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M.358 An Aid to Accountancy—CBSE XII

The partners shared profits and losses in the ratio of 2 : 1.

From 1st April, 2018, they agreed to share profits and losses equally. For this purpose,
following was agreed:
(i) Building is to be appreciated by 25%.

(ii) Current value of furniture is to be taken at ` 27,500.
(iii) Land is valued at ` 1,50,000.
(iv) Goodwill of the firm be valued at ` 2,40,000.
(v) Market value of the Investment on 1st April, 2018 is ` 1,29,000.
Prepare Revaluation Account, Partners’ Capital Accounts and show the revised Balance
Sheet as at 1st April, 2018. (6)
14. X and Y were partners in a firm sharing profits in the ratio of 4 : 1. They decided to
dissolve the firm on 1st March, 2018. From the information given below, complete
Realisation Account, Partners’ Capital Accounts and Bank Account:
In the Books of X and Y
Dr. REALISATION ACCOUNT Cr.
Particulars ` Particulars `
To Sundry Assets— Transfer: By Provision for Doubtful Debts A/c 2,000
Stock 10,000 By Creditors A/c 76,000
Debtors 40,000 By X’s Capital A/c (Stock) ?
Fixed Assets 80,000 1,30,000 By Bank A/c:
To Bank A/c (Creditors) ? Debtors 37,600
To Gain (Profit) transferred to: Fixed Assets 1,22,000 1,59,600
X’s Capital A/c ?
Y’s Capital A/c ?
2,45,600 2,45,600

Dr. PARTNERS’ CAPITAL ACCOUNTS Cr.
Particulars X Y Particulars X Y
` ` ` `
To Bank A/c (Realisation Expenses) 2,000 ... By Balance b/d 20,000 60,000
To Advertisement Expenditure A/c ? 200 By General Reserve A/c 16,000 ?
To Realisation A/c (Stock) 8,000 ... By Realisation A/c (Gain) 31,680 ?
To Bank A/c (Final Payment) ? ?
67,680 71,920 67,680 71,920

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 47,000 By Realisation A/c 76,000
To Realisation A/c ? By X’s Capital A/c (Realisation Expenses) ?
By X’s Capital A/c 56,880
By Y’s Capital A/c 71,720
2,06,600 2,06,600