Question 67 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 67 Chapter 5 - Unimax Class 12 Part 1 - 2021

67. A, B and C are partners sharing profits and losses in ratio of 2 : 3 : 5. On 31st March, 2021 their Balance Sheet was as follows :

Liabilities	Amount	Assets	Amount
Sundry Creditors	64000	Cash	18000
Capital :		B/R	14000
A	36000	Stock	44000
B	44000	Debtors	42000
C	52000	Machinery	94000
Bills Payable	22000	Goodwill	20000
General Reserve	14000
	2,32,000		232000

They decide to admit D into the partnership on the following terms :

1. Machinery is to be depreciated by 15%.
   
2. Stock is to be revalued at Rs. 48000.
   
3. A, B and C have a Joint Life Policy whose surrender value is Rs. 12000. They decide to show surrender value as an asset in the books.
   
4. Outstanding rent is Rs. 1900.
5. D is to bring Rs. 6000 as goodwill and sufficient capital for a 2/5th share in total capital of the firm.

You are required to prepare Revaluation Account, Partners’ Capital accounts, Cash Account and Balance Sheet of new firm.

The solution of Question 67 Chapter 5 - Unimax Class 12 Part 1: -

Revaluation A/c

Particulars	Rs.	Particulars		Rs.
To Machinery	14,100	By Stock a/c		4,000
To Outstanding rent a/c	1,900	By loss on revaluation
		A	2,400
		B (2 : 3 : 5)	3,600
		C	6,000	12,000
	16,000			16,000

Capital Accounts

Particulars	A	B	C	D	Particulars	A	B	C	D
To Goodwill a/c	4,000	6,000	10,000	-	By Balance b/d	36,000	44,000	52,000	-
To Loss on Rev.	2,400	3,600	6,000	-	By General res.	2,800	4,200	7,000	-
To Balance c/d	36,000	44,000	52,000	88,000	By JLP a/c	2,400	3,600	6,000	-
					By Premium a/c	1,200	1,800	3,000	-
					By Cash a/c	-	-	-	88,000
	42,400	53,600	68,000	88,000		42,000	33,000	20,000	88,000

Cash A/c

Particulars	Rs.	Particulars	Rs.
To Balance c/d	18,000	By Balance c/d	1,12,000
To B’s capital a/c	88,000
To Premium a/c	6,000
	1,12,000		16,000

Balance Sheet

Liabilities		Rs.	Assets	Rs.
Sundry Creditors		64,000	Bills Receivable	1400
Capital Accounts			Stock	4800
A	36,000		Machinery	7990
B	44,000		Cash	112000
C	52,000		Debtors	4200
D	88,000	2,20,000	Joint Life Policy	1200
Bills Payable		22,000
Outstanding Rent		1,900
		3,07,900		307900

Working Note:

Let Total share = 1
D’s share = 2/5
Remaining share = 1 – 2/5 = 3/5
(A) Calculation of new partner’s capital :
For 3/5 share capital contributed = Rs. 132000
For 1 share capital contributed = 132000 X 5/3
For 2/5 share capital contributed = 132000 X 5/3 X 2/5 = Rs. 88000

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