Question 46 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 46 Chapter 5 - Unimax Class 12 Part 1 - 2021

46. The Balance Sheet of A and B, who share profits in ratio of 3 : 2, on 1st April, 2021, is following :

Liabilities	Amount	Assets	Amount
Sundry Creditors	20,000	Cash in hand	3,000
Capital		Stock	15,000
A	30,000	Sundry Debtors	12000
B	20,000	Furniture	10000
		Plant and Machinery	30000
	70,000		70,000

On that date C is admitted into the partnership on the following terms :

(a)That C is to bring in Rs. 15000 as capital and Rs. 5000 as premium for goodwill for 1/6th share.

(b)That the value of stock is to be reduced by 10% while value of Plant and Machinery is to be appreciated by 10%.

(c)That furniture is to be reduced to Rs. 9000.

(d)That a provision for doubtful debts is to be created on Sundry debtors at 5% and Rs. 200 is to be provided for due electricity bill.

(e)Investment worth Rs. 1000 ( not mentioned in the balance sheet) is to be taken into account.

(f)A creditor of Rs. 100 is not likely to claim his money and is to be written off.
You are require to prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of new firm.

The solution of Question 46 Chapter 5 - Unimax Class 12 Part 1

  Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To Stock A/c		1500	By Plant and Machinery A/c	3000
To Furniture A/c		1000	By Investment A/c	1000
To Provision for doubtful debts a/c		600	By Creditors A/c	100
To out electricity bill a/c		200
To Profit on revaluation a/c
A (3 :2)	480
B	320	800
		4100		4100

  Capital Accounts

Particulars	A	B	C	Particulars	A	B	C
To Balance c/d	33480	22320	15000	By Balance b/d	30000	20000	_
				By Cash A/c	_	_	15000
				By Premium A/c	3000	2000	_
				By Profit on Revaluation a/c	480	320	_
	33480	22320	15000		33480	22320	15000

  Balance Sheet

Liabilities		Rs.	Assets		Rs.
Sundry Creditors		19900	Cash in hand		23000
Out electricity bill		200	Debtors	12000
Capital Accounts			Less : Provision	600	11400
A :	33480		Stock		13500
B :	22320		Furniture		9000
C :	15000	70800	Plant and Machinery		33000
			Investment		1000
		90900			90900

Working Note
A’s sacrifice
If nothing has been mentioned about sacrificing ratio, so they will sacrifice in old ratio.

 

https://tutorstips.com/what-is-partnership/

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 - Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 - Accounting for Partnership Firms - Fundamentals
• Chapter No. 3 - Goodwill: Nature and Valuation
• Chapter No. 4 - Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 - Admission of a Partner
• Chapter No. 6 - Retirement/Death of a Partner
• Chapter No. 7 - Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 - Company Accounts -  Accounting for Share Capital
• Chapter No. 9 - Company Accounts - Issue of Debentures
• Chapter No. 10 - Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 - Financial Statements of a Company
• Chapter No. 2 - Financial Statement Analysis 
• Chapter No. 3 - Tools of Financial Statement Analysis - Comparative Statements and Common- Size Statements
• Chapter No. 4 - Accounting Ratios
• Chapter No. 5 - Cash Flow Statement

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication