Advertisement

Question 44 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 44 Chapter 6 of +2- Part
Q-44. - CH-6 - Usha +2 Book 2018 - Solution

Advertisement

Question 44 Chapter 6 of +2-Part-1

Advertisement

44. (Revaluation A/c/Partner’s Capital A/c) A, B and C are partners sharing in 3: 2:1.Their balance sheet is as under:

LiabilitiesRs.AssetsRs. 
creditors30,000Cash 28,000
Bills payable 16,000Debtors                  25,000  
GENERAL Reserve 12,000Less: Provision      3,00022,000
Capital Stock18,000
A40,000Furniture 30,000
B40,000Machinery 70,000
C30,000  
    
 1,68,000 1,68,000

 B retired on the following terms
(i) Provision for doubtful debts raised by Rs. 1,000.
(ii) Stock depreciated by 10% and furniture by 5%.
(iii) Provide for outstanding claim Rs. 1,100.
(iv) Creditors will be written back by Rs. 6,000.
(v) Goodwill of the firm valued at Rs. 24,000.
(vi) B is paid in full with cash brought in by A and C in such a manner that their capital is in the ratio of their profit ratio which is 3: 2 and cash remains in hand at Rs. 10,000.
Prepare ledger A/cs.

The solution of Question 44 Chapter 6 of +2 Part-1: –

Revaluation Account
Particulars
AmountParticularsAmount
To Provision for doubtful debts A/c 1,000By Creditors A/c 6,000
To Stock A/c 1,800   
To Furniture A/c 1,500   
To Outstanding claim A/c 1,100   
To Profits transferred     
A300    
B200    
C100600   
  6,000  6,000
Partners’ Capital Account 
ParticularsABCParticularsABC
To C’s capital A/c2,400 5,600By Balance b/d40,00040,00030,000
To Bank A/c 52,200 By Gen Reserve fund6,0004,0002,000
    By Revaluation A/c300200400
    By A’s capital A/c 2,400 
    By C’s capital A/c 5,600 
    By Cash A/c (B.fig)18,860 15,340
To Balance c/d 62,76041,840    
 65,16052,20047,440 65,16052,20047,440
Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 24,000Cash 10,000
Bills payable 16,000Sundry Debtors25,000 
Outstanding claim 1,100Less provision4,00021,000
Capital A/c  Stock 16,200
A 62,760Furniture 28,500
C 41,840Machinery 70,000
Outstanding claim 1,100   
      
      
  1,45,700  1,45,700
Cash Account
Particulars
AmountParticularsAmount
To balance b/d 28,000By B’s capital A/c 52,200
To A’s Capital A/c  18,860   
To C’s capital A/c 15,340By balance c/d 10,000
  62,200  62,200

Gaining ratio

A’s gain=33
56
     
 =3  
 30  
C’s gain=21
56
     
 =7  
 30  

Advertisement-X

Advertisement-Y

Gaining ratio = 3 : 7

B’s share in the goodwill=₹ 24,000x2
6
     
 =₹ 8,000  

Working note:

Calculation of Capital Balance before Cash adjustment after B’s retirement

A’s Capital Balance43,900
C’s Capital Balance

26,500

Total cash needed to bring*

34,200

Total Capital of the firm after B’s retirement

1,04,600

*Total cash needed to bring

Opening Balance of cash28,000
Less: Cash paid to B

52,200

Less: Closing Cash Balance required

10,000

Total Cash need to bring by A & C
  • – 34,200

Distribute the Total Capital of the Firm in a new profit-sharing ratio i.e., 3 : 2

A’s New Capital= 1,04,600 x 3 / 5

Advertisement-X

= 62,760

 

C’s New Capital= 1,04,600 x 2 / 5

= 41,840

Cash to be brought by A = New Capital – Old Capital

= 62,760 – 43,900 = 18,860

Advertisement-X

Cash to be brought by C = New Capital – Old Capital

= 41,840 – 26,500 = 15,340

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

Advertisement

Advertisement

error: Content is protected !!