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Question 69 Chapter 5 of +2-Part-1
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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 | A | B | C | Particulars | A | B | C |
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 Bank A/c | 800 | 3,600 | |||||
To Balance c/d | 9,600 | 4,800 | 3,600 | ||||
9,600 | 4,800 | 3,600 | 9,600 | 4,800 | 3,600 |
Balance Sheet | |||||
Liabilities | Amount | Assets | Amount | ||
Claim for damages | 1,000 | Cash in hand | 8,500 | ||
Bills payable | 1,000 | Trade Debtors | 3,000 | ||
Workmen’s compensation reserve | 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 |
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WORKING NOTES :
1. Calculation of new profit share ratio
Old ratio of X & Y = 2:1
Let total profits of the firm = Re 1
Share of profit of Z | = | 1 |
5 |
Remaining share (Joint share of X and Y) | = | 1 | – | 1 |
5 | ||||
= | 4 | |||
5 |
Advertisement-Y
X‘s new share | = | 2 | x | 4 |
3 | 5 | |||
= | 8 | |||
15 |
Y’s new share | = | 1 | x | 4 |
3 | 5 | |||
= | 4 | |||
15 |
Z’s new share | = | 8 | ||
15 |
New profit sharing ratio = 8 : 4 : 3
X | = | Rs. 18,000 | x | 8 |
15 | ||||
= | Rs 9,600 |
Y | = | Rs. 18,000 | x | 4 |
15 | ||||
= | Rs 3,600 |
X | = | Rs. 18,000 | x | 3 |
15 | ||||
= | Rs 4,800 |
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
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