Question 64 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 64 Chapter 5 of +2- Part-
Q-64. - CH-2 - Usha +2 Book 2018 - Solution

Question 64 Chapter 5 of +2-Part-1

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 :

Free Accounting book Solution - Class 11 and Class 12
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 :

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

Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 64 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm
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