Question 73 Chapter 5 of Class 12 Part – 1 Usha Publication
A and B share profits in the proportions of 3/4 and 1/4. Their balance sheet was as at follows :
| Liabilities | Rs | Assets | Rs | |
| Creditors | 41,500 | Cash at bank | 26,500 | |
| Reserve fund | 4,000 | Bills receivable | 3,000 | |
| Capitals | Debtors | 16,000 | ||
| A | 30,000 | Stock | 20,000 | |
| B | 16,000 | 46,000 | Fixtures | 1,000 |
| Land & buildings | 25,000 | |||
| 91,500 | 91,500 |
C was admitted into partnership on the following terms :
(a) C pays ₹ 10,000 as his capital.
(b) That C pays ₹ 5,000 for goodwill. Half of this sum is to be withdrawn by A and B.
(c) That stock and fixtures be reduced by 10% and a 5% provision for doubtful debts be created on sundry debtors and bills receivable.
(d) That the value of land and buildings be appreciated by 20%.
(e) That there being a claim against the firm for damages a liability to the extent of ₹1,000 should be created.
(f) An item of ₹ 650 included in sundry creditors is not likely to be claimed and hence should be written back.
Record the above transactions (journal entries) in the books of the firm assuming that the profit sharing ratio between A and B has not changed. Prepare the new balance sheet on the admission of Mr. C.
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| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 1 | Bank A/c | Dr. | 15,000 | ||
| To C’s Capital A/c | . | 10,000 | |||
| To Premium for Goodwill A/c | 5,000 | ||||
| (Being cash brought in by C as his capital & share of goodwill) | |||||
| 2 | Premium for goodwill A/c | Dr. | 5,000 | ||
| To A’s Capital A/c | 3,750 | ||||
| To B’s Capital A/c | 1,250 | ||||
| (Being Premium for goodwill transferred to sacrificing partners in their sacrificing ratio) | |||||
| 3 | A’s Capital A/c | Dr. | 1,875 | ||
| B’s Capital A/c | Dr. | 625 | |||
| To Bank A/c | 2,500 | ||||
| (Being half of the amount for premium withdrawn by the partners) | |||||
| 4 | Revaluation A/c | Dr. | 3,050 | ||
| To Stock A/c | 2,000 | ||||
| To Fixture A/c | 100 | ||||
| To Provision for D/D A/c | 800 | ||||
| To Provision for B/R A/c | 150 | ||||
| To Provision for claim for damages A/c | 1,000 | ||||
| (Being revised value of assets & provision recorded in the books) | |||||
| 5 | Building A/c | Dr. | 5,000 | ||
| Creditors A/c | Dr. | 650 | |||
| To Revaluation A/c | 5,650 | ||||
| (Being revised value of assets & not lithely to claim recorded in the books) | |||||
| 6 | Revaluation A/c | Dr. | 1,600 | ||
| To A’s Capital A/c | 1,200 | ||||
| To B’s Capital A/c | 400 | ||||
| (Being loss on revaluation distributed) | |||||
| 7 | Reserve Fund A/c | 4,000 | |||
| To A’s Capital A/c | 3,000 | ||||
| To B’s Capital A/c | 1,000 | ||||
| (Being reserve fund transferred to capital a/c) | |||||
| Partners’ Capital Account | |||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To Bank a/c | 1,875 | 625 | By Balance b/d | 30,000 | 16,000 | ||
| By Bank a/c | 10,000 | ||||||
| By Premium for goodwill A/c | 3,750 | 1,250 | |||||
| By Revaluation a/c | 1,200 | 400 | |||||
| To Balance c/d | 36,075 | 18,025 | 10,000 | By Reserve fund | 3,000 | 1,000 | |
| 37,950 | 18,650 | 10,000 | 37,950 | 18,650 | 10,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 48,850 | Cash at Bank | 39,000 | ||
| Provision for claim of damages | 1,000 | Bill receivable | 2,850 | ||
| Capital Accounts | Debtors | 16,000 | |||
| A | 36,075 | Less :- Provision for D/D | 800 | 15,200 | |
| B | 18,025 | Stock | 18,000 | ||
| C | 10,000 | 64,100 | Fixture | 900 | |
| Land & Building | 30,000 | ||||
| 1,05,950 | 1,05,950 | ||||
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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