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Question 64 Chapter 5 of +2-Part-1
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64. ( revaluation A/c/ Partner’s Cap. A/c/B/S) Ram & Rahim were partners in the firm sharing profit & losses in the ratio 3: 2 respectively . their balance sheet on 31st , December , 2018 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 28,000 | Cash | 2,000 |
| Bills payable | 22,000 | Bank | 8,000 |
| Capitals : | Debtors | 30,000 | |
| Ram 50,000 | Stock | 15,000 | |
| Rahim 30,000 | 80,000 | Plant | 33,000 |
| Building | 42,000 | ||
| 1,30,000 | 1,30,000 |
They agreed to admit Rajan with effect from 1st January 2019 with a 1/4th share in Profits on the following terms:
(a) Rajan will bring in capital to the extent of 1/4th of the capital of the new firm after adjustments have been made.
(b) Buildings are to be appreciated by Rs. 8,000 and plants to be depreciated by Rs. 9,000.
(c) The provision for debtors is to be created Rs. 7,000.
(d) The goodwill of the firm was valued at Rs. 30,000.
Prepare the Revaluation Account, Partner’s Capital Accounts, and the Balance Sheet of the firm immediately after Rajan’s admission.
The solution of Question 64 Chapter 5 of +2 Part-1: –
| Revaluation account | |||||
| Particulars | Amount | Particulars | Amount | ||
| To plant & machinery | 9,000 | By Building A/c | 8,000 | ||
| To Provision for doubtful debts | 7,000 | ||||
| By loss : | |||||
| Ram | 4,800 | ||||
| Rahim | 3,200 | 8,000 | |||
| 16,000 | 16,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | Ram | Rahim | Rajan | Particulars | Ram | Rahim | Rajan |
| To Revaluation A/c | 4,800 | 3,200 | By Balance b/d | 50,000 | 30,000 | ||
| By Cash A/c | 26,500 | ||||||
| By Rajan’s current A/c | 4,500 | 3,000 | |||||
| To Balance c/d | 49,700 | 29,800 | 26,500 | ||||
| 54,500 | 33,000 | 26,500 | 54,500 | 33,000 | 26,500 | ||
| Balance Sheet | |||||
| Liabilities | Amount | Assets | Amount | ||
| Sundry Creditors | 28,000 | Cash | 2,000 | ||
| Bills payable | 22,000 | Debtors | 30,000 | ||
| Capital Accounts | Less provision For debts | 7,000 | 23,000 | ||
| Ram | 49,700 | Stock | 15,000 | ||
| Rahim | 29,800 | Buildings | 50,000 | ||
| Rajan | 26,500 | 1,06,000 | Plants | 24,000 | |
| Bank (8000+26,500) | 34,500 | ||||
| By Rajan’s current A/c | 7,500 | ||||
| 1,21,600 | 1,56,000 | ||||
WORKING NOTES :
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The combined capital of Ram and Rahim for 3/4th share of profit = (49000+29800) = Rs. 79,500.
Rajan’s capital for 1/4th share = Rs. 26,500
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
