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Question 44 Chapter 6 of +2-Part- 1
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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:
| Liabilities | Rs. | Assets | Rs. |
| creditors | 30,000 | Cash | 28,000 |
| Bills payable | 16,000 | Debtors 25,000 | |
| GENERAL Reserve | 12,000 | Less: Provision 3,000 | 22,000 |
| Capital | Stock | 18,000 | |
| A | 40,000 | Furniture | 30,000 |
| B | 40,000 | Machinery | 70,000 |
| C | 30,000 | ||
| 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 |
Amount | Particulars | Amount | ||
| To Provision for doubtful debts A/c | 1,000 | By 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 | |||||
| A | 300 | ||||
| B | 200 | ||||
| C | 100 | 600 | |||
| 6,000 | 6,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To C’s capital A/c | 2,400 | 5,600 | By Balance b/d | 40,000 | 40,000 | 30,000 | |
| To Bank A/c | 52,200 | By Gen Reserve fund | 6,000 | 4,000 | 2,000 | ||
| By Revaluation A/c | 300 | 200 | 400 | ||||
| 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 | 62,760 | – | 41,840 | ||||
| 65,160 | 52,200 | 47,440 | 65,160 | 52,200 | 47,440 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 24,000 | Cash | 10,000 | ||
| Bills payable | 16,000 | Sundry Debtors | 25,000 | ||
| Outstanding claim | 1,100 | Less provision | 4,000 | 21,000 | |
| Capital A/c | Stock | 16,200 | |||
| A | 62,760 | Furniture | 28,500 | ||
| C | 41,840 | Machinery | 70,000 | ||
| Outstanding claim | 1,100 | ||||
| 1,45,700 | 1,45,700 | ||||
| Cash Account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To balance b/d | 28,000 | By B’s capital A/c | 52,200 | ||
| To A’s Capital A/c | 18,860 | ||||
| To C’s capital A/c | 15,340 | By balance c/d | 10,000 | ||
| 62,200 | 62,200 | ||||
Gaining ratio
| A’s gain | = | 3 | – | 3 |
| 5 | 6 | |||
| = | 3 | |||
| 30 |
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| C’s gain | = | 2 | – | 1 |
| 5 | 6 | |||
| = | 7 | |||
| 30 |
Gaining ratio = 3 : 7
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| B’s share in the goodwill | = | ₹ 24,000 | x | 2 |
| 6 | ||||
| = | ₹ 8,000 |
Working note:
Calculation of Capital Balance before Cash adjustment after B’s retirement
| A’s Capital Balance | 43,900 |
| 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 cash | 28,000 |
| Less: Cash paid to B |
52,200 |
| Less: Closing Cash Balance required |
10,000 |
| Total Cash need to bring by A & C |
|
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
= 62,760
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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
Cash to be brought by C = New Capital – Old Capital
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= 41,840 – 26,500 = 15,340
Comment if you have any questions.
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 02 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 20 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 38 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 59 Chapter 6 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication
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