Advertisement

Question 42 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 42 Chapter 6 of +2- Part
Q-42. - CH-6 - Usha +2 Book 2018 - Solution

Advertisement

Question 42 Chapter 6 of +2-Part-1

Advertisement

42 (Adjustment of Capital/Capital of New Firm not given/GST) A, B and C carried a Partnership Sharing Profit as 4 : 3 :2 .Their balance sheet on 31.3.2013 was follows :

LiabilitiesRs. Assets Rs. 
Creditors 40,000Cash in hand 500
Output IGST400Cash at bank21,000
Output CGST500Debtors                     25,000 
Output SGST500Less : provision          50024,500
Capital A/c  Stock36,000
87,800Plant & machinery37,000
66,000Land & building 1,20,000
43,800  
 2,39,000 2,39,000

B retired on the same date and the adjustments were agreed upon before ascertaining the amount payable to:

  1. Reserve for doubtful debts raised to 5 % on detors
  2. Land and building to be appreciated by 15%.
  3. A provision of Rs. 650 is to be made outstanding legal changes.
  4. Goodwill to be valued at Rs. 45,000 and B’s share to be adjusted into the accounts of A and C who decided to a
    continue the sharing profits 5:3.
  5. Stack to be reduced top Rs. 32,000.
  6. The Capital of the new firm to be adjusted in proportion to their new profit sharing ratio and actual cash to be brought in a paid by or to the timing partners as the case may be
    B agreed to leave the amount due to him by the firm as a loan to the firm carrying interest @ 6% p.a.
    You are required to prepare a revaluation account, partners, capital account, and revised Balance sheet after B’s retirement

The solution of Question 42 Chapter 6 of +2 Part-1: –

Journal
Date  Particulars
L.F.DebitCredit
 Revaluation A/cDr. 5,400 
 To provision for doubtful debts A/c   750
 To Outstanding legal charges A/c   650
 To Stock A/c   4,000
 (Being assets & liabilities revalued . )    
      
 Land & Building A/cDr. 18,000 
 To Revaluation A/c   18,000
 (Being land & Building appreciated . )    
      
 Revaluation A/cDr. 12,600 
 To A’s capital A/c   5,600
 To B’s capital A/c   4,200
 To C’s capital A/c   2,800
 (Being revaluation on profit )    
      
 A’s capital A/cDr. 8,125 
 C’s capital A/cDr. 6,875 
 To B’s capital A/c   15,000
 (Being adjustment of goodwill )    
      
 B’s capital A/cDr. 85,200 
 To B’s loan A/c   85,200
 (Being part payment to B)    
      
 A’s capital A/cDr. 7,150 
 To bank A/c   7,150
 (Being capital refunded )    
      
 B’s capital A/cDr. 7,150 
 To B’s loan A/c   7,150
 (Being capital brought into make proportionate )    
     
Revaluation Account
Particulars
AmountParticularsAmount
To provision d/d 750By land & Building A/c 18,000
To outstanding claim 650   
To stock 4,000   
To profits transferred     
A5,600    
B4,200    
C2,80012,600   
  18,000  18,000
Partners’ Capital Account 
ParticularsABCParticularsABC
To B’s capital A/c8,125 6,875By Balance b/d87,80066,00043,800
To Bank A/c7,150  By Revaluation A/c5,6004,2002,800
To B’s loan A/c 85,200 By A’s capital A/c 8,125 
    By C’s capital A/c 6,875 
    By Bank A/c  7,150
To Balance c/d 78,12548,875    
 93,40085,20053,750 93,40085,20053,750

New capital of partners

Total assets in the firm=500+21000+23750+32000+37000+138000
 =Rs 2,52,250
Less Total liabilities of the new firm=650+41400+85200
 =Rs 1,27,250
Net assets=Rs. 2,52,250 – 1,27,250
 =Rs 1,25,000

 

A’s capital being 5/8 of 1,25,000 = 78,125

  

B’s capital being 3/8 of 1,25,000 = Rs. 46,875

  
Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 40,000Cash in hand 500
Output IGST 400Cash at bank 21,000
Output CGST 500Debtors25,000 
Output SGST 500Less Provision1,25023,750
Outstanding legal charges 650Stock 32,000
B’s loss A/c 85,200Plant & machinery 37,000
Capital A/c  Land & Building 1,38,000
A 78,125   
C 46,875   
  2,52,250  2,52,250

Comment if you have any questions.
Also, Check out the solved question of previous Chapters: –

Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

Advertisement-X

Advertisement-Y

Advertisement

Advertisement

Advertisement

error: Content is protected !!