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

Question 35 Chapter 6 of +2- Part

Question 35 Chapter 6 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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 35 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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