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Question 25 Chapter 4 of +2-Part-1
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25. (Journal/ Capital a/c/ Balance sheet) X and Y are partners sharing profits in 4:3 ratio. The balance sheet as on 31st March 2018 was as follows:
| Liabilities | Amount | Assets | Amount | |
| Reserves | 21,000 | Fixed assets | 75,000 | |
| Sundry creditors | 14,000 | Sundry Debtors | 60,000 | |
| Capital A/c | Cash in hand | 10,000 | ||
| X | 1,20,000 | Stock | 70,000 | |
| Y | 60,000 | 1,80,000 | ||
| 2,15,000 | 2,15,000 | |||
They decided that with effect from 1st April 2018, they will share profits and losses in the ratio of 2:1. For this purpose, they decided that:
- Fixed assets to be depreciated by 10%.
- A provision of 6% is made on debtors for doubtful debts.
- Stock is valued at Rs.95,000.
- An amount of Rs.1,850 included in creditors is not likely to be claimed.
Partners decide to record the revised values in the books. However, they do not want to disturb the reserve. You are required to pass the journal entries, prepare the capital accounts of partners and the revised balance sheet.
The solution of Question 25 Chapter 4 of +2 Part-1: –
| Old Ratio of X & Y | = | 4: 3 |
| New Ratio of X & Y | = | 2: 1 |
Calculate the Sacrificing or Gaining Ratio of Partners
Sacrificing or Gaining Ratio = Old Ratio – New Ratio
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| X’s Sacrificing/Gaining Share | = | 4 | – | 2 |
| 7 | 3 |
| = | 12 – 14 | |
| 21 |
| = | -2 | (Gain) | |
| 21 |
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| Y’s Sacrificing/Gaining Share | = | 3 | – | 1 |
| 7 | 3 |
| = | 9 – 7 | |
| 21 |
| = | 2 | (Sacrifice) | |
| 21 |
| Journal | |||||
| Date | Particulars | L.F. | Debit | Credit | |
| (i) | Revaluation a/c | Dr. | 11,100 | ||
| To Provision for doubtful debts a/c | 7,500 | ||||
| To Fixed assets a/c | 3,600 | ||||
| (Being assets revalued in the books) | |||||
| (ii) | Stock a/c | Dr. | 25,000 | ||
| Sundry Creditors a/c | Dr. | 1,850 | |||
| To Revaluation a/c | 26,850 | ||||
| (Being revaluation of assets and liabilities recoded in the books) | |||||
| (iii) | Revaluation a/c | Dr. | 15750 | ||
| To X’s Capital a/c (Rs.15,750*4/7) | 9000 | ||||
| To Y’s Capital a/c (Rs.15,750*3/7) | 6750 | ||||
| (Being profit on revaluation distributed among partner in old profit-sharing ratio i.e., 4 : 3) | |||||
| (iv) | X’s Capital a/c (21,000*2/21) | Dr. | 2,000 | ||
| To Y’s Capital a/c | 2,000 | ||||
| (Being adjustment in the capital for reserve due to change in profit ratio) | |||||
| Partners’ Capital Accounts | |||||||
| Particular | X | Y | Particular | X | Y | ||
| To Y’s Capital a/c | 2,000 | – | By Balance B/d | 1,20,000 | 60,000 | ||
| By Revaluation a/c | 9,000 | 6,750 | |||||
| By X’s Capital A/c | – | 2,000 | |||||
| To Balance c/d | 1,27,000 | 68,750 | |||||
| 1,29,000 | 68,750 | 1,29,000 | 68,750 | ||||
| Balance Sheets | |||||
| Liabilities | Amount | Assets | Amount | ||
| Capital A/c | Fixed Assets | 67,500 | |||
| X | 1,27,000 | Sundry Debtors: | 60,000 | ||
| Y | 68,750 | 1,98,750 | Less: Provision for D/D | 3,600 | 56,400 |
| Reserve | 21,000 | Stock | 95,000 | ||
| Sundry Creditors | 12,150 | Cash in hand | 10,000 | ||
| 2,28,900 | 2,28,900 | ||||
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End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
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Question 24 Chapter 4 of USHA Publication 12 Class Part – 1
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
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)
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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)
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)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication
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