Question 70 Chapter 5 - Unimax Class 12 Part 1 - 2021

1. Suresh would bring in Rs. 28400 as his share of capital.
   
2. Stock would be depreciated by Rs. 3000 and furniture by Rs. 900.
   
3. A provision of Rs. 1300 be made for outstanding rapairs bill.
   
4. The value of land and building be appreciated upto Rs. 65000.
5. Goodwill of the firm is valued at Rs. 84000 before the admission of Suresh and he is unable to bring his share of assets in cash.

Pass necessary Journal Entries to record the above arrangements and prepare Revaluation account, Capital a/cs and the new Balance Sheet of the firm after Suresh’s admission.

The solution of Question 70 Chapter 5 - Unimax Class 12 Part 1: -

Journal

Date	Particulars		L.F.	Debit	Credit
	Building a/c	Dr.		15,000
	To Revaluation A/c				15,000
	(Being value of assets increased)
	Revaluation a/c	Dr.		5,200
	To Stock a/c				3,000
	To Furniture a/c				900
	To Outstanding repairs bill a/c				1,300
	(Being value of asset decreased)
	Revaulation a/c	Dr.		9,800
	To Alok’s Capital A/c				4,200
	To Vijay’s Capital a/c				3,500
	To Krishan’s Capital a/c				2,100
	(Being profit distributed among old partners’ in old ratio)
	Cash a/c	Dr.		28,400
	To Suresh’s Capital A/c				28,400
	(Being goodwill brought by new partner)
	Suresh’s Capital a/c	Dr.		8,400
	To Alok’s Capital A/c				3,600
	To Vijay’s Capital a/c				3,000
	To Krishan’s Capital a/c				1,800
	(Being compensation paid to old partner’s as Suresh’s share of goodwill)

Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To Stock a/c		3,000	By Building a/c	15,000
To Furniture a/c		900
To Provision for outstanding repairs bill		1,300
To Profit on revaluation
Alok ( 6 : 5 : 3 )	4,200
Vijay	3,500
Krishan	2,100	9,800
		15,000		15,000

Capital Accounts

Particulars	Alok	Vijay	Krishan	Suresh	Particulars	Alok	Vijay	Krishan	Suresh
To Alok’s Cap.	-	-	-	3,600	By Balance b/d	40,000	35,000	25,000	-
To Vijay Cap.	-	-	-	3,000	By Cash a/c	-	-	-	28,400
To Vijay Cap.	-	-	-	1,800	By Suresh’s Cap.	3,600	3,000	1,800	-
To Balance c/d	47,800	41,500	28,900	20,000	By Profit on rev.	4,200	3,500	2,100	-
	47,800	41,500	28,900	28,400		47,800	41,500	28,900	28,400

Balance Sheet

Liabilities		Rs.	Assets	Rs.
Bills Payable		6,000	Land and Building	65,000
Capital Accounts			Furniture	6,600
Alok	47,800		Stock	35,000
Vijay	41,500		Debtors	15,500
Krishan	28,900		Bills Receivable	5,000
Suresh	20,000	1,38,200	Bank	4,500
Creditors		16,000	Cash (1500 + 28400)	29,900
Outstanding repairs bill		1,300
		1,61,500		1,61,500

Working Note:

Suresh’s share of goodwill = 1/10 X 84000 = Rs. 8400

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