Question 35 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 35 Chapter 6 of +2-Part-1

35. (Journal/Ledger A/c/Balance Sheet) A, B and C were partners sharing in 3:2:1. balance sheet was as under :

Liabilities	Rs.	Assets	Rs.
Capitals		Plant & machinery	20,000
X            25,000		Stock	15,000
Y            20,000	45,000	Sundry Creditors	20,000
Reserve	10,000	Cash in hand	0
Sundry Creditors	15,000	Cash at bank	5,000
	70,000		70,000

B retired on the following terms:
(i)Building appreciated by Rs.7,000.
(ii) Provision for doubtful debts is to make at 5% of the debtors.
(iii) Goodwill of the firm valued at Rs. 18,000.
(iv) Rs. 3,000 to be paid to B immediately and balance transferred to his loan A/c.
Pass journal entries and prepare ledger accounts as well as Balance Sheet

The solution of Question 35 Chapter 6 of +2 Part-1: –

Journal
Date	Particulars		L.F.	Debit	Credit
	X’s Capital A/c	Dr.		10,000
	To Y’s Capital A/c				10,000
	(Being goodwill adjusted. )
	Reserve Fund A/c	Dr.		10,000
	To X’s capital A/c				6,000
	To Y’s capital A/c				4,000
	(Being reserve fund transferred )
	Revaluation A/c	Dr.		3,000
	To Plant & Machinery A/c				2,000
	To provision for doubtful debts				1,000
	(Being decrease in the value of assets on revaluation)
	X’s capital A/c	Dr.		1,800
	Y’s capital A/c	Dr.		1,200
	To Revaluation A/c				3,000
	(Being loss on revaluation transferred to the capital A/c of partners in old ratio )
	Y’s Capital A/c	Dr.		32,800
	To Y’s loan A/c				32,800
	(Being Balance in Y’s Capital transferred to his loan A/c)

Revaluation account
Particulars		Amount	Particulars		Amount
To plant & machinery transferred		2,000
To provision for doubtful debts		1,000
			By loss revaluation, A/c transferred to capital A/c
			X		1,800
			Y		1,200
		3,000			3,000

X’s capital account
Particulars		Amount	Particulars		Amount
To Y’s Capital A/c		10,000	By balance b/d		25,000
To revaluation A/c		1,800	By reserve fund		6,000
To balance c/d		19,200
		31,000			31,000

Y’s capital account
Particulars		Amount	Particulars		Amount
To revaluation A/c (loss)		1,200	By balance b/d		20,000
			By reserve fund		4,000
			To X’s Capital A/c		10,000
To Y’s loan A/c		32,800
		34,000			34,000

Balance Sheet
Liabilities		Amount	Assets		Amount
Sundry Creditors		15,000	Machinery		18,000
X’s Capital A/c		19,200	Stock		15,000
Y’s loan A/c		32,800	Sundry Debtors	20,000
			Less provision	1,000	19,000
			Cash in hand		10,000
			Cash at Bank		5,000
		67,000			67,000

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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