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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Amit and Anil are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet as on 31st March, 2025 showed: Creditors ₹58,000; General Reserve ₹12,000; Capitals – Amit ₹1,80,000, Anil ₹1,50,000; and assets – Cash in Hand ₹5,000, Cash at Bank ₹45,000, Debtors ₹60,000, Machinery ₹1,00,000, Stock ₹40,000, Building ₹1,50,000. Ankit is admitted on that date: (a) Ankit brings ₹1,00,000 capital and ₹60,000 goodwill for a 1/4th share; (b) Machinery appreciated to ₹1,20,000 and Building by 10%; (c) Stock overvalued by ₹4,000; (d) General Reserve to remain at its original value; (e) Provision for Doubtful Debts @ 5% of debtors; (f) Creditors unrecorded to the extent of ₹1,000. Prepare the Revaluation Account and Partners’ Capital Accounts.
Revaluation Account
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Stock A/c | 4,000 | By Machinery A/c | 20,000 |
| To Provision for Doubtful Debts A/c | 3,000 | By Building A/c | 15,000 |
| To Creditors A/c (unrecorded) | 1,000 | ||
| To Profit (Amit 18,000; Anil 9,000) | 27,000 | ||
| Total | 35,000 | Total | 35,000 |
Partners’ Capital Accounts
| Particulars (Dr.) | Amit | Anil | Ankit | Particulars (Cr.) | Amit | Anil | Ankit |
|---|---|---|---|---|---|---|---|
| To Balance c/d | 2,40,000 | 1,80,000 | 1,00,000 | By Balance b/d | 1,80,000 | 1,50,000 | – |
| By Bank A/c (Capital) | – | – | 1,00,000 | ||||
| By Premium for Goodwill A/c | 40,000 | 20,000 | – | ||||
| By Revaluation A/c (Profit) | 18,000 | 9,000 | – | ||||
| By Ankit’s Current A/c (General Reserve) | 2,000 | 1,000 | – | ||||
| Total | 2,40,000 | 1,80,000 | 1,00,000 | Total | 2,40,000 | 1,80,000 | 1,00,000 |
Working Note: As the General Reserve (₹12,000) is retained, Ankit’s share (₹12,000 × 1/4 = ₹3,000) is charged to his Current Account and credited to Amit and Anil in the sacrificing ratio 2 : 1 (Amit ₹2,000; Anil ₹1,000).
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.55 - 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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