Question 54 Chapter 5 – Unimax Class 12 Part 1 – 2021
54. A firm has two partners X and Y, sharing profits in the ratio of 3 : 2. They admit Z into the firm on 1st January, 2021, when the Balance Sheet of the firm was as follows :
| Liabilities | Amount | Assets | Amount |
| Sundry Creditors | 80,000 | Fixed Assets | 2,60,000 |
| Bills Payable | 20,000 | Investments | 1,40,000 |
| Capital : | Debtors | 90,000 | |
| X | 3,00,000 | Stock | 60,000 |
| Y | 1,00,000 | Cash | 20,000 |
| General Reserve | 70000 | ||
| 570000 | 570000 |
Terms of admission are as follows :
- Z is to bring Rs. 200000 as his capital for a third share in future profits and Rs. 35000 as his share of goodwill.
- Value of fixed assets and stock are to be reduced by 20% and Rs. 10000 respectively.
- Capitals of the partners shall be proportionate to their profit sharing ratio, taking Z’s capital as base. Excess capital is to be withdrawn in cash by the partner concerned and the deficiency is to be made up by bringing in cash.
You are required to prepare Revaluation A/c, Partner’s Capital Accounts and the Balance Sheet of the firm after the above.
The solution of Question 54 Chapter 5 – Unimax Class 12 Part 1: –
Revaluation A/c
| Particulars |
Rs. | Particulars |
Rs. | |
| To Fixed Assets a/c | 52,000 | By Loss on revaluation | ||
| To Stock a/c | 10,000 | X (3 : 2) | 37,200 | |
| Y | 24,800 | 62,000 | ||
| 62,000 | 62,000 |
Capital Accounts
| Particulars | A | B | C | Particulars | A | B | C |
| To Cash a/c | 85,800 | – | – | By Balance b/d | 3,00,000 | 1,00,000 | _ |
| To Loss on revaluation a/c | 37,200 | 24,800 | By Cash A/c | _ | 42,800 | 2,00,000 | |
| To Balance c/d | 2,40,000 | 1,60,000 | 2,00,000 | By Premium A/c | 21,000 | 14,000 | _ |
| By General Reserve A/c | 42,000 | 28,000 | _ | ||||
| 3,63,000 | 1,84,800 | 2,00,000 | 3,63,000 | 1,84,800 | 2,00,000 |
Balance Sheet
| Liabilities |
Rs. | Assets |
Rs. | |
| Sundry Creditors | 80000 | Fixed Assets | 208000 | |
| Capital Accounts | Investments | 140000 | ||
| X | 240000 | Debtors | 90000 | |
| Y | 160000 | Stock | 50000 | |
| Z | 200000 | 600000 | Cash (20000 + 200000 + 35000 + 42800 -85800) | 212000 |
| Bills Payable | 20000 | |||
| 700000 | 700000 |
Working Note
| Let total share = 1 |
| Z’s share = 1/3 |
| Remaining share = 1 – 1/3 = 2/3 |
| A’s new share = 2/3 X 3/5 = 2/5 |
| B’s new share = 2/3 X 2/5 = 4/15 |
| C’s share = 1/3 |
| New PSR = 6 : 4 : 5 |
Capital contributed by old partners :
Total capital of firm = 200000 X 3/1 = Rs. 600000
Advertisement-X
A’s adjustment capital = 6/15 X 600000 = Rs. 240000
B’s adjustment capital = 4/15 X 600000 = Rs. 160000
C’s capital = Rs. 200000
What is Partnership – Meaning and Its 4 Types
T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)
- Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
- Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
- Chapter No. 3 – Goodwill: Nature and Valuation
- Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
- Chapter No. 5 – Admission of a Partner
- Chapter No. 6 – Retirement/Death of a Partner
- Chapter No. 7 – Dissolution of a Partnership Firm
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
- Chapter No. 4 – Accounting Ratios
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication