PROF. BHAMBWANI’S
RELIABLE CLASSES
SYJC (RECORDING) WORD FILE (CHAPTER WISE)
RETIREMENT & DEATH OF PARTNER
LEC 1:THEORY (29 Mins)
LEC 2:(38 Mins)
The Balance Sheet of Gandhi, Jain and Modi is as follows, who are sharing profits
and losses as 3:2:1 respectively.
BALANCE SHEET AS ON 31ST DECEMBER,1999.
LIABILITIES / AMOUNT / ASSETS / AMOUNTCapitals:
Gandhi
Jain
Modi
Creditors
Bills Payable / 12,000
9,000
6,000
9,200
4,200 / Cash
Debtors
Stock
Plant and Machinery / 7,400
9,000
9,000
15,000
40,400 / 40,400
Modi retires from the business on the above date on the following terms:
1) Stock and Plant and Machinery to be appreciated by 10% and 5% respectively.
2) Provision for doubtful debts to be created at 5% on debtors.
3) The provision of Rs.400 be made in respect of outstanding rent.
4) Goodwill of the firm is valued at Rs.9,000 and remaining partners decide that goodwill should be written off.
5) The amount payable to the retiring partner be transferred to his loan a/c.
Prepare P & L Adjustment a/c; Partner's Capital A/c's and Balance Sheet of Patel and Shah.
LEC 3:(32 Mins)
The Balance Sheet of "Lalit Traders" is as follows. The partners share profits and losses
Reeta 5/10, Geeta 2/10 and Seeta 3/10.
Balance Sheet as on 31st Dec 1991
LIABILITIES / AMOUNT / ASSETS / AMOUNTCapital
Reeta
Geeta
Seeta
General Reserve
Creditors / 16,000
12,000
9,800
7,000
10,600 / Machinery
Building
Debtors 7,100
Less: R.D.D. 1,000
Stock
Cash Balance / 14,000
20,000
6,000
13,200 2,200
55,400 / 55,400
Seeta retires from the business on 1st Jan. 1992 on the following terms:
A) The assets are revalued as under:
i)Stock at Rs.10,000, ii) Building is appreciated by 10% iii) Provision for doubtful debts is to be increased by Rs.300, iv) Machinery is to be depreciated by Rs.1,200
B) The goodwill of the retiring partner is valued at Rs.2,400 and the remaining partners decide that goodwill be written back in their new profit sharing ratio, which will be 5:3
C) Seeta be paid Rs.300 in cash on his retirement and balance is to be transferred to his loan account.
Prepare Profit and Loss Adjustment A/c capital accounts of partners and Balance sheet of the new firm.
LEC 4: (34 Mins)
The Balance sheet of "Suresh Traders" Jalgaon is as follows. The partners share profits
and losses as Amar 5/10, Vivek 2/10 and Anand 3/10.
Balance Sheet as on 31st March 1995
LIABILITIES / AMOUNT / ASSETS / AMOUNTCreditors
General Reserve
Capital A/cs :
Amar
Vivek
Anand / 20,200
14,000
32,000
24,000
19,600 / Cash at hand
Debtors 12,800
Less: R.D.D 800
Stock
Plant & Machinery
FactoryBuilding / 5,400
12,000
28,400
28,000
36,000
1,09,800 / 1,09,800
Amar Retires from the business on 1st April 1995 on the following terms:
A) The assets are revalued as under : i) Stock at Rs 25,000
ii) Factory building is appreciated by 20%.
iii) Reserve for bad and doubtful debts to be increased upto Rs.2,000
iv) Plant and Machinery depreciated by 20%
B) The Goodwill of the retiring partner is valued at Rs.12,000 and the remaining partners decide that goodwill be written back in their new profit sharing ratio which will be 2:3.
C) Amar be paid Rs.2,840 in cash on his retirement and the balance is to be transferred to his loan account.
Pass journal entries in the books of the firma nd prepare Balance sheet of the New firm.
LEC 5: (47 MIns)
Given is the balance sheet of P, Q & R who were sharing profits and losses in the
ratio off 3:3:2
Balance Sheet as on 31st Dec, 1995
LIABILITIES / AMOUNT / ASSETS / AMOUNTCreditors
Bills Payable
Reserve Fund
Capital A/c :
P
Q
R / 10,700
5,200
4,000
12,000
13,000
9,000 / Cash
Stock
Debtors
Machinery
Furniture
Buildings / 7,400
9,300
12,500
8,700
4,000
12,000
53,900 / 53,900
On 1st Jan, 1996 R retired from the firm and the following decisions were taken:
The assets be revalued as under:
1) Stock Rs 7,000 Machinery Rs 7,000 and Furniture Rs 5,200.
2) R.D.D. be maintained at 4% on debtors.
3) An item of Rs.200 from creditors is no longer a liability and hence should be properly adjusted.
4) P and Q's share in Reserve Fund should be continued in new firm.
5) Goodwill of the firm be valued at Rs 8,000 however only R's share in it is to be raised in the books and written off from the books immediately.
6) The amount payable to R be transferred to his loan account.
Pass journal entries in the books of the firm and prepare Balance Sheet of the new firm on 1.1.1996.
LEC 6: (24 MIns)
The Balance Sheet of A, B, & C is as follows. The partners sharing profits & losses in the proportion of 2:2:1 respectively
Balance Sheet as on 31st December 1999
Liabilities / Amount / Assets / AmountSundry Creditors / 15,000 / Cash / 7,000
Capital Account of C / 15,000 / Freehold Property / 30,000
General Reserve / 5,000 / Sundry Debtors 20,000
Capital Account / (-) RDD 1,000 / 19,000
A / 40,000 / Investments / 4,000
B / 30,000 / Goodwill / 30,000
Stock / 15,000
1,05,000 / 1,05,000
C retires from the business on 1st January, 2000 on the following terms:
(1)The assets are to be revalued as under:
Freehold Property Rs. 33,000, Investments Rs. 7,000, Stock Rs. 10,000. All debts are good.
(2)Goodwill of the firm be valued at thrice the average profits for the preceding five years. Profits of the firm are:
YearAmount
199410,000
199516,500
199613,000
1997 6,500
199813,000
(3)C should be paid Rs. 7,000 in cash.
(4)The balance of C’s capital account should be kept in the business as loan.
Prepare Profit & Loss adjustment account, Partners Capital account & Balance Sheet of new firm.
LEC 7: THEORY (16 Mins)
LEC 8: THEORY (17 Mins)
LEC 9: THEORY (11 Mins)
LEC 10: (42 Mins)
Samita, Sangita and Savita were partners sharing profits and losses in the ratio of
2:2:1. Their Balance Sheet as on 31st December, 1994 was follows:
Balance Sheet as on 31st December, 1994
LIABILITIES / AMOUNT / ASSETS / AMOUNTCapital Accounts:
Samita
Sangita
Savita
Sundry creditors
Outstanding Expenses / 30,000
22,500
30,000
16,500
4,500 / Plant and Machinery
Investment
Stock
SundryDebtors 15,600
Less:R.D.D. 600
Cash / 41,850
22,500
18,000
15,000
6,150
1,03,500 / 1,03,500
Sangita died on 31st March, 1995. The following adjustments were made in the books of the firm.
R.D.D. is no longer necessary.
Investments worth Rs. 15,000 were taken over by Savita and remaining investments were sold at a profit of Rs.1,000.
Stock was valued at Rs.22,500 and Plant and machinery was depreciated by 10%.
A contingent liability for compensation Rs.535 is to be provided.
Goodwill of the firm was valued at Rs. 15,000
The deceased partners share in profit upto the data of death was to be calculated on the basis of last year’s profit which was Rs.12,000.
Prepare: (1) Profit and Loss Adjustment Account. (2) Partners Capital Account (3) Balance Sheet as on 1st April, 1995.
LEC 11: (22 Mins)
Rekha, Mukta and Seema were partners in a firm sharing profits and losses in the ratio of
3:2:1 respectively. On 31st December, 1994 their Balance Sheet was as follows:
Balance Sheet as on 31st December 1994
LIABILITIES / AMOUNT / ASSETS / AMOUNTCreditors
Bills payable
General Reserve
Capital a/c:
Rekha
Mukta
Seema / 30,000
9,000
36,000
1,80,000
1,20,000
60,000 / Cash
Bills Receivable
Debtors 1,80,000
Less:R.B.D. 12,000
Investment
Land and Building / 3,000
12,000
1,68,000
1,50,000
1,02,000
4,35,000 / 4,35,000
On 30th June, 1995 Seema died and it was agreed that:
The assets be revalued as: Land and Building Rs.1,20,000, Investment Rs.1,41,600. All debtors were good.
Goodwill of the firm is to be raised at Rs.60,000.
Seema share’s a profit to the date of her death was to be calculated on the basis of average profit of last two years. Profits were: 1993- Rs.1,60,000, 1994- Rs.2,00,000.
Prepare:- (1) Profit and Loss Adjustment Account. (2) Partners capital Account. (3) Balance Sheet of the new firm.
LEC 12: (27 Mins)
Pramod, Vinod and Subodh were partners sharing profits and losses in the ratio of their capitals, Balance Sheet of the firm stood as under :
Balance Sheet as on 31.12.1981
LIABILITIES / AMOUNT / ASSETS / AMOUNTSundry Creditors
Bills Payable
Reserve Fund
Pradeep Loan
Capitals :
Pramod 25,000
Vinod 15,000
Subhodh 10,000 / 18,400
8,600
6,000
15,000
50,000 / Cash at Bank
Investments
Sundry debtors 20,000
Less : R.D.D 1,000
------
Stock
Furniture
Motor Lorry
Land & Bldg / 13,700
9,000
19,000
10,000
14,500
18,800
13,00O
98,000 / 98,000
Vinod died on 1st May 1982 and the following adjustment were made as per Deed :
1) The assets and liabilities were revalued as under: Land & building be depreciated by 20%. Motor Lorry be appreciated by Rs.2,000, Stock to be revalued at Rs7,500.and furniture at Rs 20,000. Bills payable to be valued at Rs.8,000 R.D.D. on debtors to be maintained at 10%.
2) The deceased partner is to be given his share of profit to the date of his death based on the average profits of last 3 years.
3) Vinod's share of goodwill is to be calculated at two times the average profits of the last 5 years. Profits and Losses for the 5 years ended on 31st Dec were 1977 profits Rs.6,000. 1978 - Loss
Rs.3,000 1979 profit Rs.5,000 1980 profits Rs.10,000, 1981 Profits Rs.12,000.
4) Vinod has withdrawn Rs 3,000 upto the date of his death. Interest on capitals at 10% per annum is allowed and 6% p.a. is to be charged on drawings for 4 months. You are required to
a) Give the working of share of profit and share of goodwill of deceased partner.
b)Vinod's Capital A/c showing the amount payable to his legal heirs.
LEC 13: (25 Mins)
A,B and C who were sharing profits and losses as 7:5:4. Their Balance sheet as on 31st Dec 1983 was as under:
Balance Sheet as on 31st Dec 1983
LIABILITIES / AMOUNT / ASSETS / AMOUNTBills Payable
Creditors
Loan
General Reserve
Capitals :
A 22,750
B 15,250
C 12,000 / 2,350
5,450
14,200
16,000
50,000 / Cash
Bank
Bills receivable
Debtors
Stock
Furniture
Machinery
Building / 5,850
16,000
950
16,250
9,450
2,100
6,800
30,600
88,000 / 88,000
C died on 1st April 1984 and the following adjustments were agreed as per deed.
1) Goodwill is to be valued at three times of the average profits of the last five years which were:
1979 Rs 28,000 1980 RS 27,400
1981 Rs 20,000 1982 Rs 17,000
1983 Rs 12,000
1)C's share to the profits upto the date of his death is to be calculated on the basis of the average of the last two year's profits.
2)Furniture, Machinery and Building are to be revalued at Rs 1,800 Rs 5,000 and Rs 44,700 respectively.
4) C is entitled to get salary Rs 750 a month.
5)Interest on capital at 10% p.a.
6) C's drawings from 1st Jan 1984 upto his death were at the rate of Rs.624/- a month.
You are required to prepare:
A) C's capital showing the amount payable to his executors.
B)Give working of share of profit and share of goodwill of deceased partner.