Loading Tutorstips...
✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Aan and Shaan share profits in 3 : 2. Their Balance Sheet as at 31st March, 2024 showed: Creditors ₹2,00,000, Employees’ Provident Fund ₹30,000, Bank Overdraft ₹1,70,000, Reserve ₹1,50,000, Capitals – Aan ₹7,00,000, Shaan ₹6,00,000; and assets – Cash ₹1,48,000, Debtors ₹2,05,000 less Provision ₹3,000 (₹2,02,000), Stock ₹2,00,000, Plant and Machinery ₹6,00,000, Building ₹7,00,000. Mohan is admitted for a 1/4th share: (i) Mohan brings capital equal to 1/4th of the total capital of Aan and Shaan after all adjustments including premium; (ii) Building appreciated 20% and stock depreciated to 70%; (iii) Provision for Doubtful Debts raised to ₹10,000; (iv) a provision of ₹18,000 for outstanding legal charges; (v) Mohan’s share of goodwill premium calculated as ₹1,00,000. Prepare the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet.
Revaluation Account
| Particulars (Dr.) | ₹ | Particulars (Cr.) | ₹ |
|---|---|---|---|
| To Stock A/c | 60,000 | By Building A/c | 1,40,000 |
| To Provision for Doubtful Debts A/c | 7,000 | ||
| To Outstanding Legal Charges A/c | 18,000 | ||
| To Profit (Aan 33,000; Shaan 22,000) | 55,000 | ||
| Total | 1,40,000 | Total | 1,40,000 |
Partners’ Capital Accounts
| Particulars (Dr.) | Aan | Shaan | Mohan | Particulars (Cr.) | Aan | Shaan | Mohan |
|---|---|---|---|---|---|---|---|
| To Balance c/d | 8,83,000 | 7,22,000 | 4,01,250 | By Balance b/d | 7,00,000 | 6,00,000 | – |
| By Cash A/c (Capital) | – | – | 4,01,250 | ||||
| By Premium for Goodwill A/c | 60,000 | 40,000 | – | ||||
| By Revaluation A/c | 33,000 | 22,000 | – | ||||
| By Reserve A/c | 90,000 | 60,000 | – | ||||
| Total | 8,83,000 | 7,22,000 | 4,01,250 | Total | 8,83,000 | 7,22,000 | 4,01,250 |
Balance Sheet after Mohan’s admission
| Liabilities | ₹ | Assets | ₹ |
|---|---|---|---|
| Creditors | 2,00,000 | Cash (1,48,000 + 1,00,000 + 4,01,250) | 6,49,250 |
| Bank Overdraft | 1,70,000 | Debtors (2,05,000 – 10,000) | 1,95,000 |
| Employees’ Provident Fund | 30,000 | Stock | 1,40,000 |
| Outstanding Legal Charges | 18,000 | Plant and Machinery | 6,00,000 |
| Capitals: Aan 8,83,000; Shaan 7,22,000; Mohan 4,01,250 | 20,06,250 | Building (7,00,000 + 1,40,000) | 8,40,000 |
| Total | 24,24,250 | Total | 24,24,250 |
Working Note: Premium ₹1,00,000 shared 3 : 2 (Aan ₹60,000; Shaan ₹40,000). Mohan’s capital = 1/4 of (₹8,83,000 + ₹7,22,000) = 1/4 × ₹16,05,000 = ₹4,01,250.
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.78 - Admission of a Partner", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 4 - Admission of a Partner.
It is primarily curated for Class 11 and Class 12 high school commerce, accounting, and economics students, as well as aspirants preparing for board exams or CA Foundation.
You can take our custom-built interactive practice quiz directly on this page to test your understanding of "T.S. Grewal Class 12 Chapter 4 Q.78 - Admission of a Partner" instantly.