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

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 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.

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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.

## 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

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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