya and Sathya as it would appear on May 1, 2002 after giving effect to the adjustments.
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
https://www.meritnation.com/discuss/question/5304456
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.
accountancy solution of together with
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
Distinguish between sacrificing ratio and gaining ratio.
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
do you have the solutions of book S.C Sharma?
cbse questions of D.K goyal
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.
b) Building to be appreciated by 20% and Machinery to be reduced by 20%.
c) Provide for Rs. 3000 as outstanding legal charges.
d) Provision for doubtful debts to be increased to 15% of Debtors.
e) Rs. 3000 to be carried forward as unexpired insurance.
f) Capital of the new firm at 2,40,000.
Prepare the Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the new firm.
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 ?
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.
how to find sacrificing ratio of the partners
Balance Sheet
Liabilities. Assets ?
Capitals:. Bank. 21000
A. 500000. Stock. 9000
how is executors account loan is prepare when it is given for equally installment?
x,y and z are patners sharing profits in the ratio of 1/9 : 1/3 and 5/9. z retires and surrenders 3/4th of his share in favour of x and remaining in favour of y. calculate new ratio and gaining ratio.
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.
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.
The Balance – Sheet of A, B and C who are sharing profits in the ratio of 2:3:1 as at 31st March,2005 is given below:
Balance- Sheet
LIABILITIES AMOUNT ASSETS AMOUNT
Capitals: Goodwill 12,000
A 1,00,000 Land and Building 2,50,000
B 2,00,000 Investments 50,000
C 3,00,000 6,00,000 Stock 80,000
Workmen comp. Res. 20,000 Debtors 3,00,000
Inv. Fluc. Reserve 10,000 Bank 2,96,000
Prov. for D/D 10,000 Adv. Susp. a/c 12,000
Creditors 3,60,000
10,00,000 10,00,000
C retires from the firm on 1st april,2005 and A and B decided to share future profit and losses in the ratio of 3:2 . 50% is to be paid immediately and the balance in two equal annual instalments together with interest @ 10%p.a.
A] G/w is to be valued at 2 years’ purchase of avg. Profits of last three years. The profits were 48,000, 93,000 and 1,38,000 respectively.
B] Land and Building was found overvalued by RS. 25,000 and stock was found undervalued by Rs. 8,000
C] Provision for D/D is to be made equal to 5% of the debtors
D] Claim on account of workmen compensation reserve is Rs. 8,000
Prepare Revaluatio A/C , Partner’s Capital A/C and Balance- Sheet.
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 .
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.
what will be the entry of "bad debts amounted to Rs 2,000 were to be written off" in revaluation?????
You are required to give the journal entries for recording the payment to Bihari in the books of the firm.
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?
B is paid in full with the cash brought in by A and C in such a manner that their capitals are in proportion to their profit sharing ratio and Cash in Hand remains at rupees 10,000.
what does it mean???
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.
10. Priya Riya and Siya are partners sharing profits in the ratio of 4:3:1 respectivey. It is provided in the partnership deed that on the death of any partner, her share of goodwil was to be valued at half of the profits crdited to her account during the four previous completed years.
Riya died on 1st January 2012. The firm's profits for the last four years were: 2008 2009 Rs. 1,20,000, 2009 Rs. 80,000, 2010 Rs. 40,000 and 2011 Rs. 80,000. Determine the amount that should be credited to Riya in respect of her share of goodwill. On the date of Riya's death, one of the old debtor whose account was cosed last year by transferring his debt amounting to Rs. 8,000 to bad debts account, has now promised to pay the amount fully.
Pass the necessary Journal entries for the above mentioned transactions at the time of Riya's death.
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.
A died on the 30th June 2011 , three months after the annual accounts had been prepared and in accordance with the partnership agreement, his share of the profit to the date of death was estimated on the basis of the profit for the preceding year. In addition to this the agreement provided for interest on capital at 5%. per annum on the balance standing to the credit of the capital account at the date of the last Balance Sheet and also for goodwill, which was to be brought into account at 2 year's purchase of the average profit of the last three years.
A's capital on 31st March,2011 stood at rs. 1,20,000, and his drawings from them to the date of death amounted to rs. 9,000.
The net profits of the business for the three preceding years amounted to Rs. 33,500; Rs. 41,500 and Rs. 40,500, respectively.
amount of insurance which was debited entirely to profit and loss account Rs.1,292 be carried forward as unexpired insurance.
The balance sheet of A,B and C who were sharing profits and losses in the ratio fo therir capitals stood as follows on 31st December, 2005
LIABILITIES
Sundry Creditors: 6,900
Capital Accounts:
A= 20,000
B=15,000
C= 10,000
Total: 51,900
ASSETS
Cash at Banks: 5,500
Sundry Debtors: 5,000
less: provison: 100 =4,900
Stock 8,000
Plant and Machinery: 8,500
Land and Building: 25,000
Total: 51,900
B retires on the above date and the following was agreed upon:
Pass necessary journal entries and show capital Accounts of the partners after transferring B's share to a separate loan account in his name and prepare a Balance Sheet of A and C.
(a). A ,B and C are partners sharing profits and losses in the ratio 4:3:2 . C retires from the business. A is acquiring 4/9 of C's share and balance is acquired by B. Calculate the new profit sharing ratio and gaining ratio.
(b). A,B,C,and D were partners in a firm sharing profits and losses in the ratio 5:3:2:2 .B and C retired from the firm. B's share was required by D and C's share was acquired by A. Calculate new profit sharing ratio of A and D.
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.
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.
Provision for Doubtful Debts be maintained at existing rate. ish ma 5% laga ga humasaha or agr ya lagta ha tho hum ish nikala ga kasha mera pls explain thi thing in t.s grewal Page no.5.14 illustration 15 im new book 2 point sir pls explain as soom as
ravi sharma goyal are partners in a firm on 1 apr 2012 the balances in their capitals ravi 400000 sharma 420000 goyal 370000 firm closes its books on 31 mar every year sharma died on 30 sep 2012 in the event of death of any partners following are the provisions in the partnership deed
interest on capital to be calculated at @ 10% pa
the deceased partner legal repesentatve will be paid 35000 rs for his share of goodwill
firm had reserve fund of rs 210000 the deceased partner paid his share in the reserve fund his share of profit till date of death will be calculated on the basis of sales it is also spcified that sales during the year 2011-12 were 1500000 the sales fom 1 apr 2012 to 30 sep 2012 were 300000 rs the profit of the firm for the year ending 31 mar 2012 was rs 300000 prepare sharma capital accont to be presented to his representative
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.
Plz adjustment no. (d)
7. X, Y and Z are partners sharing profit in the ratio of 4 : 3 : 2. Y retires and his capital after making adjustments for
reserves and profits on revaluation stands at Rs 95,000. X and Z agreed to pay him some amount in full settlement of his claim. The Journal entry for the adjustment of goodwill is given below:
Calculate the amount agreed to be paid to Y and new profit-sharing ratio of X and Z.
Question no 43 of TS Grewal. in this the bank balance in the answer is given 2,350 instead of 2,750 why ?
at what rate is interest payable on the amount remaining unpaid to the executor of deceased partner?????
Reconstitution of a Partnership Firm --- Retirement/Death of a partner
NCERT numerical problem no.14
Where is the solution.
(i) Stock to be depreciated by 40% and sale of old papers and materials realised Rs. 1,000.
(ii) Provision for doubtful debts to be increased to 17% of Sundry Debtors.
(iii) 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.
vii) 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.
Noter : Working capital's calculation please.
5. Motor car is revalued at ?15500 . Retiring partner took over motor car at this value.
6. Deepak be paid ?2000 in cash and balance be transferred to his loan a/c .
Show necessary journal entries . Prepare revaluation a/c ,capital a/c and opening balance sheet of continuing partners.
A,B,C D are partners sharing profit in the ratio 2:4:3:1. c retires and for this purpose goodwill is valued at two year purchase of average super profits of last four years ,which were as under
1 year 40000
2 year 10000(loss)
3 year 100000
4 year 150000
the normal profit of the similar firm is rs56000.
pass necessary journal entry for goodwill on retirement of c.
IF BAD DEBTS IS A LIABILITY, THEN WHY IN -Q.NO.5 PG NO. 219- IT IS DEBITED IN REVALUATION A'C. IT HAS TO BE CR. NA BECAUSE IT IS A LIABILTY AND DECREASE IN THE VALUE OF LIAB. WILL B CR.?
Show effect is revaluation :
unclaimed laibility of rs.2000 written off
Please explain its treatment in revaluation accnt..partners capital account and balance sheet...and also the required journal entry..
Sita , Geeta and Meeta were partners in a firm sharing profits in the ratio of 7:6:7. Geeta retired and her share was divided equally b/w sita and meeta. Calculate new profit - sharing ratio
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 ...........
Example: Gaurav, Rahul and Saurav were carrying on a business in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at March 31, 2012 was as follows:
Balance Sheet
as on March 31, 2012
Liabilities
Amount
(Rs)
Assets
Amount
(Rs)
Capital A/cs:
Land and Building
40,000
Gaurav
56,500
Goodwill
12,000
Rahul
29,000
Plant and Machinery
30,000
Saurav
22,500
1,08,000
Stock
10,000
Investment Fluctuation Fund
18,000
Debtors
30,000
Sundry Creditors
25,000
Less: Provision for Doubtful Debts
(2,000)
28,000
Investments (Market Value Rs 18,000)
21,000
Cash
10,000
1,51,000
1,51,000
Saurav desired to retire from the firm. Remaining partners decided to continue the business on following terms:
Prepare Revaluation Account, Partners Capital Accounts, Cash Account and Balance Sheet of the new firm.
WN2Adjustment of Capital
Total Capital of New Firm (after Sauravs retirement) =Rs 80,000
Particulars
Gaurav
Rahul
New Capital Balance
48,000
32,000
Adjusted Old Capital Balance
(52,000)
(26,000)
Cash brought in by/paid to the partner
4,000
(Dr.)
6,000
(Cr.)
pleaase correct it the oepning balances are different according to the question given
gaurav old capital is 56500
rahul old capital is 29000
as in ur solution set it is represented as 52000 and 26000 as old capital
PLEASE EXPLAIN ME HOW DID IT HAPPEN ??
Explain the modes of payment to a retiring partner.
Capitals : Vinod
Mohan
Sohan
Creditors
Bills Payable
General Reserve
40,000
30,000
30,000
16,000
12,000
Debtors 25,000
Less : provision 3,000
Stock
Furniture
Machinery
Goodwill
22,000
18,000
30,000
70,000
10,000
Mohan retired on 1st January ,2015 on the following terms:
(i) Provision for doubtful debts will be raised by Rs. 1,000.
(ii) Stock will be depreciated by 10% and furniture by 5%.
(iii) There is an outstanding claim for damages of Rs. 1,100 and it is to be provided for in the books.
(iv) Creditors will be written back by Rs. 6,000.
(v) Goodwill of the firm is valued at Rs. 22,000, which is not to be shown in the books of new firm.
(vi) Mohan is paid in full with the cash brought in by Vinod and Sohan in such a manner that their capitals are in proportion to their profit sharing ratio of 3:2
Prepare Revaluation Account , Partners Capital Account and B/S of the new firm.
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.
Q no. 47 of T.S Grewal [Retirement/Death of a Partner]
Is there any one kind enough to help me solve this problem
Nithya, Sathya and Mithya were partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as on December 31, 2002 was as follows:
Books of Nithya, Sathya and Mithya
Balance Sheet at December 31, 2002
Liabilities
Amount
Rs
Assets
Amount
Rs
Creditors
14,000
Investments
10,000
Reserve Fund
6,000
Goodwill
5,000
Capitals:
Premises
20,000
Nithya
30,000
Patents
6,000
Sathya
30,000
Machinery
30,000
Mithya
20,000
80,000
Stock
13,000
Debtors
8,000
Bank
8,000
1,00,000
1,00,000
Mithya dies on May 1, 2002. The agreement between the executors of Mithya and the partners stated that:
(a) Goodwill of the firm be valued at![]()
times the average profits of last four years. The profits of four years were : in 1998, Rs 13,000; in 1999, Rs 12,000; in 2000, Rs 16,000; and in 2001, Rs 15,000.
(b) The patents are to be valued at Rs 8,000, Machinery at Rs 25,000 and Premises at Rs 25,000.
(c) The share of profit of Mithya should be calculated on the basis of the profit of 2002.
(d) Rs 4,200 should be paid immediately and the balance should be paid in 4 equal half-yearly instalments carrying interest @ 10%.
Record the necessary journal entries to give effect to the above and write the executor’s account till the amount is fully paid. Also prepare the Balance Sheet of Nithya and Sathya as it would appear on May 1, 2002 after giving effect to the adjustments.