Question 55 Chapter 5 - Unimax Class 12 Part 1 - 2021

1. Stock be depreciated by 10%.
2. Machinery be depreciated by 10%.
3. Building be revalued at Rs. 45000.
4. Provision for outstanding legal charges be made to extent of Rs. 1000.

You are required to prepare Memorandum Revaluation Account along with Partners’ Capital Accounts and the Balance Sheet assuming that value of assets and liabilities is not to be changed except cash and capital A/cs.

The solution of Question 55 Chapter 5 - Unimax Class 12 Part 1: -

Memorandum Revaluation A/c

Particulars		Rs.	Particulars		Rs.
To Stock a/c		500	By Building a/c		12000
To Machinery a/c		1200
To Provision for legal charges a/c		1000
To Profit on revaluation a/c
A (1:1)	4650
B	4650	9300
		12000
To Buildings a/c		12000	By Stock a/c		500
			By Machinery a/c		1200
			By Provision for legal charges a/c		1000
			By Loss on revaluation
			A (1 : 1 : 1)	3100
			B	3100
			C	3100	9300
		12,000			12,000

  Capital Accounts

Particulars	A	B	C	Particulars	A	B	C
To Loss on revaluation a/c	3100	3100	3100	By Balance b/d	30000	20000	-
To Balance c/d	31550	21550	11900	By Cash A/c	-	-	15000
				By profit on revaluation a/c	4650	4650	_
	34650	24650	15000		34650	24650	15000

  Balance Sheet

Liabilities		Rs.	Assets	Rs.
Sundry Creditors		5000	Cash (5000 + 15000)	20000
Capital Accounts			Closing Stock	5000
A	31550		Sundry Debtors	7000
B	21550		Machinery	12000
C	11900	65000	Building	33000
Bills Payable		5000
Outstanding expenses		2000
		77000		77000

Working Note

Let total share = 1

C’s share = 1/3

Remaining share = 1 – 1/3 = 2/3

A’s new share = 2/3 X 1/2 = 1/3

B’s new share = 2/3 X 1/2 = 1/3

New PSR = 1 : 1 : 1

 

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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication