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

Q-60. - CH-2 - Usha +2 Book 2018 - Solution

Question 60 Chapter 5 of +2-Part-1

60. (Adjustment of Capital on basis of New Partner’s Share) A, B and C trading in partnership and sharing profits and losses in the proportion of 1/2, 1/3 and 1/6 respectively desire to keep up a working partner when their Balance Sheet stood as follows:

 Liabilities Rs. Assets Rs. Creditors 50,000 Cash in hand 8,000 Capital A/c Debtors 2,52,000 A 5,70,000 Stock 2,90,000 B 3,20,000 Machinery 70,000 C 1,60,000 10,50,000 Land & Building 4,80,000 11,00,000 11,00,000

They agreed to admit D into partnership and give him a share of 10 paise in the following terms
(a) That D should bring in Rs. 30,000 as goodwill and Rs. 1,28,000 as his capital.
(b) That machinery is depreciated by 12%.
(c) That stock is depreciated by 10%.
(d) That a reserve of 5% be created for doubtful debts. (That the value of land and building be brought up to Rs. 6,00,000.
(e) That after making the above adjustments the capital accounts (who continue to share in the same proportions as before) be adjusted on the of the old partners’ basis of the proportion of D’s capital to his share in the business, (i.e. actual cash to be paid off or to be brought in by old partners, as the case may be.)
(g) Prepaid salaries is Rs. 20,000.
Pass journal entries to give effect to the above and prepare the balance sheet of the firm as newly constituted. Show your work regarding the determination of the new profit sharing ratio of the partners.

We are providing a solution of Question 60 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:

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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. 60 from the following video by using time stamps of the video.

Day - 94 | Solution of Questions 59 to 60 Admission of a Partner | Chapter 5 Accounts class 12 PSEB

The solution of Question 60 Chapter 5 of +2 Part-1: –

 Revaluation account Particulars Amount Particulars Amount To machinery 8,400 By Land & Building 1,20,000 To Stock 29,000 By Prepaid salaries 20,000 To provisional for doubtful debts 12,600 To Profit on revaluation transferred to Capital accounts A 45,000 B 30,000 C 15,000 90,000 1,40,000 1,40,000
 A’s capital account Particulars Amount Particulars Amount To Bank Account 54,000 By Balance b/d 5,70,000 To Balance c/d 5,76,000 By Revaluation Account 45,000 By Premium Account 15,000 6,30,000 6,30,000
 B’s capital account Particulars Amount Particulars Amount To Balance c/d 3,84,000 By Balance b/d 3,20,000 By Revaluation Account 30,000 By Premium Account 6,000 By Bank Account 24,000 3,84,000 3,84,000
 C’s capital account Particulars Amount Particulars Amount To Balance c/d 1,92,000 By Balance b/d 1,60,000 By Revaluation Account 5,000 By Premium Account 15,000 By Bank Account 12,000 1,92,000 1,92,000

 D’s capital account Particulars Amount Particulars Amount To Balance c/d 1,28,000 By Cash Account 1,28,000
 Balance Sheet Liabilities Amount Assets Amount Creditors 50,000 Cash in hand 1,48,000 Capital Accounts Debtors 2,52,000 A 5,76,000 Less reserve for doubtful debts 12,600 2,39,400 B 3,84,000 Cash at bank 1,40,000 C 1,92,000 Prepaid salaries 20,000 D 1,28,000 12,80,000 Stock 2,61,000 Machinery 61,600 Land & Building 6,00,000 13,30,000 13,30,000

WORKING NOTES :

1. Calculation of New profit sharing Ratio

 D’s share = 1 10
 Remaining share for A,B, and C = 1 – 1 10 = 9 10

Remaining share distributed among A & B,C in old profit sharing ratio

 A‘s share = 9 x 3 10 6 = 9 20
 B‘s share = 9 x 2 10 6 = 3 20
 C‘s share = 9 x 1 10 6 = 3 20
 D‘s share = 1 x 2 10 2 = 2 20

New profit sharing ratio = 9 : 6 : 3 : 2
2. The Total Capital on the basis of D’s Capital = Rs.1,28,000X 10 = Rs. 12,80,000
2. SACRIFICING RATIO

 A’s capital = 12,80,000 x 9 20 = 5,76,000

 B’s capital = 12,80,000 x 6 20 = 3,84,000
 C’s capital = 12,80,000 x 3 20 = 1,92,000
 D’s capital = 12,80,000 x 2 20 = 1,28,000

3. Calculation of cash at bank

 C’s capital account Particulars Amount Particulars Amount To Balance b/d 8,000 By A’s capital Account 54,000 To D’s capital A/c 1,28,000 By Balance c/d 1,48,000 To Premium Account 30,000 To B’s capital A/c 24,000 To C’s capital A/c 12,000 2,02,000 2,02,000

Comment if you have any questions.

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

Question 10 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 16 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 22 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 28 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 34 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 40 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 45 A Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 51 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 57 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 63 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 69 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