# Question 16 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-16 - CH-4 - Usha +2 Book 2018 - Solution

Question 16 Chapter 4 of +2-Part-1

16. (Comprehensive Illustration) X and Y are in partnership, sharing profits in 2:3 ratio. With effect from 1st April 2019, they agreed to share profits in the ratio of 1:2. For this purpose, the goodwill of the firm is to be valued at two years purchase of the average profits of the last three years, which were Rs.75,000, Rs.80,000 and Rs.1,00,000 respectively. The reserve appears in the books at Rs.55,000. Partners neither want to show the goodwill in the books nor want to distribute the reserve. You are required to give effect to the change by passing a single journal entry.

## The solution of Question 16 Chapter 4 of +2 Part-1: –

Day - 63 | Solution of Questions Reconstitution of firm Chapter No. 4 | Accounts class 12 | PSEB |

 Journal Date Particulars L.F. Debit Credit 2019 April 1 Y’s Capital A/c Dr. 15,000 To X’s Capital A/c 15,000 (Being capitals adjusted on account of change in profit ratio)

Working Notes: –

 Average Profit = Total Profit for past given years Number of years = 75,000 + 80,000+ 1,00,000 3 = 2,55,000 3 = 85,000

 Number of years’ purchase = 2 Goodwill = Average Profit X Number of years’ purchase Goodwill = 85,000X 2 Goodwill = 1,70,000

Old Ratio = 2 : 3
New Ratio = 1 : 2
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old ratio – New ratio

 X’s Share Sacrificing/Gaining = 2 – 1 5 3
 = 6- 5 15

 = 1 (Sacrifice) 15

 Y’s Share Sacrificing/Gaining = 3 – 2 5 3
 = 9 – 10 15
 = -1 (Gain) 15

 Calculation of net adjustment in the partner’s capital accounts: Particulars A B On account of goodwill (Rs.1,70,000*1/15) (Cr.)11,333 (Dr.)11,333 On account of Reserve (Rs.55,000*1/15) (Cr.) 3,667 (Dr.) 3,667 Adjustment (Cr.)15,000 (Dr.)15,000

Comment if you have any questions.

End of Solution

## Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 04 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 10 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 16 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

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

Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.

Thanks again.

End of Post

### Download a PDF of Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership):

If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.

## Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum

Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.

Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)

Chapter No. 2 – Partnership Accounts – I (Introduction)

Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)

Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)

Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)

Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)

Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)

## Check out Part 2 of both books.

In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.