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Question 42 Chapter 5 of +2-Part-1
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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.
We are providing a solution of Question 42 Chapter 5 of +2 Part-1 in two formats. one is in Video format and another is in article format. Check out both formats as follows:
1. Check out the Solution of this question in Video Format:-
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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.
2. Check out the Solution of this question in Article Format:-
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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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
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