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

Question 63 Chapter 5 of +2- Part-
Q-63. - CH-2 - Usha +2 Book 2018 - Solution


Question 63 Chapter 5 of +2-Part-1


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  Machinery66,00
Bank Loan 18,000Debtors 38,000 
Creditors72,000Less : provision      4,00034,000
General reserve 20,000Cash 24,000
 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:

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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.

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The solution of Question 63 Chapter 5 of +2 Part-1: –

Revaluation account
To Furniture 3,000By Building A/c 6,000
To Profit on revaluation     
A 3/51,800    
B 2/51,2003,000   
  6,000  6,000
Partners’ Capital Account 
ParticularsAB C ParticularsAB C
To Cash12,0008,000 By Balance b/d70,00060,000 
    By Cash A/c  49,000
    By Premium A/c12,6001,400 
    By Revaluation A/c
    By Goodwill12,0008,000 
To Balance c/d 84,40062,60049,000    
 96,40070,60049,000 96,40070,60049,000
Balance Sheet
Creditors 72,000Machinery 66,000
Bank loan 18,000Furniture 27,000
Capital Accounts  Investment 26,000
A84,400 Stock 46,000
B62,600 C’s Current Accounts 6,000
C49,0001,96,000Debtors                                 38000             
   Less provision                     4000 34000
   Cash 81,000
  2,86,000  2,86,000


 Calculation of proportionate capital of C

Let total profits of the firm =  Re 1

Share of profit given to C=2
Combined share of A and B=12


Combined capital of A and B for 6/8 profit = Rs. (84,400+62,600) = Rs. 1,47,000

Raghu=Rs. 1,47,000x6
 =Rs 1,96,000  
C’s proportionate capital for 2/8 share=Rs. 1,86,000x2
 =Rs 49,000  

Goodwill Rs. 6,000 not brought in cash by C will be debited to current A/c


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

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Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm



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