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

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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:

LiabilitiesAssets
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
2,40,0002,40,000

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:

YearProfit (₹)
2019-2045,000
2020-2150,000
2021-2255,000
2022-2360,000

(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.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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