Question 67 Chapter 5 of +2-Part-1
67. ( Adjustment of capital revaluation A/c/ Partner’s Cap. A/c/B/S) Ram , Rahim & Jacob are partners in the firm by the name “Good Luck Prices”. Their balance sheet on 31st , December , 2015 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Sundry Creditors | 27,000 | Goodwill | 1,17,000 |
| Employees provident fund | 6,000 | Building | 1,25,000 |
| Bills payable | 45,000 | Machinery | 72,000 |
| General reserve | 15,000 | Furniture | 24,000 |
| Capitals: | Stock | 1,14,000 | |
| Ram | 2,17,000 | Book – debts | 1,02,000 |
| Rahim | 1,66,000 | Cash | 12,000 |
| Jakob | 90,000 | ||
| 5,66,000 | 5,66,000 |
On that date, they agreed to take David as an equal partner on the following terms:
(i) David should bring in Rs. 1,60,000 as his capital and Goodwill. His share goodwill is valued at Rs. 60,000.
(ii) The goodwill account is to be written off before admission.
(iii) Provision for loss of stock and provision for book debts is to be made at 10% and 5% respectively.
(iv) The value of Building is to be taken at Rs. 1,90,000.
(v) The total capital of the new firm had been fixed at Rs. 4,00,000 and the partners accounts are to be adjusted in their profit sharing ratios. Any excess is to be transferred to current account or deficit to be introduced in cash.
(vi) Accrued commission on purchases is Rs. 10,000.
You are required to prepare the Revaluation account, Capital accounts and Balance Sheet of the new firm.
The solution of Question 67 Chapter 5 of +2 Part-1: –
| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Stock | 11,400 | By furniture A/c | 75,000 | ||
| To Provision for doubtful debts | 5,100 | ||||
| To Profit on revaluation transferred to capital A/c | |||||
| Ram | 19,500 | ||||
| Rahim | 19,500 | ||||
| Jakob | 19,500 | 58,500 | |||
| 75,000 | 75,000 | ||||
| Ram capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 2,17,000 | ||
| By Ram’s current A/c | 1,22,500 | By revaluation Account | 19,500 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By General reserve Account | 5,000 | ||||
| 2,61,500 | 2,61,500 | ||||
| Rahim capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 1,66,000 | ||
| By Ram’s current A/c | 71,500 | By revaluation Account | 19,500 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By General reserve Account | 5,000 | ||||
| 2,10,500 | 2,10,500 | ||||
| Jakob capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Goodwill A/c | 39,000 | By Balance b/d | 90,000 | ||
| To Balance c/d | 1,00,000 | By Premium Account | 20,000 | ||
| By Revaluation Account | 5,000 | ||||
| By Bank Account | 19,500 | ||||
| By General res. Account | 4,500 | ||||
| 1,39,000 | 1,39,000 | ||||
| David’s capital accounts |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Balance c/d | 1,00,000 | By Bank Account | 1,00,000 | ||
| Cash accounts | |||||
| Particulars |
Amount | Particulars | Amount | ||
| To Balance b/d | 12,000 | By Balance c/d | 1,76,500 | ||
| To David’s capital A/c | 1,00,000 | ||||
| To Premium Account | 60,000 | ||||
| To Jakob’s capital A/c | 4,500 | ||||
| 1,76,500 | 1,76,500 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 27,000 | Building | 2,00,000 | ||
| Bills payable | 45,000 | Machinery | 72,000 | ||
| Employee’s provident fund | 6,000 | Furniture | 24,000 | ||
| Capital Accounts | Stock | 1,02,600 | |||
| Ram | 1,00,000 | Books debts | 1,02,000 | ||
| Rahim | 1,00,000 | Less provision For debts | 5,100 | 96,900 | |
| Jakob | 1,00,000 | Cash | 1,76,500 | ||
| David | 1,00,000 | 4,00,000 | |||
| Current A/c | |||||
| Ram | 1,22,500 | ||||
| Rahim | 71,500 | 1,94,000 | |||
| 6,72,000 | 6,72,000 | ||||
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
