Question 40 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

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		Rs	Assets	Rs.
Sundry creditors		65,900	Building	50,000
General reserve		30,000	Plant and machinery	35,000
Capital Accounts			Stock	20,000
A	30,000		Sundry debtors	9,700
B	20,000	50,000	Cash in hand	1,200
			bank	30,000
		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		Amount	Particular		Amount
To Stock		1,000	By Buildings		5,000
To Plant and Machinery		1,750
To Provision for doubtful debts		750
To Revaluation Profit
– A 2/3	1,000
– B 1/3	500	1,500
		5,000			5,000

Partners’ Capital Account
Particulars	A	B	C	Particulars	A	B	C
				By Balance b/d	30,000	20,000	–
				By General Resources	20,000	10,000	–
				By Bank A/c	–	–	15,000
				By Revaluation A/c	1,000	500	–
				By Premium A/c	4,000	2,000
To Balance c/d	55,000	32,500	15,000
	55,000	32,500	15,000		55,000	32,500	15,000

Balance Sheet
Liabilities		Amount	Assets		Amount
Sundry creditors		65,900	Building		55,000
			Plant and machinery		33,250
Capital			Stock		19,000
A	55,000		Sundry debtors	9,700
B	32,500		Less Provision	750	8,950
C	15,000	1,02,500	Cash in hand		1,200
			Bank (30,000+15,000+ 6,000)		51,000
		1,68,400			1,68,400

Thanks, Please Like and share with your friends  

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

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication