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Question 65 Chapter 5 of +2-Part-1
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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.
We are providing a solution of Question 65 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:
1. Check out the Solution of this question in Video Format:-
The video consists solution of question numbers from 65 to 66 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 65 from the following video by using time stamps of the video.
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2. Check out the Solution of this question in Article Format:-
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 |
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Calculation of Balram’s Share of Goodwill:-
= Total Goodwill of Firm X Balram’s Share
| Balram’s Share | = | ₹ 20,000 | X | 1 |
| 4 | ||||
| = | ₹ 5,000 |
Comment if you have any questions.
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End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 16 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 34 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 51 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1
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Question 69 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1
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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.
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Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
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)
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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)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication