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Question 63 Chapter 5 of +2-Part-1
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63. (revaluation A/c/Partner’s Cap. A/c/B/S) A & B are partners sharing profits & losses in the ratio 3:2 . Their balance sheet on 31st march ,2015 stood as under :
| Liabilities | Rs. | Assets | |
| Capitals | Machinery | 66,000 | |
| A | 70,000 | Furniture | 30,000 |
| B | 60,000 | Investment | 40,000 |
| Bank Loan | 18,000 | Debtors 38,000 | |
| Creditors | 72,000 | Less : provision 4,000 | 34,000 |
| General reserve | 20,000 | Cash | 24,000 |
| Stock | 46,000 | ||
| 2,40,000 | 2,40,000 |
On this day they admitted C for 25% share in profits on the following terms :
(i) C brings capital proportionate to his share after all adjustments and Rs. 8,000 for goodwill, out of his share of Rs.14,000.
(ii) Depreciate furniture by 10%.
(iii) Half of investments were to be taken over by A and B in their profit sharing ratio and remaining valued at Rs. 26,000.
(iv) New profit sharing ratio will be 3: 3: 2.
Prepare Revaluation Account, Capital Accounts, and Balance Sheet after C’s admission.
We are providing a solution of Question 63 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 63 to 64 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 63 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 63 Chapter 5 of +2 Part-1: –
| Revaluation account | |||||
| Particulars | Amount | Particulars | Amount | ||
| To Furniture | 3,000 | By Investment A/c | 6,000 | ||
| To Profit on revaluation | |||||
| A 3/5 | 1,800 | ||||
| B 2/5 | 1,200 | 3,000 | |||
| 6,000 | 6,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To Investment | 12,000 | 8,000 | By Balance b/d | 70,000 | 60,000 | ||
| By Cash A/c | 49,000 | ||||||
| By Premium for Goodwill A/c | 12,600 | 1,400 | |||||
| By Revaluation A/c (Profit) | 1,800 | 1,200 | |||||
| By General Reserve A/c | 12,000 | 8,000 | |||||
| To Balance c/d | 84,400 | 62,600 | 49,000 | ||||
| 96,400 | 70,600 | 49,000 | 96,400 | 70,600 | 49,000 | ||
| Balance Sheet | |||||
| Liabilities | Amount | Assets | Amount | ||
| Creditors | 72,000 | Machinery | 66,000 | ||
| Bank loan | 18,000 | Furniture | 27,000 | ||
| Capital Accounts | Investment | 26,000 | |||
| A | 84,400 | Stock | 46,000 | ||
| B | 62,600 | C’s Current Accounts | 6,000 | ||
| C | 49,000 | 1,96,000 | Debtors 38000 | ||
| Less provision 4000 | 34000 | ||||
| Cash | 81,000 | ||||
| 2,86,000 | 2,86,000 | ||||
WORKING NOTES :
Calculation of proportionate capital of C
Let total profits of the firm = 1
| Share of profit given to C | = | 2 |
| 8 |
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| Combined share of A and B | = | 1 | – | 2 |
| 8 | ||||
| = | 6 | |||
| 8 |
Combined capital of A and B for 6/8 profit = Rs. (84,400+62,600) = Rs. 1,47,000
| Raghu | = | Rs. 1,47,000 | x | 6 |
| 8 | ||||
| = | Rs 1,96,000 |
| C’s proportionate capital for 2/8 share | = | Rs. 1,86,000 | x | 2 |
| 8 | ||||
| = | Rs 49,000 |
Goodwill Rs. 6,000 not brought in cash by C will be debited to current A/c
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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.
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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)
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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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