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

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 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.

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:

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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.

## 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

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