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Question 24 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 24 Chapter 4 of +2-A
Question No.24 Chapter No.4 - T.S. Grewal +2 Book 2019-Solution

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Question 24 Chapter 4 of +2-A

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24. A, B and C are sharing profits and losses in the ratio of 2 : 2 : 1. They decided to share profit w.e.f. 1st April, 2019 in the ratio of 5 : 3 : 2. They also decided not to change the values of assets and liabilities in the books of account. The book values and revised values of assets and liabilities as on the date of change were as follows:

 Book valuesRevised values
Machinery 2,50,0003,00,000
Computers2,00,000 1,75,000 
Sundry Creditors 90,00075,000
Outstanding Expenses15,00025,000

Pass an adjustment entry

 

The solution of Question 24 Chapter 4 of +2-A

In the Books of _______________
DateParticulars
L.F.DebitCredit
      
 A’s Capital A/cDr 10,000 
 To B’s Capital A/c*1   50,000
 (Being adjustment make for the revaluation of assets and liabilities)    

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Working Note : 

Old Ratio of X, & Y=2 : 2 : 1 
New Ratio of X, & Y=5 : 3 : 2

Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio

A’s Share Sacrificing/Gaining=2 –5
510
 =20 – 25
 50
 =5 (Sacrificing)
 50

 

B’s Share Sacrificing/Gaining=2 –2
510

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 =20 – 15
 50
 =5Sacrifice
 50
C’s Share Sacrificing/Gaining=1 –2
510
 =10- 10
 50
 =Nil

 

Calculation of Profit or Loss on Revaluation

Revaluation A/c
Particulars
AmountParticulars
Amount
To Computers A/c25,000By Machinery A/c50,000
To Outstanding expenses A/c10,000By Creditors A/c15,000
To Profit on Revaluation 30,000   
 65,000   65,000

 

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WN *1 Adjustment of Profit on revaluation of in the sacrificing and gaining share: –

Amount to be Credited to A’s Capital=30,000X1
10
 =3,000  

 

Amount to be Debited to B’s Capital=30,000X1
10
 =3,000  

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

  • Chapter No. 1 – Financial Statements of a Company
  • Chapter No. 2 – Financial Statement Analysis 
  • Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
  • Chapter No. 4 – Accounting Ratios
  • Chapter No. 5 – Cash Flow Statement

 

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

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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