Advertisement

Question 67 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 67 Chapter 5 of +2-A
Question No.67 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 67 Chapter 5 of +2-A

Advertisement

67. The Balance Sheet of Madhu and Vidhi who are sharing profits in the ratio of 2 : 3 as at 31st March, 2016 is given below:

Liabilities Assets  
Madhu’s Capital5,20,000Land and Building 3,00,000
Vidhi’s Capital3,00,000Machinery 2,80,000
General Reserve30,000Stock 80,000
Bills Payable1,50,000Debtors3,00,000 
  Less: Provision10,0002,90,000
  Bank 50,000
 10,00,000  10,00,000

Madhu and Vidhi decided to admit Gayatri as a new partner from 1st April, 2016 and their new profit-sharing ratio will be 2 : 3 : 5. Gayatri brought 4,00,000 as her capital and her share of goodwill premium in cash. (a) Goodwill of the firm was valued at 3,00,000. (b) Land and Building was found undervalued by 26,000. (c) Provision for doubtful debts was to be made equal to 5% of the debtors. (d) There was a claim of 6,000 on account of workmen compensation. Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm

 

The solution of Question 67 Chapter 5 of +2-A: –

Revaluation Account
Liabilities
AmountAssetsAmount
Provision for Doubtful Debts 5,000Land &Building 26,000
Claim against Workmen Compensation 6,000   
Capital:     
Revaluation Profit     
Madhu’s Capita6,000    
Vidhi’s Capital9,00015,000   
  26,000  26,000

Advertisement-X

 

Partners’ Capital Account
the year ended 31st March, 2019

Parti
culars
MadhuVidhiGayat

Partic
ulars

MadhuVidhiGayat
    By Balance B/d5,20,0003,00,000
    By Cash A/c4,00,000
    By General ReserveA/c12,00018,000
    By Premium for GoodwillA/c60,00090,000
    By RevaluationA/c6,0009,000
To Balance c/d 5,98,000
4,17,0004,00,000    
 5,98,0004,17,0004,00,000 5,98,0004,17,0004,00,000

 

Balance Sheet
Liabilities
AmountAssetsAmount
Bills Payable 1,50,000Bank(50,000 + 4,00,000 + 1,50,000)6,00,000
Claim for Workmen Compensation 6,000Sundry Debtors3,00,000 
Capital:  Less: Provision for Doubtful Debt15,0002,85,000
Madhu5,98,000 Stock 80,000
Vidhi4,17,000 Machinery 2,80,000
Gayatri4,00,00014,15,000Land &Building 3,26,000
  15,71,000  15,71,000

Working Note:-

Calculation of Gayatri’s Share of Goodwill

Gayatri’s share=3,00,000X5
10
 =1,50,000
  

 

New Ratio=Old Ratio – sacrifice Ratio

Madhu=22
510
 =4 – 2
10

Advertisement-Y

 =2
 10

Advertisement-X

 

Vidhi=33
510
 =6 – 3
10
 =3
 10

 

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

  • Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
  • Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
  • Chapter No. 3 – Goodwill: Nature and Valuation
  • Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
  • Chapter No. 5 – Admission of a Partner
  • Chapter No. 6 – Retirement/Death of a Partner
  • Chapter No. 7 – Dissolution of a Partnership Firm

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)

  • 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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

+2 Book 1-min
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

Advertisement

Advertisement

error: Content is protected !!