Question 42 Chapter 5 of Class 12 Part – 1 Usha Publication
42. Revaluation A/c/Partner‘s Cap A/c/B/S) Thr following is the balance sheet of Gupta and mathur. They share profit and losses in the proportion of three fourth and one fourth :
| Liabilities | Rs | Assets | Rs | |
| Creditors | 70,000 | Business premises | 50,000 | |
| Bills Payable | 5,000 | Fixtures | 2,000 | |
| General Reserve | 8,000 | Stock | 40,000 | |
| Capital Account | Book Debts | 32,000 | ||
| Gupta | 60,000 | Bills receivable | 6,000 | |
| Mathur | 32,000 | 92,000 | Cash at bank | 40,000 |
| Cash in hand | 5,000 | |||
| 1,75,000 | 1,75,000 |
They admit Aggarwal into partnership on the following terms:
(i)That Aggarwal brings Rs. 20,000 as his capital for the fifth share in future profits.
(ii) That Goodwill of the firm is valued at Rs. 40,000.
(iii) That the value of business premises be appreciated by 20%.
(iv) That the stock and fixtures be reduced by 10% each and a 5% reserve for doubtful debts be created on book debts.
Prepare revaluation account, partner’s capital accounts, and also the opening balance sheet of the new firm.
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The solution of Question 42 Chapter 5 of Class 12 Part – 1 Usha Publication: –
| Revaluation Account |
|||||
| Particular |
Amount | Particular | Amount | ||
| To Stock ( Decrease 10% of 40,000) | 4,000 | By Business Premise ( Increase 20% of 50,000) |
10,000 | ||
| To Fixtures ( Decrease 10% of 2,000) | 200 | ||||
| To Provision for doubtful debts (5% of 32,000) |
1,600 | ||||
| To Profit on revaluation transferred to Capital accounts | |||||
| – Gupta | 3,150 | ||||
| – Mathur | 1,050 | 4,200 | |||
| 10,000 | 10,000 | ||||
| Partners’ Capital Account |
|||||||
| Particulars | Gupta | Mathur | Aggarwal | Particulars | Gupta | Mathur | Aggarwal |
| By Balance b/d | 60,000 | 32,000 | – | ||||
| By General Reserve | 6,000 | 2,000 | – | ||||
| By Bank A/c | – | – | 20,000 | ||||
| By Aggarwal’s Current A/c | 6,000 | 2,000 | – | ||||
| By Revaluation A/c (Profit) |
3,150 | 1,150 | |||||
| To Balance c/d | 75,150 | 37,050 | 20,000 | ||||
| 75,150 | 37,050 | 20,000 | 75,150 | 37,050 | 20,000 | ||
Working Note:-
Entry for Goodwill
| Aggarwal’s Current A/c | Dr. | 8,000 | |
| To Gupta’s Capital A/c | 6,000 | ||
| To Mathur’s Capital A/c | 2,000 |
NOTE: (Sacrificing ratio remains same as the old ratio in the absence of any information specific)
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 70,000 | Business premises (50,000+10,000) | 60,000 | ||
| Bills Payable | 5,000 | Fixtures(2,000-200) | 1,800 | ||
| Capital | Stock(40,000-4,000) | 36,000 | |||
| Gupta | 75,150 | Book Debts | 32,000 | ||
| Mathur | 37,050 | Less provision | 1,600 | 30,400 | |
| Aggarwal | 20,000 | 1,32,200 | Aggarwal’s Current A/c | 8,000 | |
| Bills receivable | 6,000 | ||||
| Cash at bank | 60,000 | ||||
| Cash in hand | 5,000 | ||||
| 2,07,200 | 2,07,200 | ||||
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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