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

question 56 -UNIMAX
question 56 -UNIMAX

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

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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.

LiabilitiesAmountAssetsAmount
Sundry Creditors65,900Cash1200
Capital : Sundry Debtors9700
Anurag30,000Stock20000
Bhawna20,000Plant and Machinery 35000
  Building50000
    
 115900 115900

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

  1. 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.
  2. That the value of stock and Plant and Machinery were to be reduced by 10%.
  3. That a provision of 5% was to be created for doubtful debts.
  4. The building account was to be appreciated by 20%.
  5. Investments worth Rs. 1400 (not mentioned in Balance Sheet) were to be taken into account.
  6. That the amount of goodwill was to be withdrawn by old partners.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: –

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Journal

Date Particulars L.F.DebitCredit
      
 Building a/cDr. 10000 
 Investment A/cDr. 1400 
 To Revaluation A/c   11400
 (Being value of assets increased)    
      
 Revaluation a/cDr. 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/cDr. 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/cDr. 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/cDr. 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/cDr. 4000 
 Bhawna’s Capital A/cDr. 2000 
 To Cash A/c   6000
 (Being goodwill withdrawn by old partners)    

 Revaluation A/c

 Particulars
 Rs. Particulars
 Rs.
To Stock a/c 2000By Building a/c 10000
To Plant and Machinery a/c 3500By Investments a/c 1400
To Provision for doubtful debts a/c 485   
To Profit on revaluation     
A (2:1)3610    
B18055415   
      
  11400  11400

  Capital Accounts

ParticularsABCParticularsAB   C
To Cash a/c40002000By Balance b/d3000020000
To Balance c/d 336102180515000By Cash A/c – 15000
    By Premium A/c40002000
    By profit on revaluation a/c36101805– 
        
 376102380515000 376102380515000

  Balance Sheet

 Liabilities
 Rs. Assets
 Rs.
Creditors 65900Stock 18000
Capital Accounts  Plant and Machinery 3150
Anurag33610 Building 60000
Bhawna21805 Debtors9700 
Monika1500070415Less Provision for bad debts4859215
   Investments 1400
   Cash (1000 + 15000 + 6000 – 6000) 16000
      
  136315  136315

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)

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

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