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

 

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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

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