
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 )
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
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
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