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 Content covered in this article:
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 Memorandum Revalue Cian 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 (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)
- 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
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020
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