Question 41 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 41 Chapter 5 of +2-Part-1

41. (Goodwill withdraw by Old Partner) The Balance sheet of A and B who are partners in a firm sharing profits and losses in the ratio 2:1 is as under :

Liabilities		Rs	Assets	Rs
Bills Payable		5,000	Cash	200
Creditors		60,900	Bank	1,000
Capitals			Sundry debtors	9,700
A	30,000		Stock	20,000
B	20,000	50,000	Plant	5,000
			Machinery	30,000
			Building	50,000
		1,15,900		1,15,900

They decided to admit C on the following terms :

1. C will receive size 1/3 share in the future profits and will contribute Rs. 15,000 as capital and Rs. 6,000 as goodwill.
2. Stock, plant, and machinery are to be depreciated by 10%.
3. A reserve for doubtful debts at %% be created on the sundry debtors.
4. The value of buildings is increased by 20%.
5. The old partners have withdrawn the amounts received as goodwill from C.
   Prepare Re-valuation Account(profit and loss adjustment account ). Partners capital accounts and the balance sheet of the new firm.

The solution of Question 41 Chapter 5 of +2 Part-1: – 

Revaluation Account
Particular		Amount	Particular		Amount
To Stock		2,000	By Buildings		10,000
To Plant		500
To Machinery		3,000
To Provision for doubtful debts		485
To Profit on revaluation transferred to Capital accounts
– A	2,677
– B	1,388	4,065
		10,000			10,000

A’s capital accounts
Particular		Amount	Particular		Amount
To Bank Account		2,000	By Balance b/d		30,000
			By Premium Account		4,000
			By Revaluation Account		2,667
To Balance c/d		32,677
		36,677			36,677

B’s capital accounts
Particular		Amount	Particular		Amount
To Bank Account		2,000	By Balance b/d		20,000
			By Premium Account		2,000
			By Revaluation Account		1,338
To Balance c/d		23,338
		23,338			23,338

C’s capital accounts
Particular		Amount	Particular		Amount
			By Balance b/d		15,000
To Balance c/d		15,000
		23,338			23,338

Bank accounts
Particular		Amount	Particular		Amount
To Balance b/d		1,000	By A’s Capital Account		20,000
To C’s Capital Account		15,000	By B’s Capital Account		2,000
To Premium Account		6,000
			By Balance c/d		16,000
		22,000			22,000

Premium accounts
Particular		Amount	Particular		Amount
To A’s Capital Account		4,000	By Bank Account		6,000
To B’s Capital Account		2,000
		6,000			6,000

Balance Sheet
Liabilities		Amount	Assets		Amount
Bills Payable		5,000	Cash		200
Creditors		60,900	Bank		16,000
Capital			Sundry debtors	9,700
A	32,677		Less provision for Doubtful debts	485	9,215
B	21,338		Stock		18,000
C	15,000	69,015	Plant		4,500
			Machinery		27,000
			Building		60,000
		1,34,915			1,34,915

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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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