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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ashish and Vishesh were partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2022 showed: Creditors ₹30,000; Outstanding Electricity Bill ₹20,000; Capitals – Ashish ₹3,00,000, Vishesh ₹2,00,000; and assets – Cash at Bank ₹50,000, Debtors ₹80,000 less Provision for Bad Debts ₹2,000 (₹78,000), Stock ₹1,12,000, Machinery ₹3,00,000, Profit & Loss A/c (Dr.) ₹10,000. On 1st April, 2022, Manya was admitted for a 1/4th share on the following terms: (i) Manya brings ₹1,00,000 as capital and ₹50,000 as her share of goodwill premium in cash; (ii) the outstanding electricity bill will be paid off; (iii) stock was found overvalued by ₹12,000. Pass the necessary Journal entries. (CBSE 2023)
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| (i) | Outstanding Electricity Bill A/c Dr. | 20,000 | ||
| To Bank A/c | 20,000 | |||
| (Outstanding electricity bill paid off) | ||||
| (ii) | Revaluation A/c Dr. | 12,000 | ||
| To Stock A/c | 12,000 | |||
| (Stock reduced, being overvalued by ₹12,000) | ||||
| (iii) | Ashish’s Capital A/c Dr. | 7,200 | ||
| Vishesh’s Capital A/c Dr. | 4,800 | |||
| To Revaluation A/c | 12,000 | |||
| (Loss on revaluation transferred in the old ratio 3 : 2) | ||||
| (iv) | Ashish’s Capital A/c Dr. | 6,000 | ||
| Vishesh’s Capital A/c Dr. | 4,000 | |||
| To Profit & Loss A/c | 10,000 | |||
| (Accumulated loss written off in the old ratio 3 : 2) | ||||
| (v) | Bank A/c Dr. | 1,50,000 | ||
| To Manya’s Capital A/c | 1,00,000 | |||
| To Premium for Goodwill A/c | 50,000 | |||
| (vi) | Premium for Goodwill A/c Dr. | 50,000 | ||
| To Ashish’s Capital A/c | 30,000 | |||
| To Vishesh’s Capital A/c | 20,000 | |||
| (Premium distributed in the sacrificing ratio 3 : 2) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 4 Q.50 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
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