Question 31 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 31 Chapter 6 of +2- Part

Question 31 Chapter 6 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

31. (Revaluation A/c/Capital A/c/Balance Sheet) A, B and C were in partnership, sharing profits and losses equally. On 1st April 2016, A retired, when the firm’s Balance sheet was as at under :

Liabilities  Rs.  Assets  Rs. 
Capitals     Cash  4,700
A 80,000 Debtors 8,000
B 68,000 Stock  11,690
C 78,000 Building  23,000
Creditors    Profit & loss A/c  1,200
  48,590   48,590

According to partnership deed, assets were to be revalued on A’s retirement as under: Land and Buildings Rs. 58,000; Plant and machinery Rs. 65,640 ; Investments Rs. 84,000. Besides, Goodwill was then valued at Rs. 96,000. A accepted the investments at their revalued figures in part payment of his dues, B paid Rs. 40,000 as further capital and A was paid off the balance of his account. Prepare the Revaluation Account Partners capital accounts and the red Balance Sheet of Band C. (No good will account is be raised )

The solution of Question 31 Chapter 6 of +2 Part-1: –

Revaluation account
Particulars
Amount Particulars Amount
To plant & Machinery A/c   4,160 By land & Building A/c   16,000
      By investments A/c   4,000
To profits transferred          
A 5,280        
B 5,280        
C 5,280 15,840      
    20,000     20,000
Partners’ Capital Account 
Particulars A B C Particulars A B C
To A’s capital A/c   16,000 16,000 By Balance b/d 80,000 68,000 78,000
To Investments 84,000     By Revaluation A/c 5,280 5,280 5,280
To Cash 33,280     By B’s capital A/c 16,000    
        By C’s capital A/c 16,000    
        By Cash A/c   40,000  
To Balance c/d 97,280 67,2880        
  1,17,280 1,13,280 83,280   1,17,280 1,13,280 83,280
Balance Sheet
Liabilities
Amount Assets Amount
Capital     Land & Building   58,000
B 97,280   Plant & Machinery   65,640
C 67,280 1,64,560 Debtors   89,150
B’s loan A/c   69,280 Cash   21,050
Rajan          
           
           
    2,33,840     2,33,840

Comment if you have any questions.
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

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

2 Book 1 min - Question 31 Chapter 6 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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