Question 55 Chapter 5 of +2-Part-1
55. (Goodwill is not brought in Cash) The following was the balance sheet of Ajay, Vijay and Kamal as on 31-3-2018:
| Liabilities | Rs | Assets | Rs | |
| Creditors | 11,000 | Land & buildings | 50,000 | |
| Bills Payable | 6,000 | Furniture | 7,500 | |
| Capital Accounts | Stock | 30,000 | ||
| Ajay | 40,000 | Debtors | 26,500 | |
| Vijay | 33,500 | Cash | 1,000 | |
| Kamal | 25,000 | 98,500 | Input CGST | 250 |
| Input SGST | 250 | |||
| 1,15,500 | 1,15,500 |
They share profits and losses in the ratio of 6: 5: 3. On 1-4-2015 they agreed to admit Subodh into partnership and give him a share of 10 paise in the rupee on the following terms:
(i) That Subodh should bring in Rs. 14,000 as capital.
(ii) That stock is depreciated by 10% and furniture by Rs. 900.
(iii) That a reserve of Rs. 1,300 be made for the outstanding repair bills. (iv) That the value of land and buildings be brought up to Rs. 65,000. (v) That Subodh does not contribute anything for goodwill which was valued Rs. 8,400 for the firm.
Pass necessary journal entries to record the above arrangements and prepare the new Balance Sheet of the firm.
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The solution of Question 55 Chapter 5 of +2 Part-1: –
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 1 | Cash A/c | Dr. | 14,000 | ||
| To Subodh’s Capital A/c | 14,000 | ||||
| (Being capital brought by new partner) | |||||
| 2 | Revaluation A/c | Dr. | 5,200 | ||
| To Stock A/c (10% of 30,000) | 3,000 | ||||
| To Furniture A/c | 900 | ||||
| To outstanding repairs A/c | 1,300 | ||||
| (Being assets and liabilities revalued) | |||||
| 3 | Land & Building A/c | Dr. | 15,000 | ||
| To Revaluation A/c | 15,000 | ||||
| (Being revaluation of assets) | |||||
| 4 | Revaluation A/c | Dr. | 9,800 | ||
| To Ajay’s Capital A/c | 4,200 | ||||
| To Vijay’s Capital A/c | 3,500 | ||||
| To Kamal’s Capital A/c | 2,100 | ||||
| (Being profit on revaluation distributed) | |||||
| 5 | Subodh’s Current A/c | Dr. | 840 | ||
| To Ajay’s Capital A/c | 360 | ||||
| To Vijay’s Capital A/c | 300 | ||||
| To Kamal’s Capital A/c | 180 | ||||
| (Being new partner’s share in goodwill adjusted in capital A/cs in Sacrifice ratio 6:5:3) |
|||||
| Partners’ Capital Account | |||||||||
| Particulars | Ajay | Vijay | Kamal | Subodh | Particulars | Ajay | Vijay | Kamal |
Subodh |
| By Balance b/d | 40,000 | 33,500 | 25,000 | ||||||
| By Bank A/c | 14,000 | ||||||||
| By C’s Current A/c | 4,200 | 2,625 | 2,100 | ||||||
| By Subodh’s Current A/c | 360 | 300 | 600 | ||||||
| To Balance c/d | 44,560 | 37,300 | 27,280 | 14,000 | |||||
| 44,560 | 37,300 | 27,280 | 14,000 | 44,560 | 37,300 | 27,280 | 14,000 | ||
| Balance Sheet |
|||||
| Liabilities |
Amount | Assets | Amount | ||
| Creditors | 11,000 | Land & Building | 65,000 | ||
| Bills Payable | 6,000 | Furniture | 6,600 | ||
| Outstanding repair expenses | 1,300 | Subodh’s current A/c | 840 | ||
| Capital Account | Stock | 27,000 | |||
| Ajay | 44,560 | Sundry Debtors | 26,500 | ||
| Vijay | 37,300 | Cash(1000+14,000) | 15,000 | ||
| Kamal | 27,280 | Input CGST | 250 | ||
| Subodh | 14,000 | 1,23,140 | Input SGST | 250 | |
| 1,41,440 | 1,41,440 | ||||
WORKING NOTES :
Total goodwill of the firm = Rs.8,400
| New partner’s share = | = | 1 | X | 8,400 |
| 10 | ||||
| = | 840 | Not brought in cash |
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
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Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
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