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

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

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

Free Accounting book Solution - Class 11 and Class 12

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)

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

Leave a Reply

Your email address will not be published.