Question 48 Chapter 5 of Class 12 Part – 1 Usha Publication
48. (Revaluation A/c/Partner‘s Cap A/c/B/S) L and M share the profits of a business in the Ratio 5:3. They admit N into partnership for ¼ share in the profits to be contributed equally by L and M. On the date of admission the balance sheet of the firm was as follows:
| Liabilities | Rs | Assets | Rs |
| L’s Capital | 30,000 | Machinery | 26,000 |
| M’s Capital | 20,000 | Furniture | 18,000 |
| Workmen’s Compensation fund | 4,000 | Stock | 10,000 |
| Bank Loan | 12,000 | Debtors | 8,000 |
| Creditors | 2,000 | Bank | 6,000 |
| 68,000 | 68,000 |
Terms of M’s admission were as follows:
(i) N will bring Rs. 25,000 as his capital.
(ii) Goodwill of the firm is to be valued at 4 years purchase of the average super-profits of last 3 years. Average profits of last 3 years were at Rs. 20,000, while the normal profits that can be earned with the capital employed are Rs. 12,000. No goodwill is to be raised in the books of the firm.
(iii) Furniture is to be appreciated by Rs. 6,000 and the value of a stock to be reduced by 20%
Prepare Revaluation Account, Partners Capital Accounts, and Balance Sheet of the new firm.
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The solution of Question 48 Chapter 5 of Class 12 Part – 1 Usha Publication: –
| Revaluation Account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To Stock | 2,000 | By Furniture | 6,000 | ||
| To profit on Revaluation | |||||
| – L 5/8 | 2,500 | ||||
| – M 3/8 | 1,500 | 4,000 | |||
| 6,000 | 6,000 | ||||
| Partners’ Capital Account |
|||||||
| Particulars | L | M | N | Particulars | L | M | N |
| By Balance b/d | 30,000 | 20,000 | |||||
| By W. C. R A/c | 2,500 | 1,500 | |||||
| By Revaluation A/c | 2,500 | 1,500 | |||||
| By Bank A/c | 25,000 | ||||||
| By N’s Current A/c | 4,000 | 4,000 | |||||
| To Balance c/d | 39,000 | 27,000 | 25,000 | ||||
| 39,000 | 27,000 | 25,000 | 39,000 | 27,000 | 25,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Workmen’s Compensation fund | 4,000 | Machinery | 26,000 | ||
| Bank Loan | 12,000 | Furniture | 24,000 | ||
| Creditors | 2,000 | Stock | 8,000 | ||
| L’s Capital | 39,000 | Debtors | 8,000 | ||
| M’s Capital | 27,000 | N’s Current A/c | 8,000 | ||
| N’s Capital | 25,000 | 91,000 | Bank(6000+25000) | 31,000 | |
| 1,05,000 | 1,05,000 | ||||
Working Notes:
Goodwill :
| Rs | ||
| Average Profits | = | 20,000 |
| Normal Profits | = | 12,000 |
| Super Profits = (Average – Normal)Profits | ||
| = | 20,000 – 12,000 | |
| = | 8,000 | |
| Goodwill | = | Super Profit X Years of Purchase |
| = | 8,000 x 4 | |
| = | 32,000 |
| N’s Share of Goodwill | = | 32,000 | X | 1 |
| 4 | ||||
| = | 8,000 |
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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