Question 46 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 46 Chapter 5 of +2-Part-1

46. Revaluation A/c/Partner‘s Cap A/c/B/S) The following is the balance sheet of A and B who were sharing profits in ratio 3:2

Liabilities		Rs	Assets	Rs
Capital Accounts			Free Hold Premises	49,000
A	29,400		Plant and machinery	34,300
B	19,600	49,000	Stock	19,600
Profit & Loss A/c		29,400	Sundry debtors	9,506
Sundry creditors		56,000	Cash at Bank	25,300
Bills Payable		8,582	Cash in hand	5,276
		1,42,982		1,42,982

C is admitted into partnership on the following terms:
(i) C brings in Rs. 14,700 as his capital and Rs. 5,880 as goodwill for 1/4th share in the firm.
(ii) That the value of stock, plant and machinery was to be reduced by 10%.
(iii) That reserve for bad and doubtful debts be created Rs. 1,540.
(iv) Freehold premises to be appreciated by 20%.
Prepare Revaluation A/c, Partners Capital A/cs, and Balance Sheet of the New firm.

The solution of Question 46 Chapter 5 of +2 Part-1: – 

Revaluation Account
Particulars		Amount	Particulars		Amount
To Stock		1,960	By Buildings		9,800
To Plant		3,430
To Provision for doubtful debts		1,540
To profit on Revaluation
– A 3/5	1,722
– B 2/5	1,148	2,870
		9,800			9,800

Partners’ Capital Account
Particulars	A	B	C	Particulars	A	B	C
				By Balance b/d	29,400	29,600
				By Profit & Loss A/c	17,640	11,760	–
				By Revaluation A/c	1,722	1,148	–
				By Bank A/c	–	–	14,700
				By Premium A/c	3,528	2,352
To Balance c/d	52,290	34,860	14,700
	52,290	34,860	14,700		52,290	34,860	14,700

Balance Sheet
Liabilities		Amount	Assets		Amount
Sundry Creditors		56,000	Cash in Hand		58,800
Bills Payable		8,582	Plant and machinery		30,870
Capital accounts			Stock		17,640
A	52,290		Sundry Debtors	9,506
B	34,860		Less : Provision	1,540	7,966
C	14,700	1,01,850	Cash at Bank		45,880
			Cash in hand		5,276
		1,66,432			1,66,432

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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

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