Q.No.81 | Chapter 5 – Admission of Partner | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

 

 

The solution of Question 81 Chapter 5 of +2-A: -

Date	Particulars		L.F.	Debit	Credit
	Creditors A/c	Dr		10,000
	To Abhay’s Capital A/c				10,000
	(Being amount due to Abhay transferred to his Capital A/c)
	Cash A/c	Dr		60,000
	To Abhay’s Capital A/c				55,000
	To Premium for Goodwill A/c (WN1)				5,000
	(Being Capital and goodwill paid by the new partner
	Premium for Goodwill A/c	Dr		5,000
	To Atul’s Capital A/c				3,000
	To Amit’s Capital A/c				2,000
	(Being premium for goodwill adjusted in 3:2)
	Revaluation A/c	Dr		9,500
	To Furniture A/c				3,000
	To Stock A/c				4,000
	To Provision for Doubtful Debts A/c				2,500
	(Being assets revalued and liabilities reassessed)
	Plant & Machinery A/c	Dr		18,000
	To Revaluation A/c				18,000
	(Being appreciation in plant & machinery provided for)
	Revaluation A/c (WN2)	Dr		8,500
	To Atul’s Capital Ac				5,100
	To Amit’s Capital A/c				3,400
	(Being revaluation profit transferred to partner’s capital A/c)

Working Note:-

Calculation of Goodwill brought in by Abhay:

Average Profits	=	(Normal profits from 31st March, 2016 to 31st March, 2019)/2
	=	(25,000 + 10,000 + 2,500 + 2,500)/4
	=	10,000
Goodwill	=	Average Profits × No. of years of Purchase
	=	(10,000 × 2)
	=	20,000
Goodwill brought in by Abhay	=	(20,000 × 1/4
	=	5,000

 

Calculation of Revaluation Profit/Loss:

Debit side total	=	(3,000 + 4,000 + 2,500)
	=	9,500
Credit side total	=	18,000
Gain on Revaluation	=	(18,000 – 9,500)
	=	8,500

 

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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