Advertisement

Question 58 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 58 Chapter 5 of +2- Part-
Q-58. - CH-2 - Usha +2 Book 2018 - Solution

Advertisement

Question 58 Chapter 5 of +2-Part-1

Advertisement

58. (Adjustment of capital on the basis of NPS) The following is the balance sheet of A , B & C sharing profits & losses in the ratio 6/25, 5/15 & 3/14 :

Liabilities  Rs Assets Rs
Creditors 9,000 Land & Building 24,000
Bills payable 3,000 Furniture  3,500
Capital Accounts   Stock 14,000
A 19,000 Debtors 12,600
B 16,000 Cash  900
C 8,000    
  55,000   55,000

They agreed to take D into partnership and give him a share of 1/8th in the rupee on the following terms:
(a) that D should bring in Rs. 4,200 as goodwill and Rs. 7,000 as his capital.
(b) that furniture is depreciated by 12%.
(c) that stock is valued at 90%.
(d) that a reserve of 5% is created for doubtful debts.
(e) that the value of land and buildings have appreciated being brought up to Rs. 31,000.
(f)that after making the above adjustments the capital accounts of the old partners (who continue to share in the same proportion as before) be adjusted on the basis of the proportion of D’s capital to his share in the business i.e. actual cash to paid off to or brought in by the old partners, as the case may be.
Prepare cash account, Profit and loss adjustment account, and the balance sheet of the new firm.

We are providing a solution of Question 58 Chapter 5 of +2 Part-1 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:-

Advertisement-X

The video consists solution of question numbers from 58 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 58 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 58 Chapter 5 of +2 Part-1: –

Profit & Loss adjustment account
Particulars
Amount Particulars Amount
To Furniture   420 By Land & Buildings A/c   7,000
To Stock   1,400      
To Provision for doubtful debts   630      
           
To Profit on revaluation transferred to Capital accounts          
A 1,950        
B 1,625        
C 975 4,550      
    7,000     7,000
Cash account
Particulars
Amount Particulars Amount
To Balance b/d   900 By A’s Capital A/C   1,750
To D’s Capital A/C   7,000 By B’s Capital A/C   1,625
To Premium A/c   4,200 By Balance c/d   9,350
To C’s Capital A/C   625      
    12,725     12,725

Advertisement-Y

Balance Sheet
Liabilities
Amount Assets Amount
Creditors   9,000 Cash   9,350
Bills Payable   3,000 Debtors 12,600  
      Less reserve for doubtful debts 630 11,970
Capital Account     Stock   12,600
A 21,000   Land & Building   3,080
B 17,500   Furniture   31,000
C 10,500        
D 7,000 56,000      
    68,000     68,000

WORKING NOTES :

D’s capital = Rs. 7,000
Total Capital on the basis of D’s Capital = Rs.7,000X 8 = Rs. 56,000
New ratio of A : B : C 😀 was 6 : 5: 3 : 2

A’s capital a/c = 6 X 56,000
16
         
  = 21,000    
B’s capital a/c = 5 X 56,000
16
         
  = 17,500    
C’s capital a/c = 3 X 56,000
16
         
  = 10,500    
D’s capital a/c = 2 X 56,000
16
         
  = 7,000    
A’s capital account
Particulars
Amount Particulars Amount
To Cash Account   1,750 By Balance b/d   19,000
To Balance c/d   21,000 By Revaluation Account   1,950
      By Premium Account   1,800
           
    22,750     22,750

Advertisement-Y

B’s capital account
Particulars
Amount Particulars Amount
To Cash Account   1,625 By Balance b/d   16,000
To Balance c/d   17,500 By Revaluation Account   1,625
      By Premium Account   1,500
           
    19,125     19,125
C’s capital account
Particulars
Amount Particulars Amount
To Balance c/d   10,500 By Balance b/d   8,000
      By Revaluation Account   925
      By Premium Account   900
      By Cash Account   625
    10,500     10,500
D’s capital account
Particulars
Amount Particulars Amount
To Balance c/d   7,000 By Bank Account   7,000
           

Comment if you have any questions.

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

Advertisement

Advertisement

error: Content is protected !!