Question 65 Chapter 5 of +2-Part-1
65. (Journal/B/S) Below is the balance sheet of Krishna & Sudama who shared profit & losses in the ratio 3: 2 respectively as on 31-12-2015 :
| Liabilities | Rs. | Assets | Rs. |
| Sundry creditors | 15,000 | Plant & machinery | 30,000 |
| Bills payable | 2,750 | Patents | 5,000 |
| General reserve | 20,250 | Furniture | 21,000 |
| Capitals : | Stock | 26,000 | |
| Krishna | 60,000 | Sundry debtors | 15,000 |
| Sudama | 40,000 | Cash | 6,000 |
| Goodwill | 10,000 | ||
| Building | 25,000 | ||
| 1,38,000 | 1,38,000 |
On the date of the Balance Sheet, Balram is admitted as a partner with 1/4th share in profits upon the following conditions.
(a) He is to contribute proportionate capital.
(b) Goodwill is to be valued at 2 years purchase of 4 years average profits, were Rs. 10,000; Rs. 9,000; Rs. 8,000 and Rs. 13,000 respectively.
(c) Plant and Machinery is to be written down to Rs. 25,000 and Patents up to Rs. 9,000.
A provision of 5% on debtors is required. A liability of Rs. 500 included in sundry creditors is not likely to arise. Prepare Revaluation A/c, Partners’ Capital A/c and give the Balance.
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The solution of Question 65 Chapter 5 of +2 Part-1: –
| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To plant & machinery | 5,000 | By Patents A/c | 4,000 | ||
| To Provision for doubtful debts | 750 | By creditors | 500 | ||
| By loss : | |||||
| Krishna | 750 | ||||
| Sudama | 500 | 1,250 | |||
| 5,750 | 5,750 | ||||
| Partners’ Capital Account | |||||||
| Particulars | Krishna | Sudama | Balram | Particulars | Krishna | Sudama | Balram |
| To Goodwill A/c | 6,000 | 4,000 | By Balance b/d | 60,000 | 40,000 | ||
| To Revaluation A/c | 750 | 500 | By General Reserve A/c | 12,150 | 8,100 | 38,000 | |
| By Balaram current A/c | 3,000 | 2,000 | |||||
| By Cash A/c | 38,000 | ||||||
| To Balance c/d | 68,400 | 45,600 | 38,000 | ||||
| 75,150 | 50,100 | 38,000 | 75,150 | 50,100 | 38,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 14,500 | Plants & machinery | 25,000 | ||
| Bills payable | 2,750 | Patents | 9,000 | ||
| Capital Accounts | Furniture | 21,000 | |||
| Krishna | 68,400 | Stock | 26,000 | ||
| Sudama | 45,600 | Debtors | 15,000 | ||
| Balram | 38,000 | 1,52,000 | Less: Provision | 750 | 14,250 |
| Balram’s current A/c | 5,000 | ||||
| Cash (6000+38000) | 44,000 | ||||
| Building | 25,000 | ||||
| 1,69,250 | 1,69,250 | ||||
Working notes
Calculation of total goodwill of the firm
| Goodwill | = | Total profits | x | No. Of year purchase |
| No. Of years | ||||
| = | 10,000 + 9,000 + 8,000 + 13,000 | x | 2 | |
| 4 | ||||
| = | 40,000 | x | 2 | |
| 4 | ||||
| = | ₹ 20,000 |
Calculation of Balram’s Share of Goodwill:-
= Total Goodwill of Firm X Balram’s Share
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| Balram’s Share | = | ₹ 20,000 | X | 1 |
| 4 | ||||
| = | ₹ 5,000 |
Comment if you have any questions.
End of Solution
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Question 46 Chapter 5 of +2 Part-1 – USHA Publication
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
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