Question 24 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q 24 CH 4 Usha 2 Book 2018 Solution min 1024x576 - Question 24 Chapter 4 of +2 Part-1 - USHA Publication  12 Class Part - 1

Question 24 Chapter 4 of +2-Part-1

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:

  1. Goodwill valued at Rs.4,000.
  2. A bank loan was reduced to Rs.8,000.
  3. 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: – 

 

In the Books of _______________
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 revaluation of assets and liabilities)        
           
(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 assets revalued)        
           
(iii) X’s Capital a/c Dr.   3,000  
  Y’s Capital a/c Dr.   1,500  
  Z’s Capital a/c Dr.   500  
  To Goodwill a/c       4,000
  To Bank Loan a/c       1,000
  (Being revaluation of assets and liabilities)        
           
(iv) Building a/c Dr.   1,600  
  Machinery a/c Dr.   700  
  To X’s Capital a/c       1,380
  To Y’s Capital a/c       690
  To Z’s Capital a/c       230
  (Being revaluation of assets and liabilities)        
           

 

Partners’ Capital Accounts
Particular
X Y Z Particular X Y Z
To Memorandum Revaluation a/c 1,380 690 230 By
Balance
B/d
12,000 8,000 8,000
To Goodwill a/c       By Goodwill a/c 3,000 1,500 500
        By building and machinery a/c 1,380 690 230
        By reserve a/c 3,600 1,800 600
        By Workmen Comp. Reserve 1,800 900 300
To Balance c/d 17,400 10,700 8,900          
    21,780 12,890 9,630     21,780 12,890 9,630

 

Balance Sheets
Liabilities
Amount Assets Amount
Capital A/c   Cash at bank 2,400
X 17,400   Building   16,000
Y 10,700   Stock   4,000
Z 8,900 37,000 Debtors   3,600
Bank Loan   9,000 Furniture   25,000
      Machinery   14,000
           
           
    46,000     46,000

 

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Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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2 Book 1 min - Question 24 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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