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

Question 40 Chapter 5 of +2- Part-
Q-40. - CH-2 - Usha +2 Book 2018 - Solution


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
  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.

We are providing a solution of Question 40 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:

1. Check out the Solution of this question in Video Format:-


The video consists solution of question numbers from 39 to 41 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 40 from the flowing video by using time stamps of the video.

2. Check out the Solution of this question in Article Format:-

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

Revaluation Account
To Stock 1,000By Buildings 5,000
To Plant and Machinery 1,750   
To Provision for doubtful debts 750   
To Revaluation Profit     
– A 2/31,000     
– B 1/35001,500    
  5,000  5,000
Partners’ Capital Account
    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
Sundry creditors 65,900Building 55,000
   Plant and machinery 33,250
Capital  Stock 19,000
A55,000 Sundry debtors9,700 
B32,500 Less Provision7508,950
C15,0001,02,500Cash in hand 1,200
   Bank (30,000+15,000+
  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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm



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