Question 42 Chapter 6 of Class 12 Part – 1 Usha Publication

1. Reserve for doubtful debts raised to 5 % on detors
2. Land and building to be appreciated by 15%.
3. A provision of Rs. 650 is to be made outstanding legal changes.
4. Goodwill to be valued at Rs. 45,000 and B’s share to be adjusted into the accounts of A and C who decided to a
   continue the sharing profits 5:3.
5. Stack to be reduced top Rs. 32,000.
6. The Capital of the new firm to be adjusted in proportion to their new profit sharing ratio and actual cash to be brought in a paid by or to the timing partners as the case may be
   B agreed to leave the amount due to him by the firm as a loan to the firm carrying interest @ 6% p.a.
   You are required to prepare a revaluation account, partners, capital account, and revised Balance sheet after B’s retirement

The solution of Question 42 Chapter 6 of Class 12 Part – 1 Usha Publication: -

We are providing a solution of Question 42 Chapter 6 of Class 12 Part – 1 Usha Publication in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-

The video consists solution of question number 42 Chapter no. 6 class 12 of Usha publication. To check the direct solution of question no. 42 from the flowing video by using time stamps of the video.

?si=9ivi34o1TlEc9pCg

2. Check out the Solution of this question in Article Format:-

Journal

Date	Particulars		L.F.	Debit	Credit
	Revaluation A/c	Dr.		5,400
	To provision for doubtful debts A/c				750
	To Outstanding legal charges A/c				650
	To Stock A/c				4,000
	(Being assets & liabilities revalued)
	Land & Building A/c	Dr.		18,000
	To Revaluation A/c				18,000
	(Being land & Building appreciated)
	Revaluation A/c	Dr.		12,600
	To A’s capital A/c				5,600
	To B’s capital A/c				4,200
	To C’s capital A/c				2,800
	(Being revaluation on profit )
	A’s capital A/c	Dr.		8,125
	C’s capital A/c	Dr.		6,875
	To B’s capital A/c				15,000
	(Being adjustment of goodwill )
	B’s capital A/c	Dr.		85,200
	To B’s loan A/c				85,200
	(Being part payment to B)
	A’s capital A/c	Dr.		7,150
	To bank A/c				7,150
	(Being capital refunded )
	B’s capital A/c	Dr.		7,150
	To B’s loan A/c				7,150
	(Being capital brought into make proportionate )

Revaluation Account

Particulars		Amount	Particulars		Amount
To provision for d/d		750	By land & Building A/c		18,000
To provision for outstanding claim		650
To stock		4,000
To profits transferred
A	5,600
B	4,200
C	2,800	12,600
		18,000			18,000

Partners’ Capital Account

Particulars	A	B	C	Particulars	A	B	C
To B’s capital A/c	8,125		6,875	By Balance b/d	87,800	66,000	43,800
To Bank A/c	7,150			By Revaluation A/c	5,600	4,200	2,800
To B’s loan A/c		85,200		By A’s capital A/c		8,125
				By C’s capital A/c		6,875
				By Bank A/c			7,150
To Balance c/d	78,125	-	46,875
	93,400	85,200	53,750		93,400	85,200	53,750

New capital of partners

Total assets in the firm	=	500+21000+23750+32000+37000+138000
	=	Rs 2,52,250
Less Total liabilities of the new firm	=	40,000 + 650 + 85200
	=	Rs 1,27,250
Net assets	=	Rs. 2,52,250 – 1,27,250
	=	Rs 1,25,000
A’s capital being 5/8 of 1,25,000	=	78,125
C’s capital being 3/8 of 1,25,000	=	46,875

Balance Sheet

Liabilities		Amount	Assets		Amount
Creditors		40,000	Cash in hand		500
Output IGST		400	Cash at bank		21,000
Output CGST		500	Debtors	25,000
Output SGST		500	Less Provision	1,250	23,750
Outstanding legal charges		650	Stock		32,000
B’s loan A/c		85,200	Plant & machinery		37,000
Capital A/c			Land & Building		1,38,000
A		78,125
C		46,875
		2,52,250			2,52,250

Comment if you have any questions.