Question 31 Chapter 6 of +2- 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
A80,000Debtors8,000
B68,000Stock 11,690
C78,000Building 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
AmountParticularsAmount
To plant & Machinery A/c 4,160By land & Building A/c 16,000
   By investments A/c 4,000
To profits transferred     
A5,280    
B5,280    
C5,28015,840   
  20,000  20,000
Partners’ Capital Account 
ParticularsA B C ParticularsA B C
To A’s capital A/c 16,00016,000By Balance b/d80,00068,00078,000
To Investments84,000  By Revaluation A/c5,2805,2805,280
To Cash33,280  By B’s capital A/c16,000  
    By C’s capital A/c16,000  
    By Cash A/c 40,000 
To Balance c/d 97,28067,2880    
 1,17,2801,13,28083,280 1,17,2801,13,28083,280
Balance Sheet
Liabilities
AmountAssetsAmount
Capital  Land & Building 58,000
B97,280 Plant & Machinery 65,640
C67,2801,64,560Debtors 89,150
B’s loan A/c 69,280Cash 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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