Q.No.72 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

 

The solution of Question 72 Chapter 5 of +2-A: -

 

Date	Particulars		L.F.	Debit	Credit
	Revaluation A/c	Dr		2,000
	To Provision for Doubtful Debts A/c				2,000
	(Provision on debtors increased) cash)
	Revaluation A/c	Dr		2,000
	To Creditors A/c				2,000
	(Creditors increased)
	Revaluation A/c	Dr		2,000
	To Claim for Damages A/c				2,000
	(Liability increased)
	Outstanding Rent A/c	Dr		1,800
	To Revaluation A/c				1,800
	(Liability decreased)
	X’s Capital A/c	Dr		2,520
	Y’s Capital A/c	Dr		1,680
	To Revaluation A/c				4,200
	(Loss on revaluation transferred to Partners’ Capital A/c)
	Workmen Compensation Reserve A/c	Dr		5,600
	To Workmen Compensation Claim A/c				3,000
	To X’s Capital A/c				1,560
	To Y’s Capital A/c				1,040
	(Surplus Workmen Compensation Reserve distributed)
	Bank A/c	Dr		40,000
	To Z’s Capital A/c				40,000
	(Liability increased)

 

 

Partners’ Capital Account the year ended 31st March, 2019

Parti culars	X	Y	C	Partic ulars	X	Y	z
To Profit & Loss A/c	2,400	1,600	-	By Balance B/d	50,000	60,000	-
To Revaluation A/c	2,520	1,680		By Bank A/c A/c	-	-	40,000
				By Workmen Compensation Reserve A/c	1,560	1,040	-
				By Z's Current A/c	1,800	1,200	-
To Balance c/d	48,440	58,960	40,000
	53,360	62,240	40,000		53,360	62,240	40,000

 

 

Balance Sheet

Liabilities		Amount	Assets		Amount
Outstanding Rent		11,200	Cash		50,000
Workmen Compensation Claim		3,000	Stock		20,000
Creditors		22,000	Machinery		38,600
Claim for Damages		2,000	Z ‘s Current A/c		3,000
Capital:			Debtors	80,000
X	48,440		Less : Provision for D.D	6,000	74,000
Y	58,960
Z	40,000	1,47,400
		1,85,600			1,85,600

Working Note:-

Calculation of Goodwill

Average Profit	=	10,000+20,000+30,0003=60,0003
				=	Rs 20,000
Goodwill	=	Average Profits × Number of years' purchase
	=	(20,000×1.5) - 12,000
	=	30,000 - 12,000
	=	Rs 18,000

Calculation of Z’s share of goodwill

Z's share of goodwill	=	18,0000	X	1
				6
	=	Rs 3,000

 

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

 

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