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Question 66 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 66 Chapter 5 of +2- Part-
Q-66. - CH-2 - Usha +2 Book 2018 - Solution

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Question 66 Chapter 5 of +2-Part-1

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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 Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing cash.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.

We are providing a solution of Question 66 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:-

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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.

2. Check out the Solution of this question in Article Format:-

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 :    
      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 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

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Balance Sheet
Liabilities
Amount Assets Amount
Sundry 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

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
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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