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प्रश्न
Sai and Shankar are partners, sharing profits and losses in the ratio of 5 : 3. The firm’s balance sheet as on 31st December, 2017, was as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ | ₹ |
| Capital accounts: | Building | 34,000 | |||
| Sai | 48,000 | Furniture | 6,000 | ||
| Shankar | 40,000 | 88,000 | Investment | 20,000 | |
| Creditors | 37,000 | Debtors | 40,000 | ||
| Outstanding wages | 8,000 | Less: Provision for bad debts | 3,000 | 37,000 | |
| Bills receivable | 12,000 | ||||
| Stock | 16,000 | ||||
| Bank | 8,000 | ||||
| 1,33,000 | 1,33,000 |
On 31st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with ₹ 12,000 as capital subject to the following adjustments.
- Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000.
- Provision for doubtful debts is to be increased to ₹ 5,500
- An unrecorded investment of ₹ 6,000 is to be brought into account
- An unrecorded liability ₹ 2,500 has to be recorded now.
Pass journal entries and prepare the Revaluation Account and capital account of partners after admission.
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उत्तर
Journal Entries
| Date | Particulars | L.F. | Debit ₹ |
Credit ₹ |
| Revaluation A/c ..............Dr. To Furniture A/c To Provision for Bad and Doubtful To Unrecorded liabilities (Loss items entered in Revaluation) |
6,000 - - - |
- 1,000 2,500 2,500 |
||
| Building A/c ........Dr. Investment A/c ................Dr. To Revaluation A/c (Profit items entered in Revaluation) |
16,000 6,000 - |
- - 22,000 |
||
| Revaluation A/c ............Dr. To Sai's Capital A/c To Shankar's Capital A/c (Profit on revaluation tr to Cap A/c) |
16,000 - - |
- 10,000 6,000 |
||
| Bank A/c .........Dr. To Shanmugam's Capital A/c (Incoming partner brings the capital) |
12,000 - |
- 12,000 |
| Dr. | Revaluation Account | Cr. | ||
| Particulars | ₹ | Particulars | ₹ | |
| To Furniture A/c | 1,000 | By Building A/c | 16,000 | |
| To Prov. for bad and doubtful | 2,500 | By Investment A/c | 6,000 | |
| To Unrecorded liability | 2,500 | |||
| To Sai's Cap A/c | 10,000 | |||
| To Shankar's Cap A/c | 6,000 | 16,000 | ||
| 22,000 | 22,000 | |||
| Dr. | Capital Account | Cr. | |||||
| Particulars | Sai's | Shankar's | Shanmugam's | Particulars | Sai's | Shankar's | Shanmugam's |
| To Balance c/d | 58,000 | 46,000 | 12,000 | By Balance b/d | 48,000 | 40,000 | - |
| By Bank | - | - | 12,000 | ||||
| By Revaluation | 10,000 | 6,000 | - | ||||
| 58,000 | 46,000 | 12,000 | 58,000 | 46,000 | 12,000 | ||
| By Bal b/d | 58,000 | 46,000 | 12,000 | ||||
APPEARS IN
संबंधित प्रश्न
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'
Profit on revaluation account is distributed between the old partners on admission of a partner.
Anika and Radhika are partners sharing profits in the ratio of 5:1. They decide to admit Sanika in the firm for `1/5`th share. calculate the sacrifice ratio of Anika and Radhika
_____________ =`"Total profit"/"Number of years"`
State whether the following will be debited or credited in the revaluation account.
- Depreciation on assets
- Unrecorded liability
- Provision for outstanding expenses
- Appreciation of assets
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:
- Balan brings ₹ 25,000 as capital.
- His share of goodwill is ₹ 10,000 and he brings cash for it.
- 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.
What would be the journal entry of when excess capital was withdrawn by the partner?
The account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of a partner is called:
The following is the Balance Sheet of Vivaan and Vihaan sharing Profits and Losses in the ratio of 3 : 2 as on 31 March, 2023.
| Balance Sheet as on 31st March, 2023 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital Accounts: | Building | 1,08,000 | ||
| Vivaan | 1,20,000 | Plant and Machinery | 90,000 | |
| Vihaan | 1,50,000 | Stock | 72,000 | |
| Sundry Creditors | 90,000 | Debtors | 63,000 | 60,000 |
| Bank Overdraft | 15,000 | Less: R.D .D. | 3,000 | |
| Bank | 30,000 | |||
| Investments | 15,000 | |||
| 3,75,000 | 3,75,000 | |||
On 1-4-2023, Prihaan is admitted on the following terms:
(1) He is to pay ₹ 1,50,000 as his capital and ₹ 60,000 as his 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 ₹ 1,50,000, Plant and Machinery ₹ 72,000.
(4) R.D.D. to be increased up to ₹ 6,000
(5) The old partners decided to keep half of the amount of goodwill in the business.
(6) Sundry creditors are to be revalued at ₹ 99,000.
Prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of new [um.
