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 :
- C was to bring Rs. 15,000 as his capital and Rs. 6,000 as goodwill for one-fourth share in the firm.
- That value of the stock, plant, and machinery was to be reduced by 5%.
- That a reserve was created in respect of sundry debtors Rs. 750.
- That the building was to be appreciated by 10%.
- 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.
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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 Revalutiion 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 | 50,000 | ||
| Plant and machinery | 33,250 | ||||
| Capital | Stock | 19,000 | |||
| A | 55,000 | Sundry debtors | 9,700 | ||
| B | 32,000 | Less Provision | 750 | 8,950 | |
| C | 15,000 | 1,02,000 | Cash 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
- 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
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