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Question 69 Chapter 5 – Unimax Class 12 Part 1 – 2021
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69. Ram, Rahim and Jakob are equal partners in firm. Their Balance Sheet as at 31st March, 2021 was as follows :
| Liabilities | Amount | Assets | Amount | |
| Sundry Creditors | 27,000 | Goodwill | 1,17,000 | |
| Capital : | Building | 1,25,000 | ||
| Ram | 2,17,000 | Machinery | 72,000 | |
| Rahim | 1,66,000 | Furniture | 24,000 | |
| Jakob | 90,000 | Stock | 1,14,000 | |
| Employees provident fund | 6,000 | Bad debts | 1,02,000 | |
| Bills payable | 45,000 | Cash | 12,000 | |
| General Reserve | 15,000 | |||
| 5,66,000 | 5,66,000 |
On that date, they agreed to take David as an equal partner on the following terms :
- David will bring in Rs. 160000 as his capital and Goodwill. His share of goodwill is valued at Rs. 60000.
- The goodwill account appearing in the books is to be written off before admission.
- Provision for loss of stock and a provision for doubtful debts is to be made at 10% and 5% respectively.
- The value of Building is to be taken at Rs. 200000.
- The total capital of the new firm had been fixed at Rs. 400000 and the capital accounts of partners are to be adjusted in their profit sharing ratios. Any excess is to be transferred to current account or deficit to be introduced in cash.
Prepare the Revaluation Account, Capital Accounts and Balance Sheet of the new firm.
The solution of Question 69 Chapter 5 – Unimax Class 12 Part 1: –
Revaluation A/c
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| Particulars | Rs. | Particulars | Rs. | |
| To Provision for stock a/c | 11,400 | By Building a/c | 75,000 | |
| To Provision for bad debts a/c | 5,100 | |||
| To Profit on revaluation | ||||
| Ram | 19,500 | |||
| Rahim (1 : 1 : 1) | 19,500 | |||
| Jacob | 19,500 | 58,500 | ||
| 75,000 | 75,000 |
Capital Accounts
| Particulars | Ram | Rahim | Jacob | David | Particulars | Ram | Rahim | Jacob | David |
| To Ashok’s Capital a/c | 39,000 | 39,000 | 39,000 | – | By Balance b/d | 2,17,000 | 16,6000 | 90,000 | – |
| To Kishore’s Capital a/c | 1,22,500 | 71,500 | – | – | By General res. | 5,000 | 5,000 | 5,000 | – |
| To Balance c/d | 1,00,000 | 1,00,000 | 1,00,000 | 1,00,000 | By Profit on rev. | 19,500 | 19,500 | 19,500 | – |
| By Cash a/c | – | – | – | 1,00,00 | |||||
| By Premium A/c | 20,000 | 20,000 | 20,000 | – | |||||
| By Cash a/c | – | – | 4,500 | – | |||||
| 2,61,500 | 2,10,500 | 1,39,000 | 1,00,000 | 2,61,500 | 2,10,500 | 1,39,000 | 1,00,000 |
Balance Sheet
| Liabilities | Rs. | Assets | Rs. | ||
| Employees Provident Fund | 6,000 | Cash (12000 + 160000 + 4500) | 1,76,500 | ||
| Capital Accounts | Building | 2,00,000 | |||
| Ram | 1,00,000 | Stock | 1,14,000 | ||
| Rahim | 1,00,000 | Less : Provision | 11,400 | 1,02,600 | |
| Jacob | 1,00,000 | Book debts | 1,02,000 | ||
| David | 1,00,000 | 4,00,000 | Less Provision | 5,100 | 9,69,00 |
| Bills Payable | 45,000 | Machinery | 7,20,000 | ||
| Ram’s Current a/c | 1,22,500 | Furniture | 24,000 | ||
| Sundry Creditors | 27,000 | ||||
| Rahim’s Current a/c | 71,500 | ||||
| 6,72,000 | 6,72,000 |
Working Note:
Calculation of req. Capitals of Partners :
Total capital of firm = Rs. 400000
PSR = 1 : 1 : 1 : 1
(i) Ram’s required cap. = 400000 X 1/4 = Rs. 100000
Ram’s actual required capital = Rs. 222500
Ram’s will withdraw = Rs. 122500 (Transferred to current a/c)
(ii) Rahim’s required cap. = 400000 X 1/4 = Rs. 100000
Rahim’s actual capital = Rs. 171500
Rahim’s will withdraw = Rs. 71500 (Transferred to current a/c)
(iii) Jacob’s required cap. = 400000 X 1/4 = Rs. 100000
Jacob’s actual capital = Rs. 95500
Jacob’s will introduce = Rs. 4500. (Transferred to current a/c)
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)
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- 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