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Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7 : 5. Their balance sheet as on 31st March, 2019, is as follows: - Accountancy

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प्रश्न

Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7 : 5. Their balance sheet as on 31st March, 2019, is as follows:

Liabilities Assets
Capital accounts:     Land 80,000
Amal 70,000   Furniture 20,000
Vimal 50,000 1,20,000 Stock 25,000
Sundry creditors   30,000 Debtors 30,000
Profit and loss A/c   24,000 Debtors 19,000
    1,74,000   1,74,000

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of ₹ 30,000 for 1/3 share in the future profit subject to the following adjustments.

  1. Stock to be depreciated by ₹ 5,000
  2. Provision for doubtful debts to be created for ₹ 3,000
  3. Land to be appreciated by ₹ 20,000

Prepare revaluation account and capital account of partners after admission.

खातेवही
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उत्तर

Dr. Revaluation Account Cr.
Particulars Particulars
To Stock A/c 5,000 By Land 20,000
To Prov. for bad and doubtful 3,000    
To Amal's Cap A/c 7,000      
To Vimal's Cap A/c 5,000 12,000    
    20,000   20,000

 

Dr. Capital Account Cr.
Particulars Amal Vimal Nirmal Particulars Amal Vimal Nirmal
To Balance c/d 91,000 65,000 30,000 By Balance b d 70,000 50,000 -
        By Profit and Loss A/c 14,000 10,000 -
        By Revaluation A/c 7,000 5,000 -
        By Bank A/c - - 30,000
  91,000 65,000 30,000   91,000 65,000 30,000
        By Balance b/d 91,000 65,000 30,000
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पाठ 5: Admission of a partner - Exercises [पृष्ठ १७६]

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सामाचीर कलवी Accountancy [English] Class 12 TN Board
पाठ 5 Admission of a partner
Exercises | Q IV 7. | पृष्ठ १७६

संबंधित प्रश्‍न

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


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.

_____________ =`"Total profit"/"Number of years"`


The balance sheet of Medha and Radha who share profit and loss in the ratio 3: 1 is as follows:

Balance Sheet as on 31 March 2018
Liabilities Amount (₹) Assets Amount (₹)
Sundry Creditors 80,000 Cash 78,000
Bills Payable 20,000 Sundry debtors 64,000
Bank overdraft 20,000 Stock 40,000
Capital A/c:   Plant and Machinery 60,000
Medha 1,20,000 Furniture 22,000
Radha 40,000 Land and Building 32,000
General reserve 16,000    
  2,96,000   2,96,000

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

  1. Krutika is taken as partner on 1st April 2017. She will pay 40,000 as her capital for 1/5th share in future profits and Rs. 2,500 as goodwill.
  2. A 5% provision for bad and doubtful debt be created on debtors.
  3. Furniture be depreciated by 20%.
  4. Stocks be appreciated by 5% and plant and machinery by 20%.
  5. The Capital accounts of all partners be adjusted in their new profit sharing ratio by adjusting the amount through current account.
  6. The new profit sharing ratio will be 3/5:1/5:1/5 respectively.

You are required to prepare profit and loss adjustment A/c, Partner’s Capital A/c, Balance Sheet of the new firm.


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.

  1. Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000.
  2. Provision for doubtful debts is to be increased to ₹ 5,500
  3. An unrecorded investment of ₹ 6,000 is to be brought into account
  4. 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.


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.


If at the time of admission, there is some unrecorded liability, it will be:


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?


Hansa and Kavya share profits and losses in the ratio of 3: 2 respectively. Their Balance Sheet as on 31st March, 2023 was as under:

Balance Sheet as on 31st March, 2023
Liabilities Amount (₹) Assets Amount (₹)
Bills Payable 90,000 Cash at Bank 1,500
Reserve fund 60,000 Sundry Debtors 1,33,500
Capital A/c:   Stock 51,000
Hansa 2,16,000 Furniture 72,000
Kavya 1,44,000 Plant 1,80,000
    Building 72,000
  5,10,000   5,10,000

They admit Munir into partnership on 1-4-2023. The terms being that:

(1) He shall have to bring in ₹ 1,20,000 as his Capital for 1/4th 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 Profits were:

2019-20 ₹ 96,000
2020-21 ₹ 1,62,000
2021-22 ₹ 1,47,000

(3) Reserve for Doubtful debts is to be created at ₹ 3,000.

(4) Closing stock is valued at ₹ 45,000.

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

Prepare Profit and Loss Adjustment Alc, Capital Accounts of Partners and Balance Sheet of the new firm.


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