Advertisement

Question 50 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 50 Chapter 5 - Unimax Class 12 Part 1 - 2021
Question 50 Chapter 5 - Unimax Class 12 Part 1 - 2021

Advertisement

Question 50 Chapter 5 – Unimax Class 12 Part 1 – 2021

Advertisement

50. The Balance Sheet of A and B carrying on business in partnership and sharing profits in proportion of 2/3rd and 1/3rd respectively, stood as follows :

LiabilitiesAmountAssetsAmount
Creditors8300Cash2000
Reserve3500Debtors28,000
Capital Accounts Furniture8000
A :51450Stock22000
B :36750Machinery40000
    
 1,00,000 1,00,000

They admitted C into partnership giving him 1/5th share of profits on the following terms :
(a) The goodwill of the firm is to be valued at two years’ purchase of the average profits of the last three-years, which amounted to Rs. 20000, Rs. 15000 and Rs. 22000.
(b) C is to bring in cash his share of goodwill.
(c) C is to bring in capital in proportion to his profit sharing arrangements with other partners.
Give Journal entries prepare capital a/cs and opening Balance Sheet of the firm and also state their future profit sharing raito.

The solution of Question 50 Chapter 5 – Unimax Class 12 Part 1

Journal

DateParticulars L.F.Debit Credit
 General Reserve a/cDr. 3500 
     To A’s Capital A/c   2333
     To B’s Capital A/c   1167
 (Being reserve transferred to old partners in old profit showing ratio)    
 Cash a/cDr. 32425 
     To C’s Capital A/c   24825
     To Premium A/c   7600
 (Being Capital and goodwill brought in cash by new partner)    
 Premium a/cDr. 7600 
     To A’s Capital A/c   5067
     To B’s Capital A/c   2533
 (Being goodwill credited to old partner’s a/c)    

Advertisement-X

  Capital Accounts

ParticularsABCParticularsAB   C
To Balance c/d488504045024825By Balance b/d5145036750
    By Cash A/c24825
    By Premium A/c50672533
    By G.R A/c23331167
        
        
 588504045024825 588504045024825

  Balance Sheet

 Liabilities
 Rs. Assets
Rs.
Sundry Creditors 8300Cash34425
Capital Accounts  Cash22000
A58850 Machinery40000
B40450 Debtors28000
C24825124125Furniture8000
     
     
  132425 132425

Working Note

(A) Calculation of C’s share of G.W.

Average profit of last 3 years =15000 + 20000 + 22000/3
                      = Rs. 19000
Value of firm’s G.W. = 19000 X 2 = Rs. 38000
C’s share = 38000 X 1/5
              = Rs. 7600
(B) Calculation of Prop. Capital to brought by C.
For 4/5 share capital contributed = Rs. 99300
For 4/5 share capital contributed = Rs. 99300 X 5/4
For 4/5 share capital contributed = Rs. 99300 X 5/4 X 1/5
                                                      = Rs. 24825

 

What is Partnership – Meaning and Its 4 Types

Advertisement-X

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

Advertisement

Advertisement

error: Content is protected !!