Question 40 Chapter 5 of +2- Part-

Question 40 Chapter 5 of +2-Part-1

40. ( Revaluation A/c/Partners Cap. A/c/B/S) The following was the Balance sheet of A and B who were sharing profits in 2:1 :

Liabilities RsAssetsRs.
Sundry creditors 65,900Building50,000
General reserve 30,000Plant and machinery35,000
Capital Accounts  Stock20,000
A30,000 Sundry debtors9,700
B20,00050,000Cash in hand1,200
   bank30,000
  1,45,900  1,45,900 

C is admitted into partnership on the following terms :

  1. C was to bring Rs. 15,000 as his capital and Rs. 6,000 as goodwill for one-fourth share in the firm.
  2. That value of the stock, plant, and machinery was to be reduced by 5%.
  3. That a reserve was created in respect of sundry debtors Rs. 750.
  4. That the building was to be appreciated by 10%.
  5. That goodwill money was to be retained in the business account.
    Prepare profit and loss adjustment account (Re-valuation Account ). Partners capital accounts and the balance sheet of the new firm.

The solution of Question 40 Chapter 5 of +2 Part-1: – 

Revaluation Account
Particular
AmountParticularAmount
To Stock 1,000By Buildings 5,000
To Plant and Machinery 1,750   
To Provision for doubtful debts 750   
To Revalutiion Profit     
– A 2/31,000     
– B 1/35001,500    
  5,000  5,000
Partners’ Capital Account
ParticularsABCParticularsABC
    By Balance b/d30,00020,000
    By General Resources20,00010,000
    By Bank A/c15,000
    By Revaluation A/c1,000500
    By Premium A/c4,0002,000 
To Balance c/d 55,00032,50015,000    
 55,00032,50015,000 55,00032,50015,000
Balance Sheet
Liabilities
AmountAssetsAmount
Sundry creditors 65,900Building 50,000
   Plant and machinery 33,250
Capital  Stock 19,000
A55,000 Sundry debtors9,700 
B32,000 Less Provision7508,950
C15,0001,02,000Cash in hand 1,200
   Bank (30,000+15,000+
6,000)
 51,000
  1,68,400   1,68,400

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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 40 Chapter 5 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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