Question 84 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 84 Chapter 5 of +2-A

Question 84 Chapter 5 of +2-A

84.Following is the Balance Sheet of X and Y as at 31st March, 2019 who are partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively:

Liabilities     Assets    
Creditors   45,000 Cash at Bank   15,000
General Reserve   36,000 Debtors 60,000  
Capital A/cs:     Less: Provision for Doubtful Debts 2,400 57,600
X 1,80,000   Patents   44,400
Y 90,000 2,70,000 Investments   24,000
Current A/cs:     Fixed Assets   2,16,000
X 30,000   Goodwill   30,000
Y 6,000 36,000      
    3,87,000     3,87,000

Z is admitted as a new partner on 1st April, 2019 on the following terms:
(a) Provision for doubtful debts is to be maintained at 5% on Debtors.
(b) Outstanding rent amounted to 15,000.
(c) An accrued income of 4,500 does not appear in the books of the firm. It is now to be recorded.
(d) X takes over the Investments at an agreed value of 18,000
.(e) New Profit-sharing Ratio of partners will be 4 : 3 : 2.
(f) Z will bring in 60,000 as his capital by cheque.
(g) Z is to pay an amount equal to his share in firm’s goodwill valued at twice the average profit of the last three years which were 90,000; 78,000 and 75,000 respectively.
(h) Half of the amount of goodwill is to be withdrawn by X and Y. You are required to pass Journal entries, prepare Revaluation Account, Partners’ Capital and Current Accounts and the Balance Sheet of the new firm.

 

 

The solution of Question 84 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
Prov. for D. Debts   600 Accrued Income   4,500
Outstanding Rent   15,000      
Investment   6,000      
           
      Loss transferred to    
      X’s Current A/c 10,260  
      Y’s Current A/c 6,840 17,100
    21,600     21,600

 

Partners’ Capital Account
Parti
culars
X Y
Z

Partic
ulars

X
Y Z
        By Balance B/d 1,80,000 90,000
        By Bank A/c A/c 60,000
To Balance c/d 1,80,000 90,000 60,000        
  1,80,000 90,000 60,000   30,000 90,000 60,000

 

Partners’ Capital Account
Parti
culars
X Y
Z

Partic
ulars

X
Y Z
To Revaluation A/c 10,260 6,840 By Balance B/d 30,000 6,000
To Goodwill A/c 18,000 12,000 By General Reserve 21,600 14,400  
To Bank A/c 12,600 5,400 By Premium for Goodwill 25,200 10,800  
To Investments A/c 18,000        
To Balance c/d 17,940 6,960      
  76,800 31,200   76,800 31,200



Balance Sheet
Liabilities
Amount Assets Amount
Creditors   45,000 Patents   44,400
Outstanding Rent   15,000 Fixed Assets   2,16,000
Capital A/cs:     Accrued Income   4,500
X     Debtors 60,000  
Y 1,80,000   Less: 5% Reserve for D. Debts 3,000 57,000
Z 90,000   Cash at Bank (15,000 + 96,000 – 18,000) 93,000
C 60,000 3,30,000      
Current A/cs:          
X 17,940        
Y 6,960 24,900      
    4,14,900     4,14,900

 

Date Particulars
L.F. Debit Credit
  Cash A/c Dr   96,000  
  To Z’s Capital       60,000
  To Premium for Goodwill A/c       36,000
  (Z brought Capital and share of goodwill)        
  Premium for Goodwill A/c Dr   36,000  
  To X’s Current A/c       25,200
  To Y’s Current A/c       10,800
  (Premium for Goodwill transferred to partners current account in sacrificing ratio i.e. 7:3)        
  X’s Current A/c Dr   12,600  
  Y’s Current A/c Dr   5,400  
  To Bank A/c       18,000
  (Half of goodwill withdrawn by partners)        

 

Working Note:-

Calculation of Z’s Share of Premium for Goodwill

Average Profit = 90,000+78,000+75,000/3
  = Rs 81,000
Firm’s Goodwill = 81,000×2
  = Rs 1,62,000
Z’s share = 1,62,000×2/9
  = Rs 36,000

Calculation of Sacrificing Ratio
Sacrificing Ratio=Old Ratio-New

X’s Sacrificing Ratio = 3 4
5 9
  = 27 – 20
45
  = 7  
  45
Y’s Sacrificing Ratio = 2 4
5 9
  = 18 – 15 
45
  = 3
  45

Sacrificing Ratio of X and Y= 7 : 3

Calculation of Share of Premium of Goodwill

Distribution of Premium for Goodwill

 

X will get = 36,000 X 7
10
  = 25,200
   
Y will get = 36,000 X 3
10
  = 10,800    

Valuation of Goodwill

X will get = 17,100 X 3
5
  = 10,260
   
Y will get = 17,100 X 2
5
  = 6,840
   

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 84 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 83 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 83 Chapter 5 of +2-A

Question 83 Chapter 5 of +2-A

83. Balance Sheet of Ram and Shyam who shares profits in the ratio of their capitals as at 31st March, 2019 is:

Liabilities     Assets  
Capital A/cs:     Freehold Premises 20,000
Ram 30,000   Plant and Machinery 13,500
Shyam 25,000 55,000 Fixtures and Fittings 1,750
Current A/cs:     Vehicles 1,350
Ram 2,000   Stock 14,100
Shyam 1,800 3,800 Bills Receivable 13,060
Creditors   19,000 Debtors 27,500
Bills Payable   16,000 Bank 1,590
      Cash 950
    93,800   93,800

On 1st April, 2019, they admitted Arjun into partnership on the following terms:
(a) Arjun to bring 20,000 as capital and 6,600 for goodwill, which is to be left in the business and he is to receive 1/4th share of the profits.
(b) Provision for Doubtful Debts is to be 2% on Debtors.
(c) Value of Stock to be written down by 5% .
(d) Freehold Premises are to be taken at a value of 22,400; Plant and Machinery 11,800; Fixtures and Fittings 1,540 and Vehicles 800. You are required to make necessary adjustments entries in the firm, give
Balance Sheet of the new firm as at 1st April, 2019 and also determine the ratio in which the partners will share profits, there being no change in the ratio of Ram and Shyam.

 

 

The solution of Question 83 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
Reserve for D. Debts (27,500 × 2%) 550 Free hold Premises (22,400 – 20,000) 2,400
Stock   705      
Plant and Machinery (13,500 – 11,800) 1,700      
Fixture and Fittings   210      
Vehicles   550 Loss transferred to    
      Ram’s Current 717  
      Shyam’s Current  598 1,315
    25,000     25,000

 

Partners’ Capital Account
Parti
culars
Ram Shyam
Arjun

Partic
ulars

Ram
Shyam Arjun
        By Balance B/d 30,000 25,000
        By Bank A/c A/c 20,000
To Balance c/d 30,000 25,000 20,000        
  30,000 25,000 20,000   30,000 25,000 20,000

 

Partners’ Capital Account
Parti
culars
Ram Shyam
Arjun

Partic
ulars

Ram
Shyam Arjun
To Revaluation A/c 717 598 By Balance B/d 2,000 1,800
               
To Balance c/d 4,883 4,202 By Premium for Goodwill 3,600 3,000
  5,600 4,800   5,600 4,800



Balance Sheet
Liabilities
Amount Assets Amount
Creditors   19,000 Freehold Premises   1,200
Bills Payable   16,000 Plant and Machinery   11,800
Capital A/cs:     Fixture and Fittings   1,540
Ram     Debtors 27,500  
Shyam 30,000   Less: 2% Reserve for D. Debts 550 26,950
Arjun 25,000   Stock (14,100 – 705) 13,395
C 20,000 1,00,700 Bills Receivables   13,060
Current A/cs:     Bank   1,590
Ram 4,883   Cash (950 + 20,000 + 6,600) 27,550
Shyam 4,202 9,085 Vehicles   800
    1,19,085     1,19,085

 

Date Particulars
L.F. Debit Credit
  Cash A/c Dr   26,600  
  To Arjun’s Capital       20,000
  To Premium for Goodwill A/c       6,600
  (Arjun brought Capital and share of goodwill)        
  Premium for Goodwill A/c Dr   6,600  
  To Ram’s Current A/c       3,600
  To Shyam’s Current A/c       3 ,000
  (Premium for Goodwill transferred to partners current account in sacrificing ratio i.e. 6:5)        

 

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of Ram and Shyam = 3 : 2
Arjun admitted for 1/4 share of profit
Remaining share of A and B after C’s Admission = Total Share –  Arjun’s Share

Remaining share = 1 1
4
  = 4 – 1 
4
  = 3  
  4

New Ratio = Old Ratio − Combined share of Ram and Shyam

New Ratio = Combined share of A and B x Old Ratio

Ram’s Sacrificing Ratio = 6 X 3
11 4
  = 18
  44
Shyam’s Sacrificing Ratio = 5 X 3
11 4
  = 15
  44
New Profit sharing Ratio between ram, Shyam and Arjun = 18 : 15 : 1
44 44 4
  = 18 : 15 : 11
44

Distribution of Premium for Goodwill

 

Ram will get = 6,600 X 6
11
  = 3,600
   
Shyam will get = 6,600 X 5
11
  = 3,000    

Valuation of Goodwill

Ram will get = 1,315 X 2
10
  = 717
   
Shyam will get = 1,315 X 1
2
  = 589
   

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 83 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 82 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 82 Chapter 5 of +2-A

Question 82 Chapter 5 of +2-A

82. Yogesh and Naresh are partners sharing profits in the ratio of 3 : 2. They admit Ramesh for 1/3rd share on 1st April, 2019 and also decide to share future profits equally. Balance Sheet of the firm as at 31st March, 2019 was as follows:

Liabilities     Assets    
Capital A/cs:     Land   4,00,000
Yogesh 5,00,000   Building   4,00,000
Naresh 5,00,000 10,00,000 Furniture   50,000
Current A/cs     Computers   1,00,000
Yogesh 1,10,000   Stock   1,50,000
Naresh 90,000 2,00,000 Sundry Debtors 2,10,000  
Employees’ Provident Fund   25,000 Less: Provision for Doubtful Debt 10,000 2,00,000
Workmen Compensation Reserve   1,00,000 Cash   10,000
Sundry Creditors   75,000 Bank   70,000
Expenses Payable   10,000 Advertisement Suspense   30,000
    14,10,000     14,10,000

They admitted Ramesh on the following terms:
(a) He will bring 5,00,000 as his capital.
(b) His share of goodwill is valued at 1,00,000 but he is unable to bring cash for his share of goodwill. It is agreed to debit the amount to his Current Account.
(c) Value of Land and Building is to be appreciated by 40,000 each.
(d) Value of Furniture to be reduced to 40,000.
(e) Provision for Doubtful Debts to be increased to 10%.
(f) A liability for damages of 10,000 is to be created. Pass the Journal entries on admission of Ramesh and prepare Revaluation Account.

 

 

The solution of Question 82 Chapter 5 of +2-A: –

Date Particulars
L.F. Debit Credit
  Cash A/c Dr   5,00,000  
  To Abhay’s Capital A/c       5,00,000
  (Being amount due to Abhay transferred to his Capital A/c)        
  Cash A/c Dr   1,00,000  
  To Yogesh’s Current A/c (1,00,000 × 4/5)       80,000
  To Naresh’s Current A/c (1,00,000 × 1/5)       20,000
  (Being Capital and goodwill paid by the new partner        
  Revaluation A/c Dr   31,000  
  To Provision for Doubtful Debts A/c       11,000
  To Liability for damages A/c       10,000
  To Furniture A/c       10,000
  (Being assets revalued and liabilities reassessed)        
  Land A/c Dr   40,000  
  Building A/c Dr   40,000  
  To Revaluation A/c       80,000
  (Being appreciation in land and building provided for)        
  Revaluation A/c (WN2) Dr   49,000  
  To Yogesh’s Current A/c       29,400
  To Naresh’s Current A/c       19,600
  (Being revaluation profit transferred to partner’s current A/c)        
  Workmen Compensation Reserve A/c Dr   1,00,000  
  To Yogesh’s Current A/c       60,000
  To Naresh’s Current A/c       40,000
  (Being workmen compensation reserve distributed)        
  Yogesh’s Current A/c Dr   18,000  
  Naresh’s Current A/c Dr   12,000  
  To Advertisement Suspense A/c       30,000
  (Being accumulated loss written off)        



Working Note:-

Calculation of new profit-sharing ratio
Old Ratio of Yogesh and Gopal = 3 : 2
New Ratio of Yogesh and Gopal = 1 : 1

Yogesh’s New Ratio = 3 1
5 3
  = 9- 5
15
  = 4
  15
Gopal’s New Ratio = 2 1
5 3
  = 6- 5
15
  = 1
  15

Calculation of Revaluation Profit/Loss:

Debit side total = (11,000 + 10,000 + 10,000)
  = 31,000
Credit side total = 80,000
Gain on Revaluation = (80,000 – 31,000)
  = 49,000


T.S. Gre
wal’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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 82 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 81 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 81 Chapter 5 of +2-A

Question 81 Chapter 5 of +2-A

81. Atul and Amit are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2019 is as follows:

Liabilities     Assets  
Capital A/cs:     Plant and Machinery 1,80,000
Atul 1,00,000   Furniture 30,000
Amit 1,00,000 2,00,000 Computer 10,000
Current A/cs:     Stock 40,000
Atul 70,000   Debtors 50,000
Amit 50,000 1,20,000 Bills 10,000
Creditors   40,000 Cash 10,000
Bills Payable   10,000 Bank 40,000
    3,70,000   3,70,000

Abhay is admitted as a partner for 1/4th share on 1st April, 2019 on the following terms:
(a) Abhay is to bring 65,000 as capital after adjusting amount due to him included in creditors and his share of Goodwill.
(b) 10,000 included in creditors is payable to Abhay which is to be transferred to his Capital Account.
(c) Furniture is to reduced by 3,000 and Plant and Machinery is to be increased to 1,98,000.
(d) Stock is overvalued by 4,000.
(e) A Provision for Doubtful Debts is to be created @ 5%.
(f) Goodwill is to be valued at 2 years’ purchase of average profit for four years. Profits of four years ended 31st March were as follows: 2018-19 − 25,000, 2017-18 − 10,000, 2016-17 − 2,500, and 2015-16 − 2,500. Pass the Journal entries for the above arrangement.

 

 

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 81 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 80 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 80 Chapter 5 of +2-A

Question 80 Chapter 5 of +2-A

80.Deepika and Rajshree are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 their Balance Sheet was:

Liabilities     Assets    
Sundry Creditors   16,000 Cash in Hand   1,200
Public Deposits   61,000 Cash at Bank   2,800
Bank Overdraft   6,000 Stock   32,000
Outstanding Liabilities   2,000 Prepaid Insurance   1,000
Capital A/cs:     Sundry Debtors 28,000  
Deepika 48,000   Less: Provision for Doubtful Debt 800 27,200
Rajshre 40,000 88,00 Plant and Machinery   48,000
      Land and Building   50,000
      Furniture   10,00
    1,73,000     1,73,000

On 1st April, 2019 the partners admit Anshu as a partner on the following terms:
(a) The new profit-sharing ratio of Deepika, Rajshree and Anshu will be 5 : 3 : 2 respectively.
(b) Anshu shall bring in 32,000 as his capital.
(c) Anshu is unable to bring in any cash for his share of goodwill. Partners, therefore, decide to calculate the goodwill on the basis of Anshu’s share in the profits and the capital contribution made by her to the firm.
(d) Plant and Machinery is to be valued at 60,000, Stock at 40,000 and the Provision for Doubtful Debts is to be maintained at 4,000. Value of Land and Building has appreciated by 20%. Furniture has been depreciated by 10%.
(e) There is an additional liability of 8,000 being outstanding salary payable to employees of the firm. This liability is not included in the outstanding liabilities, stated in the above Balance Sheet. Partners decide to show this liability in the books of account of the reconstituted firm.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of Deepika, Rajshree and Anshu.

 

 

The solution of Question 80 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
Reserve for D. Debts 4,000   Plant and Machinery 60,000 – 48,000) 12,000
Less: Old Reserve 800 3,200 Stock (40,000 – 32,000) 8,000
Furniture 10,000X 10% 1,000 Land and Building (50,000 × 20%) 10,000
Outstanding salary   8,000      
Profit transferred to          
Deepika Capital 10,680        
Rajshree Capita 7,120 17,800      
    25,000     25,000

 

Partners’ Capital Account
the year ended 31st March, 2019

Parti
culars
Deepi
ka
Rajsh
ree
Anshu

Partic
ulars

Deepi
ka
Rajsh
ree
Anshu
        By Balance B/d 48,000 40,000
        By Revaluation 10,680 7,120
To Balance c/d (before adjustment of Goodwill) 58,680 47,120 32,000 By Cash A/c 32,000
  58,680 47,120 32,000   58,680 47,120 32,000
To Deepika’s Capita 2,220 By Balance B/d 58,680 47,120 32,000
To Rajshree’s Capita 2,220 By Anshu’s Capital (Goodwill) 2,220 2,220
To Balance c/d 60,900
49,340 30,000        
  60,900 49,340 32,000   60,900 49,340 32,000



Balance Sheet
Liabilities
Amount Assets Amount
Outstanding Salaries   8,000 Cash in Hand   1,200
Sundry Creditors   16,000 Cash at Bank   28,800
Public Deposits   61,000 Stock   40,000
Capital:     Debtors 28,800  
A 1,87,875   Less: 5% Provision for D. Debts 4,000 24,800
B 92,625   Plant and Machinery   60,000
C 30,000 3,10,500 Prepaid Insurance   1,000
Outstanding Liabilities   1,37,80 Land and Building   60,000
      Furniture   9,000
    2,24,800     2,24,800

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of Deepika and Rajshree = 3 : 2
New Ratio of Deepika , Rajshree and Anshu = 5 : 3 : 2

Sacrificing Ratio = Old Ratio − New Ratio

Deepika’s New Ratio = 3 5
5 10
  = 6- 5
10
  = 1
  10

 

Rajshree’s New Ratio = 2 3
5 10
  = 4 – 3
10
  = 1
  10

Sacrifice Ratio of Deepika and Rajshree= 1 : 1

Valuation of Goodwill

Capitalized value on the basis of Anshu’s share = 32,000 X 10
2
  = 1,60,000
   
Actual Capital of all partners before adjustment of Goodwill = 58,680 + 47,120 + 32,000
  = Rs 1,37,800
Goodwill = Capitalized value − Actual Capital of all partners before adjustment of Goodwill
  = 1,60,000 − 1,37,800
  = 22,000

 

Valuation of Goodwill

Anshu’s share of Goodwill = 22,200 X 2
10
  = Rs 4,440
   
Deepika and Rajshree each will entitle for Goodwill = 4,440 X 1
2
  = Rs 2,220
   

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 80 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 79 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 79 Chapter 5 of +2-A

Question 79 Chapter 5 of +2-A

79. X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4. Their Balance Sheet as at 31st March, 2019 is:

Liabilities     Assets  
Capital A/cs:     Land and Building  1,25,000
X 1,50,00   Furniture 5,00
Y 80,000 2,30,00 Stock 1,00,000
Workmen Compensation Reserve   20,000 Sundry Debtors 80,000
Sundry Creditor   1,50,000 Bills Receivable 15,000
Bills Payable   37,50 Cash at Bank 1,00,000
      Cash in Hand 12,500
    4,37,500   4,37,500

They admit Z into partnership on 1st April, 2019 on the following terms:
(a) Goodwill is to be valued at 1,00,000.
(b) Stock and Furniture to be reduced by 10%.
(c) A Provision for Doubtful Debts is to be created @ 5% on Sundry Debtors. (d) The value of Land and Building is to be appreciated by 20%. (e) Z pays 50,000 as his capital for 1/5th share in the future profits. You are required to show Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm.

 

The solution of Question 79 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
Stock   10,000 Land and Building  (1,25,000X 20%) 25,000
Furniture   500      
Provision for D. Debts   4,000      
           
Profit transferred to          
X Capital 7,875        
Y Capital 2,625 10,500      
    25,000     25,000

 

Partners’ Capital Account
the year ended 31st March, 2019

Parti
culars
X Y Z

Partic
ulars

X Y Z
To X’s Capita 15,000 By Balance B/d 1,50,000 80,000
To Y’s Capita 5,000 By Workmen’s Compensation 15,000 5,000
        By Revaluation (Profit) A/c 7,875 2,625
        By Bank A/c A/c 50,000
        By Z’s Capital 15,000 5,000
To Balance c/d 1,87,875
92,625 30,000        
  1,87,875 92,625 50,000   1,87,875 92,625 50,000



Balance Sheet
Liabilities
Amount Assets Amount
Sundry Creditors   1,50,000 Land and Building (1,25,000 + 25,000) 1,50,000
Bills Payable   37,500 Office Furniture 5,000 – 500) 4,500
      Stock (1,00,000 – 10,000) 90,000
Capital:     Debtors 80,000  
A 1,87,875   Less: 5% Provision for D. Debts 4,000 76,000
B 92,625   Cash at Bank   1,00,000
C 30,000 3,10,500 Cash in Hand  (12,500 + 50,000) 62,500
      Bills Receivable   15,000
    4,98,000     4,98,000

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of A and B = 3 : 2
Sacrificing Ratio = 3 : 2

Distribution of Premium for Goodwill

Z’s share of Goodwill = 1,00,000 X 1
5
  = 20,000
   
X will entitled to = 20,000 X 3
4
  = 15,000
   
Y will entitled to = 20,000 X 1
4
  = 5,000
   

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 79 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 78 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 78 Chapter 5 of +2-A

Question 78 Chapter 5 of +2-A

78. A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their Balance Sheet as at 31st March, 2019:

Liabilities     Assets  
Capital A/cs:     Building 35,000
A 50,000   Machinery 25,000
B 30,000 80,000 Stock 15,00
Creditors   20,000 Debtor 15,000
      Investments 5,000
      Bank 5,000
    1,00,000   1,00,000

C is admitted as a partner on 1st April, 2019 on the following terms:
(a) C is to pay 20,000 as capital for 1/4th share. He also pays 5,000 as premium for goodwill.
(b) Debtors amounted to 3,000 is to be written off as bad and a Provision of 10% is created against Doubtful Debts on the remaining amount.
(c) No entry has been passed in respect of a debt of 300 recovered by A from a customer, which was previously written off as bad in previous year. The amount is to be paid by A.
(d) Investments are taken over by B at their market value of 4,900 against cash payment. You are required to prepare Revaluation Account, Partner’s Capital Accounts and new Balance Sheet

 

The solution of Question 78 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
A’s Capital A/c   300 A’s Capital A/c   300
Provision for Doubtful Debts   1,200      
Investment (5,000 – 4,900)   100      
           
      Loss transferred to    
      A Capital 2,400  
      B Capital 1,600 4,000
    4,300     4,300

 

Partners’ Capital Account
the year ended 31st March, 2019

Parti
culars
A B C

Partic
ulars

A
B C
To Revaluation A/c 2,400 2,400 By Balance B/d 50,000 30,000
To Reserve A/c 6,000 4,000   By Bank A/c A/c 20,000
        By Premium for Goodwill 3,000 2,000
To Balance c/d 50,300
30,400 20,000        
  53,000 32,000 20,000   53,000 32,000 20,000



Balance Sheet
Liabilities
Amount Assets Amount
Creditors    20,000 Building   35,000
      Machinery   25,000
      Stock   15,000
Capital:     Debtors 15,000  
A 50,300   Less: Bad Debt 3,000  
B 30,400   Less: Prov. for D. Debts 1,200 10,800
C 20,000 1,00,700 Bank    34,900
    1,53,000     1,53,000

 

Bank Account
Liabilities
Amount Assets Amount
To Balance b/d   5,000      
To C’s Capital A/c   20,000      
To Premium for Goodwill A/c   5,000      
To Investment A/c   4,900      
           
      By Balance c/d   34,900
    34,900     34,900

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of A and B = 3 : 2
Sacrificing Ratio = 3 : 2

Distribution of Premium for Goodwill

A will get = 5,000 X 3
5
  = 3,000
   
B will get = 5,000 X 2
5
  = 2,000
   

 

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 78 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 77 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 77 Chapter 5 of +2-A

Question 77 Chapter 5 of +2-A

77. Following is the Balance Sheet of the firm, Ashirvad, owned by A, B and C who share profits and losses of the business in the ratio of 3 : 2 : 1.

Liabilities     Assets  
Capital A/cs:     Furniture 95,000
A 1,20,000   Business 2,05,000
B 1,20,000   Premises  Stock-in Trade 40,000
C 1,20,000 3,60,000 Debtors 28,000
Sundry Creditors   20,000 Cash at Bank 15,000
Outstanding Salaries and wages   7,200 Cash in Hand 4,200
    3,87,200   3,87,200

On 1st April, 2019, they admit D as a partner on the following conditions:
(a) D will bring in 1,20,000 as his capital and also 30,000 as goodwill premium for a quarter of the share in the future profits/losses of the firm.
(b) Values of the fixed assets of the firm will be increased by 10% before the admission of D.
(c) Mohan, an old customer whose account was written off as bad debts, has promised to pay 3,000 in full settlement of his dues.
(d) Future profits and losses of the firm will be shared equally by all the partners. Pass the necessary Journal entries and prepare Revaluation Account, Partners’ Capital Accounts and opening Balance Sheet of the new firm

 

The solution of Question 77 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
      Furniture 95,000 × 10% 9,500
      Business Premises 2,05,000 × 10% 20,500
To Profit Transferred to:          
A Capital 15,000        
B Capital 10,000        
C Capital 5,000 30,000      
           
    30,000     30,000

 

Partners’ Capital Account
the year ended 31st March, 2019

Particulars A B C
D
A’s Capital (Goodwill) 7,500
B’s Capital (Goodwill) 2,500
         
         
         
To Balance c/d 1,65,000
1,40,000 1,12,000 1,20,000
  1,65,000 1,40,000 1,25,000 1,20,000

 

Particulars

A
B C
D
By Balance B/d 1,20,000 1,20,000 1,20,000
By Revaluation (Profit)
A/c
15,000 10,000 5,000
By Cash
A/c
1,20,000
By Premium for Goodwill
A/c
22,500 7,500
By C’s Capital (Goodwill)
A/c
7,500 2,500
         
  1,65,000 1,40,000 1,25,000 1,20,000

 

 

 

Balance Sheet
Liabilities
Amount Assets Amount
Sundry Creditor   20,000 Furniture (95,000 + 9,500) 1,04,500
Outstanding salaries and wages   7,200 Business Premises (2,05,000+20,500) 2,25,500
      Stock-in-Trade   40,000
Capital:     Debtors   28,000
A 1,65,000   Cash at Bank   15,000
B 1,40,000   Cash in hand  (4,200 + 1,50,000) 1,54,200
C 1,15,000        
D 1,20,000 5,40,000      
    5,67,200     5,67,200

 

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of A, Band C = 3 : 2 : 1
New Ratio = 1 : : 1 : 1 : 1 

Sacrificing Ratio = Old Ratio − New Ratio

A’s Sacrificing Ratio = 3 1
6 4
  = 12 – 6
24
  = 6
  24

 

B’s Sacrificing Ratio = 2 1
6 4
  = 8 – 6
24
  = 2
  24

 

C’s Sacrificing Ratio = 1 1
6 4
  = 4 – 6
24
  = -2
  24
Sacrifice Ratio of A and B = 6 : 2
  = 3 : 1

Calculation of C’s gain in goodwill

Goodwill of the firm = D’s goodwill X 4
1

 

  = 30,000 X 4
1
  = 1,20,000
   
C’s Goodwill = 1,20,000 X 2
24
  = 10,000
   

 

Amount of Goodwill to be distributed between A and B (Sacrificing Partners)

A will get = 30,000 X 3
4
  = 22,500
   
B will get = 30,000 X 1
4
  = 7,500    

Distributed of C’s Gain in goodwill

A will get = 10,000 X 3
4
  = 7,500
   
B will get = 10,000 X 1
4
  = 2,500
   


T.S. Gre
wal’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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 77 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 76 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 76 Chapter 5 of +2-A

Question 76 Chapter 5 of +2-A

76. A and B are partners in a firm. The net profit of the firm is divided as follows: 1/2 to A, 1/3 to B and 1/6 carried to a Reserve. They admit C as a partner on 1st April, 2019 on which date, the Balance Sheet of the firm was:

Liabilities     Assets  
Capital A/cs:     Building 50,000
A 50,000   Plant and Machinery 30,000
B 40,000 90,000 Stock 18,000
Reserve   10,000 Debtors 22,000
Creditors   20,000 Bank 5,000
Outstanding Expenses   5,000    
    1,25,000   1,25,000

 

Following are the required adjustments on admission of C:
(a) C brings in 25,000 towards his capital.
(b) C also brings in 5,000 for 1/5th share of goodwill.
(c) Stock is undervalued by 10%.
(d) Creditors include a liability of 4,000, which has been decided by the court at 3,200.
(e) In regard to the Debtors, the following Debts proved Bad or Doubtful− 2,000 due from X−bad to the full extent; 4,000 due from Y−insolvent, estate expected to pay only 50%. You are required to prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the new firm

 

The solution of Question 76 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
To Bad Debts   2,000 By Stock A/c   2,000
To Provision for Doubtful Debts A/c 4,000 X 50%   2,000 By Creditors (4,000 – 3,200)   800
           
           
      Loss transferred to    
      A Capital 720  
      B Capital 480 1,200
    4,000     4,000

 

Partners’ Capital Account
the year ended 31st March, 2019

Parti
culars
A B C

Partic
ulars

A
B C
To Revaluation A/c 720 480 By Balance B/d 50,000 40,000
        By Bank A/c A/c 25,000
        By Reserve A/c 6,000 4,000
        By Premium for Goodwill 3,000 2,000
To Balance c/d 58,280
45,520 25,000        
  59,000 46,000 25,000   59,000 46,000 25,000

 

 

Balance Sheet
Liabilities
Amount Assets Amount
Creditors  (20,000 – 800) 19,200 Building   50,000
Outstanding Expenses   5,000 Plant and Machinery   30,000
      Stock (18,000 × 100/90) 20,000
Capital:     Debtors 22,000  
A 58,280   Less: Bad Debt 2,000  
B 45,520   Less: Prov. for D. Debts 2,000 18,000
C 25,000 1,28,800 Bank  (5,000+30,000) 35,000
    1,53,000     1,53,000

 

Working Note:-

Calculation of Sacrificing Ratio
Old Ratio of A and B = 3 : 2
Sacrificing Ratio = 3 : 2

Distribution of Premium for Goodwill

A will get = 10,000 X 3
5
  = 6,000
   
B will get = 10,000 X 2
5
  = 4,000
   

Distribution of Premium for Goodwill

A will get = 5,000 X 3
5
  = 3,000
   
B will get = 5,000 X 2
5
  = 2,000
   

 

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 76 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Question 75 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 75 Chapter 5 of +2-A

Question 75 Chapter 5 of +2-A

75. Divya, Yasmin and Fatima are partners in a firm, sharing profits and losses in 11 : 7 : 2 respectively. The Balance Sheet of the firm on 31st March, 2018 was as follows: BALANCE SHEET as at 31st March, 2018

Liabilities   Amount Assets   Amount
Sundry Creditors   70,000 Factory Building   7,35,000
Public Deposits   1,19,000 Plant and Machinery   1,80,000
Reserve Fund   90,000 Furniture   2,60,000
Outstanding Expenses   10,000 Stock   1,45,000
Capital A/cs:     Debtors 1,50,000  
Divya 5,10,000   Less: Provision -30,000 1,20,000
Yasmin 3,00,000   Cash at Bank   1,59,000
Fatima 5,00,000 13,10,000      
    15,99,000     15,99,000

On 1st April, 2018, Aditya is admitted as a partner for one-fifth share in the profits with a capital of 4,50,000 and necessary amount for his share of goodwill on the following terms:
(a) Furniture of 2,40,000 were to be taken over Divya, Yasmin and Fatima equally.
(b) A creditor of 7,000 not recorded in books to be taken into account.
(c) Goodwill of the firm is to be valued at 2.5 years’ purchase of average profits of last two years. The profit of the last three years were: 2015-16 − 6,00,000; 2016-17 − 2,00,000; 2017-18 − 6,00,000.
(d) At time of Aditya’s admission. Yasmin also brought in 50,000 as fresh capital.
(e) Plant and Machinery is re-valued to 2,00,000 and expenses outstanding were brought down to 9,000. Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the reconstituted firm.

 

The solution of Question 75 Chapter 5 of +2-A: –

Revaluation Account
Particular
Amount Particular Amount
To Sundry Creditors A/c   1,600 By Plant and Machinery A/c   20,000
      By Outstanding Expenses A/c   1,000
To Profit Transferred to:          
Divya’s Capital A/c 7,700        
Yasmin’s Capital A/c 4,900        
Fatima’s Capital A/c 1,400 14,000      
           
    21,000     21,000

 

Partners’ Capital Account
the year ended 31st March, 2019

Particulars Divya Yasmin Fatima
Aditya
To Furniture A/c 80,000 80,000 80,000
To Revaluation (Loss 300 200 100  
         
         
         
To Balance c/d 5,97,200
3,76,400 4,50,400 4,50,000
  6,77,200 4,56,400 5,30,400 4,50,000

 

Particulars

Divya
Yasmin Fatima
Aditya
By Balance B/d 5,10,000 3,00,000 5,00,000
By Bank A/c 50,000 4,50,000
By Premium for Goodwill A/c 1,10,000 70,000 20,000
By Reserve Fund A/c 49,500 31,500 9,000
By Revaluation A/c 7,700 4,900 1,400
         
  6,77,200 4,56,400 5,30,400 4,50,000

 

 

 

Balance Sheet
Liabilities
Amount Assets Amount
Sundry Creditor   77,000 Factory Building   7,35,000
Public Deposits   1,19,000 Plant and Machinery   2,00,000
Outstanding Expenses   9,000 Furniture   20,000
Capital:     Stock   1,45,000
Divya 5,97,200   Bank   49,800
Yasmin 3,76,400   Debtors 1,50,000  
Fatima 4,50,400   Less: Provision 30,000 1,20,000
Aditya 4,50,400 18,74,000 Cash at Bank (1,59,000 + 2,00,000 + 50,000 + 4,50,000) 8,59,000
    20,79,000     20,79,000

 

Working Note:-

Calculation of Goodwill brought in by Aditya

Average Profits = (Normal profits from 31st March, 2017 to 31st March, 2018)/2
  = (2,00,000 + 6,00,000)/2
  = 4,00,000
Goodwill = Average Profits × No. of years of Purchase
  = (4,00,000 × 2.5)
  = 10,00,000
Goodwill brought in by Aditya = (10,00,000 × 1/5)
  = = 2,00,000

 

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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 75 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms