Question 67 Chapter 5 of +2- Part-

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 27,000Goodwill 1,17,000
Employees provident fund 6,000Building1,25,000
Bills payable 45,000Machinery   72,000
General reserve 15,000Furniture 24,000
Capitals: Stock 1,14,000
Ram 2,17,000Book – debts  1,02,000
 Rahim  1,66,000Cash 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
AmountParticularsAmount
To Stock 7,000By furniture A/c 75,000
To Provision for doubtful debts 1,000   
      
To Profit on revaluation
transferred to capital A/c
     
Ram 19,500    
Rahim 19,500    
Jakob 19,50058,500   
  75,000  75,000
Ram capital accounts
Particulars
AmountParticularsAmount
To Goodwill A/c 39,000By Balance b/d 2,17,000
By Ram’s current A/c 1,22,500By revaluation Account 19,500
To Balance c/d 1,00,000By Premium Account 20,000
   By General reserve Account 5,000
  2,61,500  2,61,500
Rahim capital accounts
Particulars
AmountParticularsAmount
To Goodwill A/c 39,000By Balance b/d 1,66,000
By Ram’s current A/c 71,500By revaluation Account 19,500
To Balance c/d 1,00,000By Premium Account 20,000
   By General reserve Account 5,000
  2,10,500  2,10,500
Jakob capital accounts
Particulars
AmountParticularsAmount
To Goodwill A/c 39,000By Balance b/d 90,000
To Balance c/d 1,00,000By 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
AmountParticularsAmount
To Balance c/d 1,00,000By Bank Account 1,00,000
      
Cash accounts
Particulars
AmountParticularsAmount
To Balance b/d 12,000By 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
AmountAssetsAmount
Sundry Creditors 27,000Building 2,00,000
Bills payable 45,000Machinery 72,000
Employee’s provident fund 6,000Furniture 24,000
Capital Accounts  Stock 1,02,600
Ram1,00,000 Books debts1,02,000 
Rahim1,00,000 Less provision For debts5,10096,900
Jakob1,00,000 Cash 1,76,500
David1,00,0004,00,000   
Current A/c     
Ram1,22,500    
Rahim71,5001,94,000   
      
  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

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 - Question 67 Chapter 5 of +2 Part-1 - USHA Publication 12 Class Part - 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firm

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