Madhu's Capital
Vidhi's Capital
General Reserve
Bills Payable
5,20,000
3,00,000
30,000
1,50,000
Land and Building
Machinery
Stock
Debtors 3,00,000
Less: Provision 10,000
Bank
3,00,000
2,80,000
80,000
2,90,000
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 profit ratio will be 2 : 3 : 5. Gayatri brought Rs. 4,00,000 as her capital and her share of goodwill premium
(a) Goodwill Of the firm was valued at Rs. 3,00,000
(b) Land and Building was found undervalued by Rs. 26,000.
(c) Provision for doubtful debts was to be made equal to 5% of the debtors.
(d) There was a claim of Rs. 6,000 on account of workmen compensation.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm
Bills Payable
Creditors
Outstanding Expenses
Capital A/cs:
A 1,80,000
B 1,50,000
10,000
58,000
2,000
3,30,000
Cash in Hand
Cash at Bank
Sundry Debtors
Stock
Plant
Building
10,000
40,000
60,000
40,000
1,00,000
1,50,000
4,00,000
4,00,000
C is admitted as a partner on the date of the Balance Sheet on the following terms:
(a) C will bring in Rs. 1,00,000 as his capital and Rs.60,000 as his share of goodwill for 1/4 th share in the profits.
(b) Plant is to be appreciated to Rs.1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by Rs. 4,000.
(d) A provision for doubtful debts is to be created at 5% of sundry debtors.
(e) Creditors were unrecorded to the extent of Rs. 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partners's Capital Accounts and show the Balance Sheet after the admission of C.
[Ans : Gain of Revaluation – Rs. 27; 000; Capital A/cs : A – Rs.2,38,000; B – Rs. 1,79,000; C– Rs.1,00,000; Balance Sheet Total – Rs. 5,88,000]
Q18. A, B and C are partners sharing in the ratio of 4 : 3 : 2. They admit D its 1/9 share. It is agreed that A would retain his original share. Calculate the new ratio and sacrificing ratios.
[ Ans. New Ratio 20 : 12 : 8 : 5, Sacrificing Ratio between B and C 3 : 2]
Vidhi's Capital
General Reserve
Bills Payable
3,00,000
30,000
1,50,000
Machinery
Stock
Debtors 3,00,000
Less: Provision 10,000
Bank
2,80,000
80,000
2,90,000
50,000
Madhu and Vidhi decided to admit Gayatri as a new partner from 1st April, 2016 and their profit ratio will be 2 : 3 : 5. Gayatri brought Rs. 4,00,000 as her capital and her share of goodwill premium
(a) Goodwill Of the firm was valued at Rs. 3,00,000
(b) Land and Building was found undervalued by Rs. 26,000.
(c) Provision for doubtful debts was to be made equal to 5% of the debtors.
(d) There was a claim of Rs. 6,000 on account of workmen compensation.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm
Q62. Given below is the Balance Sheet of A and B, who are carrying on partnership business on 31st March, 2018. A and B share profit and losses in the ratio of 2 : 1.
BALANCE SHEET OF A AND B as at 31st March, 2018
Creditors
Outstanding Expenses
Capital A/cs:
A 1,80,000
B 1,50,000
58,000
2,000
3,30,000
Cash at Bank
Sundry Debtors
Stock
Plant
Building
40,000
60,000
40,000
1,00,000
1,50,000
C is admitted as a partner on the date of the Balance Sheet on the following terms:
(a) C will bring in Rs. 1,00,000 as his capital and Rs.60,000 as his share of goodwill for 1/4 th share in the profits.
(b) Plant is to be appreciated to Rs.1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by Rs. 4,000.
(d) A provision for doubtful debts is to be created at 5% of sundry debtors.
(e) Creditors were unrecorded to the extent of Rs. 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partners's Capital Accounts and show the Balance Sheet after the admission of C.
[Ans : Gain of Revaluation – Rs. 27; 000; Capital A/cs : A – Rs.2,38,000; B – Rs. 1,79,000; C– Rs.1,00,000; Balance Sheet Total – Rs. 5,88,000]
Q. L, R and S ae sharing profits and losses in the ratio of 5:3:2. Their General Reserve as 50,000. They decided to share future profits and losses in the ratio of 2:3:5 with effect from 1.4.2016. Goodwill was valued 100,000. They also decided to record the effect of the following revaluations without effecting the books value of the assets and liabilities by passing a single adjusting entry and entry for Goodwill and General Reserve.
Pass the necessary single adjusting entry by showing the workings clearly.