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

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 Content covered in this article:

The solution of Question 35 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 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 )

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

	67,000			67,000