Comprehensive Solutions for Basu and Dutta Class 12 Accountancy Book

The "Graded Problems on Accountancy for Class 12" by Basu and Dutta is a widely recognized resource for students aiming to master accountancy concepts. Below are sample questions and their solutions derived from this book to aid in your understanding.

1. Admission of a New Partner

Question: A and B are partners sharing profits in the ratio of 3:2. They admit C as a new partner for 1/5th share. Calculate the new profit-sharing ratio.​

Answer: C's share is 1/5. Remaining share = 1 - 1/5 = 4/5. A's new share = (3/5) × (4/5) = 12/25. B's new share = (2/5) × (4/5) = 8/25. C's share = 1/5 = 5/25. New ratio = 12:8:5.​

2. Valuation of Goodwill

Question: The average profit of a firm is ₹50,000. If the normal rate of return is 10% and the capital employed is ₹400,000, calculate the goodwill using the capitalization method.​

Answer: Normal profit = 10% of ₹400,000 = ₹40,000. Super profit = ₹50,000 - ₹40,000 = ₹10,000. Goodwill = Super profit × (100 / Normal rate) = ₹10,000 × (100 / 10) = ₹100,000.​

3. Issue of Debentures

Question: A company issues 1,000 debentures of ₹100 each at a discount of 5%. Journalize the transaction.​

Answer: Bank A/c Dr. ₹95,000; Discount on Issue of Debentures A/c Dr. ₹5,000; To Debentures A/c ₹100,000.​

4. Redemption of Preference Shares

Question: A company redeems 1,000 preference shares of ₹100 each at a premium of 10%. How much amount is transferred to the Capital Redemption Reserve if the company has sufficient profits?​

Answer: Redemption amount = ₹100,000. Premium = ₹10,000. Capital Redemption Reserve = Nominal value of shares redeemed = ₹100,000.

5. Calculation of Depreciation

Question: A machinery costing ₹500,000 is depreciated at 10% per annum using the straight-line method. Calculate the depreciation for the first year.​

Answer: Depreciation = 10% of ₹500,000 = ₹50,000.​

6. Revaluation Account

Question: X and Y are partners. They revalue their assets and find an appreciation of ₹20,000. How is this recorded in the Revaluation Account?​

Answer: Revaluation A/c Dr. ₹20,000; To Asset A/c ₹20,000.​

7. Profit and Loss Appropriation Account

Question: A firm has a net profit of ₹120,000. Partners A and B are entitled to salaries of ₹30,000 and ₹20,000 respectively. Show the Profit and Loss Appropriation Account.​

Answer: Net Profit: ₹120,000. Less: A's Salary: ₹30,000; B's Salary: ₹20,000. Balance: ₹70,000.​

8. Calculation of Current Ratio

Question: Current assets are ₹300,000 and current liabilities are ₹150,000. Calculate the current ratio.​

Answer: Current Ratio = Current Assets / Current Liabilities = ₹300,000 / ₹150,000 = 2:1.​

9. Bank Reconciliation Statement

Question: The bank statement shows a balance of ₹50,000, but the cash book shows ₹45,000. Cheques issued but not presented amount to ₹10,000. Reconcile the difference.​

Answer: Balance as per Cash Book: ₹45,000. Add: Cheques issued but not presented: ₹10,000. Adjusted Balance: ₹55,000. Difference due to timing differences.​

10. Calculation of Debt-Equity Ratio

Question: Total debt is ₹600,000 and shareholders' equity is ₹1,200,000. Calculate the debt-equity ratio.​

Answer: Debt-Equity Ratio = Total Debt / Shareholders' Equity = ₹600,000 / ₹1,200,000 = 0.5:1.​

11. Treatment of Bad Debts

Question: A debtor owing ₹10,000 is declared insolvent and only 60% is recoverable. Record the journal entry.​

Answer: Bad Debts A/c Dr. ₹4,000; Cash/Bank A/c Dr. ₹6,000; To Debtors A/c ₹10,000.​

12. Calculation of Working Capital

Question: Current assets are ₹500,000 and current liabilities are ₹200,000. Calculate the working capital.​

Answer: Working Capital = Current Assets - Current Liabilities = ₹500,000 - ₹200,000 = ₹300,000.​

13. Treatment of Preliminary Expenses

Question: A company has preliminary expenses of ₹50,000. How are these accounted for in the financial statements?​

Answer: Preliminary expenses are written off over a period as decided by the company, shown under "Miscellaneous Expenditure" in assets until fully amortized.​

14. Calculation of Quick Ratio

Question: Quick assets are ₹150,000 and current liabilities are ₹100,000. Calculate the quick ratio.​

Answer: Quick Ratio = Quick Assets / Current Liabilities = ₹150,000 / ₹100,000 = 1.5:1.​

15. Treatment of Accrued Income

Question: Interest income of ₹5,000 has accrued but not yet received. How is this recorded?

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Basu & Dutta – Graded Problems in Accountancy for Class 12
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Basu and Dutta Accountancy Book Class 12 Solutions – Expert Guide for Students

The Basu and Dutta Accountancy book for Class 12 has long held its reputation as one of the most rigorous and respected books in the Indian academic system. Known for its clear structure, graded problems, and depth of coverage, it provides students with the tools they need to not just score well in board exams, but also understand core concepts of accountancy. For those seeking in-depth clarity, accurate solutions are a must—and that’s exactly what this guide offers.

Students using this book often face challenges with topics like admission and retirement of a partner, goodwill valuation, revaluation accounts, and company account entries. The Basu and Dutta accountancy book class 12 solutions are designed to address these pain points by offering simplified, step-by-step answers. Whether it's journal entries or ledger posting, these solutions aim to reduce confusion and increase confidence.

What sets these solutions apart is their alignment with the latest CBSE patterns. Each answer is structured in a way that meets examination standards, with logical flow and correctness in presentation. Important concepts like financial statement analysis, cash flow statements, and share capital accounting are broken down in a way that helps students grasp the logic rather than just memorizing formulas.

The solutions are also incredibly useful for students who are preparing for competitive commerce exams. Since Basu and Dutta’s problems often go a level beyond typical textbook questions, solving them with the right approach builds a strong conceptual foundation. That’s why many top educators and commerce mentors recommend using Basu and Dutta accountancy book class 12 solutions alongside regular NCERT preparation.

Additionally, these solutions are ideal for self-study. They help in identifying errors in your initial approach and teach the correct method. Many students find the numerical and scenario-based questions in the original book complex. These solutions turn them into easy-to-follow narratives, helping students stay engaged and learn with clarity.

If you’re preparing for your final boards or even for university-level commerce courses, mastering Basu and Dutta’s problems can be a huge asset. Practicing from solution sets not only improves accuracy but also time management—a key skill during lengthy accountancy exams.

The demand for authentic Basu and Dutta accountancy book class 12 solutions has also led to the development of support books and answer guides from reputed Indian publishers. These resources add further explanation, sample variations, and visual aids, catering to different learning styles.

By integrating these expert-backed solutions into your study routine, you’re setting yourself up for a solid academic performance in accountancy. Whether you’re aiming for top marks or just trying to make sense of debits and credits, having access to accurate, well-organized answers can make all the difference.