
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 :
- 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- The old partners have withdrawn the amounts received as goodwill from C.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.
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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
