# Question 52 Chapter 5 – Unimax Class 12 Part 1 – 2021

Question 52 Chapter 5 – Unimax Class 12 Part 1 – 2021

52. X, Y and Z are equal partners with capitals of Rs. 1500, Rs. 1750 and Rs. 2000 respectively. They agree to admit W into partnership upon payment in cash of Rs. 1500 for 1/4th share of the goodwill and Rs. 1800 as his capital, both sums to remain in the business. The creditors of the old firm amounts to Rs. 3000 and the assets, a part from cash, consist of Motors Rs. 1200, Furniture Rs. 400, Stock Rs. 2650, Debtors Rs. 3780. The Motors and Furniture were revalued at Rs. 950 and Rs. 380 respectively and the depreciation was written off.
Give Journal Entries to give effect to the above arrangements, and also show the initial Balance Sheet of the new firm.

## The solution of Question 52 Chapter 5 – Unimax Class 12 Part 1

Journal

 Date Particulars L.F. Debit Credit Revaluation a/c Dr. 270 To Motors A/c 250 To Furniture A/c 20 (Being value of assets decreased) X’s capital a/c Dr. 90 Y’s capital A/c Dr. 90 Z’s Capital A/c Dr. 90 To Revaluation a/c 400 (Being net loss transferred to old partners) Cash A/c Dr. 3300 To W’s Capital a/c 1800 To Premium A/c 1500 (Being capital and goodwill brought by new partners) Premium A/c Dr. 1500 To X’s capital a/c 500 To Y’s capital A/c 500 To Z’s Capital A/c 500

Revaluation A/c

 Particulars Rs. Particulars Rs. To Motors A/c 250 By Loss on revaluation To Furniture A/c 20 X 90 Y ( 1 : 1 : 1 ) 90 Z 90 270 270 270

Capital Accounts

 Particulars X Y Z W Particulars X Y Z W To Loss on revaluation 90 90 90 By Balance b/d 1500 1750 2000 _ To Balance c/d 1910 2160 2410 1800 By Cash A/c (1 : 1 : 1) _ _ _ 1800 By Premium A/c 500 500 500 _ 2000 2250 2500 1800 2000 2250 2500 1800

Balance Sheet

 Liabilities Rs. Assets Rs. Creditors 3000 Motors 950 Capital Accounts Furniture 380 X 1910 Stock 2650 Y 2160 Debtors 3780 Z 2410 Cash (220 + 1500 + 1800) 3520 W 1800 8280 11280 11280

Working Note
S.R. = 1 : 1 : 1
Cash (Balance) = 3000 + 1500 + 1750 + 2000 – (1200 + 400 + 2650 + 378
= 8250 – 8030
= Rs. 220

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)