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Question 68 Chapter 5 – Unimax Class 12 Part 1 – 2021
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68. Ashok and Kishore were partners in a firm, sharing profits and losses in the ratio of 3 : 2 respectively. The following is Balance Sheet of the firm as on 31st March, 2021.
| Liabilities | Amount | Assets | Amount | |
| Creditors | 30,000 | Cash | 2,000 | |
| Capital : | Bank | 28,000 | ||
| Ashok | 60,000 | Stock | 15,000 | |
| Kishore | 40,000 | Plant | 33,000 | |
| Bills Payable | 20,000 | Building | 44,000 | |
| Debtors | 30,000 | |||
| Less : Provision | 2,000 | 28,000 | ||
| 1,50,000 | 1,50,000 |
They agreed to admit Vinod with effect from 1st April, 2021 with ¼ share in the profits on the following terms :
- Vinod to bring in proportionate capital.
- Buildings are to be appreciated by Rs. 6000 and plant is to be depreciated by Rs. 3000.
- The provision for doubtful debts is to be raised to Rs. 3000.
- The goodwill of the firm was valued at Rs. 30000 but Vinod is unable to bring his share of goodwill in cash.
Prepare the Revaluation Account, Partners’ capital Accounts and The Balance Sheet of the firm immediately after Vinod’s admission.
The solution of Question 68 Chapter 5 – Unimax Class 12 Part 1: –
Revaluation A/c
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| Particulars | Rs. | Particulars | Rs. | |
| To Plant a/c | 3,000 | By Building a/c | 6,000 | |
| To Provision for doubtful debts a/c | 1,000 | |||
| To Profit on revaluation | ||||
| Ashok (3 : 2) | 1,200 | |||
| Kishore | 800 | 2,000 | ||
| 6,000 | 6,000 |
Capital Accounts
| Particulars | Ashok | Kishore | Vinod | Particulars | Ashok | Kishore | Vinod |
| To Ashok’s Capital a/c | – | – | 4,500 | By Balance b/d | 60,000 | 40,000 | – |
| To Kishore’s Capital a/c | – | – | 3,000 | By Vinod’s capital | 4,500 | 3,000 | – |
| To Balance c/d | 65,700 | 43,800 | 29,000 | By Profit on rev. | 12,000 | 800 | – |
| By Cash a/c | – | – | 36,500 | ||||
| 65,700 | 43,800 | 36,500 | 65,700 | 43,800 | 36,500 |
Cash A/c
| Particulars | Rs. | Particulars | Rs. |
| To Balance c/d | 18,000 | By Balance c/d | 1,12,000 |
| To B’s capital a/c | 88,000 | ||
| To Premium a/c | 6,000 | ||
| 1,12,000 | 16,000 |
Balance Sheet
| Liabilities | Rs. | Assets | Rs. | ||
| Sundry Creditors | 30,000 | Cash (2000 + 36500) | 38,500 | ||
| Capital Accounts | Bank | 28,000 | |||
| Ashok | 65,700 | Debtors | 30,000 | ||
| Kishore | 43,800 | Less : Provision | 3,000 | 27,000 | |
| Vinod | 29,000 | 1,38,500 | Stock | 15,000 | |
| Bills Payable | 20,000 | Plant | 30,000 | ||
| Building | 50,000 | ||||
| 1,88,500 | 1,88,500 |
Working Note:
Calculation of new partners capital :
Total capital of firm = (Ashok’s balance c/d + Kishore’s balance c/d) X 4/3
= (65800 + 43800) X 4/3 = Rs. 146000
Vinod’s Capital = 146000 X 1/4 = Rs. 36500
What is Partnership – Meaning and Its 4 Types
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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)
- Chapter No. 8 – Company Accounts – Accounting for Share Capital
- Chapter No. 9 – Company Accounts – Issue of Debentures
- Chapter No. 10 – Redemption of Debentures
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
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