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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

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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.

रोजकीर्द नोंद
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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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पाठ 5: Admission of a partner - Exercises [पृष्ठ १७४]

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

संबंधित प्रश्‍न

Anil and Sunil were partners sharing profits and losses in the ratio of 2:1 respectively. Their Balance Sheet was as follows:

Balance Sheet as on 31st March 2010
Liabilities Amount (Rs) Assets Amount (Rs)
Capital A/c   Cash at Bank 4,000
Anil 24,000 Debtors 15,000
Sunil 16,000 Stock 23,500
Trade Creditors 26,000 Furniture 5,000
Anil’s Loan A/c 6,500 Building 25,000
  72,500   72,500

On 1st April 2010, Ram is admitted in the partnership on the following terms:
(1) Ram should bring in cash of Rs. 12,000 as capital for 1/5th share in future profit.
(2) Goodwill A/c is raised in the books of the firm for Rs. 4,500.
(3) A building is revalued at Rs. 28,000 and the value of stock be reduced by Rs. 1,500.
(4) Reserve for doubtful debts is provided at 5% on debtors.

Prepare:
(a) Profit and Loss Adjustment account.
(b) Capital Accounts of partners.
(c) Balance Sheet of the new firm.


Write the word/term or phrase which can substitute the following statement.
The account which shows change in the values of assets.


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


Find the Odd one.


A and B are partners in a firm sharing profits and losses in the ratio of 1:1. C is admitted. A surrenders `1/4`th share and B surrenders `1/5`th of his share in favor of C. Calculate the new profit sharing ratio.


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.


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.


Revaluation A/c is a _________.


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


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


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