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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 :

LiabilitiesRs. Assets Rs. 
B’s capital A/c30,000Cash 2,000
C’s capital A/c10,000Debtors 4,000
Profit & loss A/c 7,500Stock 6,000
Creditor 7,000Investments 9,000
Bills payable 2,500Furniture  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 Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing cash.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:-

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
AmountParticularsAmount
To Machinery A/c 7,000By furniture A/c 3,000
To Stock A/c 1,000   
      
   By loss :  
   B’s capital A/c3,000 
   C’s capital A/c2,0005,000
  8,000  8,000
Partners’ Capital Account 
ParticularsBCAParticularsBCA
To Revaluation A/c3,0002,000 By Balance b/d30,00010,000 
To Cash A/c9,600  By Cash A/c  20,000
    By P & L A/c4,5003,000 
    By premium A/c2,1001,400 
    By cash A/c 3,600 
To Balance c/d 24,00016,00020,000    
 36,60018,00020,000 36,60018,00020,000
Balance Sheet
Liabilities
AmountAssetsAmount
Sundry Creditors 7,000Cash (2000+20000+3600-9600+3500) 19,500
Bills payable 2,500Machinery 11,000
Capital Accounts  Furniture (18000+3000) 21,000
B24,000 Investment 9,000
C16,000 Stock 5,000
A20,00060,000Debtors 4,000
      
      
  69,500  69,500

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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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