Question 23 Chapter 4 of Class 12 Part – 1 Usha Publication
23. (Revaluation by passing a single adjustment entry) P, Q and R are sharing profits and losses in the ratio of 5:3:2. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1st April,2016. They also decided to record the effect of following revaluations without affecting the book value of assets and liabilities by passing a single adjustment entry:
| Book Value | Revalued Amount | |
| Land & Building | 2,00,000 | 3,00,000 |
| Equipment | 3,00,000 | 2,80,000 |
| Bank Loan | 1,00,000 | 90,000 |
| Outstanding salaries | 90,000 | 1,20,000 |
The solution of Question 23 Chapter 4 of Class 12 Part – 1 Usha Publication: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| R’s Capital a/c | Dr. | 18,000 | |||
| To P’s Capital a/c | 18,000 | ||||
| (Being revaluation of assets and liabilities adjusted through capital accounts) | |||||
Working Notes: –
| Calculation of the amount of Adjustment for revaluation of assets on change in profit sharing ratio: |
||||
| Particular |
P | Q | R | |
| All assets & liabilities distributed in old profit sharing ratio 5:3:2 | ||||
| Land & Building | 50,000(Cr.) | 30,000(Cr) | 20,000(Cr) | |
| Equipment | 10,000(Dr.) | 6,000(Dr.) | 4,000(Dr.) | |
| Bank Loan | 5,000(Cr.) | 3,000(Cr.) | 2,000(Cr.) | |
| Outstanding Salaries | 15,000(Dr.) | 9,000(Dr.) | 6,000(Dr.) | |
| Total | 30,000(Cr.) | 18,000(Cr.) | 12,000(Cr.) | |
| Adjustment for revaluation of assets on change in profit sharing ratio: |
||||
| Particular |
P | Q | R | |
| As per New ratio 2:3:5 | ||||
| Land & Building | 20,000(Cr.) | 30,000(Dr) | 50,000(Dr.) | |
| Equipment | 4,000(Cr.) | 6,000(Cr.) | 6,000(Cr.) | |
| Bank Loan | 2,000(Dr.) | 3,000(Dr.) | 5,000(Dr.) | |
| Outstanding Salaries | 6,000(Cr.) | 9,000(Cr.) | 15,000(Cr.) | |
| Total | 12,000(Dr.) | 18,000(Dr.) | 30,000(Dr.) | |
| Adjustment | 18,000(Cr.) | 18,000(Dr.) | ||
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End of Solution
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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)
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)
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- 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)
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1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication