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Question 58 Chapter 5 – Unimax Class 12 Part 1 – 2021

question 58 - UNIMAX
question 58 - UNIMAX

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Question 58 Chapter 5 – Unimax Class 12 Part 1 – 2021

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58. The Balance Sheet of X and Y who are partners sharing profits in the ratio 3 : 2 on 31st December, 2021 is as under :

LiabilitiesAmountAssetsAmount
Sundry Creditors6200Cash2,000
Capital : Stock 7700
X16800Debtors8800
Y13200Plant and Machinery18000
Bills Payable3300Investments3000
General Reserve5000Goodwill5000
    
 44500 44500

On the above date, Z is admitted as a partner. X surrenders 1/6th of his share and Y 1/3rd of his share in favour of Z. Goodwill of the firm is valued at worth Rs. 60000. Z brings only 1/2 of his share of goodwill in cash and Rs. 15000 as his capital. The following revaluations are made :

Stock, Plant and Machinery are worth 10% less than the book value. The market value of investments is Rs. 12000. Make a provision of 5% for bad and doubtful debts on debtors and a provision of 5% for discount on creditors.

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Calculate new ratio, sacrificing ratio, and prepare Revaluation A/c, Capital A/cs and the Balance Sheet of the firm as newly constituted.

The solution of Question 58 Chapter 5 – Unimax Class 12 Part 1: –

 Revaluation A/c

 Particulars
 Rs. Particulars
Rs.
To Stock a/c 770By Investments a/c9000
To Plant and Machinery a/c 1800By Provision for creditors (5% on 6200)310
To Provision for doubtful debts a/c (5% on 8800) 440  
To Profit on revaluation a/c    
X (3 : 2)3780   
Y25206300  
     
  9310 9310

  Capital Accounts

ParticularsXYZParticularsXYZ
To X’s Capital a/c2000By Balance b/d1680013200
To Y’s Capital a/c4000By G.P. A/c30002000
To Goodwill a/c30002000By Cash A/c15000
To Balance c/d26580237208000By Premium a/c30004000
    By Z’s Capital a/c30004000
    By Profit on revaluation37802520
        
 295802572015000 295802572015000

  Balance Sheet

 Liabilities
 Rs. Assets
 Rs.
Bills Payable 3300Stock 6930
Capital Accounts  Debtors8800 
X26580 Less : Provision4408360
Y23720 Cash (2000 + 15000 + 7000) 24000
Z800058300Plant and Machinery 16200
Creditors6200 Investments 12000
Less : Provision for dis. On as3105890   
      
  67490  67490

Working Note:

(A) Calculation of new PSR

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X’s new share = 3/5 – (1/6 X 3/5) = 3/5 – 1/10 = 5/10
Y’s new share = 2/5 – (1/3 X 2/5) = 2/5 – 2/15 = 4/15
Z’s share = 1/10 + 2/15 = 7/30
New PSR = 15 : 8 : 7
Sacrificing Ratio
X’s sacrifice = 1/6 X 3/5 = 3/30
Y’s sacrifice = 1/3 X 2/5 = 2/15
S.R. = 3 : 4

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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