Question 67 Chapter 5 of +2-A
67. The Balance Sheet of Madhu and Vidhi who are sharing profits in the ratio of 2 : 3 as at 31st March, 2016 is given below:
| Liabilities | Assets | |||
| Madhu's Capital | 5,20,000 | Land and Building | 3,00,000 | |
| Vidhi's Capital | 3,00,000 | Machinery | 2,80,000 | |
| General Reserve | 30,000 | Stock | 80,000 | |
| Bills Payable | 1,50,000 | Debtors | 3,00,000 | |
| Less: Provision | 10,000 | 2,90,000 | ||
| Bank | 50,000 | |||
| 10,00,000 | 10,00,000 |
Madhu and Vidhi decided to admit Gayatri as a new partner from 1st April, 2016 and their new profit-sharing ratio will be 2 : 3 : 5. Gayatri brought 4,00,000 as her capital and her share of goodwill premium in cash. (a) Goodwill of the firm was valued at 3,00,000. (b) Land and Building was found undervalued by 26,000. (c) Provision for doubtful debts was to be made equal to 5% of the debtors. (d) There was a claim of 6,000 on account of workmen compensation. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm
Revaluation Account
| Liabilities |
Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Provision for Doubtful Debts | 5,000 | Land &Building | 26,000 | ||
| Claim against Workmen Compensation | 6,000 | ||||
| Capital: | |||||
| Revaluation Profit | |||||
| Madhu’s Capita | 6,000 | ||||
| Vidhi’s Capital | 9,000 | 15,000 | |||
| 26,000 | 26,000 | ||||
Partners’ Capital Account the year ended 31st March, 2019
| Parti culars |
Madhu | Vidhi | Gayat |
Partic |
Madhu | Vidhi | Gayat |
|---|---|---|---|---|---|---|---|
| By Balance B/d | 5,20,000 | 3,00,000 | - | ||||
| By Cash A/c | - | - | 4,00,000 | ||||
| By General ReserveA/c | 12,000 | 18,000 | - | ||||
| By Premium for GoodwillA/c | 60,000 | 90,000 | - | ||||
| By RevaluationA/c | 6,000 | 9,000 | - | ||||
| To Balance c/d | 5,98,000 |
4,17,000 | 4,00,000 | ||||
| 5,98,000 | 4,17,000 | 4,00,000 | 5,98,000 | 4,17,000 | 4,00,000 |
Balance Sheet
| Liabilities |
Amount | Assets | Amount | ||
|---|---|---|---|---|---|
| Bills Payable | 1,50,000 | Bank | (50,000 + 4,00,000 + 1,50,000) | 6,00,000 | |
| Claim for Workmen Compensation | 6,000 | Sundry Debtors | 3,00,000 | ||
| Capital: | Less: Provision for Doubtful Debt | 15,000 | 2,85,000 | ||
| Madhu | 5,98,000 | Stock | 80,000 | ||
| Vidhi | 4,17,000 | Machinery | 2,80,000 | ||
| Gayatri | 4,00,000 | 14,15,000 | Land &Building | 3,26,000 | |
| 15,71,000 | 15,71,000 | ||||
Working Note:-
Calculation of Gayatri’s Share of Goodwill
| Gayatri's share | = | 3,00,000 | X | 5 |
| 10 | ||||
| = | 1,50,000 |
New Ratio=Old Ratio – sacrifice Ratio
| Madhu | = | 2 | - | 2 |
| 5 | 10 |
| = | 4 - 2 |
| 10 |
| = | 2 |
| 10 |
| Vidhi | = | 3 | - | 3 |
| 5 | 10 |
| = | 6 - 3 |
| 10 |
| = | 3 |
| 10 |
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "Q.No.67 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "Q.No.67 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1" instantly.
