Question 46 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 46 Chapter 5 - Unimax Class 12 Part 1 - 2021

Question 46 Chapter 5 – Unimax Class 12 Part 1 – 2021

Free Accounting book Solution - Class 11 and Class 12

46. The Balance Sheet of A and B, who share profits in ratio of 3 : 2, on 1st April, 2021, is following :

Liabilities Amount Assets Amount
Sundry Creditors 20,000 Cash in hand 3,000
Capital   Stock 15,000
A 30,000 Sundry Debtors 12000
B 20,000 Furniture 10000
    Plant and Machinery 30000
  70,000   70,000

On that date C is admitted into the partnership on the following terms :

(a)That C is to bring in Rs. 15000 as capital and Rs. 5000 as premium for goodwill for 1/6th share.

(b)That the value of stock is to be reduced by 10% while value of Plant and Machinery is to be appreciated by 10%.

(c)That furniture is to be reduced to Rs. 9000.

(d)That a provision for doubtful debts is to be created on Sundry debtors at 5% and Rs. 200 is to be provided for due electricity bill.

(e)Investment worth Rs. 1000 ( not mentioned in the balance sheet) is to be taken into account.

(f)A creditor of Rs. 100 is not likely to claim his money and is to be written off.
You are require to prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of new firm.

The solution of Question 46 Chapter 5 – Unimax Class 12 Part 1

  Revaluation A/c

Particulars   Rs. Particulars Rs.
To Stock A/c   1500 By Plant and Machinery A/c 3000
To Furniture A/c   1000 By Investment A/c 1000
To Provision for doubtful debts a/c   600 By Creditors A/c 100
To out electricity bill a/c   200    
To Profit on revaluation a/c        
A (3 :2) 480      
B 320 800    
    4100   4100

  Capital Accounts

Particulars A B C Particulars A B    C
To Balance c/d 33480 22320 15000 By Balance b/d 30000 20000
        By Cash A/c 15000
        By Premium A/c 3000 2000
        By Profit on Revaluation a/c 480 320
               
               
  33480 22320 15000   33480 22320 15000

  Balance Sheet

 Liabilities
  Rs.  Assets
  Rs.
Sundry Creditors   19900 Cash in hand   23000
Out electricity bill   200 Debtors 12000  
Capital Accounts     Less : Provision 600 11400
A : 33480   Stock   13500
B : 22320   Furniture   9000
C : 15000 70800 Plant and Machinery   33000
      Investment   1000
           
    90900     90900

Working Note
A’s sacrifice
If nothing has been mentioned about sacrificing ratio, so they will sacrifice in old ratio.

 

What is Partnership – Meaning and its Types

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

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)

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

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