Question 37 Chapter 6 of Class 12 Part – 1 Usha Publication
37. ( Unrecorded liability / Joint Life policy )X, Y and Z were partners sharing losses in the ratio 4: 3: 3 respectively. Their balance sheet as on 31st December 2018 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Sundry creditors | 7,000 | Land & buildings | 36,000 |
| Bills payable | 3,000 | Plant & machinery | 28,000 |
| Reserve | 20,000 | Electric typewriter | 8,000 |
| Capital | Stock | 10,000 | |
| X | 32,000 | Sundry debtors | 12,000 |
| Y | 24,000 | Bank | 12,000 |
| Z | 20,000 | ||
| 1,06,000 | 1,06,000 |
On this date Y retires from the firm on the following terms :
- The goodwill of the firm is to be valued at Rs. 14,000.
- Stock is appreciated by 20% and land and buildings are to be appreciated by 10%.
- Plant and machinery and electric typewriter are to be depreciated by 10%.
- Sundry debtors are considered to be good.
- There is a liability of Rs. 2,000 for the payment of Outstanding salary to the employees of the firm
This liability has not been shown in the above balance sheet, but the same is to be recorded now. - The amount payable to Y to be transferred to his loan account.
Prepare the revaluation account, partners’ capital account, and the balance sheet of X and 2 after Y’s retirement.
The solution of Question 37 Chapter 6 of Class 12 Part – 1 Usha Publication: –
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| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To electric type writer A/c | 800 | By stock | 2,000 | ||
| To plant & Machinery A/c | 2800 | By land & building A/c | 3,600 | ||
| To outstanding salary | 2000 | By reserve for debts | 2,000 | ||
| To capital A/c | |||||
| X | 800 | ||||
| Y | 600 | ||||
| Z | 600 | 2,000 | |||
| 7600 | 7600 | ||||
TREATMENT OF GOODWILL :
| Particulars |
L.F. | |
| Value of the goodwill of the firm | 14,000 | |
| Y’s share | 4,200 | |
| To be debited to X & Y in new profit sharing ratio . Hence amount to be debited is | ||
| X | 2,400 | |
| Y | 1,800 | |
| Partners’ Capital Account | |||||||
| Particulars | X | Y | Z | Particulars | X | Y | Z |
| To Y’s capital A/c | 2,400 | 1,800 | By Balance b/d | 32,000 | 24,000 | 20,000 | |
| To Y’s loan A/c | 34,800 | By reserve fund | 8,000 | 6,000 | 6,000 | ||
| By Revaluation A/c | 800 | 600 | 600 | ||||
| By X’s capital A/c | 2,400 | ||||||
| By Z’s capital A/c | 1,800 | ||||||
| To Balance c/d | 38,400 | – | 24,800 | ||||
| 40,800 | 34,800 | 26,600 | 40,800 | 34,800 | 26,600 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 7,000 | LAND & BUILDING | 39,600 | ||
| Bills payable | 3,000 | Plant & Machinery | 25,200 | ||
| Y’s loan A/c | 34,800 | Electric typewriter | 7,200 | ||
| Provision for outstanding salary | 2,000 | Stock | 12,000 | ||
| Capital A/c | Debtors | 14,000 | |||
| X | 38,400 | Bank | 12,000 | ||
| Y | 24,800 | ||||
| 1,10,000 | 1,10,000 | ||||
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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)
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