Question 31:
N, S and G were partners in a firm sharing profits and
losses in the ratio of 2 : 3 : 5. On 31st March, 2016
their Balance Sheet was as under:
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Creditors |
1,65,000 |
Cash |
1,20,000 |
||
|
General Reserve |
90,000 |
Debtors |
1,35,000 |
|
|
|
Capitals: |
|
Less: Provision |
15,000 |
1,20,000 |
|
|
N |
2,25,000 |
|
Stock |
1,50,000 |
|
|
S |
3,75,000 |
|
Machinery |
4,50,000 |
|
|
G |
4,50,000 |
10,50,000 |
Patents |
90,000 |
|
|
|
|
|
Building |
3,00,000 |
|
|
|
|
|
Profit and Loss Account |
75,000 |
|
|
|
13,05,000 |
|
13,05,000 |
||
|
|
|
|
|
||
G retired on the above date and it was agreed that:
(a) Debtors of ` 6,000 will
be written off as bad debts and a provision of 5% on debtors for bad and
doubtful debts will be maintained.
(b) Patents will be completely written off and stock, machinery and building
will be depreciated by 5%.
(c) An unrecorded creditor of `
30,000 will be taken into account.
(d) N and S will share the future profits in 2 : 3 ratio.
(e) Goodwill of the firm on G's retirement was valued at ` 90,000.
Pass necessary Journal entries for the above transactions in the books of the
firm on G's retirement. (Foreign 2017)
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
|
General Reserve A/c |
Dr. |
|
90,000 |
|
|
|
To N’s Capital A/c |
|
|
|
18,000 |
|
|
To S’s Capital A/c |
|
|
|
27,000 |
|
|
To G’s Capital A/c |
|
|
|
45,000 |
|
|
(Balance in reserve distributed among all partners in old
ratio) |
|
|
|
|
|
|
|
|
|
|
|
|
|
N’s Capital A/c |
Dr. |
|
15,000 |
|
|
|
S’s Capital A/c |
Dr. |
|
22,500 |
|
|
|
G’s Capital A/c |
Dr. |
|
37,500 |
|
|
|
To Profit & Loss A/c |
|
|
|
75,000 |
|
|
(Debit balance P&L A/c written off among all partners
in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
|
|
N’s Capital A/c |
Dr. |
|
18,000 |
|
|
|
S’s Capital A/c |
Dr. |
|
27,000 |
|
|
|
To G’s Capital A/c |
|
|
|
45,000 |
|
|
(Goodwill adjusted in gaining ratio) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,65,000 |
|
|
|
To Patent A/c |
|
|
|
90,000 |
|
|
To Stock A/c |
|
|
|
7,500 |
|
|
To Machinery A/c |
|
|
|
22,500 |
|
|
To Building A/c |
|
|
|
15,000 |
|
|
To Creditors A/c |
|
|
|
30,000 |
|
|
(Decrease in assets and increase in liabilities debited to
Revaluation A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for Doubtful Debts A/c |
Dr. |
|
2,550 |
|
|
|
To Revaluation A/c |
|
|
|
2,550 |
|
|
(Excess provision written back) |
|
|
|
|
|
|
|
|
|
|
|
|
|
N’s Capital A/c |
Dr. |
|
32,490 |
|
|
|
S’s Capital A/c |
Dr. |
|
48,735 |
|
|
|
G’s Capital A/c |
Dr. |
|
81,225 |
|
|
|
To Revaluation A/c |
|
|
|
1,62,450 |
|
|
(Loss on revaluation debited to partners’ capital accounts
in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
|
|
G’s Capital A/c |
Dr. |
|
4,21,275 |
|
|
|
To G’s Loan A/c |
|
|
|
4,21,275 |
|
|
(Amount due to G transferred to his loan A/c) |
|
|
|
|
Working Notes:
WN1: Calculation of G’s Share of Goodwill
G's share=Firm's Goodwill×G's Profit Share
G's share=90,000×5/10=45,000 (to be borne by gaining partners in gaining ratio)
WN2: Calculation of Gaining
Ratio
Gaining Ratio = New Ratio − Old Ratio
N's gain=2/5−2/10=2/10
S's gain=3/5−3/10=3/10Gaining Ratio=2:3
N's share=45,000×2/5=18,000
S's share=45,000×3/5=27,000
WN2: Calculation of Excess/Deficit Provision for
Doubtful Debts
Required Provision @5%=1,35,000−6,000×5100=6,450
Existing Provision after writing bad-debts= 9,000
Excess Provision to be written back=2,550 9,000−6,450
WN3: Calculation of G’s Loan Balance
Amount due to G = Opening Capital + Credits – Debits
=
4,50,000 + (45,000 + 45,000) – (37,500 + 81,225)
= ` 4,21,275
Question 32: Ashok, Bhaskar and Chaman
are partners in a firm, sharing profits and losses as Ashok 1/3, Bhaskar 1/2,
and Chaman 1/6 respectively. The Balance Sheet of the firm as at 31st
March, 2024 was
|
Liabilities |
` |
Assets |
` |
||
|
Capital
A/cs: |
|
|
Building
|
|
5,00,000 |
|
Ashok
|
3,00,000 |
|
Plant
and Machinery |
|
4,00,000 |
|
Bhaskar
|
4,00,000 |
|
Furniture
|
|
1,00,000 |
|
Chaman
|
2,50,000 |
9,50,000 |
Stock
|
|
2,50,000 |
|
General
Reserve |
|
2,20,000 |
Debtors
|
1,80,000 |
|
|
Sundry
Creditors |
|
2,50,000 |
Less:
Provision for
Doubtful Debts |
5,000 |
1,75,000 |
|
Loan
Payable |
|
1,50,000 |
Cash
in Hand |
|
85,000 |
|
|
|
|
Advertisement
Suspense Account |
|
60,000 |
|
|
|
15,70,000 |
|
|
15,70,000 |
Chaman
retired on 1st April, 2024 subject to the following adjustments:
(a)
Goodwill of the firm be valued at `2,40,000.
Chaman's share of goodwill be adjusted into the Capital Accounts of Ashok and
Bhaskar who will share future profits in the ratio of 3:2.
(6)
Plant and Machinery to be reduced by 10% and Furniture by 5%.
(c)
Stock to be increased by 15% and Building by 10%.
(d)
Provision for Doubtful Debts to be raised to `20,000.
Prepare
Revaluation Account, Capital Account of Chaman and the Balance Sheet of the
firm after Chaman's retirement.
Answer:
|
Profit and loss adjustment a/c |
|||
|
Dr. |
|
|
Cr. |
|
Particulars |
` |
Particulars |
` |
|
To Plan and machinery To Furniture To Prov. for
doubtful debts To capital a/c (profit
transferred to) Ashok =27,500×2/6= 9,167 Bhaskar=27,500×3/6=13,750 Chaman =27,500×1/6=4,583 |
40,000 5,000 15,000 27,500 |
By stock By factory
building |
37,500 50,000 |
|
|
87,500 |
|
87,500 |
1
|
Partners’ Capital Account |
||||||||
|
Dr. |
Cr. |
|||||||
|
Particulars |
Ashok |
Bhaskar |
Chaman |
Particulars |
Ashok |
Bhaskar |
Chaman |
|
|
B’s Capital A/c |
24,000 |
Balance b/d |
3,00,000 |
4,00,000 |
2,50,000 |
|||
|
C’s Capital A/c |
40,000 |
A’s Capital A/c |
24,000 |
40,000 |
||||
|
Advertisement sus. a/c C’s loan a/c |
20,000 |
30,000 |
10,000 3,21,250 |
Profit and loss adjustment a/c General reserve a/c |
9,167 73,333 |
13,750 1,10,000 |
4,583 36,667 |
|
|
Balance c/d |
2,98,500 |
5,17,750 |
||||||
|
|
||||||||
|
|
3,82,500 |
5,47,750 |
3,31,250 |
|
3,82,500 |
5,47,750 |
3,31,250 |
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||||||||
|
as on April 01, 2024 (after C’s Retirement) |
||||||||||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
|||||||
|
Sundry
Creditors |
2,50,000 |
Factory
building |
5,50,000 |
|||||||
|
Loan
Payable |
1,50,000 |
Plant
and machinery |
3,60,000 |
|||||||
|
C’s
Loan |
3,21,250 |
Furniture
|
95,000 |
|||||||
|
Stock |
2,87,500 |
|||||||||
|
Capital
A/c |
|
Debtors 1,80,000 |
||||||||
|
Ashok |
2,98,500 |
|
Less;
prov. 20,000 |
1,60,000 |
||||||
|
Bhaskar |
5,17,750 |
3,54,000 |
Cash |
85,000 |
||||||
|
|
15,37,500 |
|
15,37,500 |
|||||||
|
|
|
|
|
|||||||
|
Journal |
|
||||||||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
||||||
|
|
Ashok’s Capital A/c |
Dr. |
|
64,000 |
|
|
|||||
|
|
To Bhaskar’s Capital
A/c |
|
|
|
24,000 |
|
|||||
|
|
To Chaman’s Capital
A/c |
|
|
|
40,000 |
|
|||||
|
|
(Being goodwill adjusted for
compensating bhaskar, Chaman) |
|
|
|
|
||||||
|
|
|
|
|
|
|
||||||
|
|
Profit and loss adjustment a/c |
Dr. |
|
60,000 |
|
|
|||||
|
|
To Plant and machinery A/c |
|
40,000 |
|
|||||||
|
|
To
Furniture A/c |
|
5,000 |
|
|||||||
|
|
To Prov. for
doubtful debts A/c |
|
|
15,000 |
|
||||||
|
|
(Decrease in assets and increase in liabilities debited to
Revaluation A/c) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
|
N’s Capital A/c |
Dr. |
|
18,000 |
|
|
|||||
|
|
S’s Capital A/c |
Dr. |
|
27,000 |
|
|
|||||
|
|
To G’s Capital A/c |
|
|
|
45,000 |
|
|||||
|
|
(Goodwill adjusted in gaining ratio) |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||
|
|
Stock A/c |
Dr. |
|
37,500 |
|
||||||
|
|
Factory building
A/c |
Dr. |
|
50,000 |
|
||||||
|
|
To P&L adjustment
A/c |
|
87,500 |
|
|||||||
|
|
(Decrease in assets debited to Revaluation A/c) |
|
|
||||||||
|
|
|
|
|
|
|
||||||
Working notes;
Old ratio of Ashok
: Bhaskar : chaman=1/3:1/2:1/6
=1/3×2/2:1/2×3/3=1/6
=2/6:3/6:1/6
=2:3:1
New ratio of Ashok and Bhaskar= 3:2
Gaining ratio= New ratio – old ratio
Ashok = 3/5-2/6=18-10/30=8/30
Bhaskar= 2/5-3/6=12-15/30= -3/30
Goodwill of firm= 2,40,000
Bhaskar will get =2,40,000×3/30=24,000
Chaman’s share of goodwill = 2,40,000×1/6=40,000
Ashok will give Bhaskar and chaman 24,000,
40,000 respectively.
Question 33:
Chintan, Ayush and
Sudha were partners in a firm sharing profits and losses in the ratio of 5:
3:2. On 31st March, 2019, their Balance Sheet was as follows:
|
BALANCE SHEET OF CHINTAN,
AYUSH AND SUDHA as at 31st March, 2019 |
|||||
|
Liabilities |
` |
Assets |
` |
||
|
Capitals: |
|
Plant
and Machinery |
|
90,000 |
|
|
Chintan
|
90,000 |
|
Furniture
|
|
60,000 |
|
Ayush
|
60,000 |
|
Stock
|
|
30,000 |
|
Sudha
|
40,000
|
1,90,000 |
Debtors
|
60,000 |
|
|
Provident
Fund |
|
30,000 |
Less:
Provision for Doubtful Debts |
5,000 |
55,000 |
|
General
Reserve |
|
20,000 |
Cash
at Bank |
|
15,000 |
|
Creditors
|
|
10,000 |
|
|
|
|
|
|
2,50,000 |
|
|
2,50,000 |
Chintan
retired on the above date and it was agreed that:
(a)
Debtors of `5,000 were to be written off as bad debts and a
provision of 5% on debtors for bad and doubtful debts was to be created.
(b)
Goodwill of the firm on Chintan's retirement was valued at `1,00,000
and Chintan's share of the same will be adjusted by debiting the Capital
Accounts of Ayush and Sudha.
(c)
Stock was revalued at `36,000.
(d)
Furniture was undervalued by `9,000.
(e)
Liability for Workmen's Compensation of `2,000 was to be created.
(f)
Chintan was to be paid `20,000 by cheque and the balance
was to be transferred to his loan account.
Pass
the necessary Journal entries in the books of the firm on Chintan's retirement.
(CBSE
2020 C)
Answer:
|
Date |
Particulars |
L.F. |
Dr. (`) |
Cr. (`) |
|
|
|
Stock
A/c Furniture
A/c Provision
A/c To Revolution A/c (Being
Decrease in the Value of Liabilities and increase in the value of Assets) |
Dr. Dr. Dr. |
|
6,000 9,000 2,250 |
17,250 |
|
|
Revaluation
A/c To Bad debts A/c To Liabilities for Worker compensation A/c (Being
Decrease in the Value of Assets and increase in the value of Liabilities) |
Dr. |
|
7,000 |
5,000 2,000 |
|
|
Revaluation
A/c To Chintan’s Capital A/c To Ayush’s Capital A/c To Sudha’s Capital A/c (being
gain of revaluation Account transferred to Capital accounts) |
Dr. |
|
10,250 |
5,125 3,075 2,050 |
|
|
General
Reserve A/c To Chintan’s Capital A/c To Ayush’s Capital A/c To Sudha’s Capital A/c (being
gain of General Reserves transferred to Capital accounts) |
Dr. |
|
20,000 |
10,000 6,000 4,000 |
|
|
Ayush’s
Capital A/c Sudha’s
Capital A/c To Chintan’s Capital A/c (Being
Retiring Partner compensated) |
Dr. Dr. |
|
30,000 20,000 |
50,000 |
|
|
Chintan’s
Capital A/c To Bank A/c (Being
Chintan was paid `20,000
through
cheque) |
Dr. |
|
20,000 |
20,000 |
|
|
Chintan’s
Capital A/c To
Chintan’s Loan A/c (Being
balance of Capital transferred to His loan Account) |
Dr. |
|
1,35,125 |
1,35,125 |
Question 34:
A, B and C are partners sharing
profits and losses in the ratio of 4 : 3 : 3. Their
Balance Sheet as at 31st March, 2024 is:
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Creditors |
7,000 |
Land and Building |
36,000 |
||
|
Bills Payable |
3,000 |
Plant and Machinery |
28,000 |
||
|
Reserves |
20,000 |
Computer Printer |
8,000 |
||
|
Capital A/cs: |
|
Stock |
20,000 |
||
|
A |
32,000 |
|
Sundry Debtors |
14,000 |
|
|
B |
24,000 |
|
Less: Provision for Doubtful Debts |
2,000 |
12,000 |
|
C |
20,000 |
76,000 |
Bank |
2,000 |
|
|
|
|
|
|
|
|
|
|
1,06,000 |
|
1,06,000 |
||
|
|
|
|
|
||
On 1st April, 2024, B retired from the firm on the following terms:
(a) Goodwill of the firm is to be valued at
` 14,000.
(b) Stock, Land and Building are to be appreciated by 10%.
(c) Plant and Machinery and Computer Printer are to be reduced by 10%.
(d) Sundry Debtors are considered to be good.
(e) There is a liability of `
2,000 for the payment of outstanding salary to the employees of the firm. This
liability was not provided in the Balance Sheet but the same is to be recorded
now.
(f) Amount payable to B is to be transferred to his Loan Account.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet
of A and C after B's retirement.
Answer:
|
Revaluation Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(`) |
Particulars |
(`) |
||
|
Plant
and Machinery |
2,800 |
Stock |
2,000 |
||
|
Electronic
Typewriter |
800 |
Land
and Building |
3,600 |
||
|
Outstanding
Salary |
2,000 |
Provision
for Doubtful Debts |
2,000 |
||
|
Profit
transferred to: |
|
|
|
||
|
A’s Capital A/c |
800 |
|
|
|
|
|
B’s Capital A/c |
600 |
|
|
|
|
|
C’s Capital A/c |
600 |
2,000 |
|
|
|
|
|
|
|
|
||
|
|
7,600 |
|
7,600 |
||
|
|
|
|
|
||
|
Partners’ Capital Accounts |
|||||||
|
Dr. |
|
Cr. |
|||||
|
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
B’s
Capital A/c |
2,400 |
|
1,800 |
Balance
b/d |
32,000 |
24,000 |
20,000 |
|
B’s
Loan A/c |
|
34,800 |
|
Reserves |
8,000 |
6,000 |
6,000 |
|
Balance
c/d |
38,400 |
|
24,800 |
Revaluation
A/c |
800 |
600 |
600 |
|
|
|
|
|
A’s
Capital A/c |
|
2,400 |
|
|
C’s
Capital A/c |
|
1,800 |
|
||||
|
|
40,800 |
34,800 |
26,600 |
|
40,800 |
34,800 |
26,600 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet |
|||
|
an on April 01, 2024 (after B’s Retirement) |
|||
|
Liabilities |
(`) |
Assets |
(`) |
|
Creditors |
7,000 |
Land
and Building (36,000
+ 3,600) |
39,600 |
|
Bills
Payable |
3,000 |
Plant
and Machinery (28,000
– 2,800) |
25,200 |
|
B’s
Loan |
34,800 |
Electronic
Typewriter 8000
– 800) |
7,200 |
|
Capital
A/c: |
|
Stock
(20,000 + 2,000) |
22,000 |
|
A |
38,400 |
Sundry
Debtors |
14,000 |
|
C |
24,800 |
Bank |
2000 |
|
Outstanding
Salary |
2,000 |
|
|
|
|
1,10,000 |
|
1,10,000 |
|
|
|
|
|
Working Note:
Adjustment of Goodwill
Old Ratio (A, B and C) = 4 : 3 : 3
B retires from the firm.
∴ Gaining
Ratio = 4 : 3
Goodwill of the firm = ` 14,000
B’s Share of Goodwill = 14,000×3/10=42,000
This
share of goodwill is to be distributed between A and C in their gaining
ratio (i.e. 4 : 3).
A‘s share= 4,200×4/7=2,400
C‘s
share= 4,200×3/7=1,800
Question 35:
X, Y and Z are partners sharing profits and
losses in the ratio of 3 : 2 : 1. Balance Sheet of the
firm as at 31st March, 2024 was as follows:
|
Liabilities |
(`) |
Assets |
(`) |
||
|
Creditors |
21,000 |
Cash at Bank |
5,750 |
||
|
Workmen Compensation Reserve |
12,000 |
Debtors |
40,000 |
|
|
|
Investments Fluctuation Reserve |
6,000 |
Less: Provision for Doubtful Debts |
2,000 |
38,000 |
|
|
Capital A/cs: |
|
Stock |
|
30,000 |
|
|
X |
68,000 |
|
Investment (Market Value
` 17,600) |
15,000 |
|
|
Y |
32,000 |
|
Patents |
10,000 |
|
|
Z |
21,000 |
1,21,000 |
Machinery |
50,000 |
|
|
|
|
Goodwill |
6,000 |
||
|
|
|
Advertisement Expenditure |
5,250 |
||
|
|
|
|
|
|
|
|
|
1,60,000 |
|
1,60,000 |
||
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|
|
|
|
||
Z retired on 1st April, 2024 on the following terms:
(a) Goodwill of the firm is to be valued at
` 34,800.
(b) Value of Patents is to be reduced by 20% and that of machinery to 90%.
(c) Provision for doubtful debts is to be created @ 6% on debtors.
(d) Z took over the investment at market value.
(e) Liability for Workmen Compensation to the extent of ` 750 is to be created.
(f) A liability of
`
4,000 included in creditors is not to be paid.
(g) Amount due to Z to be paid as follows: ` 5,067 immediately, 50% of the balance within one year and
the balance by a draft for 3 Months.
Give necessary Journal entries for the treatment of goodwill, prepare
Revaluation Account, Capital Accounts and the Balance Sheet of the new firm.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit (`) |
Credit (`) |
|
|
2024 |
|
|
|
|
|
|
April 01 |
X’s
Capital A/c |
Dr. |
|
3,000 |
|
|
|
Y’s
Capital A/c |
Dr. |
|
2,000 |
|
|
|
Z’s
Capital A/c |
Dr. |
|
1,000 |
|
|
|
To Goodwill A/c |
|
|
|
6,000 |
|
|
(Existing
goodwill written off) |
|
|
|
|
|
|
|
|
|
|
|
|
April 01 |
X’s
Capital A/c |
Dr. |
|
3,480 |
|
|
|
Y’s
Capital A/c |
Dr. |
|
2,320 |
|
|
|
To Z’s Capital A/c |
|
|
|
5,800 |
|
|
(Z’s
share of goodwill credited to him and gaining partners debited in gaining
ratio) |
|
|
|
|
|
|
|
|
|
|
|
|
Revaluation Account |
||||||
|
Dr. |
|
Cr. |
||||
|
Particulars |
Amount (`) |
Particulars |
Amount (`) |
|||
|
Patents |
2,000 |
Investments
(17,600
– 15,000) |
2,600 |
|||
|
Machinery |
5,000 |
Creditors |
4,000 |
|||
|
Prov.
for Doubtful Debts |
400 |
Loss
on Revaluation transferred |
|
|||
|
|
|
X’s
Capital A/c |
400 |
|
||
|
|
|
Y’s
Capital A/c |
267 |
|
||
|
|
|
Z’s
Capital A/c |
133 |
800 |
||
|
|
|
|
|
|||
|
|
7,400 |
|
7,400 |
|||
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
|
Dr. |
|
Cr. |
|||||||
|
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
||
|
Goodwill
A/c |
3,000 |
2,000 |
1,000 |
Balance
b/d |
68,000 |
32,000 |
21,000 |
||
|
Revaluation
A/c |
400 |
267 |
133 |
X’s
Capital A/c |
- |
- |
3,480 |
||
|
Z’s
Capital A/c |
3,480 |
2,320 |
- |
Y’s
Capital A/c |
- |
- |
2,320 |
||
|
Advertisement
Expenditure A/c |
2,625 |
1,750 |
875 |
Workmen
Compensation Reserve A/c* |
5,625 |
3,750 |
1,875 |
||
|
Investments
A/c |
- |
- |
17,600 |
Investment
Fluctuation Reserve A/c* |
3,000 |
2,000 |
1,000 |
||
|
Bank
A/c |
- |
- |
5,067 |
|
|
|
|
||
|
Z’s
Loan A/c |
- |
- |
2,500 |
|
|
|
|
||
|
Bills
Payable A/c |
- |
- |
2,500 |
|
|
|
|
||
|
Balance
c/d |
67,120 |
31,413 |
- |
|
|
|
|
||
|
|
76,625 |
37,750 |
29,625 |
|
76,625 |
37,750 |
29,625 |
||
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2024 after Z’s retirement |
|||||
|
Liabilities |
Amount (`) |
Assets |
Amount (`) |
||
|
Creditors |
17,000 |
Cash
at Bank (5,750 – 5,067) |
683 |
||
|
Workmen
Compensation Claim |
750 |
Stock |
30,000 |
||
|
Bills
Payable |
2,500 |
Patents |
8,000 |
||
|
Capital
A/c’s: |
|
|
Debtors
A/c |
40,000 |
|
|
X |
67,120 |
|
Less: Prov. for D/D |
2,400 |
37,600 |
|
Y |
31,413 |
98,533 |
Machinery |
45,000 |
|
|
Z’s
Loan |
2,500 |
|
|
||
|
|
1,21,283 |
|
1,21,283 |
||
|
|
|
||||
Working Note:
Amount due to Z = (21,000+3,480+2,320+1,875+1,000) - (1,000+133+875+17,600) =10,067
Amout paid on Retirement immediately: ` 5,067
Amount paid within one year: 50% of 5,000 = ` 2,500
Amount payable by Bills of
Exchange: ` 2,500 (balance 50%)
Ts Grewal Solution 2024-2025
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Class 12 / Volume – I