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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
A and B share profits and losses in the ratio of 2 : 1. Their Balance Sheet as at 31st March, 2025 showed: Bills Payable ₹10,000; Creditors ₹58,000; Outstanding Expenses ₹2,000; Capitals – A ₹1,80,000, B ₹1,50,000; and assets – Cash in Hand ₹10,000, Cash at Bank ₹40,000, Sundry Debtors ₹60,000, Stock ₹40,000, Plant ₹1,00,000, Building ₹1,50,000. C is admitted: (a) C brings ₹1,00,000 capital and ₹60,000 goodwill for a 1/4th share; (b) Plant appreciated to ₹1,20,000 and Building by 10%; (c) Stock overvalued by ₹4,000; (d) Provision for Doubtful Debts @ 5% of debtors; (e) Creditors unrecorded to the extent of ₹1,000. Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet after C’s admission.
Revaluation Account
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Stock A/c | 4,000 | By Plant 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 (A 18,000; B 9,000) | 27,000 | ||
| Total | 35,000 | Total | 35,000 |
Partners’ Capital Accounts
| Particulars (Dr.) | A | B | C | Particulars (Cr.) | A | B | C |
|---|---|---|---|---|---|---|---|
| To Balance c/d | 2,38,000 | 1,79,000 | 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 | – | ||||
| Total | 2,38,000 | 1,79,000 | 1,00,000 | Total | 2,38,000 | 1,79,000 | 1,00,000 |
Balance Sheet after admission of C
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Bills Payable | 10,000 | Cash in Hand | 10,000 |
| Creditors (58,000 + 1,000) | 59,000 | Cash at Bank (40,000 + 1,60,000) | 2,00,000 |
| Outstanding Expenses | 2,000 | Sundry Debtors (60,000 – 3,000) | 57,000 |
| Capitals: A 2,38,000; B 1,79,000; C 1,00,000 | 5,17,000 | Stock (40,000 – 4,000) | 36,000 |
| Plant | 1,20,000 | ||
| Building | 1,65,000 | ||
| Total | 5,88,000 | Total | 5,88,000 |
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.60 - 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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