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Ramesh and Umesh Were Partners in a Firm Sharing Profits in the Ratio of Their Capitals. on 31st March, 2013 Their Balance Sheet Was as Follows:On the Above Data the Firm Was Dissolved. - Accountancy

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प्रश्न

Ramesh and Umesh were partners in a firm sharing profits in the ratio of their capitals. On 31st March, 2013 their Balance Sheet was as follows:On the above data the firm was dissolved. 

            Balance Sheet of Ramesh and Umesh as on                            31st March, 2013

Liabilities

Amount

Rs

Assets

Amount

Rs

Creditors

1,70,000

Bank

1,10,000

Workmen’s Compensation Fund

2,10,000

Debtors

2,40,000

General Reserve

2,00,000

Stock

1,30,000

Ramesh’s Current Account

80,000

Furniture

2,00,000

Capitals:

 

Machinery

9,30,000

Ramesh

7,00,000

 

Umesh’s Current Account

50,000

Umesh

3,00,000

10,00,000

 

 

 

16,60,000

 

16,60,000

 

 

 

(i) Ramesh took over 50% of stock at Rs 10,000 less than book value. The remaining stock was sold at a loss of Rs 15,000. Debtors were realised at a discount of 5%.
(ii) Furniture was taken over by Umesh for Rs 50,000 and machinery was sold for Rs 4,50,000.
(iii) Creditors were paid in full.
(iv) There was an unrecorded bill for repairs for Rs 1,60,000 which was settled at Rs 1,40,000.

Prepare Realisation Account.

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उत्तर

                           Realisation Account

Dr.

 

Cr.

       Particulars

Amount

Rs

        Particulars

Amount

Rs

Sundry Assets-

 

Creditors

1,70,000

Debtors

2,40,000

 

Ramesh’s Current A/c (Stock)

55,000

Stock

1,30,000

 

Cash A/c (Assets Realised)

 

Furniture

2,00,000

 

Stock

50,000

 

Machinery

9,30,000

15,00,000

Machinery

4,50,000

 

 

 

Debtors

2,28,000

7,28,000

To Cash A/c (Liabilities)

 

Umesh’s Current A/c (Furniture)

50,000

Creditors

1,70,000

 

 

 

Outstanding Bill

1,40,000

3,10,000

Realisation Loss

 

 

 

   Ramesh’s Current A/c

5,64,900

 

 

 

Umesh’s Current A/c

2,42,100

8,07,000

 

18,10,000

 

18,10,000

 

 

 

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  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
2013-2014 (March) Foreign Set 1

संबंधित प्रश्न

The gradual and permanent decrease in the value of fixed assets due to any cause.


Answer in one sentence only.

What is revaluation account?


Write the word/term or phrase which can substitute the following statement.
Credit balance on revaluation account.


State 'True' or 'False'.

The credit balance of revaluation account means loss on revaluation account.


______ is credited when an unrecorded asset is brought into the business.


If the asset is taken over by the partner ______ account is debited.


Write a word/phrase/term which can substitute the following statement.

An account opened to adjust the value of assets and liabilities at the time of admission of a partner.


Write a word/phrase/term which can substitute the following statement.

An account that is debited when the partner takes over the asset.


Find the Odd one.


The stock showed in Balance Sheet → Stock undervalued by 20% → Cost of Stock

₹1,60,000  → __________→ __________


Vikram and Pradnya share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under.

Balance Sheet as on 31st March 2018

Liabilities Amount (₹) Assets Amount (₹)
Creditors 1,05,000 Cash 7,500
Capitals:   Land & Building 37,500
Vikram 75,000 Plant 45,000
Pradnya 75,000 Furniture 3,000
    Stock 75,000
    Debtors 87,000
  2,55,000   2,55,000

They agreed to admit Avani as a partner on 1st April 2018 on the following terms:

  1. Avani shall have 1/4th share in future profits.
  2. He shall bring ₹ 37,500 as his capital and ₹ 30,000 as his share of goodwill.
  3. Land and building to be valued at ₹ 45,000 and furniture to be depreciated by 10%.
  4. Provision for bad and doubtful debts is to be maintained at 5% on the Sundry Debtors.
  5. Stocks to be valued ₹ 82,500.

The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.

Prepare Profit and Loss Adjustment Account, Capital Accounts, and New Balance Sheet.


Vasu and Viraj Share Profits and Losses in the Ratio of 3:2 respectively Their Balance Sheet as on 31st March 2019 was as under

Balance Sheet as on 31st March, 2019

Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors 45,000 Cash at bank 750
General Reserve 30,000 Sundry debtors 66,750

Capital:

  Stock 25,500

Vasu

1,08,000    

Viraj

72,000    
    Investment 36,000
    Plant 90,000
    Building 36,000
  2,55,000  

2,55,000

They admit Hari into Partnership on 1.4. 2019 the terms being that :

1  He shall have to bring in ₹60,000 as his Capital for 1/4 share in future profits

2 Value of Goodwill of the Firm is to be fixed at The average profits for the last three years. The Profit was.

2009-10  ₹ 48,000,

2010-11 ₹ 81,000

2011-12 ₹ 73,500

Hari is unable to bring the value of the Goodwill in cash. It is decided to raise the Goodwill in the books of accounts.

3. Reserve for Doubtful Debts is to be created at ₹ 1,500.

4. Closing Stock is valued at ₹ 22,500

5. Plant and Building is to be depreciated by 5%

Prepare Profit and Loss Adjustment A/c, Capital Accounts of Partners, And Balance Sheet of the New Firm.


Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively.

Balance Sheet as on 31 March 2018
Liabilities Amt
(₹)
Amt
(₹)
Assets Amt
(₹)
Amt
(₹)
Creditors   1,20,000 Land and Building   75,000
General Reserve   12,000 Furniture   6,000
Capital A/c:     Stock   60,000
Kishor 90,000   Debtors   60,000
Lal 48,000 1,38,000 Bills Receivable   39,000
      Cash at Bank   30,000
    2,70,000     2,70,000

They decided to admit Ram on 1 April 2018 on following terms:

  1. He should be given 1/5th share in profit and for that he brought in ₹ 60,000 as capital through RTGS.
  2. Goodwill should be raised at ₹ 60,000.
  3. Appreciate Land and Building by 20%.
  4. Furniture and Stock are to be depreciated by 10%.
  5. The Capitals of all partners should be adjusted in their new profit sharing ratio through Bank A/c.

Pass necessary Journal Entries in the books of the Partnership firm and a Balance sheet of the new firm.


Vrushali and Leena are equal partners in the business. Their Balance sheet as on 31 March 2018 stood as under.

Balance Sheet as on 31 March 2018
Liabilities Amt. (₹) Amt. (₹) Assets Amt. (₹) Amt. (₹)
Sundry Creditors 90,000 90,000 Cash in Bank   62,000
Capitals:     Debtors 31,000  
Vrushali 45,000 75,000 Less: R.D.D 1,000 30,000
Leena 30,000   Building   55,000
General Reserves   18,000 Machinery   24,000
      Bills Receivable   12,000
    1,83,000     1,83,000

They decided to admit Aparna on 1st April 2018 on the following terms:

1. The Machinery and Building be depreciated by 10%. Reserve for Doubtful Debts to be increased by ₹ 5,000

2. Bills Receivable are taken over by Vrushali at the discount of 10%

3. Aparna should bring Rs. 60,000 as capital for her 1/4th share in future profits.

4. The capital accounts of all the partners be adjusted in proportion to the new profit-sharing ratio by opening the current accounts of the partners.

Prepare Profit and Loss Adjustment A/c, Partner’s Capital A/c, Balance sheet of the new firm.


Mr. Amit and Baban share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under

Balance Sheet as On 31st March 2018
Liabilities Amount (₹) Assets Amount (₹)
Creditors 1,40,000 Cash 110,000
Capital:   Land and Building 50,000
Amit 100,000 Plant 60,000
Baban 100,000 Furniture 4,000
    Stock 100,000
    Debtors 16,000
  3,40,000   3,40,000

They agreed decided to admit Kamal on 1st April 2018 on the following terms:

1. Kamal shall have 1/4th share in future profits.

2. They agreed to admit Kamal as a partner on 1st April 2018 on the following terms:

3. She shall bring 50,000 as her capital and 40,000 as her share of goodwill.

4. Land and building to be valued at 60,000 and furniture to be depreciated by 10%

5. Provision for bad and doubtful debts is to be maintained at 5% on the sundry debtors.

6. Stocks to be valued 1,10,000 The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.

Prepare profit and loss adjustment A/c, Capital A/cs, and New Balance Sheet.


Revaluation A/c is a _________.


On revaluation, the increase in the value of assets leads to _________.


What is meant by the revaluation of assets and liabilities?


State whether the following will be debited or credited in the revaluation account.

  1. Depreciation on assets
  2. Unrecorded liability
  3. Provision for outstanding expenses
  4. Appreciation of assets

Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5 : 3 : 2. As from 1st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4 : 3 : 2 : 1. The following adjustments are to be made.

  1. Increase the value of premises by ₹ 60,000.
  2. Depreciate stock by ₹ 5,000, furniture by ₹ 2,000 and machinery by ₹ 2,500.
  3. Provide for an outstanding liability of ₹ 500.

Pass journal entries and prepare a revaluation account.


The following is the balance sheet of James and Justina as on 1.1.2017. They share the profits and losses equally

Liabilities Assets
Capital accounts:     Building 70,000
James 40,000   Stock 30,000
Justina 50,000 90,000 Debtors 20,000
Creditors   35,000 Bank 15,000
Reserve fund   15,000 Prepaid insurance 5,000
    1,40,000   1,40,000

On the above date, Balan is admitted as a partner with a 1/5 share in future profits. Following are the terms for his admission:

  1. Balan brings ₹ 25,000 as capital.
  2. His share of goodwill is ₹ 10,000 and he brings cash for it.
  3. The assets are to be valued as under:
    Building ₹ 80,000; Debtors ₹ 18,000; Stock ₹ 33,000

Prepare necessary ledger accounts and the balance sheet after admission.


Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:

Liabilities Assets
Capital accounts:     Computer 40,000
Anbu 4,00,000   Motor car 1,60,000
Shankar 3,00,000 7,00,000 Stock 4,00,000
Profit and loss   1,20,000 Debtors 3,60,000
Creditors   1,20,000 Bank 40,000
Workmen compensation fund   60,000    
    10,00,000   10,00,000

Rajesh is admitted for 1/5 share on the following terms:

  1. Goodwill of the firm is valued at ₹ 80,000 and Rajesh brought cash ₹ 6,000 for his share of goodwill.
  2. Rajesh is to bring ₹ 1,50,000 as his capital.
  3. Motor car is valued at ₹ 2,00,000; stock at ₹ 3,80,000 and debtors at ₹ 3,50,000.
  4. Anticipated claim on workmen compensation fund is ₹ 10,000
  5. Unrecorded investment of ₹ 5,000 has to be brought into account.

Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission.


At the time of admission of a partner, what will be the effect of the following information?

Balance in Workmen compensation reserve ₹40,000. Claim for workmen compensation ₹45,000.


What would be the journal entry of when excess capital was withdrawn by the partner?


A revaluation account is operated to find out the gain or loss at the time of ______


Ravi and Gaurav are partners in a firm. They want to admit Dhruv for `1/4`th share in profit. For this, they revalued their machinery from ₹ 30,000 to ₹ 40,000 and creditors from ₹ 1,10,000 to ₹ 1,00,000. What journal entry will be passed:


Balance in the Investment Fluctuation Reserve, after meeting the loss on revaluation of Investments, at the time of admission of a partner will be transferred to:


Assertion (A): At the time of admission of a partner if there is any General Reserve, Reserve Fund or the balance of Profit & Loss Account appearing in the balance sheet, it should be transferred to old partners' capital/current accounts in their old profit sharing ratio.

Reason (R): The General reserve, Reserve Fund or the Balance of Profit and Loss Account are the result of the past profits when the new partner was not admitted.


Ganga and Jamuna are partners sharing profits in the ratio of 2 : 1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s capital was ₹ 73,000. Saraswati brings ₹  25,000 as her share of goodwill and she agrees to contribute proportionate capital to the new firm. How much capital will be brought by Saraswati?


Following is the Balance Sheet of Mukesh and Anil sharing profit and losses in the ratio of 3:2 as on 31st March, 2019.

Balance Sheet as on 31st March, 2019
Liabilities   Amount (₹) Assets   Amount (₹)
Capital A/c:     Building   72,000
Mukesh 80,000 1,80,000 Plant & Machinery   60,000
Anil 1,00,000 Stock   48,000
Sundry Creditors   60,000 Debtors 42,000 40,000
Bills Payable   10,000 Less: RDD 2,000
      Bank   20,000
      Furniture   10,000
    2,50,000     2,50,000

On 1st April, 2019 Neeta is admitted on the following terms:

  1. She will pay ₹ 1,00,000 of her capital and ₹ 40,000 as her share of Goodwill.
  2. The new profit sharing ratio is to be 5 : 3 : 2.
  3. The assets are to be revalued as under: Building ₹ 1,00,000, Plant & Machinery ₹ 48,000.
  4. RDD to be increased up to ₹ 4,000.
  5. The old partners decided to retain half of the amount of goodwill in the business.
  6. Sundry creditors should be revalued at ₹ 66,000.

Give Revaluation Account, Capitals Accounts and Balance Sheet of New firm.


The following is the Balance sheet of partners Aditya and Chaitanya on 31st March, 2019 they share profits and losses in the ratio of 3 : 2:

Balance sheet as on 31st march 2019

Liabilities

Amount ₹

Assets  Amount ₹
Creditors 60,000 Building 30,000
Capital Accounts:   Furniture 1,800
Aditya 42,000 Machinery 42,000
Chaitanya 42,000 Stock 24,600
Current Accounts:   Debtors 54,000
Aditya 7,500 Cash 6,000
Chaitanya 6,900    
  1,58,400   1,58,400

Adjustments:

They admitted Sachin into partnership on 1st April, 2019 on the following terms:

  1. Building to be valued at ₹ 36,000, machinery and furniture to be reduced by 10%.
  2. Sachin should pay ₹ 6,000 as his share of Goodwill. 50% of goodwill withdrawn by partners in cash.
  3. A provision of 5% on debtors to be made for doubtful debts.
  4. He should bring ₹ 18,000 as capital for 1/4th share in future profit.
  5. Stock is to be taken at the value of ₹ 30,000.

Prepare:

  1. Profit and Loss Adjustment Account.
  2. Partners’ Current Account.
  3. Balance Sheet of the New Firm.

Indu, Vijay, and Pawan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan, and Subhash will be 3 : 3 : 2 : 2. An extract of their Balance Sheet as at 31st March, 2022, is given below:

Liabilities Amount (₹) Assets Amount (₹)
Investment
Fluctuation Reserve
80,000 Investment (Market
Value ₹ 80,000)
90,000

Which of the following is the correct accounting treatment of ‘investment fluctuation reserve’ at the time of Subhash’s admission?


X and Y are partners in a firm with capital of ₹ 18,000 and ₹ 20,000. Z brings ₹ 10,000 for his share of goodwill, and he is required to bring proportionate capital for `1/3`rd share in profits. The capital contribution of Z will be ______.


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