Question 44 Chapter 6 of Class 12 Part – 1 Usha Publication
44. (Revaluation A/c/Partner’s Capital A/c) A, B and C are partners sharing in 3: 2:1.Their balance sheet is as under:
| Liabilities | Rs. | Assets | Rs. |
| creditors | 30,000 | Cash | 28,000 |
| Bills payable | 16,000 | Debtors 25,000 | |
| GENERAL Reserve | 12,000 | Less: Provision 3,000 | 22,000 |
| Capital | Stock | 18,000 | |
| A | 40,000 | Furniture | 30,000 |
| B | 40,000 | Machinery | 70,000 |
| C | 30,000 | ||
| 1,68,000 | 1,68,000 |
B retired on the following terms
(i) Provision for doubtful debts raised by Rs. 1,000.
(ii) Stock depreciated by 10% and furniture by 5%.
(iii) Provide for outstanding claim Rs. 1,100.
(iv) Creditors will be written back by Rs. 6,000.
(v) Goodwill of the firm valued at Rs. 24,000.
(vi) B is paid in full with cash brought in by A and C in such a manner that their capital is in the ratio of their profit ratio which is 3: 2 and cash remains in hand at Rs. 10,000.
Prepare ledger A/cs.
The solution of Question 44 Chapter 6 of Class 12 Part – 1 Usha Publication: –
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| Revaluation Account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Provision for doubtful debts A/c | 1,000 | By Creditors A/c | 6,000 | ||
| To Stock A/c | 1,800 | ||||
| To Furniture A/c | 1,500 | ||||
| To Outstanding claim A/c | 1,100 | ||||
| To Profits transferred | |||||
| A | 300 | ||||
| B | 200 | ||||
| C | 100 | 600 | |||
| 6,000 | 6,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To B’s capital A/c | 2,400 | 5,600 | By Balance b/d | 40,000 | 40,000 | 30,000 | |
| To Bank A/c | 52,200 | By Gen Reserve fund | 6,000 | 4,000 | 2,000 | ||
| By Revaluation A/c | 300 | 200 | 400 | ||||
| By A’s capital A/c | 2,400 | ||||||
| By C’s capital A/c | 5,600 | ||||||
| By Cash A/c (B.fig) | 18,860 | 15,340 | |||||
| To Balance c/d | 62,760 | – | 41,840 | ||||
| 65,160 | 52,200 | 47,440 | 65,160 | 52,200 | 47,440 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 24,000 | Cash | 10,000 | ||
| Bills payable | 16,000 | Sundry Debtors | 25,000 | ||
| Outstanding claim | 1,100 | Less provision | 4,000 | 21,000 | |
| Capital A/c | Stock | 16,200 | |||
| A | 62,760 | Furniture | 28,500 | ||
| C | 41,840 | Machinery | 70,000 | ||
| 1,45,700 | 1,45,700 | ||||
| Cash Account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To balance b/d | 28,000 | By B’s capital A/c | 52,200 | ||
| To A’s Capital A/c | 18,860 | ||||
| To C’s capital A/c | 15,340 | By balance c/d | 10,000 | ||
| 62,200 | 62,200 | ||||
Working Note:-
Gaining ratio of A and C
| A’s gain | = | 3 | – | 3 |
| 5 | 6 | |||
| = | 3 | |||
| 30 |
| C’s gain | = | 2 | – | 1 |
| 5 | 6 | |||
| = | 7 | |||
| 30 |
Gaining ratio = 3 : 7
| B’s share in the goodwill | = | ₹ 24,000 | x | 2 |
| 6 | ||||
| = | ₹ 8,000 |
Working note:
Calculation of Capital Balance before Cash adjustment after B’s retirement
| A’s Capital Balance | 43,900 |
| C’s Capital Balance | 26,500 |
| Total cash needed to bring* | 34,200 |
| Total Capital of the firm after B’s retirement | 1,04,600 |
*Total cash needed to bring
| Opening Balance of cash | 28,000 |
| Less: Cash paid to B | 52,200 |
| Less: Closing Cash Balance required | 10,000 |
| Total Cash need to bring by A & C |
|
Distribute the Total Capital of the Firm in a new profit-sharing ratio i.e., 3 : 2
A’s New Capital= 1,04,600 x 3 / 5
= 62,760
C’s New Capital= 1,04,600 x 2 / 5
= 41,840
Cash to be brought by A = New Capital – Old Capital
= 62,760 – 43,900 = 18,860
Cash to be brought by C = New Capital – Old Capital
= 41,840 – 26,500 = 15,340
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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.
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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