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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 | 66,00 | |
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 | |||
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:-
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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.
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 Building 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 Cash | 12,000 | 8,000 | By Balance b/d | 70,000 | 60,000 | ||
By Cash A/c | 49,000 | ||||||
By Premium A/c | 12,600 | 1,400 | |||||
By Revaluation A/c (Profit) | 1,800 | 1,200 | |||||
By Goodwill | 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 = Re 1
Share of profit given to C | = | 2 |
8 |
Combined share of A and B | = | 1 | – | 2 |
8 | ||||
= | 6 | |||
8 |
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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.
Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
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