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Question 30 Chapter 4 of Class 12 Part – 1 – 2024
30. (Revaluation by passing a single adjustment entry) P, Q and R are sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1st April,2016. They also decided to record the effect of following revaluations without affecting the book value of assets and liabilities by passing a single adjustment entry:
| Book Value | Revalued Amount | |
| Land & Building | 2,00,000 | 3,00,000 |
| Equipment | 3,00,000 | 2,80,000 |
| Bank Loan | 1,00,000 | 90,000 |
| Outstanding salaries | 90,000 | 1,20,000 |
We are providing a solution of Question 30 Chapter 4 of Class 12 Part – 1 – 2024 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
The video consists solution of question numbers from 20 to 23 Chapter no. 4 class 12 of Usha publication. To check the direct solution of question no. 30 from the following video by using time stamps of the video.
Journal
| Date | Particulars |
L.F. | Debit | Credit | |
|---|---|---|---|---|---|
| R’s Capital a/c | Dr. | 18,000 | |||
| To P’s Capital a/c | 18,000 | ||||
| (Being revaluation of assets and liabilities adjusted through capital accounts) | |||||
Working Notes: -
Calculation of the amount of Adjustment for revaluation of assets on change in profit sharing ratio:
| Particular |
P | Q | R | |
|---|---|---|---|---|
| All assets & liabilities distributed in old profit sharing ratio 5:3:2 | ||||
| Land & Building | 50,000(Cr.) | 30,000(Cr) | 20,000(Cr) | |
| Equipment | 10,000(Dr.) | 6,000(Dr.) | 4,000(Dr.) | |
| Bank Loan | 5,000(Cr.) | 3,000(Cr.) | 2,000(Cr.) | |
| Outstanding Salaries | 15,000(Dr.) | 9,000(Dr.) | 6,000(Dr.) | |
| Total | 30,000(Cr.) | 18,000(Cr.) | 12,000(Cr.) | |
Adjustment for revaluation of assets on change in profit sharing ratio:
| Particular |
P | Q | R | |
|---|---|---|---|---|
| As per New ratio 2:3:5 | ||||
| Land & Building | 20,000(Cr.) | 30,000(Dr) | 50,000(Dr.) | |
| Equipment | 4,000(Cr.) | 6,000(Cr.) | 6,000(Cr.) | |
| Bank Loan | 2,000(Dr.) | 3,000(Dr.) | 5,000(Dr.) | |
| Outstanding Salaries | 6,000(Cr.) | 9,000(Cr.) | 15,000(Cr.) | |
| Total | 12,000(Dr.) | 18,000(Dr.) | 30,000(Dr.) | |
| Adjustment | 18,000(Cr.) | 18,000(Dr.) | ||
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Economics Educator
Mrs. Dilgeerjot Kaur holds a B.Com and M.Com degree and has over 9 years of teaching experience in microeconomics, macroeconomics, and business economics.
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