[ISC] Q. 20 Solution of Retirement of Partner TS Grewal ISC 2023-24 Edition
Step-by-step solution of Question 20, Chapter 4 Retirement of a Partner, TS Grewal Class 12 Accountancy 2023-24 for the ISC Board.
Question 20
Sachin, Agarkar and Ankola are equal partners in a firm. Agarkar retired and the continuing partners decide to share profits of the new firm in the ratio of 5 : 4. An extract of Balance Sheet of the firm before the retirement of Agarkar, on 1st April, 2023 is given below:
- General Reserve ₹ 50,000; Contingency Reserve ₹ 5,000; Profit & Loss A/c ₹ 30,000; Investment Fluctuation Reserve ₹ 15,000; Workmen Compensation Reserve ₹ 12,000
- Investment (Market Value ₹ 1,90,000) ₹ 2,00,000; Advertisement Expenditure (Deferred Revenue) ₹ 10,000
A claim on account of Workmen Compensation is estimated at ₹ 2,000 only, which is adjusted through Workmen Compensation Reserve. Investment Fluctuation Reserve will also be adjusted as required.
Continuing partners (Sachin and Ankola) decide to record the effect of the above accumulated profits, losses and reserves (after required adjustments) without affecting their book values, by passing an adjustment entry.
Solution
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About this solution
This is Chapter 4 Retirement of Partner of ISC TS Grewal Edition 2023-24.
Written by Vijay Adarsh, teaching commerce since 2003 to Class 11, Class 12, B.Com, CA, CS and CMA students.
We have solved all the practical questions in this book and explained them Step by Step in detail with clear working notes.
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