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Question 68 Chapter 5 of +2 Part-1 – USHA Publication 12 Class Part – 1

Question 68 Chapter 5 of +2- Part-
Q-68. - CH-2 - Usha +2 Book 2018 - Solution

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Question 68 Chapter 5 of +2-Part-1

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68. (Adjustment of the capital/goodwill/revaluation A/c/ partner’s capital A/c balance sheet) The following is the balance sheet as on 31st March , 2015 of A & B, who shares profit & losses in ratio 3:2

Liabilities  Rs.  Assets  Rs. 
Capital A/c   Plant & Machinery  10,000
10,000 Land & Buildings  8,000
10,000 Debtors                    12,000  
General reserve   15,000 Less: provision          5,100  11,000
Workmen’s compensation fund  5,000 Stock    12,000
Creditors  10,000 Cash   9,000
  50,000   50,000

They agreed to admit C into partnership on the following terms:
(i) Provision for doubtful debts would be increased by Rs. 2,000.
(ii) The value of land and building would be increased to Rs. 18,000.
(iii) The value of the stock would be increased by Rs. 4,000.
(iv) The liability against Workmen’s Compensation Fund is determined at Rs. 2,000.
(v) C brought in as his share of goodwill Rs.10,000 in cash.
(vi) C would bring further cash as would make his capital equal to 20% of the total capital of the new firm after the above revaluation and adjustments are carried out.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the firm after C’s admission.

We are providing a solution of Question 68 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:-

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The video consists solution of question numbers from 67 to 68 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 68 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 68 Chapter 5 of +2 Part-1: –

Revaluation account
Particulars
Amount Particulars Amount
To Provision for doubtful debts   2,000 By land & buildings   10,000
      By Stock   4,000
           
To Profit on revaluation
transferred to capital A/c
         
A 7,200        
B 4,800 12,000      
    14,000     14,000
Partners’ Capital Account 
Particulars A B C Particulars A B C
To A’s capital A/c     6,000 By Balance b/d 10,000 10,000  
To B’s Capital A/c     4,000 By General Res. A/c 9,000 6,000  
        By revaluation A/c 7,200 4,800  
        By premium A/c 6,000 4,000  
        By workmen’s C.F. 1,800 1,200  
        By Bank A/c     25,000
To Balance c/d 34,000 26,000 15,000        
  34,000 26,000 25,000   34,000 26,000 25,000

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Balance Sheet
Liabilities
Amount Assets Amount
Workmen’s compensation fund   2,000 Cash (9000+25000)   34,000
Creditors   10,000 Plant & Machinery   10,000
Capital Accounts     Land & building   18,000
A 34,000   Debtors 12,000  
B 26,000   Less provision For debts 3,000 10,000
C 15,000 75,000 Stock   16,000
           
    87,000     87,000

WORKING NOTES :

 Calculation of proportionate capital of C

Let total profits of the firm = Re 1

Share of profit given to C = 1
5
Combined share of A and B = 1 1
5
         
  = 4    
    5    

Combined capitals of A and B after making allotments (34000+26000) = Rs 60,000

Raghu = Rs. 60,000 x 5 X 1
4 5
             
  = Rs 15,000        

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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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