Question 41 Chapter 5 of Class 12 Part – 1 Usha Publication
41. (Goodwill withdraw by Old Partner) The Balance sheet of A and B who are partners in a firm sharing profits and losses in the ratio 2:1 is as under :
| Liabilities | Rs | Assets | Rs | |
| Bills Payable | 5,000 | Cash | 200 | |
| Creditors | 60,900 | Bank | 1,000 | |
| Capitals | Sundry debtors | 9,700 | ||
| A | 30,000 | Stock | 20,000 | |
| B | 20,000 | 50,000 | Plant | 5,000 |
| Machinery | 30,000 | |||
| Building | 50,000 | |||
| 1,15,900 | 1,15,900 |
They decided to admit C on the following terms :
- C will receive size 1/3 share in the future profits and will contribute Rs. 15,000 as capital and Rs. 6,000 as goodwill.
- Stock, plant, and machinery are to be depreciated by 10%.
- A reserve for doubtful debts at 5% be created on the sundry debtors.
- The value of buildings is increased by 20%.
- The old partners have withdrawn the amounts received as goodwill from C.
Prepare Re-valuation Account(profit and loss adjustment account ). Partners capital accounts and the balance sheet of the new firm.
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The solution of Question 41 Chapter 5 of Class 12 Part – 1 Usha Publication: –
| Revaluation Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Stock | 2,000 | By Buildings | 10,000 | ||
| To Plant | 500 | ||||
| To Machinery | 3,000 | ||||
| To Provision for doubtful debts | 485 | ||||
| To Profit on revaluation transferred to Capital accounts | |||||
| – A | 2,677 | ||||
| – B | 1,338 | 4,015 | |||
| 10,000 | 10,000 | ||||
| A’s capital accounts |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Cash A/c | 4,000 | By Balance b/d | 30,000 | ||
| By Premium Account | 4,000 | ||||
| By Revaluation Account | 2,667 | ||||
| To Balance c/d | 32,677 | ||||
| 36,677 | 36,677 | ||||
| B’s capital accounts |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Bank Account | 2,000 | By Balance b/d | 20,000 | ||
| By Premium Account | 2,000 | ||||
| By Revaluation Account | 1,338 | ||||
| To Balance c/d | 23,338 | ||||
| 23,338 | 23,338 | ||||
| C’s capital accounts |
|||||
| Particular |
Amount | Particular | Amount | ||
| By Balance b/d | 15,000 | ||||
| To Balance c/d | 15,000 | ||||
| 23,338 | 23,338 | ||||
| Bank accounts |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Balance b/d | 1,000 | By A’s Capital Account | 4,000 | ||
| To C’s Capital Account | 15,000 | By B’s Capital Account | 2,000 | ||
| To Premium Account | 6,000 | ||||
| By Balance c/d | 16,000 | ||||
| 22,000 | 22,000 | ||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Bills Payable | 5,000 | Cash | 200 | ||
| Creditors | 60,900 | Bank | 16,000 | ||
| Capital | Sundry debtors | 9,700 | |||
| A | 32,677 | Less: provision for Doubtful debts |
485 | 9,215 | |
| B | 21,338 | Stock | 18,000 | ||
| C | 15,000 | 69,015 | Plant | 4,500 | |
| Machinery | 27,000 | ||||
| Building | 60,000 | ||||
| 1,34,915 | 1,34,915 | ||||
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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