Question 66 Chapter 5 of Class 12 Part – 1 Usha Publication
66. ( revaluation A/c/ Partner’s Cap. A/c/B/S) Ram & Rahim were partners in the firm sharing profit & losses in the ratio 3: 2 respectively . their balance sheet on 31st , December , 2018 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 28,000 | Cash | 2,000 |
| Bills payable | 22,000 | Bank | 8,000 |
| Capitals : | Debtors | 30,000 | |
| Ram 50,000 | Stock | 15,000 | |
| Rahim 30,000 | 80,000 | Plant | 33,000 |
| Building | 42,000 | ||
| 1,30,000 | 1,30,000 |
They agreed to admit Rajan with effect from 1st January 2019 with a 1/4th share in Profits on the following terms:
(a) Rajan will bring in capital to the extent of 1/4th of the capital of the new firm after adjustments have been made.
(b) Buildings are to be appreciated by Rs. 8,000 and plants to be depreciated by Rs. 9,000.
(c) The provision for debtors is to be created Rs. 7,000.
(d) The goodwill of the firm was valued at Rs. 30,000.
Prepare the Revaluation Account, Partner’s Capital Accounts, and the Balance Sheet of the firm immediately after Rajan’s admission.
The solution of Question 66 Chapter 5 of Class 12 Part – 1 Usha Publication: –
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| Revaluation account |
|||||
| Particulars |
Amount | Particulars | Amount | ||
| To plant & machinery | 9,000 | By Building A/c | 8,000 | ||
| To Provision for doubtful debts | 7,000 | ||||
| By loss : | |||||
| Ram | 4,800 | ||||
| Rahim | 3,200 | 8,000 | |||
| 16,000 | 16,000 | ||||
| Partners’ Capital Account | |||||||
| Particulars | Ram | Rahim | Rajan | Particulars | Ram | Rahim | Rajan |
| To Revaluation A/c | 4,800 | 3,200 | By Balance b/d | 50,000 | 30,000 | ||
| By Cash A/c | 26,500 | ||||||
| By Rajan’s current A/c | 4,500 | 3,000 | |||||
| To Balance c/d | 49,700 | 29,800 | 26,500 | ||||
| 54,500 | 33,000 | 26,500 | 54,500 | 33,000 | 26,500 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 28,000 | Cash | 2,000 | ||
| Bills payable | 22,000 | Debtors | 30,000 | ||
| Capital Accounts | Less provision For debts | 7,000 | 23,000 | ||
| Ram | 49,700 | Stock | 15,000 | ||
| Rahim | 29,800 | Buildings | 50,000 | ||
| Rajan | 26,500 | 1,06,000 | Plants | 24,000 | |
| Bank (8000+26,500) | 34,500 | ||||
| By Rajan’s current A/c | 7,500 | ||||
| 1,21,600 | 1,56,000 | ||||
WORKING NOTES :
Calculation of proportionate capital of Rajan
Let total profits of the firm = 1
| Share of profit given to Rajan | = | 1 |
| 4 |
| Combined share | = | 1 | – | 1 |
| 4 | ||||
| = | 3 | |||
| 4 |
Calculate Proportionate capital of Rajan :-
Total capital of New firm = Combined adjusted capital of Ram & Rahim X Reverse share of remaining partners Ram & Rahim
| Total capital of New firm | = | ₹ 70,500 | X | 4 |
| 3 | ||||
| = | 1,06,000 |
| Rajan’s Share | = | ₹ 1,06,000 | X | 1 |
| 3 | ||||
| = | ₹ 26,500 |
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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