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12th | Retirement Of A Partner | Question No. 51 To 55 | Ts Grewal Solution 2023-2024

Question 51:


Lal, Bal and Pal are partners sharing profits in the ratio of 5 : 3 : 7. Lal retired from the firm. Bal and Pal decided to share future profits in the ratio of 2 : 3. The adjusted Capital Accounts of Bal and Pal showed balance of ` 49,500 and ` 1,05,750 respectively. The total amount to be paid to X is  ` 1,35,750. This amount is to be paid by Bal and Pal in a manner that their capitals become proportionate to their new profit-sharing ratio. Calculate the amount to be brought in or to be paid to partners. 

 

Answer:


New Capital = 49,500 + 1,05,750 + 1,35,750 = ` 2,91,000

Bal's New Capital=2,91,000×2/5=1,16,400

Pal's New Capital=2,91,000×3/5=1,74,600

Bal brings in
` 66,900 (1,16,400 – 49,500)

Pal brings in
` 68,850 (1,74,600 – 1,05,750)

 

Question 52:


Balance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2, as on 31st March, 2023 was as follows:

 

 

Liabilities

 `

Assets

 `

Sundry Creditors

39,750

Bank (Minimum Balance)

15,000

Employees' Provident Fund

5,250

Debtors

97,500

Workmen Compensation Reserve

22,500

Stock

82,500

Capital A/cs:

 

Fixed Assets

1,87,500

X 

1,65,000

 

 

 

Y

84,000

 

 

 

Z

66,000

3,15,000

 

 

 

3,82,500

 

3,82,500

 

 

 

 

Y retired on 1st April, 2023 and it was agreed that:
(i) Goodwill of the firm is valued at 
` 1,12,500 and Y's share of it be adjusted into the accounts ofand Z who are going to share future profits in the ratio of 3 : 2.
(ii) Fixed Assets be appreciated by 20%.
(iii) Stock be reduced to 
` 75,000.
(iv) Y be paid amount brought in by X and Z so as to make their capitals proportionate to their new profit-sharing ratio.
Prepare Revaluation Account, Capital Accounts of all partners and the Balance Sheet of the New Firm.

Answer:


Revaluation Account

Dr.

 

Cr.

Particulars

 (`)

Particulars

 (`)

Stock

7,500

Fixed Assets

37,500

Revaluation Profit

 

 

 

X’s Capital A/c

15,000

 

 

 

Y’s Capital A/c

9,000

 

 

 

Z’s Capital A/c

6,000

30,000

 

 

 

 

 

 

 

37,500

 

37,500

 

 

 

 

 

Partners’ Capital Accounts

Dr.

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Y’s Capital A/c

11,250

-

22,500

Balance b/d

1,65,000

84,000

66,000

Bank

-

1,33,500

-

General Reserve

11,250

6,750

4500

Balance c/d

2,20,500

-

1,47,000

Revaluation (Profit)

15,000

9,000

6,000

 

 

 

 

X’s Capital A/c

-

11,250

-

 

 

 

 

Z’s Capital A/c

-

22,500

-

 

 

 

 

Bank A/c

40,500

-

93,000

 

2,31,750

1,33,500

1,69,500

 

2,31,750

1,33,500

1,69,500

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2023

Liabilities

 (`)

Assets

 (`)

Sundry Creditors

39,750

Bank

15,000

Employees Provident Fund

5,250

Debtors

97,500

Capitals:

 

Stock

75,000

 X

2,20,500

 

Fixed Assets

2,25,000

 Z

1,47,000

72,000

 

 

 

4,12,500

 

4,12,500

 

 

 

 


Working Notes:
New Capital = 1,80,000 + 54,000 + 1,33,500 =
` 3,67,500

X's New Capital=3,67,500×3/5=2,20,500

Z's New Capital=3,67,500×2/5=1,47,500

X brings in
` 40,500 (2,20,500 – 1,80,000)

Z brings in
` ` 93,000 (1,47,500 – 54,000)

 

Question 53:


Sushil, Satish and Samir are partners sharing profits in the ratio of 5 : 3 : 2. Satish retires on 1st April, 2023 from the firm, on which date capitals of Sushil, Satish and Samir after all adjustments are  ` 1,03,680,  ` 87,840 and  ` 26,880 respectively. The Cash and Bank Balance on that date was  ` 9,600. Satish is to be paid through amount brought in by Sushil and Samir in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be Sushil 3/5 and Samir 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of  ` 7,200 was to be maintained and pass the necessary Journal entries.

 

Answer:


Total capital of firm before retirement = 1,03,680+87,840+26,880 = ` 2,18,400

Availability of cash = 9,600-7,200 (Minimum Balance) = ` 2,400

Combined new capital of Sushil and Samir =` 2,16,000

Sushil's new capital = 2,16,000×3/5=` 1,29,600

Existing capital of Sushil= ` 1,03,680

So, Sushil has to bring = 1,29,600−1,03,680= ` 25,920

Samir's new capital = 2,16,000×2/5=` 86,400

Existing capital of Samir = ` 26,880

So, Samir has to bring = 86,400−26,880=` 59,520  

 

Question 54:


Suraj, Pawan and Kamal are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance

Sheet as at 31st March, 2023 is:

Liabilities

`

Assets

`

Creditors

46,000

Cash in Hand

18,000

General Reserve

12,000

Debtors              25,000

 

Capital A/cs:

 

Less: Provision for Doubtful Debts 3,000

22,000

Suraj 40,000

 

Stock

18,000

Pawan 40,000

 

Furniture

30,000

Kamal 30,000

1,10,000

Machinery

70,000

 

 

Goodwill

10,000

 

 

 

 

 

1,68,000

 

1,68,000

Pawan retired on 1st April, 2023 on the following terms:

(a) Provision for Doubtful Debts be raised by 1,000.

(b) Stock to be reduced by 10% and Furniture by 5%.

(c) There is an outstanding claim of damages of 1,100 and it is to be provided for.

(d) Creditors will be written back by 6,000.

(e) Goodwill of the firm is valued at ` 22,000.

(f) Pawan is paid in full with the cash brought in by Suraj and Kamal in such a manner that their capitals are in proportion to their profit-sharing ratio and Cash in Hand remains at 10,000.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of Suraj and Kamal.

Answer:


Revaluation A/c

Particulars

`

Particulars

`

Provision for Doubtful Debts

1,000

Creditors

6,000

Stock

1,800

 

 

Furniture

1,500

 

 

outstanding claim of damages

1,100

 

 

Capital A/cs:

 

 

 

Suraj - 300

 

 

 

Pawan- 200 

 

 

 

Kamal- 100

600

 

 

 

6,000

 

6,000

 

Capital A/c

Particulars

Suraj

Pawan

Kamal

Particulars

Suraj

Pawan

Kamal

To Goodwill A/c

5,000

3,333

1,667

By Balance B/d

3,00,000

2,00,000

2,00,000

To Pawan 's Capital A/c

5,500

-

1,833

By Revaluation A/c

300

200

100

 

 

 

 

By General Reserve

6,000

4,000

2,000

To Balance C/d

35,800

48,200

28,600

By Suraj 's Capital A/c

-

5,500

-

 

 

 

 

By Kamal 's Capital A/c

-

1,833

-

 

46,300

51,533

32,100

 

46,300

51,533

32,100

To Cash A/c

-

48,200

2,450

By Balance B/d

35,800

48,200

28,600

To Balance C/d

78,450

-

26,150

By Cash A/c

42,650

-

-

 

 

 

 

 

 

 

 

 

78,450

48,200

28,600

 

78,450

48,200

28,600

 

Balance sheet of new firm

Liabilities

`

Assets

`

Creditors

40,000

Cash in Hand

10,000

outstanding claim of damages

1,100

Debtors              25,000

 

Capital A/cs:

 

Less: Provision for Doubtful Debts 4,000

21,000

Suraj 78,450

 

Stock (18,000-1,800)

16,200

Kamal 26,150

1,04,600

Furniture (30,000-1,500)

28,500

 

 

Machinery

70,000

 

 

 

 

 

1,45,700

 

1,45,700

 

Question 55:


The Balance Sheet of Asha, Deepa and Leta who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2023 is as follows:

 

Liabilities

 `

Assets

 `

Creditors

50,000

Cash at Bank

40,000

Employees' Provident Fund

10,000

Sundry Debtors

1,00,000

Profit and Loss A/c

85,000

Stock

80,000

Capital A/cs:

 

Fixed Assets

60,000

Asha

40,000

 

 

 

Deepa

62,000

 

 

 

Leta

33,000

1,35,000

 

 

 

2,80,000

 

2,80,000

 

 

 

 

Asha retired on 1st April, 2023 and Deepa and Leta decided to share profits in future in the ratio of 3 : 2 respectively.
The other terms on retirement were:
(a) Goodwill of the firm is to be valued at 
` 80,000.
(b) Fixed Assets are to be depreciated to 
` 57,500.
(c) Make a Provision for Doubtful Debts at 5% on Debtors.
(d) A liability for claim, included in Creditors for 
` 10,000, is settled at  ` 8,000.
The amount to be paid to Asha by
Deepa and Leta in such a way that their Capitals are proportionate to their profit-sharing ratio and leave a balance of  ` 15,000 in the Bank Account.
Prepare Profit and Loss Adjustment Account and Partners' Capital Accounts.

 

Answer:


Revaluation Account

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Fixed Assets A/c

(60,000 – 57,500)

2,500

Creditors (10,000 – 8,000)

2,000

Provision for Doubtful Debts

5,000

Loss on Revaluation transferred to:

 

 

 

Asha’s Capital a/c

2,750

 

 

 

Deepa’s Capital a/c

1,650

 

 

 

Leta’s Capital a/c

1,100

5,500

 

7,500

 

7,500

 

 

 

 

 

Partners’ Capital Accounts

Dr.

Cr.

Particulars

Asha

Deepa

Leta

Particulars

Asha

Deepa

Leta

 

Revaluation A/c (Loss)

2,750

1,650

1,100

Balance b/d

40,000

62,000

33,000

 

Asha’s Capital A/c

24,000

16,000

Profit & Loss A/c

42,500

25,500

17,000

 

Balance c/d

1,19,750

61,850

32,900

Deepa’s Capital A/c

24,000

 

 

 

 

 

Leta’s Capital A/c

16,000

 

 

1,22,500

87,500

50,000

 

1,22,500

87,500

50,000

 

Bank A/c

1,19,750

Balance b/d

1,19,750

61,850

32,900

 

Balance c/d

1,18,500

79,000

Bank A/c

56,650

46,100

 

 

1,19,750

1,18,500

79,000

 

1,19,750

1,18,500

79,000

 

 

 

 

 

 

 

 

 

 

 

Working Notes

 WN 1 Calculation of Gaining Ratio 

Old Ratio (Asha, Deepa and Leta) = 5:3:2

New Ratio (Deepa and Leta) = 3:2

Gaining Ratio = New Ratio – Old Ratio

Deepa’s

=3/5-3/10

 

=3/10

Leta’s

=2/5-2/10

 

=2/10

Hence, gaining ratio is 3: 2.

 

WN2 Adjustment of Goodwill

Total Goodwill of the Firm = 80,000

Asha’s Share of Goodwill = 80,000×5/10=40,000

To be borne by Gaining partners in their Gaining Ratio i.e. 3:2
Deepa’s Share = 40,000×3/5=24,000
Leta’s Share = 40,000×2/5=16,000

WN3 Adjustment of Capital

Asha’s Capital before adjustment = 1,19,750

Deepa’s Capital before adjustment = 61,850

Leta’s Capital before adjustment = 32,900

Total Capital of New Firm= Asha's Capital+Deepa's Capital+Leta's Capital+Closing balance of Bank Account-Available Bank Balance=1,19,750+61,850+32,900+15,000-32,000=
`1,97,500

New profit sharing ratio=3:2

Deepa’s Share of Goodwill =1,97,500×3/5=1,18,500

Leta’s Share of Goodwill =1,97,500×2/5=79,000
 

Particulars

Deepa

Leta

 New Capital Balance

1,18,500

79,000

 Adjusted Old Capital Balance

61,850

32,900

Cash brought in by the Partner

56,650

46,100

 

 

 

WN4

Cash at Bank A/c

Dr.

Cr.

Particulars

 (`)

Particulars

 (`)

Balance b/d

40,000

Creditors

8,000

Deepa’s Capital A/c

56,650

Asha’s Capital A/c

1,19,750

Leta’s Capital A/c

46,100

Balance c/d

15,000

 

1,42,750

 

1,42,750

 

 

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 5 – Retirement of a Partner

 

Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55

Question No. 56 To 60