# Question 42 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-42. - CH-2 - Usha +2 Book 2018 - Solution

Question 42 Chapter 5 of +2-Part-1

42. Revaluation A/c/Partner‘s Cap A/c/B/S) Thr following is the balance sheet of Gupta and mathur. They share profit and losses in the proportion of three fourth and one fourth :

 Liabilities Rs Assets Rs Creditors 70,000 Business premises 50,000 Bills Payable 5,000 Fixtures 2,000 General Reserve 8,000 Stock 40,000 Capital Account Book Debts 32,000 Gupta 60,000 Bills receivable 6,000 Mathur 32,000 92,000 Cash at bank 40,000 Cash in hand 5,000 1,75,000 1,75,000

They admit Aggarwal into partnership on the following terms:
(i)That Aggarwal brings Rs. 20,000 as his capital for the fifth share in future profits.
(ii) That Goodwill of the firm is valued at Rs. 40,000.
(iii) That the value of business premises be appreciated by 20%.
(iv) That the stock and fixtures be reduced by 10% each and a 5% reserve for doubtful debts be created on book debts.
Prepare revaluation account, partner’s capital accounts, and also the opening balance sheet of the new firm.

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The video consists solution of question numbers from 42 to 44 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 42 from the flowing video by using time stamps of the video.

## The solution of Question 42 Chapter 5 of +2 Part-1: –

 Revaluation Account Particular Amount Particular Amount To Stock ( Decrease 10% of 40,000) 4,000 By Business Premise ( Increase 20% of 50,000) 10,000 To Fixtures ( Decrease 10% of 20,000) 200 To Provision for doubtful debts(5% of 32,000) 1,600 To Profit on revaluation transferred to Capital accounts – Gupta 3,150 – Mathur 1,050 4,200 10,000 10,000
 Partners’ Capital Account Particulars Gupta Mathur Aggarwal Particulars Gupta Mathur Aggarwal By Balance b/d 60,000 32,000 – By General Resources 6,000 2,000 – By Bank A/c – – 20,000 By Aggarwal’s A/c 6,000 2,000 – By Revaluation A/c(Profit) 3,150 1,150 To Balance c/d 75,150 37,050 20,000 75,150 37,050 20,000 75,150 37,050 20,000

Entry for Goodwill

 Aggarwal’s Current A/c Dr. 8,000 To Gupta’s Capital A/c 6,000 To Mathur’s Capital A/c 2,000

NOTE: (Sacrificing ratio remains same as the old ratio in the absence of any information specific)

 Balance Sheet Liabilities Amount Assets Amount Sundry Creditors 70,000 Business premises (50,000+10,000) 60,000 Bills Payable 5,000 Fixtures(2,000-200) 7,500 Capital Stock(40,000-4,000) 36,000 Gupta 75,150 Book Debts 32,000 Mathur 37,050 Less provision 1,600 30,400 Aggarwal 20,000 1,32,200 Aggarwal’s Current A/c 8,000 Bills receivable 6,000 Cash at bank 60,000 Cash in hand 5,000 2,07,200 2,07,200

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