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VDO+ Tag:Question 61 Chapter 6 of Class 12 Part – 1 Usha Publication
61. (Revaluation A/c/Capital A/c Executor A/c/B/S) The balance sheet of A , B & C is given at 31-3-2017 :
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Video Tag:| Liabilities | Rs. | Assets | Rs. |
| Capital A/c | Cash at bank | 17,000 | |
| A | 25,000 | Debtors 30,000 | |
| B | 30,000 | Less : provision 2,000 | 28,000 |
| C | 15,000 | Stock | 12,000 |
| Reserve | 9,000 | Equipment | 15,000 |
| Creditors | 21,000 | Building | 50,000 |
| Bank Loan | 30,000 | Goodwill | 12,000 |
| Salary due | 10,000 | Advertisement suspense | 6,000 |
| 1,40,000 | 1,40,000 |
C died on 31-8-17. As per the deed the goodwill is to valued two times of average profits. The profits for last three years are following for the purpose of goodwill,
2016-17 Profit Rs. 30,000 (after loss on sale of building Rs. 10,000)
2015-16 Loss Rs. 9,000
2014-15 Profit Rs. 20,000 (after profit on sale of plant Rs.3,000)
Debtors are valued Rs. 26,000 ;Stock Rs. 11,000;
Profits of C are to be calculated on the basis of average profits of last three years.
C was paid Rs. 10,000 immediately and the balance was paid after six months with 12% interest. Prepare C’s executorr’s account and balance sheet as un 31-8-2017.
The solution of Question 61 Chapter 6 of Class 12 Part – 1 Usha Publication: –
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| Revaluation A/c |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To debtors A/c | 2,000 | ||||
| To stock A/c | 1,000 | ||||
| By loss on revaluation | |||||
| A | 1,000 | ||||
| B | 1,000 | ||||
| C | 1,000 | 3,000 | |||
| 3,000 | 3,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To revaluation A/c | 1,000 | 1,000 | 1,000 | By Balance b/d | 25000 | 30,000 | 15,000 |
| To goodwill A/c | 4,000 | 4,000 | 4,000 | By Reserve A/c | 3,000 | 3,000 | 3,000 |
| To adv. Suspense A/c | 2,000 | 2,000 | 2,000 | By A’s capital A/c | 5,333 | ||
| To c’s capital A/c | 5,333 | 5,334 | By B’s capital A/c | 5,334 | |||
| To c’s executors A/c | 23,889 | By P & L suspense A/c | 2,222 | ||||
| To Balance c/d | 15,667 | 20,666 | – | ||||
| 28,000 | 33,000 | 30,889 | 28,000 | 33,000 | 30,889 | ||
Working Notes :
Calculation of profit to C
| Years | Profit | |
| 2016-17 | Profit 30,000+10,000 | 40,000 |
| 2015-16 | Loss | (-,9000) |
| 2014-15 | Profit 20,000-3,000 | 17,000 |
| 48,000 |
| Average profit | = | 48,000 |
| 3 | ||
| = | 16,000 |
C’s share in profit = 16,000 X (5/12) X (1/3) = 2,222
Calculation of the Goodwill
Average Profit = 16,000
Goodwill = Average profit X No. of Year’s purchase = 16000 X 3 = 32,000
C’s share = 32,000 X 1/3 = 10,667
| Journal |
|||||
| Date | Particulars |
L.F. | Debit | Credit | |
| a) | A’s capital A/c | Dr. | 5,333 | ||
| B’s capital A/c | Dr. | 5,334 | |||
| To C’s capital A/c | 10,667 | ||||
| (Being goodwill adjusted ) | |||||
| C’s executors A/c |
||||||
| Date | Particulars |
Amount | Particulars | Amount | ||
| 31-8-17 | To Bank A/c | 10,000 | By C’s capital A/c | 23,889 | ||
| 28-2-18 | To Bank A/c | 14,722 | By interest A/c | 833 | ||
| 24,722 | 24,722 | |||||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Capital A/c | Cash at bank | 7,000 | |||
| A | 15,667 | Debtors | 30,000 | ||
| B | 20,666 | Less Provision | 4,000 | 26,000 | |
| C’s executor A/c | 13,889 | Stock | 11,000 | ||
| Creditors | 21,000 | Equipment | 15,000 | ||
| BANK Loan | 30,000 | Building | 50,000 | ||
| Salary due | 10,000 | P & L Suspense A/c | 2,222 | ||
| 1,11,222 | 1,11,222 | ||||
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End of Solution
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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