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

Question 31 Chapter 6 of +2-Part-1

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 )

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The solution of Question 31 Chapter 6 of +2 Part-1: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

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