Question 55 Chapter 5 – Unimax Class 12 Part 1 – 2021
55. A and B are equal partners of a firm. The Balance Sheet as on 31st December, 2020 was as under:
| Liabilities | Amount | Assets | Amount |
| Sundry Creditors | 5,000 | Cash | 5,000 |
| Bills Payable | 5,000 | Closing Stock | 5,000 |
| Capital : | Sundry Debtors | 7,000 | |
| A | 30,000 | Machinery | 12,000 |
| B | 20,000 | Building | 33,000 |
| Outstanding Expenses | 2,000 | ||
| 62,000 | 62,000 |
C is admitted for 1/3rd share on 1st January, 2021. He brings Rs. 15000 as capital. Partners agree upon the following :
- Stock be depreciated by 10%.
- Machinery be depreciated by 10%.
- Building be revalued at Rs. 45000.
- Provision for outstanding legal charges be made to extent of Rs. 1000.
You are required to prepare Memorandum Revaluation Account along with Partners’ Capital Accounts and the Balance Sheet assuming that value of assets and liabilities is not to be changed except cash and capital A/cs.
The solution of Question 55 Chapter 5 – Unimax Class 12 Part 1: –
Memorandum Revaluation A/c
| Particulars |
Rs. | Particulars |
Rs. | ||
| To Stock a/c | 500 | By Building a/c | 12000 | ||
| To Machinery a/c | 1200 | ||||
| To Provision for legal charges a/c | 1000 | ||||
| To Profit on revaluation a/c | |||||
| A (1:1) | 4650 | ||||
| B | 4650 | 9300 | |||
| 12000 | |||||
| To Buildings a/c | 12000 | By Stock a/c | 500 | ||
| By Machinery a/c | 1200 | ||||
| By Provision for legal charges a/c | 1000 | ||||
| By Loss on revaluation | |||||
| A (1 : 1 : 1) | 3100 | ||||
| B | 3100 | ||||
| C | 3100 | 9300 | |||
| 12,000 | 12,000 |
Capital Accounts
| Particulars | A | B | C | Particulars | A | B | C |
| To Loss on revaluation a/c | 3100 | 3100 | 3100 | By Balance b/d | 30000 | 20000 | – |
| To Balance c/d | 31550 | 21550 | 11900 | By Cash A/c | – | – | 15000 |
| By profit on revaluation a/c | 4650 | 4650 | _ | ||||
| 34650 | 24650 | 15000 | 34650 | 24650 | 15000 |
Balance Sheet
| Liabilities |
Rs. | Assets |
Rs. | |
| Sundry Creditors | 5000 | Cash (5000 + 15000) | 20000 | |
| Capital Accounts | Closing Stock | 5000 | ||
| A | 31550 | Sundry Debtors | 7000 | |
| B | 21550 | Machinery | 12000 | |
| C | 11900 | 65000 | Building | 33000 |
| Bills Payable | 5000 | |||
| Outstanding expenses | 2000 | |||
| 77000 | 77000 |
Working Note
| Let total share = 1 |
| C’s share = 1/3 |
| Remaining share = 1 – 1/3 = 2/3 |
| A’s new share = 2/3 X 1/2 = 1/3 |
| B’s new share = 2/3 X 1/2 = 1/3 |
| New PSR = 1 : 1 : 1 |
What is Partnership – Meaning and Its 4 Types
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T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication