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

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

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)