[ISC] Q. 41 Retirement of Partner TS Grewal Solution Class 12 (2023-24)

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Solution to Question number 41 of the Retirement of Partner Chapter of TS Grewal Book ISC Board 2023 – 24 session?

Following is the Balance Sheet of Aruna, Karuna and Varuna as at 31st March, 2023, who have agreed to share profits and losses in proportion of their capitals:

LiabilitiesAssets
Capital A/cs:
Aruna
Karuna
Varuna
General Reserve
Workmen Compansation Reserve
Sundry Creditors
2,00,000
3,00,000
2,00,000
35,000
15,000
50,000
Land and Building
Machinery
Closing Stock
Sundry Debtors
Less: PDD
Cash at Bank
1,10,000
10,000
2,00,000
3,00,000
1,00,000


1,00,000
1,00,000
8,00,0008,00,000

On 1st April, 2023, Aruna retired from the firm and the continuing partners decided to carry on the business. It was agreed to revalue the assets and reassess the liabilities on the following basis:

(i) Land and Building be written up by ₹ 60,000.

(ii) Machinery be depreciated by 20%.

(iii) There were bad debts of ₹ 17,000.

(iv) The claim on account of Workmen’s Compensation was estimated at ₹ 8,000.

(v) Goodwill of the firm was valued at ₹ 1,40,000 and Aruna’s share of Goodwill be adjusted against the Capital Accounts of the continuing partners Karuna and Varuna who have decided to share future profits in the ratio of 4 : 3 respectively.

(vi) Capital of the new firm in total will be the same as before the reitrement of Aruna and will be in the new profit sharing ratio of the continuing partners.

(vii) Amount due to Aruna be settled by paying ₹ 50,000 in cash and the balance by transferring to her Loan Account which will be paid later on.

Prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of the firm after Aruna’s retirement.

Solution:-

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

S.NSolutions
1Question – 1
2Question – 2
3Question – 3
4Question – 4
5Question – 5
6Question – 6
7Question – 7
8Question – 8
9Question – 9
10Question – 10
S.NSolutions
11Question – 11
12Question – 12
13Question – 13
14Question – 14
15Question – 15
16Question – 16
17Question – 17
18Question – 18
19Question – 19
20Question – 20
S.NSolutions
21Question – 21
22Question – 22
23Question – 23
24Question – 24
25Question – 25
26Question – 26
27Question – 27
28Question – 28
29Question – 29
30Question – 30
S.NSolutions
31Question – 31
32Question – 32
33Question – 33
34Question – 34
35Question – 35
36Question – 36
37Question – 37
38Question – 38
39Question – 39
40Question – 40
S.NSolutions
41Question – 41
42Question – 42
43Question – 43
44Question – 44
45Question – 45
46Question – 46
47Question – 47
48Question – 48
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Anurag Pathak

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