# Question 50 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Q-50. - CH-2 - Usha +2 Book 2018 - Solution

Question 50 Chapter 5 of +2-Part-1

50. (Provision for a discount on Creditors ) The balance sheet of X and Y who are partners sharing profits in a ratio of 3:2 on 31st March 2019 is as under :

 Liabilities Rs Assets Rs Creditors 6,200 Cash 2,000 Bills Payable 3,300 Stock 7,700 General Reserve 5,000 Debtors 8,800 Capital Account Plant & Machinery 18,000 X 16,800 Investments 3,000 Y 13,200 30,000 Goodwill 5,000 44,500 44,500

On the above date, Z is admitted as a partner. X surrenders 1/6th of his share and Y 1/3rd of his share in favour of Z. Goodwill is worth Rs. 60,000. Z brings only 1/2 of his share of goodwill in cash and Rs. 15,000 as his capital. The following revaluations are made :
Stock, Plant, and Machinery are worth 10% less than the book value. The market value of investments is Rs. 12,000. Make a provision of 5% for bad and doubtful debts on debtors and a provision of 5% for a discount on Creditors.
Calculate the new ratio, and sacrificing ratio, and also pass journal entries to record the above arrangement. Also, prepare the Balance Sheet of the firm as newly constituted.

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### 1. Check out the Solution of this question in Video Format:-

The video consists solution of question numbers from 48 to 50 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 50 from the following video by using time stamps of the video.

Day - 89 | Solution of Questions Admission of a Partner | Chapter No. 5 | Accounts class 12 | PSEB |

## The solution of Question 50 Chapter 5 of +2 Part-1: –

CALCULATION OF SACRIFICING RATIO :

 X’s sacrifice Ratio = 3 x 1 5 6 = 3 30
 Y’s sacrifice Ratio = 2 x 1 5 3 = 2 15

SACRIFICING RATIO = 3 : 4

NEW PROFIT SHARING RATIO = OLD SHARE OF OLD PARTNERS

 X’s new share = 3 – 3 5 30 = 15 30
 Y’s new share = 2 – 4 5 30 = 8 30

 Z’s new share = 3 + 4 30 30 = 7 30

NEW PROFIT SHARING RATIO = 15: 8: 7

Goodwill of the firm = Rs. 60,000

 Share of Z = 7 x 60,000 = Rs. 14,000 30

 1 Share of goodwill is brought in cash i.e., 2

 14,000 x 1 = Rs. 7,000 2
 Journal Date Particulars L.F. Debit Credit i Cash A/c Dr. 22,000 To Z’s Capital A/c . 15,000 To Premium for Goodwill A/c 7,000 (Being the cash brought in as capital & goodwill ) ii X’s Capital A/c Dr. 3,000 Y’s Capital A/c Dr. 2,000 To Goodwill A/c 5,000 (Being goodwill written off) iii Premium for Goodwill A/c Dr. 7,000 Z’s Current A/c Dr. 7,000 To X’s Capital A/c 6,000 To Y’s Capital A/c 8,000 (Being Premium for Goodwill transferred to sacrificed partners’ capital accounts in their sacrificing ratio) iv Revaluation A/c Dr. 3,010 To Stock A/c(10% of 10,000) 770 To Plant & Machinery A/c 1,800 To provisional for doubtful debts A/c) 410 (Being assets revalued and Provisional for doubtful debts created) v Investment A/c Dr. 9,000 Reserve for a discount on creditors Capital A/c Dr. 310 To Revaluation A/c 9,310 (Being assets & liabilities revalued ) vi Revaluation A/c Dr. 6,300 To X’s Capital A/c 3,780 To Y’s Capital A/c 2,520 (Being profit on revaluation distributed ) vii General reserve A/c Dr. 5,000 To X’s Capital A/c 3,000 To Y’s Capital A/c 2,000 (Being General Reserve distributed among old partners in old ratio)
 Partners’ Capital Account Particulars X Y Z Particulars X Y Z To Goodwill A/c 3,000 2,000 By Balance b/d 16,800 13,200 By Cash A/c 15,000 By Premium for Goodwill A/c 3,000 4,000 By Z’s Current A/c 3,000 4,000 By Revaluation A/c(Profit) 3,780 2,520 By General reserves 3,000 2,000 To Balance c/d 26,580 23,720 15,000 29,580 25,720 15,000 29,580 25,720 15,000
 Balance Sheet Liabilities Amount Assets Amount Sundry Creditors 6,200 Cash(2000+22000) 24,000 Less: Reserve for discount 310 5,890 Stock (7700-770) 6,930 Bills Payable 3,300 Debtors 8,800 Capital Account Less provision for D/D 440 8,360 X 26,580 Plant & Machinery 16,200 Y 23,720 Investments (3000+9000) 12,000 Z 15,000 65,300 Z’s Current A/c 7,000 74,490 74,490

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End of Solution

## Check Out the Solution of all questions of this chapter:

The solution to all questions of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.

Question 01 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 07 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 13 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 19 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Parat – 1

Question 25 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 31 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 37 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 43 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 48 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 54 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 60 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 66 Chapter 5 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)

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