[ISC] Q. 42 Retirement of Partner TS Grewal Solution Class 12 (2023-24)

Solution to Question number 42 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2023 – 24 session?

Madan, Dass and Param were partners sharing profits and losses in the ratio of 5 : 3 : 2. On 31st March, 2023, their Balance Sheet was as under:

Liabilities	₹	Assets	₹
Sundry Creditors Employees Provident Fund General Reserve Capital A/cs: Madan Dass Param	26,500 3,500 20,000 1,00,000 50,000 40,000	Cash at Bank Sundry Debtors Stock Fixed Assets Goodwill Advertisement Expenditure	20,000 30,000 55,000 1,15,000 15,000 5,000
	2,40,000		2,40,000

Dass retires on 1st April, 2023. For the purpose, the following adjustments weere agreed upon:

(i) Goodwill of the firm is to be valued at 2 year’s purchase of the average profit of 3 completed years preceding the date of retirement. The profits for previous years ended 31st March, were:

Year	Profit (₹)
2019-20	45,000
2020-21	50,000
2021-22	55,000
2022-23	60,000

(ii) Fixed Assets were undervalued by ₹ 25,000.

(iii) Stock was overvalued by ₹ 5,000.

(iv) New profit-sharing ratio of Madan and Param will be 3 : 2.

(v) Dass be paid through amount brought in by Madan and Param in such a way as to make their capitals proportionate. Minimum Bank Balance is to be maintained at ₹ 10,000.

Prepare Revaluation Account, Capital Accounts of Partners and the Balance Sheet of Madan and Param.

Solution:-

Here is the list of all solutions of Retirement of Partners TS grewal ISC class 12 (2023 – 24)

S.N	Solutions
1	Question – 1
2	Question – 2
3	Question – 3
4	Question – 4
5	Question – 5
6	Question – 6
7	Question – 7
8	Question – 8
9	Question – 9
10	Question – 10

S.N	Solutions
11	Question – 11
12	Question – 12
13	Question – 13
14	Question – 14
15	Question – 15
16	Question – 16
17	Question – 17
18	Question – 18
19	Question – 19
20	Question – 20

S.N	Solutions
21	Question – 21
22	Question – 22
23	Question – 23
24	Question – 24
25	Question – 25
26	Question – 26
27	Question – 27
28	Question – 28
29	Question – 29
30	Question – 30

S.N	Solutions
31	Question – 31
32	Question – 32
33	Question – 33
34	Question – 34
35	Question – 35
36	Question – 36
37	Question – 37
38	Question – 38
39	Question – 39
40	Question – 40

S.N	Solutions
41	Question – 41
42	Question – 42
43	Question – 43
44	Question – 44
45	Question – 45
46	Question – 46
47	Question – 47
48	Question – 48