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 :
|Sundry creditors||15,000||Plant & machinery||30,000|
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.
The solution of Question 65 Chapter 5 of +2 Part-1: –
|To plant & machinery||5,000||By Building A/c||4,000|
|To Provision for doubtful debts||750||By creditors||500|
|By loss :|
|Partners’ Capital Account|
|To Revaluation A/c||6,000||4,000||By Balance b/d||60,000||40,000|
|To Revaluation A/c||750||500||By Cash A/c||12,150||8,100||38,000|
|By balance current A/c||3,000||2,000|
|To Balance c/d||68,400||45,600||38,000|
|Sundry Creditors||14,500||Plants & machinery||25,000|
|Balram||38,000||1,52,000||Balram’s current A/c||5,000|
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
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