Question 97 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 97 Chapter 5 of +2-A

Question 97 Chapter 5 of +2-A

97. A and B are partners in a firm sharing profits and losses in the ratio 3 : 1. They admit C for 1/4th share on 31st March, 2014 when their Balance Sheet was as follows:

Liabilities     Assets    
Employees Provident Fund    17,000 Cash   6,100
Workmen Compensation Reserve   6,000 Stock   15,000
Investment Fluctuation Reserve   4,100 Debtors 50,000  
Capital’s A/cs     Less : Provision for Doubtful Debts 2,000 48,000
A 54,000   Investments   7,000
B 35,000 89,000 Goodwill    40,000
    1,16,100     1,16,100

Liabilities Assets
Employees Provident Fund 17,000 Cash 6,100
Workmen Compensation Reserve 6,000 Stock 15,000
Investment Fluctuation Reserve 4,100 Debtors 50,000
Capital’s A/cs Less : Provision for Doubtful Debts 2,000 48,000
A 54,000 Investments 7,000
B 35,000 89,000 Goodwill 40,000
1,16,100 1,16,100

 

 

The solution of Question 97 Chapter 5 of +2-A: –

 

Revaluation Account
Particular
Amount Particular Amount
To Bad debts
A/c
  1,000      
           
      Loss on Revaluation    
      A’s Capital A/c 750  
      B’s Capital A/c 250 1,000
    1,000     1,000

 

Partners’ Capital Account
Parti
culars
A B C

Partic
ulars

A B C
To Revaluation A/c 750 250 By Balance B/d 54,000 35,000
To Goodwill A/c 30,000 10,000   By Bank 23,200
        By Premium for Goodwill 12,000 4,000
        By WCF 3,000 1,000  
        By IIF 1,200 400  
To Balance c/d 2,00,000 2,00,000 2,00,000        
               
  3,16,000 3,04,000 2,00,000   3,16,000 3,04,000 2,00,000

 

 

Working Note:-

Calculation of C’s Capital

C’s Capital = Total Adjusted Capital of A and B × Reciprocal of Combined Profit Share × C’s Profit Share A’s Adjusted Capital
  = 54,000+12,000+3,000+1,200-750-30,000
  =  39,450 + 30,150
  = Rs 69,600



C’s Capital = 69,600 x 4 x 1
3 4
  = 23,200        

 

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

 

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2 Book 1 min - Question 97 Chapter 5 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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