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4.38 Double Entry Book Keeping (Section A)—ISC XII

2. Mehta’s Share of Profit (Loss) till date of death:

` 70 000, + ` 80 000, − ` 375 000, ,
Average Profit (Loss) of last three years = = ` 75,000 (Loss)
3
2 4
,
Mehta‘s Share of Loss = ` 75 000 × × = ` 5,000.
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3. Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 1,29,000 By Mehta’s Drawings A/c 25,000
To Investment A/c 21,000 By Mehta’s Executor’s A/c 24,000
By Balance c/d 1,01,000
1,50,000 1,50,000

Unsolved Questions

1. A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet
as at 31st March, 2018 is as under:
Liabilities ` Assets `
Creditors 30,000 Cash in Hand 18,000
Bills Payable 16,000 Debtors 25,000
General Reserve 12,000 Less: Provision for Doubtful Debts 3,000 22,000
Capital A/cs: Stock 18,000
A 40,000 Furniture 30,000
B 40,000 Machinery 70,000
C 30,000 1,10,000 Goodwill 10,000
1,68,000 1,68,000
B retires on 1st April, 2018 on the following terms:
(i) Provision for Doubtful Debts be raised by ` 1,000.
(ii) Stock to be depreciated by 10% and Furniture by 5%.
(iii) There is an outstanding claim of damages of ` 1,100 and it is to be provided for.
(iv) Creditors will be written back by ` 6,000.
(v) Goodwill of the firm is valued at ` 22,000.
(vi) B is paid in full with the cash brought in by A and C 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 Balance Sheet of A and C.
2. Balance Sheet of X, Y and Z who were sharing profits in the ratio of 4 : 3 : 2 stood as follows as at
31st March, 2018:
Liabilities ` Assets `
Sundry Creditors 82,800 Cash at Bank 66,000
Capital A/cs: Sundry Debtors 60,900
X 2,40,000 Less: Provision for Doubtful Debts 2,100 58,800
Y 1,80,000 Stock 96,000
Z 1,20,000 5,40,000 Plant and Machinery 1,02,000
Land and Building 3,00,000
6,22,800 6,22,800