Question 72 Chapter 5 of Class 12 Part – 1 Usha Publication

Question 72 Chapter 5 of Class 12 Part – 1 Usha Publication

72. Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2 : 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri a common friend, decides to help them. Therefore, they admitted her into partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital.

Liabilities		Rs	Assets	Rs
General reserve		30,000	Machinery	1,20,000
Creditors		30,000	Furniture	80,000
Employees provident fund		40,000	Stock	50,000
Capitals			Sundry debtors	30,000
Sahaj	1,20,000		Cash	20,000
Nimish	80,000	2,00,000
		3,00,000		3,00,000

It was decided to :
(i) Reduce the value of stock by ₹ 5,000.
(ii) Depreciate furniture by 10% and appreciate machinery by 5%.
(iii) 3,000 of the debtors proved bad. A provision of 5% was to created on Sundry Debtors for doubtful debts.
(iv) Goodwill of the firm was valued at ₹ 45,000.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm.

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Revaluation Account

Particulars	₹	Particulars		₹
To Stock a/c	5,000	By Machinery a/c		6,000
To Furniture a/c	8,000	By Loss transferred to:-
To Bad debts	3,000	Sahaj:-	7,567
To Provision for D/Debts a/c	1,350	Nimish:-	3,783	11,350
	17,350			17,350

Partners’ Capital Account

Particulars	Sahaj	Nimish	Gauri	Particulars	Sahaj	Nimish	Gauri
To Revaluation (loss)	7,567	3,783		By Balance b/d	1,20,000	80,000
				By General Reserve	20,000	10,000
				By Premium for goodwill A/c	10,000	5,000
To Balance c/d	1,42,433	91,217	1,16,825	By Cash a/c			1,16,825
	1,50,000	95,000	1,16,825		1,50,000	95,000	1,16,825

Balance Sheet

Liabilities		Amount	Assets		Amount
Creditors		30,000	Machinery		1,26,000
Employee Provident Fund		40,000	Furniture		72,000
Capital Accounts			Stock		45,000
Sahaj	1,42,433		Debtors	27,000
Nimish	91,217		Less provision For debts	1,350	25,650
Gauri	1,16,825	3,50,475	Cash		1,51,825
		4,20,475			4,20,475

Working Note:-

Calculate Proportionate capital of Gauri

= Total adjusted capital X Remaining Share of Sahaj & Nimish

(i) Total Capital of New Firm of the basis of Gauri's Capital:-

Total capital of New firm	=	₹ (1,42,433 + 91,217)	x	3
				2
	=	₹ 2,33,650	x	4
				1
	=	₹ 3,50,475

Let total Share of the firm = 1

Share of profit acquired by Gauri	=	1
		3

Remaining share	=	1	-	1
				3
	=	2
		3