Question 69 Chapter 5 of +2-Part-1
69. (Adjustment of the capital to be made by Cash ) the balance sheet of X & Y who share profits and losses in the ratio 2:1 at 31-3-2019 is as follows :
| Liabilities | Rs. | Assets | Rs. |
| Bills payable | 1,000 | Cash in hand ( Cash A/c) | 3,200 |
| Workmen’s compensation reserve | 3,200 | Trade debtors | |
| X’s capital A/c | 6,000 | Less: provision | 2,500 |
| Y’s capital A/c | 4,000 | Stock | 5,500 |
| Investments | 3,000 | ||
| 14,200 | 14,200 |
Z was admitted for 1/5th share on the following terms :
(a) That unaccounted accrued income of Rs.400 be accounted for
(b) That the market value of Investments is taken as Rs.4,500.
(c) That a claim on account of Workmen’s Compensation is estimated as Rs. 1,400.
(d) That a Provision for a claim against damages to be kept for Rs. 1.000.
(e) That total capital of the new firm is agreed upon Rs.18,000.
(f) That ‘Z’ should bring the necessary amount for his share of capital and Rs1,500 for his share of goodwill.
(g) That the capital of other partners are also adjusted on the basis of their new profit sharing ratio. Adjustments should be made through cash. Prepare capital A/c & balance sheet.
We are providing a solution of Question 69 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 69 to 70 Chapter no. 5 class 12 of Usha publication. To check the direct solution of question no. 69 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 69 Chapter 5 of +2 Part-1: –
| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To claim for damages | 1,000 | By Accrued income | 400 | ||
| By investments | 1,500 | ||||
| To Profit on revaluation transferred to capital A/c |
|||||
| X | 600 | ||||
| Y | 300 | 900 | |||
| 1.900 | 1.900 | ||||
| Partners’ Capital Account | |||||||
| Particulars | X | Y | Z | Particulars | X | Y | Z |
| To Cash A/c | 600 | By Balance b/d | 6,000 | 4,000 | |||
| By revaluation A/c | 600 | 300 | |||||
| By premium ( S.F. ratio 2:1) A/c |
1,000 | 500 | |||||
| By workmen’s C.F. | 1,200 | 600 | |||||
| By Cash A/c | 800 | 3,600 | |||||
| To Balance c/d | 9,600 | 4,800 | 3,600 | ||||
| 9,600 | 5,400 | 3,600 | 9,600 | 5,400 | 3,600 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Provision for Claim for damages | 1,000 | Cash in hand | 8,500 | ||
| Bills payable | 1,000 | Trade Debtors | 3,000 | ||
| Workmen’s compensation Claim Payable |
1,400 | Less provision | 500 | 2,500 | |
| Capital Accounts | Investments | 4,500 | |||
| X’s capital | 9,600 | Accrued income | 400 | ||
| Y’s capital | 4,800 | Stock | 5,500 | ||
| Z’s capital | 3,600 | 18,000 | |||
| 21,400 | 21,400 | ||||
WORKING NOTES :
1. Calculation of new profit share ratio
Old ratio of X & Y = 2:1
Let total Share of the firm = 1
| Share of profit of Z | = | 1 |
| 5 |
| Remaining share (Joint share of X and Y) | = | 1 | – | 1 |
| 5 | ||||
| = | 4 | |||
| 5 |
| X‘s new share | = | 4 | x | 2 |
| 5 | 3 | |||
| = | 8 | |||
| 15 |
| Y’s new share | = | 4 | x | 1 |
| 5 | 3 | |||
| = | 4 | |||
| 15 |
| Z’s new share | = | 3 | ||
| 15 |
New profit sharing ratio = 8 : 4 : 3
Advertisement-X
| X | = | Rs. 18,000 | x | 8 |
| 15 | ||||
| = | Rs 9,600 |
| Y | = | Rs. 18,000 | x | 4 |
| 15 | ||||
| = | Rs 3,600 |
| Z | = | Rs. 18,000 | x | 3 |
| 15 | ||||
| = | Rs 4,800 |
Advertisement-Y
Comment if you have any questions.
End of Solution
Check Out the Solution of all questions of this chapter:
The solution to all questions of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner) Class 12 Usha Publication – 2024 is shown as follows, click on the image of the question to get the solution.
Question 46 Chapter 5 of +2 Part-1 – USHA Publication
Advertisement-X
Thanks for completing the chapter. If you understand the question or we have helped you with your homework, please share our website on your social media. We are delighted to help you out.
Thanks again.
End of Post
Download a PDF of Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner):
If you want to download a PDF of this chapter then you can do it. Check out our PDF file on our Store page.
Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Advertisement-X
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)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- 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)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication
Advertisement-X