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 Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing cash.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.
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 | ||
| 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
- 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
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
