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

Question 40 Chapter 5 of +2- Part-

Question 40 Chapter 5 of +2-Part-1

Free Accounting book Solution - Class 11 and Class 12

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

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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

2 thoughts on “Question 40 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1”

  1. Blance sheet is doesn’t match because when we add capital +sundry creditors it becomes 167900 not 168400 as given in Answer in balcesheet in sum no 40 ch 4 Admission of partner

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