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Solution - Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows - CBSE (Science) Class 12 - Accountancy

ConceptPreparation of Revaluation Account and Balance Sheet

Question

Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows :

                                              Balance Sheet of Ajay,Aman and Anand as on 31-3-2015

Liabilities Amount(Rs.) Assets Amount(Rs.)

Creditors

Bills Payable

General Reserve

Capitals

      Ajay                                      5,00,000

      Aman                                     1,00,000

      Anand                                    1,60,000

1,47,000

33,000

2,10,000

 

 

 

7,60,000

Land

Building

Plant

Stock

Debtors

Bank

 

5,40,000

2,70,000

1,90,000

75,000

60,000

15,000

 

  11,50,000   11,50,000

From 1-4-2015 Ajay. Aman and Anand decided to share future profits equally. For this it was agreed that:

(i) Goodwill of the firm be valued at Rs1, 80,000.

(ii) Land be revalued at Rs.6,00,000 and building be depreciated by 10%.

(iii) Creditors of Rs.15,000 were not likely to be claimed and hence be written-off.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.

Solution

                                                         Revaluation Account

Dr.                                                                                                                                                    Cr.

Particulars Amount(Rs.) Particulars Amount(Rs.)

To Building A/c

To Revaluation Profit A/c

          Ajay                        24,000

          Aman                        4,800

          Anand                      19,200

27,000

 

 

 

48,000

By Land A/c

By Creditors A/c

 

 

 

60,000

15,000

 

 

 

  75,000   75,000

 

Partner’s Capital Account

Dr.                                                                                                                                                                                                               Cr.

Particulars Ajay(Rs.) Aman(Rs.) Anand(Rs) Particulars Ajay(Rs.) Aman(Rs.) Anand(Rs)

Ajay’s Capital A/c

Anand’s Capital A/c

Balance c/d

 

 

 

6,59,000

 

30,000

12,000

83,800

 

 

 

2,75,200

 

Balance B/d

R/V Profit

General Reserve

Aman’s Cap. A/c

5,00,000

24,000

1,05,000

30,000

1,00,000

4,800

21,000

 

1,60,000

19,200

84,000

12,000

  6,59,000 1,25,800 2,75,200   6,59,000 1,25,800 2,75,200

 

                                                                                Balance Sheet

Liabilities Amount(Rs.) Assets Amount(Rs.)

Capital

      Ajay                                        6,59,000

      Aman                                          83,800

      Anand                                      2,75,200 

Creditors                                        1,47,000

      Less: Written off                          15,000

Bills payable

 

 

 

 

10,18,000

 

1,32,000

33,000

 

Land                                               5,40,000

   Add: Increase                                 60,000

Building                                           2,70,000

   Less: Dep                                        27,000

Plant

Bank

Stock

Debtors

 

6,00,000

 

2,43,000

1,90,000

15,000

75,000

60,000 

  11,83,000    11,83,000 

 

Working Notes :

Old Ratio                    New Ratio

   5:1:4                          1:1:1

S/R of Ajay = Old Ratio - New Ratio=`5/10-1/3=5/30=>` Sacrificing

S/R of Aman = Old Ratio - New Ratio =`1/10-1/3=-7/30=>` Gainnig

S/R of Anand = Old Ratio - New Ratio =`4/10-1/3=2/30=>`Sacrificing

Aman will compensate Ajay and Anand

Aman’s Capital A/c                                            Dr 42,000

         To Ajay’s Capital A/c                                                      30,000

         To Anand’s Capital A/c                                                    12,000

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Solution for question: Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows concept: null - Preparation of Revaluation Account and Balance Sheet. For the courses CBSE (Science), CBSE (Arts), CBSE (Commerce)
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