Advertisement

Question 99 Chapter 5 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 99 Chapter 5 of +2-A
Question No.99 Chapter No.5 - T.S. Grewal +2 Book 2019-Solution

Advertisement

Question 99 Chapter 5 of +2-A

Advertisement

99. Pradeep and Dhanraj were partners in a firm sharing profits in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2019 was:

Liabilities  Assets  
Creditors 30,000Cash 4,000
Bills Payable 1,000Debtors50,000 
Reserve Fund 16,000Less: Provision for Doubtful Debts5,00045,000
Outstanding Salary 3,000Stock 30,000
Capital A/cs:  Bills Receivable 10,000
Pradeep60,000 Patents 1,000
Dhanraj20,00080,000Machinery 40,000
  1,30,000  1,30,000

They admitted Leander as a new partner on this date. New profit-sharing ratio is agreed as 3 : 2 : 3. Leander brings in proportionate capital after the following adjustments:
(a) Leander brings 16,000 as his share of goodwill.
(b) Provisions for Doubtful Debts is to be reduced by 2,000.
(c) There is an old Printer valued at 2,400. It does not appear in the books of the firm. It is now to be recorded.
(d) Patents are valueless. Prepare Revaluation Account, Capital Accounts and opening Balance Sheet of Pradeep, Dhanraj and Leander.

 

Advertisement-X

 

The solution of Question 99 Chapter 5 of +2-A: –

 

Revaluation Account
Particular
AmountParticularAmount
Patents 1,000Provision for Doubtful Debts 2,000
   Typewriter 2,400
Profit on Revaluation     
Mohan Capital2,550    
Sohan Capital8503,400   
  4,400  4,400

 

Partners’ Capital Account
Parti
culars
PradeepDhanrajLeander

Partic
ulars

PradeepDhanrajLeander
    By Balance B/d60,00020,000
    By Reserve Fund12,0004,000

    By Premium for Goodwill16,000
    By Revaluation2,550850
To Balance c/d 90,55024,850    
 90,55024,850 90,55024,850
    By Balance B/d90,55024,850
    By Bank A/c69,240
To Balance c/d
90,550
24,850
69,240
    
 90,55024,85069,240 90,55024,85069,240

 

Balance Sheet
Liabilities
AmountAssetsAmount
Creditors 30,000Stock 30,000
Bills Receivable 1,000Debtors50,000 
Outstanding Salary 3,000   
Capital:  Less: Reserve for D. Debt3,00047,000
Pradeep90,550 Bills Receivable 10,000
Dhanraj24,850 Machinery 40,000
Leander69,2401,84,640Typewriter 2,400
   Cash 89,240
  2,18,640  2,18,640

 

Working Note:-

Advertisement-X

Old Ratio of Pradeep and Dhanraj = 3 : 1
New Ratio of Pradeep ,Dhanraj and Leander = 3 : 2 : 3

Sacrificing Ratio = Old Ratio – New Ratio

Pardeep’s New Ratio=33
48
 =6 – 3
8

Advertisement-Y

 =3
 8

 

Dhanraj’s New Ratio=12
48
 =2- 2
8
 =0
 8

Leander acquires his share of profit from Pradeep only. Therefore, amount for goodwill brought by Leander will be taken by Pradeep alone

Distribution of Revaluation Profit

Pradeep will get=3,400X3
4
 =2,550
  

 

Dhanraj will get=3,400X3
1
 =850
  

Advertisement-X

 

Distribution of Reserve Fund

Pradeep will get=16,000X3
4
 =12,000
  
Dhanraj will get=16,000X1
4
 =4,000
  

Advertisement-Y

 

Calculation of Leander’s Capital

Combined Capital of Pradeep and Dhanraj after all adjustments=90,550 + 24,850
 =1, 15,400

Combined share of profit of Pradeep and Dhanraj = 1 − Leander share

Remaining share=13
8
 =8 – 3
8
 =5
 8

 

Total Capital of the firm on the basis of combined capital of Pradeep and Dhanraj=1,15,400X8
5
 =1,84,640
  
Leander’s Capital=1,84,640X3
8
 =69,240
  

Advertisement-X

 

Cash Account
Particular
AmountParticularAmount
Balance b/d 4,000   
Leander’s Capital 69,240   
Premium for Goodwill 16,000   
      
      
   Balance c/d 89,240
  89,240  89,240

 

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-Y

Advertisement

Advertisement

error: Content is protected !!