[ISC] Q. 29 Retirement of Partner TS Grewal Solution Class 12 (2024-25)

Solution to Question number 29 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2024-25 session.

Balance Sheet of Ajay, Salil and Ravi who are sharing profits in the ratio of 2 : 3 : 1, as at 31st March, 2023 is given below:

Liabilities	₹	Assets		₹
Ajay’s Capital Salil’s Capital Ravi’s Capital Workmen Compensation Reserve Investment Fluctuation Reserve Sundry Creditors Employee’s Provident Fund	1,00,000 2,00,000 3,00,000 20,000 10,000 3,00,000 60,000	Goodwill Land and Building Investment (Market Value ₹ 46,000) Stock Debtors Less: PDD Bank Advertisement Suspense A/c	3,00,000 10,000	12,000 2,50,000 50,000 80,000 2,90,000 2,96,000 12,000
	9,90,000			9,90,000

Ravi retired on 1st April, 2023 and Ajay and Salil decide to share future profits and losses in the ratio of 3 : 2. 50% is to be paid to Ravi immediately and the balance in two equal annual instalments together with interest @ 10% p.a. Other terms of retirement are:

(i) Goodwill is to be valued at 2 year’s purchase of average profits of last three completed years. The profits were 2020 – 21 – ₹ 48,000, 2021 – 22 – ₹ 93,000, 2022 – 23 – ₹ 1,38,000.

(ii) Land and Building was found undervalued by ₹ 20,000 and Stock was found overvalued by ₹ 38,000.

(iii) Provision for doubtful debts is to be made equal to 5% of the debtors.

(iv) Claim on account of workmen compensation is ₹ 8,000.

(v) 10% of the sundry creditors be written back as no longer payable.

(vi) Out of the amount of insurance which was debited to Profit and Loss Account, ₹ 5,000 be carried forward as an unexpired insurance.

Pass necessary Journal entries and prepare necessary Ledger Accounts and Balance Sheet.

Solution:-

Here is the list of all solutions of Retirement of Partners TS grewal ISC class 12 (2024-25)

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
49	Question – 49
50	Question – 50
51	Question – 51
52	Question – 52
53	Question – 53