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 :
They decided to admit C on the following terms :
- 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.
- Stock, plant, and machinery are to be depreciated by 10%.
- A reserve for doubtful debts at %% be created on the sundry debtors.
- The value of buildings is increased by 20%.
- The old partners have withdrawn the amounts received as goodwill from C.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.
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The solution of Question 41 Chapter 5 of +2 Part-1: –
|To Stock||2,000||By Buildings||10,000|
|To Provision for doubtful debts||485|
|To Profit on revaluation transferred to Capital accounts|
|A’s capital accounts|
|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|
|B’s capital accounts|
|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|
|C’s capital accounts|
|=||By Balance b/d||15,000|
|To Balance c/d||15,000|
|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|
|To A’s Capital Account||4,000||By Bank Account||6,000|
|To B’s Capital Account||2,000|
|Balance Sheet |
|A||32,677||Less provision for |
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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