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

question 56 -UNIMAX

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

Free Accounting book Solution - Class 11 and Class 12

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.

Liabilities Amount Assets Amount
Sundry Creditors 65,900 Cash 1200
Capital :   Sundry Debtors 9700
Anurag 30,000 Stock 20000
Bhawna 20,000 Plant and Machinery  35000
    Building 50000
       
  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 That the amount of goodwill was to be withdrawn by old partners.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: –

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  (Being goodwill withdrawn by old partners)        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

Particulars A B C Particulars A B    C
To Cash a/c 4000 2000 By Balance b/d 30000 20000
To Balance c/d  33610 21805 15000 By Cash A/c  –  15000
        By Premium A/c 4000 2000
        By profit on revaluation a/c 3610 1805 – 
               
  37610 23805 15000   37610 23805 15000

  Balance Sheet

 Liabilities
  Rs.  Assets
  Rs.
Creditors   65900 Stock   18000
Capital Accounts     Plant and Machinery   3150
Anurag 33610   Building   60000
Bhawna 21805   Debtors 9700  
Monika 15000 70415 Less Provision for bad debts 485 9215
      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.

 

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

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