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

Question 26 Chapter 4 of +2- Part-

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  (Being excess capital withdrawn by partner)        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)        
           

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 26 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Parat - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 25 Chapter 4 of +2- Part-

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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 25 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Parat - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Q 24 CH 4 Usha 2 Book 2018 Solution min 150x150 - 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

The following evaluations were made:

  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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 24 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 23 Chapter 4 of +2- Part-

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.)

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 23 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 22 Chapter 4 of +2- Part-

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

The following revaluation were made:
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
Partic
ular

A B C Partic
ular
A B C
To Memorandm Revalua
tion 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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 22 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 21 Chapter 4 of +2- Part-

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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 21 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 20 Chapter 4 of +2- Part-

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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 20 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 19 Chapter 4 of +2- Part-

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)        
           

 

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 19 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 18 Chapter 4 of +2- Part-

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)      
         

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 18 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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

Question 17 Chapter 4 of +2- Part-

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

 

Thanks, Please Like and share with your friends  

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

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

2 Book 1 min - Question 17 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms