Question 52 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 52 Chapter 5 - Unimax Class 12 Part 1 - 2021

52. X, Y and Z are equal partners with capitals of Rs. 1500, Rs. 1750 and Rs. 2000 respectively. They agree to admit W into partnership upon payment in cash of Rs. 1500 for 1/4th share of the goodwill and Rs. 1800 as his capital, both sums to remain in the business. The creditors of the old firm amounts to Rs. 3000 and the assets, a part from cash, consist of Motors Rs. 1200, Furniture Rs. 400, Stock Rs. 2650, Debtors Rs. 3780. The Motors and Furniture were revalued at Rs. 950 and Rs. 380 respectively and the depreciation was written off.
Give Journal Entries to give effect to the above arrangements, and also show the initial Balance Sheet of the new firm.

The solution of Question 52 Chapter 5 - Unimax Class 12 Part 1

Journal

Date	Particulars		L.F.	Debit	Credit
	Revaluation a/c	Dr.		270
	To Motors A/c				250
	To Furniture A/c				20
	(Being value of assets decreased)
	X’s capital a/c	Dr.		90
	Y’s capital A/c	Dr.		90
	Z’s Capital A/c	Dr.		90
	To Revaluation a/c				400
	(Being net loss transferred to old partners)
	Cash A/c	Dr.		3300
	To W’s Capital a/c				1800
	To Premium A/c				1500
	(Being capital and goodwill brought by new partners)
	Premium A/c	Dr.		1500
	To X’s capital a/c				500
	To Y’s capital A/c				500
	To Z’s Capital A/c				500

  Revaluation A/c

Particulars	Rs.	Particulars		Rs.
To Motors A/c	250	By Loss on revaluation
To Furniture A/c	20	X	90
		Y ( 1 : 1 : 1 )	90
		Z	90	270
	270			270

Capital Accounts

Particulars	X	Y	Z	W	Particulars	X	Y	Z	W
To Loss on revaluation	90	90	90		By Balance b/d	1500	1750	2000	_
To Balance c/d	1910	2160	2410	1800	By Cash A/c (1 : 1 : 1)	_	_	_	1800
					By Premium A/c	500	500	500	_
	2000	2250	2500	1800		2000	2250	2500	1800

  Balance Sheet

Liabilities		Rs.	Assets	Rs.
Creditors		3000	Motors	950
Capital Accounts			Furniture	380
X	1910		Stock	2650
Y	2160		Debtors	3780
Z	2410		Cash (220 + 1500 + 1800)	3520
W	1800	8280
		11280		11280

Working Note
S.R. = 1 : 1 : 1
Cash (Balance) = 3000 + 1500 + 1750 + 2000 – (1200 + 400 + 2650 + 378
                        = 8250 - 8030
                        = Rs. 220

 

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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