Question 74 Chapter 5 of Class 12 Part – 1 2024
74. Messers A, B and C is a firm sharing profits and losses in the ratio of 2:2:1. Their balance sheet as at 31st. 2019 is as below :
| Liabilities | Rs | Assets | Rs | ||
| Sundry Creditors | 12,850 | Land & Building | 5,500 | ||
| Outstanding liabilities | 1,500 | Furniture | |||
| General reserve | 6,500 | Stock of goods | |||
| Capitals | Sundry Debtors | ||||
| A | 12,000 | Cash in hand | 4,900 | ||
| B | 12,000 | Cash at bank | 8,000 | ||
| C | 5,000 | 29,000 | |||
| 49,850 | 51,900 |
The partners have agreed to take D as a partner on the following terms
(1) D shall bring ₹ 7,000 towards his capital
(2) The value of stock should be increased by ₹ 2,500.
(3) Provision for bad and doubtful should be provided at 10% of debtors.
(4) The furniture should be depreciated by 10%
(5) The value of land and buildings should be enhanced by 20%.
(6) The value of goodwill be fixed at ₹ 15,000
(7) General reserve will be transferred to the partners capital account
(8) The new profit sharing ratio shall be A 5/15, B 5/15, C 3/15, and D2/15
The outstanding liabilities include ₹ 1000 due to E which has been paid by A. Necessary entries were not made in the books.
Partners decided not to open the current a/c of the new partner for his share of goodwill.
Prepare (i) the revaluation account (ii) the capital accounts of the partners and (iii) the Balance sheet of the firm as newly constituted (Journal entries are not required).
The solution of Question 74 Chapter 5 of Class 12 Part – 1 2024: –
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| Revaluation Account |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| To Provision for D/D | 550 | By Stock a/c | 2,500 | ||
| To Furniture | 650 | By Land & Building | 5,000 | ||
| To Profit transferred to Capital Accounts:- | |||||
| A | 2,520 | ||||
| B | 2,520 | ||||
| C | 1,260 | 6,300 | |||
| 7,500 | 7,500 | ||||
| Partners’ Capital Account | |||||||||
| Particulars | A | B | C | D | Particulars | A | B | C | D |
| To A’s Capital A/c | 1,000 | By Balance b/d | 12,000 | 12,000 | 5,000 | ||||
| To B’s Capital A/c | 1,000 | By General Reserve | 2,600 | 2,600 | 1,300 | ||||
| By Revaluation a/c | 2,520 | 2,520 | 1,260 | ||||||
| By Bank a/c | 7,000 | ||||||||
| By D’s capital a/c | 1,000 | 1,000 | |||||||
| To Balance c/d | 19,120 | 18,120 | 7,560 | 5,000 | By Outstanding Liabilities A/c | 1,000 | |||
| 19,120 | 18,120 | 7,560 | 7,000 | 19,120 | 18,120 | 7,560 | 7,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Sundry Creditors | 12,850 | Land & Building | 30,000 | ||
| Outstanding Liability | 500 | Furniture | 5,850 | ||
| Capital Accounts | Stock of good | 14,250 | |||
| A | 19,120 | Sundry Debtors | 5,500 | ||
| B | 18,120 | Less :- Provision for D/D | 550 | 4,950 | |
| C | 7,560 | Cash in Hand | 140 | ||
| D | 5,000 | 49,800 | Cash at Bank | 7,960 | |
| 63,150 | 63,150 | ||||
Calculation of gaining ratio of A and C:
Sacrifice ratio = Old share – New share
| A | = | 2 | – | 5 | = | 6 – 5 |
| 5 | 15 | 15 | ||||
| = | 1 | |||||
| 15 |
| B | = | 2 | – | 5 | = | 6 – 5 |
| 5 | 15 | 15 | ||||
| = | 1 | |||||
| 15 |
Gaining ratio = 13 : 11
Calculation of D’s Share of Goodwill:
| = | Firm Goodwill | X | D’s share | |
| = | ₹ 15,000 | X | 2 | |
| 15 | ||||
| = | ₹ 2,000 |
| A’s share | = | ₹ 2,000 | X | 1 |
| 2 | ||||
| = | ₹ 1,000 |
| B’s share | = | ₹ 2,000 | X | 1 |
| 2 | ||||
| = | ₹ 1,000 |
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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.
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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