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

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

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