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Seenu and Siva are partners sharing profits and losses in the ratio of 5 : 3. In the view of Kowsalya admission, they decided - Accountancy

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प्रश्न

Seenu and Siva are partners sharing profits and losses in the ratio of 5 : 3. In view of Kowsalya admission, they decided

  1. To increase the value of building by ₹ 40,000.
  2. To bring into record investments at ₹ 10,000, which have not so far been brought into account.
  3. To decrease the value of machinery by ₹ 14,000 and furniture by ₹ 12,000.
  4. To write off sundry creditors by ₹ 16,000.

Pass journal entries and prepare a revaluation account.

रोजनामा प्रविष्टि
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उत्तर

Journal Entries

Date Particulars L.F. Debit
Credit
  Revaluation A/c ..............Dr.
To Machinery A/c
To Furniture A/c
(Loss items entered in the debit side)
  26,000
-
-
-
14,000
12,000
  Building A/c .............Dr.
Investment A/c ...............Dr.
Sundry Creditors A/c ..................Dr.
To Revaluation A/c
(Profit items entered in credit side)
  40,000
10,000
16,000
-
-
-
-
66,000
  Revaluation A/c ............Dr.
To Seenu's Capital A/c
To Siva's Capital A/c
(Profit of revaluation A/c transferred to old partners capital old ratio)
  40,000
-
-
-
25,000 15,000

 

Dr. Revaluation Account Cr.
Particulars Particulars
To Machinery A/c 14,000 By Building A/c 40,000
To Furniture A/c 12,000 By Investment A/c 10,000
To Seenu's Cap. 25,000   By Sundry Creditors A/c 16,000
To Siva's Cap. 15,000 40,000    
    66,000   66,000
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अध्याय 5: Admission of a partner - Exercises [पृष्ठ १७४]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
अध्याय 5 Admission of a partner
Exercises | Q IV 5. | पृष्ठ १७४

संबंधित 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.


Write the word/term or phrase which can substitute the following statement.  
Account which is opened to record the gains and losses on revaluation.


Answer the following question in one sentence.
What shows credit balance of revaluation account ?


Shanti, Samadhan and Sangarsh were sharing profits and losses in the ratio of 7: 5: 4. Their balance sheet as on 31st .03.2013 was as follows:

Balance Sheet as on 31st March,2013.
Liabilities
Amount
Assets
Amount
Capitals:
 
Furniture
17000
Shanti
23000
Machinery
18000
Samadhan
15000
Building
16000
Sangharsh
12000
Cash
37000
Bills Payable
4000
   
Creditors
8000
   
Loan
10000
   
General Reserve
16000
   
       
 
88000
 
88000
Sangharsh died on 30 th June, 2013, and the following adjustments were agreed as per deed.
 
(1) Furniture, Machinery and Building are to be revalued at Rs. 16,700, Rs. 16,200, Rs. 30,100 respectively.
 
(2) Sangharsh’s share in goodwill is to be valued from firm’s goodwill which was valued at two times of the average profit of last three years.
Profits of the last three years - Rs. 30,000, Rs. 25,000, Rs. 20,000.
 
(3) His profit up to the date of death is to be calculated on the basis of profit of last year.
 
(4) Sagharsh was entitled to get a salary of Rs. 800 per month.
 
(5) Interest on capital at 10% to be allowed.
 
(6) Sangharsh’s drawing up to the date of death was Rs. 600 per month.
 
Prepare : (i) Sangarsh’s capital account showing amount payable to his executor.
 
(ii) Give working notes for share of goodwill and profit.

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


Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows.

Balance Sheet as on 31st March, 2018
Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹)
Sundry Creditors   40,000 Cash   40,000
Bill Payable   10,000 Sundry debtors   32,000
Bank Overdraft   11,000 Land & Building   16,000
Capital A/c:     Stock   20,000
Deep 60,000   Plant and machinery   30,000
Karan 20,000 80,000 Furniture   11,000
General Reserve   8,000      
    1,49,000     1,49,000

They admit Shubham into Partnership on 1 April 2018 The term being that:

  1. He shall have to bring in ₹ 20,000 as his capital for 1/5 Share in future profits & 10,000 as his share of Goodwill.
  2. A Provision for 5% doubtful debts to be created on Sundry Debtors.
  3. Furniture to be depreciated by 20%
  4. Stock should be appreciated by 5% and Building be appreciated by 20%
  5. Capital A/c of all partners be adjusted in their new profit sharing ratio through cash account.

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


At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of __________.


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

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.


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.


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