Question 65 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 65 Chapter 5 of +2- Part-
Q-65. - CH-2 - Usha +2 Book 2018 - Solution

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 :

Free Accounting book Solution - Class 11 and Class 12
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.

The solution of Question 65 Chapter 5 of +2 Part-1: –

Revaluation account
Particulars
Amount Particulars Amount
To plant & machinery   5,000 By Building 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 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        
  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   14,250
Balram 38,000 1,52,000 Balram’s current A/c   5,000
      Cash (6000+38000)   44,000
      Building   25,000
    1,69,250     1,69,250

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 65 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm
error: Content is protected !!