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Question 24 Chapter 4 of +2-Part- 1
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24. (Revaluation entries/ Capital a/c/ Balance sheet) X, Y and Z are partners in 6:3:1 ratio. Their balance sheet was as under on the date of change of profit ratio which is 2:1:2 for future.
| Liabilities | Amount | Assets | Amount | |
| Reserves | 6,000 | Cash at bank | 2,400 | |
| Workmen Compensation Reserve | 3,000 | Building | 16,000 | |
| Bank loan | 9,000 | Investments | 6,000 | |
| Capital A/c | Stock | 4,000 | ||
| X | 12,000 | Debtors | 3,600 | |
| Y | 8,000 | Machinery | 14,000 | |
| Z | 8,000 | 28,000 | ||
| 46,000 | 46,000 |
The following evaluations were made:
- Goodwill valued at Rs.4,000.
- A bank loan was reduced to Rs.8,000.
- The building is decreased by 10% and machinery is valued at 95% of book value.
Pass entries without opening revaluation account. Prepare Capital account and Balance Sheet.
The solution of Question 24 Chapter 4 of +2- Part- 1: –
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| (i) | Goodwill a/c | Dr. | 4,000 | ||
| Bank Loan a/c | Dr. | 1,000 | |||
| To X’s Capital a/c | 3,000 | ||||
| To Y’s Capital a/c | 1,500 | ||||
| To Z’s Capital a/c | 500 | ||||
| (Being goodwill and decrease in amount bank loan transfer to partners’ capital A/c in their Old Profit-sharing ratio) | |||||
| (ii) | X’s Capital a/c | Dr. | 1,380 | ||
| Y’s Capital a/c | Dr. | 690 | |||
| Z’s Capital a/c | Dr. | 230 | |||
| To Building a/c | 1,600 | ||||
| To Machinery | 700 | ||||
| (Being decrease in the value of assets transfer to partners’ capital A/c in their Old Profit-sharing ratio) | |||||
| (iii) | X’s Capital a/c | Dr. | 2,000 | ||
| Y’s Capital a/c | Dr. | 1,000 | |||
| Z’s Capital a/c | Dr. | 2,000 | |||
| To Goodwill a/c | 4,000 | ||||
| To Bank Loan a/c | 1,000 | ||||
| (Being goodwill and decrease in amount of bank loan reversed in New Profit-sharing ratio) | |||||
| (iv) | Building a/c | Dr. | 1,600 | ||
| Machinery a/c | Dr. | 700 | |||
| To X’s Capital a/c | 920 | ||||
| To Y’s Capital a/c | 460 | ||||
| To Z’s Capital a/c | 920 | ||||
| (Being decrease in the value of assets reversed in New Profit-sharing ratio) | |||||
| Partners’ Capital Accounts | |||||||||
| Particular | X | Y | Z | Particular | X | Y | Z | ||
| To Building A/c | 960 | 480 | 160 | By Balance B/d | 12,000 | 8,000 | 8,000 | ||
| To Machinery A/c | 420 | 210 | 70 | By Goodwill a/c | 2,400 | 1,200 | 400 | ||
| To Goodwill A/c | 1,600 | 800 | 1,600 | By Bank Loan A/c | 600 | 300 | 100 | ||
| To Bank Loan A/c | 400 | 200 | 400 | By Building A/c | 640 | 320 | 640 | ||
| By Machinery A/c | 280 | 140 | 280 | ||||||
| By Reserves A/c | 3,600 | 1,800 | 600 | ||||||
| To Balance c/d | 17,940 | 10,970 | 8,090 | By W. C. R A/c | 1,800 | 900 | 300 | ||
| 21,320 | 12,660 | 10,320 | 21,320 | 12,660 | 10,320 | ||||
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| Balance Sheets | |||||
| Liabilities | Amount | Assets | Amount | ||
| Capital A/c | Cash at bank | 2,400 | |||
| X | 17,400 | Building | 16,000 | ||
| Y | 10,970 | Stock | 4,000 | ||
| Z | 8,090 | 37,000 | Debtors | 3,600 | |
| Bank Loan | 9,000 | Furniture | 25,000 | ||
| Machinery | 14,000 | ||||
| 46,000 | 46,000 | ||||
Question 24 Chapter 4 of +2- Part-
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
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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)
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Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication