# Accounting for Partnership Firms (CBSE (Central Board of Secondary Education- Board Exam) Class-12 Accountancy): Questions 132 - 132 of 135

Get 1 year subscription: Access detailed explanations (illustrated with images and videos) to 209 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. View Sample Explanation or View Features.

Rs. 250.00 or

## Question number: 132

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Essay Question▾

### Describe in Detail

Anil, Jatin and Ramesh were sharing profit in the ratio of 2: 1: 1. Their Balance Sheet as at 31.12. 2001 stood as follows: -

 Liabilities Rs. Assets Rs. Creditors 24, 400 Cash 1, 00, 000 Bank Loan 10, 000 Debtors 20000 Profit and Loss A/c 18, 000 Less: Provision 1600 18, 400 Bills Payable 2, 000 Stock 10, 000 Anil’s Capital 50, 000 Land & Building 20, 000 Jatin’s Capital 40, 000 Investment 14, 000 Ramesh’s Capital 40, 000 Goodwill 22, 000 1, 84, 400 1, 84, 400

Ramesh died on 31st March 2002. The following adjustments were agreed upon-

(a) Building be appreciated by Rs. 2, 000

(b) Investments be valued at 10 % less than the book value.

(c) All debtors (except 20 % which are considered as doubtful) were good.

(d) Stock be increased by 10 %

(e) Goodwill be valued at 2 years’ purchase of the average profit of the past five years.

(f) Ramesh’s share of profit to the death be calculated on the basis of the profit of the preceding year. profit for the years 1997, 1998, 1999 and 2000 were Rs. 26, 000, Rs. 22, 000, Rs. 20, 000 and Rs. 24, 000 respectively.

Prepare revaluation account, partner’s capital Account, Ramesh ‘s Executors’ Account and Balance sheet immediately after Ramesh’s death assuming that Rs. 18, 425 be paid immediately to his executors and balance to b left to the Ramesh’s Executor’s Account

### Explanation

… (252 more words) …

f Page