Question 44 Chapter 5 of +2- Part-

Question 44 Chapter 5 of +2-Part-1

44. Revaluation/Capital A/c/B/S/GST) Usha and Asha are partners in a firm sharing profits in the ratio 3:2. Their Balance sheet on 31st March, 2013 was as follows:

Liabilities  RsAssets Rs
Creditors 27,000Cash 24,000
General Reserve 18,000Debtors48,000 
Bills Payable 4,000Less : Provision for Bad debts4,80043,200
Output CGST 500Stock 30,000
Output SGST 500Patents 7,400
Capitals  Building 20,400
Usha40,000    
Asha35,00075,000   
  1,25,000  1,25,000

Neelam is admitted into the partnership giving her 1/5th share in the profits.
Neelam to bring in Rs. 30,000 as her Capital and to bring in her share of Goodwill in cash subject to the following terms:
(a) Goodwill of the firm to be valued at Rs. 50,000.
(b) Stock to be reduced by 10% and Provision for Bad Debts be reduced by Rs. 2,400.
(c) Patents are valueless.
(d) There was a claim against the firm for damages amounting to Rs. 2,000. The claim has now been accepted.
Prepare Revaluation Account, Partners’ Capital Accounts, and the Balance Sheet of the new firm.

The solution of Question 44 Chapter 5 of +2 Part-1: – 

Revaluation Account
Particular
AmountParticularAmount
To Stock A/c 9,000By Provision for doubtful A/c 2,400
To Patent A/c 900   
To Claim Damage A/c 1,300   
      
   To Loss on revaluation  
   -Usha’s capital A/c 3/56,000 
   -Asha’s capital A/c 2/54,00010,000
  12,400  12,400
Partners’ Capital Account
ParticularsUshaAshaNeelamParticularsUshaAshaNeelam
To Revaluation A/c6,0004,000 By Balance b/d40,00035,000 
    By General Reserve10,0807,200 
    By Cash A/c30,000
    By Premium A/c6,0004,000 
To Balance c/d 50,80042,20030,000    
 56,80046,20030,000 56,80046,20030,000
Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 27,000Cash 24,000
Claim for Damages 2,000Debtors48,000 
Bills Payable 4,000Less: Provision for Bad debts2,40045,600
Output CGST 500Stock 27,000
Output SGST 500Building 20,400
Capitals     
Usha50,800    
Asha42,200    
Neelam30,0001,23,000   
  1,57,000  1,57,000

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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 - Question 44 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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