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Question 52 Chapter 5 of +2 Part-1 – USHA Publication

Q-52. - CH-2 - Usha +2 Book 2018 - Solution

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Question 52 Chapter 5 of +2 Part-1 – USHA

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52. (Hidden Goodwill)Deepika & Rajshree are partners in the firm sharing profits & losses in ratio 3:2. On 31st March 2019 their balance sheet was as under :

Liabilities  RsAssets Rs
Sundry creditors 16,000Cash in hand 1,200
Public Deposits 61,000Cash at Bank  28,000
Banks overdrafts 6,000Stock 32,000
Outstanding liabilities 2,000Prepaid insurance 1,000
Capital Accounts  Sundry debtors28,800 
Deepika48,000 Less reserve for doubtful  debts80028,000
Rajshree40,00088,000Plant and machinery 48,000
   Land & Building 50,000
   Furniture  10,000
  1,73,000   1,73,000 

On the above date, the partners decide to admit Anshu as a partner on the following
Terms :
(i) The new profit sharing ratio of Deepika Rajshree and Anshu will be 5: 3:2 respectively.
(ii) Anshu will bring Rs. 32,000 as his capital.
(iii)Anshu is unable to bring in cash his share of goodwill. They further decided to calculate goodwill on the basis of Anshu’s share in the profits and the capital contribution made by him to the firm.
(iv) Plant and machinery is to be valued at Rs. 60,000; stock at Rs. 40,000 and Reserve for doubtful debts is to be maintained at Rs. 4,000. Value of land and building has appreciated by 20% furniture has depreciated by 10%.
(v) There is an additional liability of Rs. 8,000 being outstanding salary payable to employees of the firm. This liability is not included in the outstanding liabilities stated in the above balance sheet. Partners decide to show this liability in the books of accounts of the reconstituted new firm.
Prepare revaluation account, partners’ capital accounts, and the balance sheet of Deepika, Rajshree, and Anshu.

We are providing a solution of Question 52 Chapter 5 of +2 Part-1 – USHA in two formats. one is in Video format and another is in article format. Check out both formats as follows:

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

The video consists solution of question numbers from 51 to 52 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 52 from the following video by using time stamps of the video.

2. Check out the Solution of this question in Article Format:-

The solution of Question 52 Chapter 5 of +2 Part-1 – USHA: –

Revaluation Account
Particulars
AmountParticularsAmount
To Provision for doubtful debts 3,200By Plant & Machinery 12,000
To Furniture A/c 1,000By Stock 8,000
To Outstanding salary A/c 8,000By Land & Building 10,000
To profit on Revaluation     
– Deepika 3/510,680    
– Rajshree 2/57,12017,800   
  30,000  30,000
Partners’ Capital Account 
ParticularsDeepikaRajshreeAnshuParticularsDeepikaRajshreeAnshu
    By Balance b/d48,00040,000 
    By Bank A/c  32,000
    By Anshu’s current
A/c (profit)
2,2202,220 
    By Revaluation A/c10,8907,120 
To Balance c/d 60,90049,34032,000    
 60,90049,34032,000 60,90049,34032,000
Balance Sheet
Liabilities
AmountAssetsAmount
Sundry Creditors 16,000Cash in hand 1,200
Public Deposits 61,000Cash at Bank 34,800
Banks overdrafts 6,000Stock 40,000
Outstanding liabilities 2,000Prepaid insurance 1,000
Outstanding salary 8,000Sundry debtors28,800 
Capital Accounts  Less reserve for doubtful
debts
4,00024,800
A60,900 Plant and machinery 60,000
B49,340 Land & Building 60,000
C32,0001,42,240Furniture 9,000
   Anshu current A/C 4,440
  2,35,240  2,35,240

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WORKING NOTES :

(i) Sacrificing ratio

  Deepika:Rajshree:Anshu
Old ratio=3:2:
New ratio=5:3:2

Partner’s sacrifice = old Share – new share

Deepika’s sacrifice=35
510
     
 =1  
 10  

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Rajshree’s sacrifice=23
510
     
 =1  
 10  

SACRIFICING RATIO = 1 : 1

(ii)Good will

Total Capital of the firm = 32,000X 5 = Rs. 1,6000

Combined Capital:  
Deepika=58,680
Rajshree=47,120
Anshu=32,000
 =1,37,800
Less : Combined Capitals of partners :=22,000

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Anshu’s share = Rs. 4,440

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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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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