## Question 26 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Parat – 1

Question 26 Chapter 4 of +2-Part-1

26. (Adjustment of Capital) A, B and C were partners, sharing profits and losses in 4:3:2 ratio respectively. They changed their profit sharing ratio to 2:4:3. On 31st March 2018, when their capitals after necessary adjustments stood at Rs.39,300; Rs.39,600 and Rs.18,300 respectively. The entire capital of the newly constituted firm is fixed at Rs.1,08,000 as per new profit sharing ratio. Calculate the actual cash to be paid off or to be brought in by the partners and pass necessary journal entries.

### The solution of Question 26 Chapter 4 of +2 Part-1: –

Total capital of Reconstituted Firm = Rs.1,08,000

 Particular A B C New profit sharing ratio = 2:4:3 A’s Capital (1,08,000*2/9) 24,000 – – B’s Capital (1,08,000*4/9) – 48,00 – C’s Capital (1,08,000*3/9) – – 36,000

(ii) Calculation of cash to be brought in or paid off to partners:

 Particular A B C Partners’ capitals in Reconstituted firm 24,000 48,000 36,000 Existing capitals of partners 39,300 39,600 18,300 Cash to be brought/paid off (15,300) (8,400) (17,700) C’s Capital (1,08,000*3/9) Paid off Brought Brought

 In the Books of _______________ Date Particulars L.F. Debit Credit (i) A’s Capital a/c Dr. 15,300 To Cash a/c 15,300 (Being excess capital withdrawn by partner) (ii) Cash a/c Dr. 26,100 To B’s Capital a/c 8,400 To C’s Capital a/c 17,700 (Being shortage in the capital brought in by partners)

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 25 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Parat – 1

Question 25 Chapter 4 of +2-Part-1

25. (Journal/ Capital a/c/ Balance sheet) X and Y are partners sharing profits in 4:3 ratio. The balance sheet as on 31st March 2018 was as follows:

 Liabilities Amount Assets Amount Reserves 21,000 Fixed assets 75,000 Sundry creditors 14,000 Sundry Debtors 60,000 Capital A/c Cash in hand 10,000 X 1,20,000 Stock 70,000 Y 60,000 1,80,000 2,15,000 2,15,000

They decided that with effect from 1st April 2018, they will share profits and losses in the ratio of 2:1. For this purpose, they decided that:

1. Fixed assets to be depreciated by 10%.
2. A provision of 6% is made on debtors for doubtful debts.
3. Stock is valued at Rs.95,000.
4. An amount of Rs.1,850 included in creditors is not likely to be claimed.
Partners decide to record the revised values in the books. However, they do not want to disturb the reserve. You are required to pass the journal entries, prepare the capital accounts of partners and the revised balance sheet.

### The solution of Question 25 Chapter 4 of +2 Part-1: –

 Old Ratio of X & Y = 4: 3 New Ratio of X & Y = 2: 1

Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio

 X’s Share Sacrificing/Gaining = 4 – 2 7 3
 = 12 – 14 21
 = -2 (Gaining) 21
 Y’s Share Sacrificing/Gaining = 3 – 1 7 3
 = 9 – 7 21
 = 2 (Sacrifice) 21
 In the Books of _______________ Date Particulars L.F. Debit Credit (i) Revaluation a/c Dr. 11,100 To Provision for doubtful debts a/c 7,500 To Fixed assets a/c 3,600 (Being assets revalued) (ii) Stock a/c Dr. 25,000 Sundry Creditors a/c Dr. 1,850 To Revaluation a/c 26,850 (Being revaluation of assets and liabilities) (iii) Revaluation a/c Dr. 1,380 To X’s Capital a/c (Rs.15,750*4/7) 1,600 To Y’s Capital a/c (Rs.15,750*3/7) 700 (Being profit on revaluation distributed in 4:3 ratio) (iv) X’s Capital a/c (21,000*2/21) Dr. 2,000 To Y’s Capital a/c 2,000 (Being adjustment in the capital for reserve due to change in profit ratio)

 Partners’ Capital Accounts Particular X Y Particular X Y To Y’s Capital a/c 2,000 – By Balance B/d 1,20,000 60,000 By Revaluation a/c 9,000 6,750 By Revaluation a/c – 2,000 To Balance c/d 1,27,000 68,750 1,29,000 68,750 1,29,000 68,750

 Balance Sheets Liabilities Amount Assets Amount Capital A/c Fixed Assets 67,500 X 17,400 Sundry Debtors: 60,000 Y 10,700 37,000 Less: Provision for D/D 3,600 56,400 Reserve 21,000 Stock 95,000 Sundry Creditors 12,150 Cash in hand 10,000 2,28,900 2,28,900

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 24 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 24 Chapter 4 of +2-Part-1

24. (Revaluation entries/ Capital a/c/ Balance sheet) X, Y and Z are partners in 6:3:1 ratio. Their balance sheet was as under on the date of change of profit ratio which is 2:1:2 for future.

 Liabilities Amount Assets Amount Reserves 6,000 Cash at bank 2,400 Workmen Compensation Reserve 3,000 Building 16,000 Bank loan 9,000 Investments 6,000 Capital A/c Stock 4,000 X 12,000 Debtors 3,600 Y 8,000 Machinery 14,000 Z 8,000 28,000 46,000 46,000

1. Goodwill valued at Rs.4,000.
2. A bank loan was reduced to Rs.8,000.
3. The building is decreased by 10% and machinery is valued at 95% of book value.
Pass entries without opening revaluation account. Prepare Capital account and Balance Sheet.

### The solution of Question 24 Chapter 4 of +2 Part-1: –

 In the Books of _______________ Date Particulars L.F. Debit Credit (i) Goodwill a/c Dr. 4,000 Bank Loan a/c Dr. 1,000 To X’s Capital a/c 3,000 To Y’s Capital a/c 1,500 To Z’s Capital a/c 500 (Being revaluation of assets and liabilities) (ii) X’s Capital a/c Dr. 1,380 Y’s Capital a/c Dr. 690 Z’s Capital a/c Dr. 230 To Building a/c 1,600 To Machinery 700 (Being assets revalued) (iii) X’s Capital a/c Dr. 3,000 Y’s Capital a/c Dr. 1,500 Z’s Capital a/c Dr. 500 To Goodwill a/c 4,000 To Bank Loan a/c 1,000 (Being revaluation of assets and liabilities) (iv) Building a/c Dr. 1,600 Machinery a/c Dr. 700 To X’s Capital a/c 1,380 To Y’s Capital a/c 690 To Z’s Capital a/c 230 (Being revaluation of assets and liabilities)

 Partners’ Capital Accounts Particular X Y Z Particular X Y Z To Memorandum Revaluation a/c 1,380 690 230 By Balance B/d 12,000 8,000 8,000 To Goodwill a/c By Goodwill a/c 3,000 1,500 500 By building and machinery a/c 1,380 690 230 By reserve a/c 3,600 1,800 600 By Workmen Comp. Reserve 1,800 900 300 To Balance c/d 17,400 10,700 8,900 21,780 12,890 9,630 21,780 12,890 9,630

 Balance Sheets Liabilities Amount Assets Amount Capital A/c Cash at bank 2,400 X 17,400 Building 16,000 Y 10,700 Stock 4,000 Z 8,900 37,000 Debtors 3,600 Bank Loan 9,000 Furniture 25,000 Machinery 14,000 46,000 46,000

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 23 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 23 Chapter 4 of +2-Part-1

23. (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

### The solution of Question 23 Chapter 4 of +2 Part-1: –

 In the Books of _______________ 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: –

 Adjustment for revaluation of assets on change in profit sharing ratio: Particular P Q R As per old 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(Cr.) 9,000(Cr.) 6,000(Cr.) 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(Cr) 50,000(cr) Equipment 4,000(Dr.) 6,000(Dr.) 6,000(Dr.) Bank Loan 2,000(Cr.) 3,000(Cr.) 5,000(Cr.) Outstanding Salaries 6,000(Cr.) 9,000(Cr.) 15,000(Cr.) Total 30,000(Cr.) 18,000(Cr.) 12,000(Cr.) Adjustment 18,000(Cr.) 18,000(CD.)

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 22 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 22 Chapter 4 of +2-Part-1

22. (Preparation of B/S) The following is the Balance sheet of A, B and C as on 31st March 2018. The partner share profits in 4:3:3 and they have decided to share profit in 2:2:1 ratio with effect from 1st April 2018.

 Liabilities Amount Assets Amount Capital: Cash 25,000 A 1,50,000 Debtors 62,500 B 1,75,000 B/R 37,500 C 1,25,000 Stock 1,00,000 Creditors 1,00,000 Furniture 25,000 Machinery 1,75,000 Goodwill 1,25,000 5,50,000 5,50,000

Goodwill Rs.1,50,000; Stock Rs.1,05,000; Provision for D/D is required Rs.5,000; Machinery is decreased by Rs.30,000; Creditors have been reduced by Rs.20,000.
The partners do not want to alter the figures of assets and liabilities. Pass adjustment entry and prepare Balance Sheet.

### The solution of Question 22 Chapter 4 of +2 Part-1: –

 In the Books of _______________ Date Particulars L.F. Debit Credit (i) Goodwill a/c Dr. 25,000 Stock Dr. 5,000 To Revaluation a/c 30,000 (Being revaluation of assets and liabilities) Creditors Dr. 20,000 To Revaluation a/c 20,000 (Being revaluation of assets and liabilities) (ii) Revaluation a/c Dr. 5,000 To Provision for doubtful debts a/c 5,000 (Being revaluation of assets and liabilities) Revaluation a/c Dr. 30,000 To Machinery 30,000 (Being revaluation of assets and liabilities) (iii) Revaluation a/c Dr. 15,000 To A’s Capital a/c 6,000 To B’s Capital a/c 4,500 To C’s Capital a/c 4,500 (Being profit on revaluation distributed) (iv) Memorandum Revaluation a/c Dr. 50,000 To Goodwill 25,000 To Stock 5,000 To Creditors 20,000 (Being revaluation entry reversed) (v) Provision for doubtful debts a/c Dr. 5,000 Machinery Dr. 30,000 To Revaluation a/c 35,000 (Being revaluation entry reversed) (vi) A’s Capital a/c Dr. 6,000 B’s Capital a/c Dr. 6,000 C’s Capital a/c Dr. 3,000 To Memorandum Revaluation a/c 15,000 (Being revaluation entry reversed)

 Partners’ Capital Accounts Particular A B C Particular A B C To Memorandm Revaluation a/c 6,000 6,000 3,000 By Balance B/d 1,50,000 1,75,000 1,25,000 By Revaluatin a/c 6,000 4,500 4,500 To Balance c/d 1,50,000 1,73,500 1,26,500 1,56,000 1,79,500 1,29,500 1,56,000 1,79,500 1,29,500

 Balance Sheets Liabilities Amount Assets Amount Capital A/c Cash 25,000 A 1,50,000 Bills Receivables 37,500 B 1,73,500 Stock 1,00,000 C 1,.26,500 4,50,000 Debtors 62,500 Creditors 1,00,000 Furniture 25,000 Machinery 1,75,000 Goodwill 1,25,000 5,50,000 5,50,000

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 21 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 21 Chapter 4 of +2-Part-1

21. (Revaluation account) Prepare revaluation account of a firm of partner A and B:
Creditors gave up claim Rs.4,000; Bills payable reduced by Rs.2,000; Salary outstanding not yet recorded in the books Rs.500; Building Rs.1,00,000 increased to Rs.1,10,000; Machinery Rs.50,000; Half of the machinery was valued at Rs.28,000 and the other half was written off by Rs.7,000; Prepaid Insurance Rs.1,500 not yet recorded in the books.

### The solution of Question 21 Chapter 4 of +2 Part-1: –

 Revaluation A/c Particular Amount Particular Amount To Outstanding salary 500 By Creditors 4,000 To machinery 7,000 By Bills Payable 2,000 By Building 10,000 By Machinery 3,000 By Prepaid insurance 1,500 To profit on revaluation: -A (1/2) 6,500 -B (1/2) 6,500 13,000 20,500 20,500

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 20 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 20 Chapter 4 of +2-Part-1

20. (Revaluation account) A, B and C are partners in 3:2:1 ratio. On 31st March, 2018 the following revaluation were made:
Furniture Rs.25,000, revalued at Rs.22,000; Stock Rs.10,000, revalued at Rs.4,000; Debtors Rs.40,000, Provision required for doubtful debts @10%. Unrecorded liabilities Rs.1,000.
General Reserve was Rs.12,000. The partners have decided to change the ratio. The new ratio will be equal. General Reserve account is not to be closed.
Pass journal entries and prepare revaluation account.

### The solution of Question 20 Chapter 4 of +2 Part-1: –

 In the Books of _______________ Date Particulars L.F. Debit Credit (i) Revaluation a/c Dr. 14,000 To Furniture A/c 3,000 To Stock A/c 6,000 To Provision for doubtful debts a/c 4,000 To unrecorded liabilities a/c 1,000 (Being revaluation of assets and liabilities) 15,000 (ii) A’s Capital a/c Dr. 7,000 B’s Capital a/c Dr. 4,667 C’s Capital a/c Dr. 2,333 To Revaluation a/c 14,000 (Being loss on revaluation distributed) (iii) General Reserve a/c Dr. 12,000 To A’s Capital a/c 6,000 To B’s Capital a/c 4,000 To C’s Capital a/c 2,000 (Being revaluation of assets and liabilities) (iv) A’s Capital a/c Dr. 4,000 B’s Capital a/c Dr. 4,000 C’s Capital a/c Dr. 4,000 To General Reserve a/c 12,000 (Being loss on revaluation distributed)

 Revaluation A/c Particular Amount Particular Amount To Furniture a/c (decrease) 3,000 To Stock (decrease) 6,000 To Prov. for doubtful debts (increase) 4,000 To unrecorded liability 1,000 By loss on revaluation transferred to: -A 7,000 -B 4,667 -C 2,333 14,000 14,000 14,000

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 19 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 4 of +2-Part-1

19. (Revaluation entries) X and Y share profits in 6:7 ratio. The future ratio will be 4:3 from 1st April 2018. They have decided to make a revaluation of assets and liabilities by passing revaluation entries before bringing into force the new ratio.
The following is the position of assets on 1st April 2018 with their revised values

 Book Value Revised Value Building 50,000 55,200 Machinery 25,000 22,400 Creditors 28,000 29,300 Stock 29,000 32,900

### The solution of Question 19 Chapter 4 of +2 Part-1: –

(i) If there is no other information.

 In the Books of _______________ Date Particulars L.F. Debit Credit (i) Building a/c (Increase: Rs.55,200-50,000) Dr. 5,200 Stock a/c (Increase: Rs.32,900-29,000) Dr. 3,900 To Revaluation A/c 9,100 (Being assets revalued at profit) 15,000 (ii) Revaluation a/c Dr. 3,900 To machinery A/c (Decrease: Rs.25,000-22,400) 2,600 To creditors a/c (Increase: Rs.29,300-28,000) 1,300 (Being revaluation of assets and liabilities) (ii) Revaluation a/c (Rs.9,100-3,900) Dr. 5,200 To X’s Capital a/c 2,400 To Y’s Capital a/c 2,800 (Being revaluation of assets and liabilities)

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 18 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 18 Chapter 4 of +2-Part-1

18. (Treatment of Workmen Compensation Reserve) X, Y and Z are partners in 2:3:1 ratio. The new ratio will be 1:2:3. Extract of the balance sheet was followed:

 Liabilities Amount Workmen Compensation Reserve 30,000

Show accounting treatment in each of the following:

1. If there is no other information .
2. If a claim on account of workmen compensation in due Rs.6,000.
3. If a claim on account of workmen compensation in due Rs.33,000.

### The solution of Question 18 Chapter 4 of +2 Part-1: –

(i) If there is no other information.

 In the Books of _______________ Date Particulars L.F. Debit Credit Workmen Compensation Reserve a/c Dr. 30,000 To X’s Capital A/c (1,08,000*5/30) 10,000 To Y’s Capital A/c (1,08,000*5/30) 15,000 To Z’s Capital A/c (1,08,000*5/30) 5,000 (Being WCR credited in 2:3:1 ratio)

(ii) If a claim on account of workmen compensation in due Rs.6,000.

 In the Books of _______________ Date Particulars L.F. Debit Credit Workmen Compensation Reserve a/c Dr. 30,000 To Claim Payable A/c 6,000 To X’s Capital A/c 8,000 To Y’s Capital A/c 12,000 To Z’s Capital A/c 4,000 (Being WCR credited in 2:3:1 ratio)

(iii) If a claim on account of workmen compensation in due Rs.33,000.

 In the Books of _______________ Date Particulars L.F. Debit Credit Revaluation a/c Dr. 3,000 Workmen Compensation Reserve a/c Dr. 30,000 To Claim Payable A/c 33,000 (Being claim payable) X’s Capital A/c Dr. 1,000 Y’s Capital A/c Dr. 1,500 Z’s Capital A/c Dr. 500 To Revaluation A/c 3,000 (Being WCR credited in 2:3:1 ratio)

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement

## Question 17 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 17 Chapter 4 of +2-Part-1

17. (Comprehensive Illustration) X,Y and Z are sharing profits and losses in 5:3:2 ratio. They agreed to share profits and losses in the ratio of 2:3:5 with effect from 1st April 2019. They also decide to record the effect of the following accumulated profits, losses and reserves without effecting their book figures by passing a single entry.

 Book figures (in Rs.) General Reserve 6,000 Profit & Loss account 24,000 Advertisement Suspense account 12,000

Pass the necessary single adjustment entry.

### The solution of Question 17 Chapter 4 of +2 Part-1: –

 In the Books of _______________ Date Particulars L.F. Debit Credit Z’s Capital A/c Dr. 5,400 To X’s Capital A/c 5,400 (Being profits adjusted on account of change in profit ratio)

Working Notes: –

Old Ratio = 5 : 3 : 2
New Ratio = 2 : 3 : 5
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old ratio – New ratio

 X’s Share Sacrificing/Gaining = 5 – 2 10 10
 = 5- 2 10
 = 3 (Sacrificing) 10

 Y’s Share Sacrificing/Gaining = 3 – 3 10 10
 = 3 – 3 10
 = 0 (Nil) 10

 Z’s Share Sacrificing/Gaining = 2 – 5 10 10
 = 2 – 5 10
 = -3 (Gaining) 10

 Calculation of total adjustment profit Particulars Amount General Reserve 6,000 Profit & Loss account (Profit) 24,000 Advertisement Suspense account (-)12,000 Total adjustment profit 18,000

Comment if you have any questions.

Also, Check out the solved question of previous Chapters: –

## Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Chapter No. 1 – Accounting Not for Profit Organisations

Chapter No. 2 – Partnership Accounts – I

Chapter No. 3 – Partnership Accounts – II (Introduction)

Chapter No. 4 – Partnership Accounts – III (Goodwill: Nature and Valuation)

Chapter No. 5 – Partnership Accounts – IV (Reconstitution of Partnership)

Chapter No. 6 – Partnership Accounts – V (Admission of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Retirement and Death of A Partner)

Chapter No. 8 – Company Accounts (Share Capital)

Chapter No. 9 – Company Accounts (Issue of Debentures)

Chapter No. 10 – Company Accounts (Redemption of Debentures)

## Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Chapter No. 1 – Financial Statements of a Company (Balance Sheet Only)

Chapter No. 2 – Techniques of Financial Statement Analysis

Chapter No. 3 – Ratio Analysis

Chapter No. 4 – Cash Flow Statement