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Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31st March 2017 was as follows.

Book Keeping, Accountancy, 12th Std, HSC Accounts, Death of Partner, 

Chapter 5, Reconstitution of Partnership (Death of Partner)

Book Keeping, Accountancy, 12th Std, HSC Accounts, Death of Partner,   Chapter 5, Reconstitution of Partnership (Death of Partner)

Practical Problems | Q 2 | Page 202


Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31st March 2017 was as follows.


Balance Sheet as on 31st March 2017


Liabilities

Amount ₹

Assets

Amount ₹

Capital Account:


Debtors

1,00,000


Rahul

2,20,000

Less: R. D. D.

10,000

90,000

Rohit

2,10,000

Plant and Machinery

85,000

Ramesh

2,40,000

Investment

3,50,000

creditors

80,000

Motor lorry

1,00,000

Bills Payable

7,000

Building

80,000

General Reserve

96,000

Bank

1,48,000


8,53,000


8,53,000

On 1st October 2017, Ramesh died and the Partnership deed provided that


1. R.D.D. was maintained at 5% on Debtors

2. Plant and Machinery and Investment were valued at ₹ 80,000 and ₹ 4,10,000 respectively.

3. Of the creditors, an item of ₹ 6000 was no longer a liability and hence was properly adjusted.

4. Profit for 2017-18 was estimated at ₹ 120,000 and Ramesh share in it up to the date of his death was given to him.


5. Goodwill of the Firm was valued at two times the average profit of the last five years. Which were 

2012-13

₹ 1,80,000

2013-14

₹ 2,00,000

2014-15

₹ 2,50,000

2015-16

₹ 1,50,000

2016-17

₹ 1,20,000

Ramesh share in it was to be given to him

6. Salary 5,000 p.m. was payable to him

7. Interest on capital at 5% i.e. was payable and on Drawings ₹ 2000 were charged.

8. Drawings made by Ramesh up to September 2017 were ₹ 5,000 p.m.

Prepare


Ramesh’s Capital A/c showing the amount payable to his executors

Give Working of Profit and Goodwill

Ramesh Capital Balance ₹ 3,41,000


View Solution


In the books of the Partnership Firm Ramesh’s Capital Account


Particulars

Amount (₹)

Particulars

Amount (₹)

To Drawings A/c

30,000

By Balance b/d

2,40,000

To Interest on Drawings A/c

2,000

By Goodwill A/c

60,000

To Executor’s Loan A/c

3,41,000

By Salary A/c

30,000



By Interest on Capital A/c

6,000



By Profit and Loss Adjustment A/c – Profit

11,000



By Profit and Loss Suspense A/c

10,000



By General reserve A/c

16,000


3,73,000


3,73,000


(4) Profit and Loss Adjustment Account

Particulars

Amount (₹)

Particulars

Amount (₹)

To Plant and Machinery A/c

5,000

By R.D.D. A/c

5,000

To Partners’ Capital A/cs :


By Investments A/c

60,000

Rahul

33,000


By Creditors A/c

6,000

Rohit

22,000




Ramesh

11,000

66,000




71,000


71,000

Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31st March 2017 was as follows.

Rahul, Rohit, and Ramesh are in a business sharing profits and losses in the ratio of 3:2:1 respectively. Their balance sheet as on 31st March 2017 was as follows.

Book-keeping and Accountancy 12th Standard 

HSC Maharashtra State Board. Latest Syllabus.

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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