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Question 59 Chapter 5 of +2-Part-1
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59. (Adjustment of the capital on the basis of NPS ) a & b sharing profit in the proportion of three fourth and one fourth showed the following as their balance sheet on 31ST MARCH, 2018
| Liabilities | Rs | Assets | Rs | |
| Creditors | 37,500 | Cash at bank | 22,500 | |
| General Reserve | 4,000 | Bills receivable | 3,000 | |
| Capital Accounts | Debtors | 16,000 | ||
| A | 30,000 | Stock | 20,000 | |
| B | 16,000 | 46,000 | Office Furniture | 1,000 |
| Land & Building | 25,000 | |||
| 87,500 | 87,500 |
They admit C into the partnership on 1st April 2018 on the following terms:
1. That C pays Rs. 10,000 as his capital for a fifth share in the future profits.
2. That goodwill account is valued at Rs. 20,000.
3. That furniture is reduced by 10% and a reserve for doubtful debts be created at 5% on debtors.
4. That the value of land and building be appreciated by 20%.
5. That the capital accounts of all the partners be readjusted on the basis of their profit-sharing arrangements and additional amounts be debited or credited to their current accounts.
6. Interest payable is Rs. 2,000.
Open the necessary accounts to give effect to the above-mentioned items and also give the opening balance sheet of the new firm.
We are providing a solution of Question 59 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:-
The video consists solution of question numbers from 59 to 60 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 59 from the following video by using time stamps of the video.
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2. Check out the Solution of this question in Article Format:-
The solution of Question 59 Chapter 5 of +2 Part-1: –
| Revaluation account | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Furniture A/c | 100 | By Land & Buildings A/c | 5,000 | ||
| To Reserve of doubtful debts | 800 | ||||
| To Interest payable A/c | 2,000 | ||||
| To Profit on revaluation transferred to Capital accounts | |||||
| A 3/4 | 1,575 | ||||
| B 1/4 | 525 | 2,100 | |||
| 5,000 | 5,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To Current A/c | 7,575 | 8,525 | By Balance b/d | 30,000 | 16,000 | ||
| By Bank A/c | 10,000 | ||||||
| By C’s Current A/c | 3,000 | 1,000 | |||||
| By Revaluation A/c | 1,575 | 525 | |||||
| By General reserve | 3,000 | 1,000 | |||||
| To Balance c/d | 30,000 | 10,000 | 10,000 | ||||
| 37,575 | 18,525 | 10,000 | 37,575 | 18,525 | 10,000 | ||
| Balance Sheet | |||||
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 37,500 | 32,500 | |||
| Capital Accounts | 16,000 | ||||
| A | 30,000 | 800 | 15,200 | ||
| B | 10,000 | 3,000 | |||
| C | 10,000 | 20,000 | |||
| Current Accounts | 900 | ||||
| A | 7,575 | 30,000 | |||
| B | 8,525 | 16,100 | 4,000 | ||
| Payable interest | 2,000 | ||||
| 1,05,600 | 1,05,600 | ||||
WORKING NOTES :
1. Calculation of new profit share ratio
Let total profits of the firm = Re 1
| Share of profit acquired by C | = | 1 |
| 5 |
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| Remaining share (Joint share of A and B) | = | 1 | – | 1 |
| 5 | ||||
| = | 4 | |||
| 5 |
| A‘s new share | = | 4 | x | 3 |
| 5 | 5 | |||
| = | 3 | |||
| 5 |
| B‘s new share | = | 4 | x | 1 |
| 5 | 4 | |||
| = | 1 | |||
| 5 |
New profit sharing ratio = 3: 1: 1
Sacrificing ratio = 3 : 1
Calculation of Total Capital after C’s Admission
= C’s Capital X Reverse of C’s share
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| Total Capital in new firm | = | 10,000 | x | 5 |
| 1 | ||||
| = | Rs. 50,000 |
Total Capital distribute among all partners in new profit sharing ratio
| A’s new Capital | = | 50,000 | x | 2 |
| 5 | ||||
| = | Rs. 30,000 |
| B’s new Capital | = | 50,000 | x | 1 |
| 5 | ||||
| = | Rs. 10,000 |
| C’s new Capital | = | 50,000 | x | 1 |
| 5 | ||||
| = | Rs. 10,000 |
Comment if you have any questions.
End of Solution
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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)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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
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