Question 66 Chapter 5 of +2-Part-1
66. (Adjustment of the capital/goodwill/revaluation A/c/ partner’s capital A/c balance sheet) A firm has two partners B & C , sharing profits in the ratio of 3:2. they admit A into the firm on 1-4-2016when the balance sheet of the firm was as follows :
| Liabilities | Rs. | Assets | Rs. |
| B’s capital A/c | 30,000 | Cash | 2,000 |
| C’s capital A/c | 10,000 | Debtors | 4,000 |
| Profit & loss A/c | 7,500 | Stock | 6,000 |
| Creditor | 7,000 | Investments | 9,000 |
| Bills payable | 2,500 | Furniture | 18,000 |
| Machinery | 18,000 | ||
| 57,000 | 57,000 |
Terms of A’s admission were as follows:
(i) A is to bring Rs. 20,000 as his capital for a 1/3rd share of profit and Rs. 3,500 as his share of Goodwill.
(ii) Value of machinery and stock are to be reduced by Rs. 7,000 and Rs. 1,000 respectively and the value of furniture to be increased by Rs. 3,000. (iii) Capital of the partners shall be proportionate to their profits sharing ratio, taking A’s capital as a base. Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing cash.
Prepare Revaluation Account, Partner’s Capital Accounts, and the Balance Sheet of the firm after the above adjustments.
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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. 66 from the following video by using time stamps of the video.
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The solution of Question 66 Chapter 5 of +2 Part-1: –
| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Machinery A/c | 7,000 | By furniture A/c | 3,000 | ||
| To Stock A/c | 1,000 | ||||
| By loss on revaluation transferred to | |||||
| B’s capital A/c | 3,000 | ||||
| C’s capital A/c | 2,000 | 5,000 | |||
| 8,000 | 8,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | B | C | A | Particulars | B | C | A |
| To Revaluation A/c | 3,000 | 2,000 | By Balance b/d | 30,000 | 10,000 | ||
| To Cash A/c | 9,600 | By Cash A/c | 20,000 | ||||
| By P & L A/c | 4,500 | 3,000 | |||||
| By premium for Goodwill A/c | 2,100 | 1,400 | |||||
| By cash A/c | 3,600 | ||||||
| To Balance c/d | 24,000 | 16,000 | 20,000 | ||||
| 36,600 | 18,000 | 20,000 | 36,600 | 18,000 | 20,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 7,000 | Cash (2000+20000+3600-9600+3500) | 19,500 | ||
| Bills payable | 2,500 | Machinery | 11,000 | ||
| Capital Accounts | Furniture (18000+3000) | 21,000 | |||
| B | 24,000 | Investment | 9,000 | ||
| C | 16,000 | Stock | 5,000 | ||
| A | 20,000 | 60,000 | Debtors | 4,000 | |
| 69,500 | 69,500 | ||||
WORKING NOTES :
1. Calculation of New profit sharing Ratio
| A’s share | = | 1 |
| 3 |
| Remaining share for A,B, and C | = | 1 | – | 1 |
| 3 | ||||
| = | 2 | |||
| 3 |
Remaining share distributed among B and C in old profit sharing ratio
| B‘s share | = | 2 | x | 3 |
| 3 | 5 | |||
| = | 6 | |||
| 15 |
| C‘s share | = | 2 | x | 2 |
| 3 | 5 | |||
| = | 4 | |||
| 15 |
| A‘s share | = | 1 | x | 5 |
| 3 | 5 | |||
| = | 5 | |||
| 15 |
New profit sharing ratio = 6 : 4 : 5
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ii. Calculation of New Capital of B and C
Calculation of Total Capital of new firm
= A’s Capital X Reverse of A’s share
| Total capital | = | 20,000 | x | 3 |
| 1 | ||||
| = | 60,000 |
Total Capital distribute among all partners in new profit sharing ratio:-
| B’s New Capital | = | 60,000 | x | 6 |
| 15 | ||||
| = | 24,000 |
| C’s New Capital | = | 60,000 | x | 4 |
| 15 | ||||
| = | 16,000 |
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Comment if you have any questions.
End of Solution
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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)
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)
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.
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication