Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board

Chapter 4 Reconstitution of Partnership (Retirement of Partner) Practical Problems [Pages 183 - 186]

Practical Problems | Q 2 | Page 184

The Balance Sheet of Ram, Shyam, and Ghanshyam sharing profits and losses 3:2:1 respectively. Their position on 31-3-2019 were as follows.

Balance Sheet as on 31st March 2019
Liabilities	Amount ₹	Assets	Amount ₹
Capitals :		Bank	54,000
Ram	1,20,000	Debtors	90,000
Shyam	90,000	Building	60,000
Ghanshyam	60,000	Investment	1,50,000
Creditors	22,000
Bills payable	12,000
Loan	50,000
	3,54,000		3,54,000

Ghanshyam retired on 1st April 2019 on the following terms.

1. Building and Investment to be appreciated by 5% and 10% respectively.

2. Provision for Doubtful Debts to be created at 5% on Debtors.

3. The provision of ₹ 3,000 be made in respect of Outstanding Salary.

4. Goodwill of the firm is valued at ₹ 90,000 and partners decide that goodwill should be written back.

5. The amount payable to the Retiring partner be transferred to his Loan A/c.

Prepare :

Profit and Loss Adjustment A/c,

Partners Capital A/c,

Balance Sheet of New Firm.

Solution:

Dr	In the books of Partnership Firm Profit and Loss Adjustment Account					Cr
Particulars			Amount (₹)	Particulars	Amount (₹)
To R.D.D. A/c			4,500	By Building A/c	3,000
To Provision for Outstanding Salary A/c			3,000	By Investments A/c	15,000
To Partners’ Capital A/cs: Profit
Ram		5,250
Shyam		3,500
Ghanshyam		1,750	10,500
			18,000		18,000

Dr	Partners’ Capital Accounts								Cr
Particulars		Ram (₹)	Shyam (₹)	Ghanshyam (₹)	Particulars	Ram (₹)	Shyam (₹)	Ghanshyam (₹)
To Loan A/c		-	-	76,750	By Balanced b/d	1,20,000	90,000	60,000
To Goodwill A/c		9,000	6,000	-	By Profit and Loss Adjustment A/c (Profit)	5,250	3,500	1,750
To Balance c/d		1,16,250	87,500	-	By Goodwill A/c	-	-	15,000
		1,25,250	93,500	76,750		1,25,250	93,500	76,750

Balance Sheet as on 1st April 2019
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Partners’ Capital A/cs :			Bank		54,000
Ram	1,16,250		Debtors	90,000
Shyam	87,500	2,03,750	Less: R.D.D. (5 %)	4,500	85,500
Ghanshyam’s Loan A/c		76,750	Building	60,000
Creditors		22,000	Add : Appreciation	3,000	63,000
Bills Payable		12,000	Investments	1,50,000
Loan		50,000	Add : Appreciation	15,000	1,65,000
Provision for Outstanding Salary		3,000
		3,67,500			3,67,500

Working Notes :

(1) Provision of ₹ 3,000 for outstanding salary is recorded on debit side of Profit and Loss Adjustment A/c and then on the Liability side of Balance Sheet.

(2) Goodwill of the firm is valued at ₹ 90,000 and share of retiring partner in it is ₹ 15,000 (1/6th part) and it is to be written back means it is to be shared by remaining partners in their profit-loss ratio.

Balbharati Solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board.

Chapter 4: Reconstitution of Partnership

(Retirement of Partner)

EXERCISE - 4 [PAGE 182]

Select the most appropriate alternative from those given below and rewrite the sentence

Write the Word/ Term/ Phrase which can substitute of the following statement

State whether the following statement is true or false with reasons

Fill in the blank and rewrite the following sentence

Answer the following.

PRACTICAL PROBLEMS [PAGES 183 - 186]

Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board Chapter 4 Reconstitution of Partnership (Retirement of Partner) Practical Problems [Pages 183 - 186]

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements

Chapter 10: Computer In Accounting

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HSC Accounts March 2020 Board Paper With Solution