# Question 25 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Parat – 1

Q-25 - CH-4 - Usha +2 Book 2018 - Solution

Question 25 Chapter 4 of +2-Part-1

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:

1. Fixed assets to be depreciated by 10%.
2. A provision of 6% is made on debtors for doubtful debts.
3. Stock is valued at Rs.95,000.
4. 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: –

Day - 65 | Solution of Questions Reconstitution of firm Chapter No. 4 | Accounts class 12 | PSEB |

 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

 X’s Sacrificing/Gaining Share = 4 – 2 7 3
 = 12 – 14 21
 = -2 (Gain) 21

 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

Comment if you have any questions.

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.

Question 06 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

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

Question 18 Chapter 4 of +2 Part-1 – USHA Publication 12 Class Part – 1

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)

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