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 5 | Page 186

Shah, Lodha, and Dhole were partners sharing profits and losses in the ratio of 4:3:3. Their Balance Sheet as on 31st March 2019 is a given below.

Balance Sheet as on 31st March 2019
Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
Sundry Creditors		20,000	Cash		9,000
Bills payable		4,000	Sundry Debtors	10,000
Capital Account:			Less: R.D.D.	1,000	9,000
Shah		45,000	Furniture		25,000
Lodha		35,000	Computers		43,000
Dhole		27,000	Vehicles		45,000
		1,31,000			1,31,000

On 1^stApril 2019, Mr. Lodha retired from the firm on the following terms.

1. Goodwill is to be valued at average Profits and Losses of the last five years which were as follows.

Years	Profit/Loss
2015	₹ 35,000
2016	₹ 20,000
2017	₹ 30,000
2018	₹ 20,000
2019	₹ 25,000

2. Computers to be depreciated by 10%

3. Furniture to be revalued at ₹ 27,500

4. Vehicles appreciated by 20%

5. R.D.D. was no longer necessary

6. Shah and Dhole will share the future profits and losses in the ratio of 2:1

7. It was decided that goodwill should not appear in the books of a new firm and amount payable to Lodha is to be transferred to his Loan A/c

Prepare :

Profit and Loss adjustment A/c,

Partners capital accounts,

Balance sheet of new firm

Solution:

Dr	In the books of Partnership Firm Profit and Loss Adjustment Account					Cr
Particulars			Amount (₹)	Particulars	Amount (₹)
To Computers A/c			4,300	By Furniture A/c	2,500
To Partners’ Capital A/cs: Profit				By Vehicles A/c	9,000
Shah		3,280		By R.D.D. A/c	1,000
Lodha		2,460
Dhole		2,460	8,200
			12,500		12,500

Dr	Partner’s Capital Account						Cr
Particulars	Shah (₹)	Lodha (₹)	Dhole (₹)	Particulars	Shah (₹)	Lodha (₹)	Dhole (₹)
To Goodwill A/c	17,333	-	8,667	By Balance b/d	45,000	35,000	27,000
To Balance c/d	41,347	45,260	28,593	By Profit and Loss Adjustment A/c (Profit)	3,280	2,460	2,460
				By Goodwill A/c	10,400	7,800	7,800
	58,680	45,260	37,260		58,680	45,260	37,260

Balance Sheet as on 1^stApril 2019
Liabilities	Amount (₹)	Amount (₹)	Asset	Amount (₹)	Amount (₹)
Partners’ Capital A/cs :			Cash		9,000
Shah	41,347		Debtors		10,000
Dhole	28,593	69,940	Furniture	25,000
Lodha’s Loan A/c		45,260	Add : Appreciation	2,500	27,500
Sundry Creditors		20,000	Computers	43,000
Bills Payable		4,000	Less: Depreciation	4,300	38,700
			Vehicles	45,000
			Add: Appreciation	9,000	54,000
		1,39,200			1,39,200

Shah, Lodha, and Dhole were partners sharing profits and losses in the ratio of 4:3:3. Their Balance Sheet as on 31st March 2019 is a given below. Practical Problems | Q 5 | Page 186 Retirement of Partner.

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