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Question
Janani, Janaki and Jamuna are partners sharing profits and losses in the ratio of 3:3:1 respectively. Janaki died on 31st December, 2017. Final amount due to her showed a credit balance of ₹ 1,40,000. Pass journal entries if,
- The amount due is paid off immediately.
- The amount due is not paid immediately.
- ₹ 75,000 is paid and the balance in future.
Solution
Journal Entries
| Particulars | L.F. | Debit | Credit |
| Janaki's executors A/c Dr. To Bank A/c (Amount due is paid off immediately) |
1,40,000 | 1,40,000 | |
| Janaki's executors A/c Dr. To Janaki's executors loan A/c (Amount due is not paid immediately) |
1,40,000 | 1,40,000 | |
| Janaki's executors A/c Dr. To Bank A/c To Janaki's executors loan A/c (₹ 75,000 is paid and the balance in future) |
1,40,000 | 75,000 65,000 |
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RELATED QUESTIONS
Varsha, Shanthi and Madhuri are partners, sharing profits in the ratio of 5:4:3. Their balance sheet as on 31st December 2017 is as under:
Balance Sheet as on 31.12.2018
| Liabilities | ₹ | Assets | ₹ | |
| Capital accounts: | Premises | 1,20,000 | ||
| Varsha | 80,000 | 1,60,000 | Stock | 40,000 |
| Shanthi | 60,000 | Debtors | 50,000 | |
| Madhuri | 20,000 | Cash at bank | 18,000 | |
| General reserve | 48,000 | Profit and loss A/c (loss) | 12,000 | |
| Sundry creditors | 32,000 | |||
| 2,40,000 | 2,40,000 |
On 1.1.2018, Madhuri died and on her death the following arrangements are made:
- Stock to be depreciated by ₹ 5,000
- Premises is to be appreciated by 20%
- To provide ₹ 4,000 for bad debts
- The final amount due to Madhuri was not paid.
Prepare revaluation account, partners’ capital account and the balance sheet of the firm after death.
Vijayan, Sudhan, and Suman are partners who share profits and losses; in the capital ratio. Their balance sheet as of 31st December 2018 is as follows:
Balance Sheet as on 31.12.2018
| Liabilities | ₹ | Assets | ₹ | |
| Capital accounts: | Buildings | 80,000 | ||
| Vijayan | 70,000 | 1,50,000 | Stock | 45,000 |
| Sudhan | 50,000 | Debtors | 30,000 | |
| Suman | 30,000 | Cash at bank | 20,000 | |
| General reserve | 18,000 | Cash in hand | 15,000 | |
| Creditors | 17,000 | |||
| 1,85,000 | 1,85,000 |
Suman died on 31.3.2019. On the death of Suman, the following adjustments are made:
- Building is to be valued at ₹ 1,00,000
- Stock to be depreciated by ₹ 5,000
- Goodwill of the firm is valued at ₹ 36,000
- Share of profit from the closing of the last financial year to the date of death on the basis of the average of the three completed year’s profit before death.
Profit for 2016, 2017 and 2018 were ₹ 40,000,₹ 50,000 and ₹ 30,000 respectively.
Prepare the necessary ledger accounts and the balance sheet immediately after the death of Suman.
