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

Q-66. - CH-2 - Usha +2 Book 2018 - Solution

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 Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing cash.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

## 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

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