Are you looking for the solution of Question number 24 of the Retirement of Partner Chapter of TS Grewal Book 2021-22 Edition for the 2021-22 session?
Question number 24 of the Retirement of Partner chapter is a practical one.
Solution of Question Number 24 of Retirement of Partner Chapter of TS Grewal Book 2021-22 Class 12
Question – 24
A, B and C were partners, sharing profits and losses in the ratio of 2:2:1. B retired on 31st March, 2021. On the date of his retirement, some of the assets and liabilities appeared in the books of as follows:
Creditors ₹ 70,000; Building ₹ 1,00,000; Pland and Machinery ₹ 40,000; Stock of Raw Materials ₹ 20,000; Stock of Finished Goods ₹ 30,000 and Debtors ₹ 20,000.
Following was agreed among the partners on B’s retirement:
a) Building to be appreciated by 20%.
b) Plant and Machinery to be reduced by 10%
c) A provision of 5% on Debtors to be created for Doubtful Debts
d) Stock of Raw Materials to be valued at ₹ 18,000 and Finished Goods at ₹ 35,000.
e) An Old Computer previously written off was sold for ₹ 2,000 as scrap.
f) Firm had to pay ₹ 5,000 to an injured employee.
Pass necessary Journal entries to record the above adjustments and prepare the Revaluation Account.