Question 56 Chapter 5 - Unimax Class 12 Part 1

Question 56 Chapter 5 – Unimax Class 12 Part 1 – 2021

Table of Contents

56. The following was the Balance Sheet of Anurag and Bhawna who were sharing profits in the ratio of 2/3 and 1/3 on 31st December, 2021.

They agreed to admit Monika into partnership on the following terms :

Monika was to be given 1/3 share in profits and was to bring Rs. 15000 as capital and Rs. 6000 as share of goodwill.
That the value of stock and Plant and Machinery were to be reduced by 10%.
That a provision of 5% was to be created for doubtful debts.
The building account was to be appreciated by 20%.
Investments worth Rs. 1400 (not mentioned in Balance Sheet) were to be taken into account.
That the amount of goodwill was to be withdrawn by old partners.

You are required to pass necessary Journal Entries and prepare Revaluation Account, Capital Accounts and Balance Sheet of new firm.

The solution of Question 56 Chapter 5 – Unimax Class 12 Part 1: –

Journal

Date	Particulars		L.F.	Debit	Credit

	Building a/c	Dr.		10000
	Investment A/c	Dr.		1400
	To Revaluation A/c				11400
	(Being value of assets increased)

	Revaluation a/c	Dr.		5985
	To Stock a/c				2000
	To Plant and Machinery a/c				3500
	To Provision for doubtful debts a/c				485
	(Being value of assets decreases and liability increased)

	Revaluation a/c	Dr.		5415
	To Anurag’s capital a/c				3610
	To Bhawna’s capital a/c				1805
	(Being profit credited to old partner’s capital a/c)

	Cash a/c	Dr.		21000
	To Monika’s Capital a/c				15000
	To Premium a/c				6000
	(Being capital and goodwill brought into the business by new partner)

	Premium a/c	Dr.		6000
	To Anurag’s Capital A/c				4000
	To Bhawna’s Capital a/c				2000
	(Being goodwill credited to old partners’ capital a/c in sacrificing ratio)

	Anurag’s Capital a/c	Dr.		4000
	Bhawna’s Capital A/c	Dr.		2000
	To Cash A/c				6000
	(Being goodwill withdrawn by old partners)

Revaluation A/c

Particulars		Rs.	Particulars	Rs.
To Stock a/c		2000	By Building a/c	10000
To Plant and Machinery a/c		3500	By Investments a/c	1400
To Provision for doubtful debts a/c		485
To Profit on revaluation
A (2:1)	3610
B	1805	5415

		11400		11400

Capital Accounts

Balance Sheet

Working Note

It is assumed that if nothing is mentioned in part deed then the partner’s will sacrifice in old ratio i.e. 2 : 1.

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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 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