Admission of a Partner Problems and Solutions
[AHSEC Solved Practical Problems 2012 to 2025]
2025
17. Sikha and Sneha
are partners in a firm sharing profits in the ratio of 2:1. On 1st January,
2022, their Balance Sheet was as under: 8
Balance Sheet
As on 1st January, 2022
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
|
Bills Payable |
10,000 |
Cash in hand |
10,000 |
|
Creditors |
58,000 |
Cash at bank |
40,000 |
|
Outstanding Expenses |
2,000 |
Debtors |
60,000 |
|
Capitals : |
Stock |
40,000 |
|
|
Sikha |
1,80,000 |
Plant |
1,00,000 |
|
Sneha |
1,50,000 |
Building |
1,50,000 |
|
Total |
4,00,000 |
Total |
4,00,000 |
On the above date, they admitted Anisha
as a new partner on the following terms:
(i) Anisha will bring ₹1,00,000 as her
capital and ₹60,000 as her share of goodwill for 1/4th share in the profits.
(ii) Plant is to be appreciated to
₹1,20,000 and the value of buildings is to be appreciated by 10%.
(iii) Stock is to be valued at ₹36,000.
(iv) A provision for bad and doubtful
debts is to be created at 5% of debtors.
(v) Creditors will increase by ₹1,000
as an amount payable to Priyanka for goods purchased on credit was not taken
into account.
Prepare Revaluation Account, Pass Journal Entries and prepare the Balance Sheet of the new firm.
Ans:
Revaluation A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Stock To Provision for b/d To Creditors To Profit on Revaluation - Sikha
= 27,000*2/3 - Sneha = 27,000*1/3 |
4,000 3,000 1,000 18,000 9,000 |
By Plant By Building |
20,000 15,000 |
|
|
35,000 |
|
35,000 |
Journal Entries
In the Books of the Firm
|
Particulars |
L/f |
Amount (DR) |
Amount (CR) |
|
Bank A/c Dr. To Anisha’s Capital A/c To Premium for goodwill A/c (Being the Capital and premium for goodwill brought
in cash) |
|
1,60,000 |
1,00,000 60,000 |
|
Premium for goodwill A/c Dr. To Sikha’s Capital A/c To Sneha’s Capital A/c (Being the Premium for goodwill distributed between Sikha
and Sneha in Sacrifice ratio) |
|
60,000 |
40,000 20,000 |
|
Revaluation A/c Dr. To Stock A/c To Provision for d/d A/c To Creditors A/c (Being the loss on revaluation of assets transferred
to revaluation A/c) |
|
8,000 |
4,000 3,000 1,000 |
|
Plant A/c Dr. Building A/c Dr. To Revaluation A/c (Being the profit on revaluation of
machinery transferred to revaluation A/c) |
|
20,000 15,000 |
35,000 |
|
Revaluation A/c Dr. To Sikha’s Capital A/c To Sneha’s Capital A/c (Being the profit on revaluation distributed between
the partners) |
|
27,000 |
18,000 9,000 |
Balance Sheet of New Firm
As on 01-01-2022
|
Liabilities |
Amount |
Assets |
Amount |
|
Bills Payable Sundry creditors Outstanding Expenses Capital: Sikha Sneha Anshu |
10,000 59,000 2,000 2,38,000 1,79,000 1,00,000 |
Cash in hand Cash at Bank Sundry Debtors 60,000 Less: Provision for d/d 3,000 Stock Plant Building |
10,000 2,00,000 57,000 36,000 1,20,000 1,65,000 |
|
|
5,88,000 |
|
5,88,000 |
2024
17. Mihir and
Karan are partners in a firm sharing profits in the ratio of 3:2. On April 1, 2022
their Balance Sheet was as under: 3+3+2=8
Balance Sheet
|
Liabilities
|
Rs. |
Assets |
Rs. |
|
Sundry Creditors Capital: Mihir
= 70,000 Karan
= 60,000 |
85,000 1,30,000 |
Bank Stock Plant and Machinery Building Goodwill Debtors = 24,000 Less Provision = 1,000 |
10,000 22,000 40,000 1,00,000 20,000 23,000 |
|
|
2,15,000 |
|
2,15,000 |
On the above
date, they admitted Sunil as a new partner on the following terms:
(1) Sunil
will bring Rs. 50,000 for his capital.
(2) He would get
1/5th share in the future profits.
(3) Goodwill
of the firm is valued at Rs. 1,20,000.
(4) Sunil
will bring necessary premium for goodwill.
Pass Journal
entries to record the above transaction. Prepare Partner’s Capital Accounts and
Balance Sheet of the new firm.
Solution:
Journal Entries
In the Books of the Firm
|
Particulars |
L/f |
Amount (DR) |
Amount (CR) |
|
Bank A/c Dr. To Sunil’s Capital A/c To Premium for goodwill A/c (Being the Capital and premium for goodwill brought
in cash) |
|
74,000 |
50,000 24,000 |
|
Premium for goodwill A/c Dr. To Mihir’s Capital A/c To Karan’s Capital A/c (Being the Premium for goodwill distributed between Mihir
and Karan in Sacrifice ratio) |
|
24,000 |
14,400 9,600 |
|
Mihir’s Capital A/c Dr Karan’s Capital A/c Dr To Goodwill A/c (Being the old goodwill written off between old
partners) |
|
20,000 |
12,000 8,000 |
Partner’s Capital A/c
|
Particulars |
Mihir |
Karan |
Sunil |
Particulars |
Mihir |
Karan |
Sunil |
|
To Goodwill A/c To Balance c/d |
12,000 82,400 |
8,000 61,600 |
40,000 |
By Balance b/d By Bank A/c By Premium for goodwill |
70,000 14,400 |
60,000 9,600 |
50,000 |
|
|
72,400 |
69,600 |
40,000 |
|
84,400 |
69,600 |
50,000 |
Balance Sheet of New Firm
As on 01-04-2022
|
Liabilities |
Amount |
Assets |
Amount |
|
Sundry creditors Capital: Mihir Karan Sunil |
85,000 82,500 61,600 40,000 |
Bank Stock Plant and Machinery Building Debtors = 24,000 Less Provision = 1,000 |
84,000 22,000 40,000 1,00,000 23,000 |
|
|
2,69,000 |
|
2,69,000 |
2023
Q. Nitul and Atul are partners in a firm
sharing profits in the ratio 2:1. Pranjal is admitted into the firm as a new
partner with 1/4th share in profits. He will bring Rs. 30,000 as his
capital. The Balance Sheet of Nitul and Atul as on 31-3-2020 was as under: 8
Balance Sheet
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Creditors Bills Payable General Reserve Capital: Nitul = 52,000 Atul =
30,000 |
8,000 4,000 6,000 82,000 |
Cash Debtors Stock Furniture Machinery Building |
12,000 8,000 10,000 5,000 25,000 40,000 |
|
|
1,00,000 |
|
1,00,000 |
Other
terms of the agreement are as under:
(1)
Pranjal will bring in Rs. 12,000 as his share of goodwill.
(2)
Building was valued at Rs. 45,000 and Machinery at Rs. 23,000.
(3) A
reserve for bad debt is to be created at 6% on debtors.
Prepare
Revaluation A/c, Partner’s Capital A/c and the Balance Sheet of the new firm.
Ans:
Revaluation A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Machinery To Provision for d/d To Profit on Revaluation - Nitul - Atul |
2,000 480 1,680 840 |
By Building |
5,000 |
|
|
5,000 |
|
35,000 |
Partner’s Capital A/c
|
Particulars |
Nitul |
Atul |
Pranjal |
Particulars |
Nitul |
Atul |
Pranjal |
|
To Balance c/d |
65,680 |
36,840 |
30,000 |
By Balance b/d By Cash A/c By Premium for goodwill By Reserve By Revaluation |
52,000 8,000 4,000 1,680 |
30,000 4,000 2,000 840 |
30,000 |
|
|
65,680 |
36,840 |
30,000 |
|
65,680 |
36,840 |
30,000 |
Balance Sheet of New Firm
As on 31-03-2020
|
Liabilities |
Amount |
Assets |
Amount |
|
Sundry creditors Bills payable Capital: Nitul Atul Pranjal |
8,000 4,000 65,680 36,840 30,000 |
Cash Debtors 8,000 Less: Provision for d/d 480 Stock Furniture Machinery Building |
54,000 7,520 10,000 5,000 23,000 45,000 |
|
|
1,44,520 |
|
1,44,520 |
2022
22. Ram and Mohan are partners sharing profits
and losses equally. Their Balance Sheet on 1st April, 2021 was
follows:
Balance Sheet
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Sundry Creditors Capitals: Ram: 40,000 Mohan: 30,000 |
15,000 70,000 |
Cash Debtors Stock Machinery Building |
5,000 16,000 12,000 22,000 30,000 |
|
|
85,000 |
|
85,000 |
They decided
to admit Sanjoy into partnership for 1/3rd share on the following
terms:
a) Machinery
and Buildings were revalued at Rs. 20,000 and Rs. 42,000 respectively.
b) Creditors
were reduced by Rs. 2,000.
c) Provision
for doubtful debts on debtors is to be created at Rs. 1,000.
d) Sanjoy is
to bring in Rs. 40,000 as his capital and Rs. 24,000 as premium for goodwill.
Pass journal
entries for the above information and prepare Balance Sheet of the firm after
the admission of Sanjoy.
Ans:
Journal Entries
In the Books of the Firm
|
Particulars |
L/f |
Amount (DR) |
Amount (CR) |
|
Cash A/c Dr. To Sanjoy’s Capital A/c To Premium for goodwill A/c (Being the Capital and premium for goodwill brought
in cash) |
|
64,000 |
40,000 24,000 |
|
Premium for goodwill A/c Dr. To Ram’s Capital A/c To Mohan’s Capital A/c (Being the Premium for goodwill distributed between Ram
and Mohan in Sacrifice ratio) |
|
24,000 |
12,000 12,000 |
|
Revaluation A/c Dr. To Machinery A/c To Provision for d/d A/c (Being the loss on revaluation of
assets transferred to revaluation A/c) |
|
3,000 |
2,000 1,000 |
|
Creditors A/c
Dr. Building A/c Dr. To Revaluation A/c (Being the profit on revaluation of
machinery transferred to revaluation A/c) |
|
2,000 12,000 |
14,000 |
|
Revaluation A/c Dr. To Ram’s Capital A/c To Mohan’s Capital A/c (Being the profit on revaluation distributed between
the partners) |
|
11,000 |
5,500 5,500 |
Balance Sheet of New Firm
As on 01-04-2021
|
Liabilities |
Amount |
Assets |
Amount |
|
Sundry creditors Capital: Ram Mohan Sanjoy |
13,000 57,500 47,500 40,000 |
Cash in hand Sundry Debtors 16,000 Less: Provision for d/d 1,000 Stock Machinery Building |
69,000 15,000 12,000 20,000 42,000 |
|
|
1,58,000 |
|
1,58,000 |
2020
22. Jugal and Govind are partners in a firm
sharing profits and losses in the ratio 2: 1. Their Balance Sheet as on 1st
June, 2019 was as under: 8
Balance Sheet
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Capital: Jugal 30,000 Govind 24,000 Reserve Sundry Creditors Bills Payable |
54,000 6,000 12,000 3,000 |
Goodwill Sundry Assets Cash at Bank |
12,000 57,000 6,000 |
|
|
75,000 |
|
75,000 |
On the
date Khirod was admitted as a new partner. He paid Rs. 30,000 towards his
capital but unable to pay anything for goodwill in cash. It was agreed that
goodwill will be valued at Rs. 21,000. The new profit sharing ratio among
Jugal, Govind and Khirod was agreed at 3: 2: 1 respectively. Pass Journal
Entries to record the above transactions and show the Balance Sheet of the new
firm.
Solution:
Journal Entries
In the Books of the Firm
|
Particulars |
L/f |
Amount (DR) |
Amount (CR) |
|
Bank A/c Dr. To Khirod’s Capital (Being the Capital brought in cash) |
|
30,000 |
30,000 |
|
Khirod’s Capital A/c Dr. To Jugal’s Capital A/c (Being the Premium for goodwill distributed between Sikha
and Sneha in Sacrifice ratio) |
|
3,500 |
3,500 |
|
Reserve A/c Dr. To Jugal’s Capital A/c To Govind’s Capital A/c (Being the Reserves distributed between the partners)
|
|
6,000 |
4,000 2,000 |
|
Jugal’s Capital A/c Govind’s Capital A/c To Goodwill A/c (Being the Goodwill written off) |
|
8,000 4,000 |
12,000 |
Balance Sheet of New Firm
As on 01-06-2019
|
Liabilities |
Amount |
Assets |
Amount |
|
Capital: Jugal Govind Khirod Sundry Creditors Bills Payable |
29,500 22,000 26,500 12,000 3,000 |
Sundry Assets Cash at Bank |
57,000 36,000 |
|
|
93,000 |
|
93,000 |
2019
22. Vimal and Nirmal are partners in a firm
sharing profits and losses in the ratio 3: 2. Their Balance Sheet as on 31st
December, 2018 was as under: 8
Balance Sheet
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Sundry Creditors Capital Accounts: Vimal = 60,000/- Nirmal = 32,000/- Profit and Loss A/c |
20,000 92,000 20,000 |
Cash Debtors Machinery Stock Goodwill |
14,000 18,000 50,000 40,000 10,000 |
|
|
1,32,000 |
|
1,32,000 |
On that
date Kailash was admitted as a new partner. He paid Rs. 40,000 as his capital
and Rs. 20,000 for his share of goodwill. The new profit sharing ratio was
agreed to be 2: 1: 1. Pass Journal Entries in the books of the firm and show
the Balance Sheet of the new firm.
Ans:
Journal Entries
In the books of the firm
|
Particulars |
L/F |
Amount (Dr.) |
Amount (Cr.) |
|
Cash A/c
Dr. To Kailash’s capital A/c To Premium for goodwill A/c (Being the capital and premium for goodwill brought
in cash) |
|
60,000 20,000 6,000 4,000 20,000 |
40,000 20,000 8,000 12,000 10,000 12,000 8,000 |
|
Premium for goodwill A/c Dr. To Vimal’s capital A/c To Nirmal’s capital A/c (Being the premium for goodwill distributed between
sacrificing partners) |
|||
|
Vimal’s capital A/c Dr. Nirmal’s capital A/c Dr. To Goodwill A/c (Being the Goodwill written off) |
|||
|
P/L A/c Dr. To Vimal’s capital A/c To Nirmal’s capital A/c (Being the P/L distributed between old partners) |
Balance Sheet of the new firm
As on 31-12-2018
|
Liabilities |
Amount |
Assets |
Amount |
|
Sundry creditors Capital A/cs
Vimal
Nirmal
Kailash |
20,000 74,000 48,000 40,000 |
Cash Debtors Machinery Stock |
74,000 18,000 50,000 40,000 |
|
|
1,82,000 |
|
1,82,000 |
W.N.
Vimal:
Nirmal=3:2(old ratio)
Vimal: Nirmal: Kailash=2:1:1(New
ratio)
Now,
Vimal’s sacrifice
Nirmal’s sacrifice
2018
22. A and B are partners sharing profits in
the ratio of 3: 2. Their Balance Sheet as on 31st March, 2017 was as
follows:
Balance Sheet
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Sundry Creditors Capital: A: 30,000/- B: 20,000/- |
20,000 50,000 |
Cash in hand Sundry Debtors Stock Furniture Machinery |
3,000 12,000 15,000 10,000 30,000 |
|
|
70,000 |
|
70,000 |
C was admitted as new partner on
the following terms and conditions:
a) C will bring Rs. 15,000/- for
capital and Rs. 5,000/- for his share of Goodwill for 1/6th share in
the future profits.
b) The value of stock to be
reduced by Rs. 2,000/- and that of Machinery be increased by Rs. 8,000/-
c) The value of furniture to be
fixed at Rs. 9,000/-
Pass journal entries in the
books of the firm and prepare the Balance Sheet of the new firm. 8
Ans:
Journal Entries
In the Books of the Firm
|
Particulars |
L/F |
Amount (Dr.) |
Amount (Cr.) |
|
Cash A/c Dr. To C’s Capital A/c To Premium for goodwill A/c (Being the Capital and premium for goodwill brought
in cash) |
|
20,000 5,000 3,000 8,000 5,000 |
15,000 5,000 3,000 2,000 2,000 1,000 8,000 3,000 2,000 |
|
Premium for goodwill A/c Dr. To A’s Capital A/c To B’s Capital A/c (Being the Premium for goodwill distributed between
A & B) |
|||
|
Revaluation A/c Dr. To Stock A/c To Furniture A/c (Being the loss on revaluation of assets transferred
to revaluation A/c) |
|||
|
Machinery A/c Dr. To Revaluation A/c (Being the profit on revaluation of machinery
transferred to revaluation A/c) |
|||
|
Revaluation A/c Dr. To A’s Capital A/c To B’s Capital A/c (Being the profit on revaluation
distributed between the partners) |
Balance Sheet of New Firm
As on 31-03-2017
|
Liabilities |
Amount |
Assets |
Amount |
|
Sundry creditors Capital: A B C |
20,000 36,000 24,000 15,000 |
Cash in hand (3,000+20,000) Sundry Debtors Stock Machinery Furniture |
23,000 12,000 13,000 38,000 9,000 |
|
|
95,000 |
|
95,000 |
2017
22. Ram and Shyam are partners in a
firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet as on
1st April, 2016 was us under:
Balance Sheet
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Sundry Creditors Reserve Capital: Ram =
30,000/- Shyam
= 24,000/- |
12,000 9,000 54,000 |
Cash at Bank Goodwill Sundry Assets |
6,000 12,000 57,000 |
|
|
75,000 |
|
75,000 |
On
that date, Barun was admitted as a new partner. He paid Rs. 30,000/- towards
his capital, but was unable to bring his share of Goodwill of Rs. 6,000/- in
cash. The new profit sharing ratio was agreed to be 3:2:2. Pass Journal entries
in the books of the new firm and show the Balance Sheet of the new firm. 8
Solution:
Journal Entries
In the books of the Firm
|
Particulars |
L/f |
Amount Dr. |
Amount Cr. |
|
Cash A/c Dr. To Barun’s Capital A/c (Being the Capital and Premium for
Goodwill brought in cash) |
|
30,000 |
30,000 |
|
Barun’s Capital A/c Dr. Shyam’s Capital A/c Dr. To Ram’s Capital A/c
(Being the goodwill adjusted amongst the
partners) |
|
6,000 750 |
6,750 |
|
Reserve A/c Dr. To Ram’s Capital A/c
To Shyam’s Capital
A/c (Being the reserve distributed between
the partners) |
|
9,000 |
6,750 2,250 |
|
Ram’s Capital A/c Dr. Shyam’s Capital A/ Dr. To Goodwill A/c (Being the goodwill written off) |
|
9,000 3,000 |
12,000 |
Balance Sheet of the New firm
As on ___________
|
Liabilities |
Amount |
Assets |
Amount |
|
Capital: Ram: 34,500 Shyam: 22,500 Barun: 24,000 Sundry Creditors |
81,000 12,000 |
By Cash at Bank (6,000 + 30,000) By Sundry Assets |
36,000 57,000 |
|
|
93,000 |
|
93,000 |
Working
Note
Sacrificing Ratio = (3/4 – 3/7): (1/4
– 2/7) = (21/28 – 12/28): (7/28 – 8/28) =9/28: -1/28
Goodwill of Ram = 9/8 x 6,000 = 6,750
Goodwill of Shyam = 1/8 x 6,000 = 750
2016
22. A and B are two partners sharing profits
and losses in the ratio of 3: 2. Their Balance Sheet as on 31st
March, 2015 was as follows:
Balance
Sheet
|
Liabilities |
(Rs.) |
Assets |
(Rs.) |
|
Capital:
A = 30,000
B = 25,000 General Reserve Sundry Creditors |
55,000 5,000 15,000 |
Land & Buildings Plant & Machinery Furniture Stock Debtors Cash in Hand |
30,000 20,000 10,000 5,000 8,000 2,000 |
|
TOTAL |
75,000 |
TOTAL |
75,000 |
On 01-4-2015, C was admitted as
a new partner for 1/4th share in the future profits on the following
conditions:
a) C will bring Rs. 20,000/- as
Capital and Rs. 6,000/- as premium for goodwill.
b) The Land & Buildings will
be revalued at Rs. 35,000/-
c) Plant & Machinery and
Furniture will be depreciated by 5% and 10% respectively.
d) Stock will be reduced by Rs.
2,000/-
Give Journal entries and prepare
the Balance Sheet of the firm after C’s admission. 6+2=8
Solution:
Journal Entries
In the books of firm
|
Particulars |
L/f |
Amount Dr. |
Amount Cr. |
|
Reserve A/c
Dr. To A’s Capital A/c To B’s Capital A/c (Being reserve distributed) |
|
5,000 |
3,000 2,000 |
|
Cash A/c
Dr. To C’s Capital A/c To Premium for goodwill A/c (Being goodwill & capital brought in
by C) |
|
26,000 |
20,000 6,000 |
|
Premium for goodwill A/c Dr.
To A’s Capital A/c To B’s Capital A/c (Being Premium goodwill distributed) |
|
6,000 |
3,600 2,400 |
|
Revaluation A/c
Dr. To Plant & Machinery A/c To Furniture A/c To Stock A/c (Being Assets revalued) |
|
4,000 |
1,000 1,000 2,000 |
|
Land & Building A/c
Dr. To Revaluation A/c (Being L/B revalued) |
|
5,000 |
5,000 |
|
Revaluation A/c
Dr. To A’s Capital A/c To B’s Capital A/c ( Being revaluation profit transferred
to partner’s capital A/c) |
|
1,000 |
600 400 |
Balance Sheet
As on 31/3/2015
|
Liabilities |
Amount |
Assets |
Amount |
|
Capital: A: 30,000 Add: P/G 3,600 Add: Revaluation 600 Add: Reserve 3,000 B: Capital 25,000 Add: P/G 2,400 Add: Revaluation 400 Add: Reserve 2,000
C Sundry Creditors |
37,200 29,800 20,000 15,000 |
Land & Building Plant & Machinery 20,000 Less: Depreciation (1,000) Furniture 10,000 Less: Depreciation (1,000) Stock
5,000 Less: Depreciation (2,000) Debtors Cash in hand (2,000 + 20,000 + 6,000) |
35,000 19,000 9,000 3,000 8,000 28,000 |
|
|
1,02,000 |
|
1,02,000 |
Working
Note:
A: B = 3: 2
C’s share = 1/4
Let the Total share be 1
\C’s share
= 1 – 1/4 = 3/4
\A’s share
= 3/4 x 3/5 = 9/20
B’s share = 3/4 x 2/5 = 6/20
\New Ratio
= 9: 6: 5
\Sacrificing
Ratio = 3/5 – 9/16: 2/5 – 6/16
= 48 – 45/80: 32 – 30/80
= 3: 2
\A’s share
= 3/5 x 6,000 = 3,600
B’s share = 2/5 x 6,000 = 2,400
2015
22. Ram and Shyam are partners sharing profits
and losses in the ratio of 3:1. Their Balance Sheet as on 31-03-2014 is given
below:
Balance Sheet
As on 31-03-2014
|
Liabilities |
Rs. |
Assets |
Rs. |
|
Capital: Ram =
60,000 Shyam
40,000 Reserve Sundry Creditors |
1,00,000 20,000 80,000 |
Plant & Machinery Furniture Stock Debtors Cash at Bank |
50,000 10,000 70,000 15,000 55,000 |
|
|
2,00,000 |
|
2,00,000 |
Hari was admitted as a new
partner on the following conditions: -
a) That Hari bring Rs. 40,000/-
for his capital and Rs. 20,000/- for the premium.
b) That Hari will get 1/3rd
share in future profit.
c) That the value of stock is be
reduced by Rs. 7,000/-
d) That the value of Plant and
Machinery is to be depreciated by 20%.
e) Furniture is to be reduced by
10%.
f) Bad debts amounted to Rs.
2,000/- and are to be written off.
g) There was an unrecorded
computer valued at Rs. 10,000/- and the same is to be brought into books now.
Prepare a Pre-Valuation Account,
Partner’s Capital Account and the re-constituted Balance Sheet after Hari’s
admission. 3+2+3=8
Solution:
Revaluation A/c
|
Particulars |
Amount |
Particulars |
Amount |
|
To Stock A/c To Plant & Machinery To Furniture To Sundry Debtors (Bad Debt) |
7,000 10,000 1,000 2,000 |
By Computer By Loss on Revaluation Ram: 10,000 x 3/4 = 7,500 Shyam: 10,000 x 1/4 = 2,500 |
10,000 10,000 |
|
|
20,000 |
|
20,000 |
Partner’s Capital A/c
|
Particulars |
Ram |
Shyam |
Hari |
Particulars |
Ram |
Shyam |
Hari |
|
To Revaluation A/c To Balance c/d |
7,500 82,500 |
2,500 47,500 |
40,000 |
By Balance b/d By Cash A/c By Premium for goodwill By Reserve |
60,000 15,000 15,000 |
40,000 5,000 5,000 |
40,000 |
|
|
90,000 |
50,000 |
40,000 |
|
90,000 |
50,000 |
40,000 |
Balance Sheet
As on 31.03.2014
|
Liabilities |
Amount |
Assets |
Amount |
|
Capital: Ram: 82,500 Shyam: 47,500 Hari: 40,000 Creditors |
1,70,000 80,000 |
Plant & Machinery 50,000 Less: Depreciation @ 20% (10,000) Computer Furniture 10,000 Less: Depreciation @ 10% (1,000) Stock
70,000 Less: Depreciation @ 10% (7,000) Debtors Cash (55,000 + 40,000 + 20,000) |
40,000 10,000 9,000 63,000 13,000 1,15,000 |
|
|
2,50,000 |
|
2,50,000 |
Working Note:
Let the
Total share be 1
\Hari share
= 1 – 1/3 = 2/3
\Ram’s new
share = 3/4 x 2/3 = 6/12
Shyam new
share = 1/4 x 2/3 = 2/12
\New Ratio
= 6/12: 2/12: 1/3
= 6: 2: 4
= 3: 1: 2
\Sacrificing
Ratio = 3/4 – 3/6: 1/4 – 1/6
= (9/12 –
6/12): (3/12 – 2/12)
= 3/12:
1/12
= 3: 1
\Ram’s
share of premium for goodwill = 20,000 x 3/4 = 15,000
Shyam’s
share of premium for goodwill = 20,000 x 1/4 = 5,000
2013
14. Rohan
and Sohan are partners sharing profits and losses in the ratio of 3:2. Mohan
joins the firm as a new partner for 1/4th share of future profit.
Mohan brings Rs. 20,000 as capital and required amount of premium. The goodwill
of the firm was valued at Rs. 30,000. Give journal entries assuming that
partner’s capitals are fixed. 5
Solution:
Journal Entries
In the books of firm
|
Particulars |
Amount (Dr.) |
Amount (Cr.) |
|
Cash A/c
Dr. To Mohan’s Capital
A/c To Premium for
goodwill A/c (Being the Capital and premium for
goodwill brought in cash by New Partner) |
27,500 |
20,000 7,500 |
|
Premium for Goodwill A/c
Dr. To Rohan’s Current
A/c To Sohan’s Current
A/c (Being the premium for goodwill
distributed between Sacrificing partners) |
7,500 |
4,500 3,000 |
Or
A and B are partners sharing profits and
losses A – 75% and B – 25% respectively. Their Balance sheet as on 31.03.2012
is given below: 5
|
Liabilities |
Amount |
Assets |
|
Amount |
|
Sundry Creditors Profit and Loss Account Capital Accounts: A - 30000 B – 20000 |
40000 10000 50000 |
Cash Sundry Debtors Less: Provisions for Bad debts Stock Furniture Plant and Machinery |
16000 1000 |
20000 15000 35000 5000 25000 |
|
|
100000 |
|
|
100000 |
X was
admitted as a new partner on the following terms:
(i) That Plant and machinery is
to be reduced by 25%.
(ii) Furniture is to be
depreciated by 10%.
(iii) Bad debts amounted to
Rs.1750 and are to be written off.
(iv) There was an unrecorded
typewriter valued at Rs.5000.
(v) Outstanding legal charges
estimated at Rs.1250.
Prepare a Revaluation Account.
Solution:
Revaluation A/c
|
To P/M To Furniture To Provision for b/d (1,750 – 1,000) To Outstanding legal charges |
6,250 500 750 1,250 |
By Typewriter By Loss on revaluation: A = 3,750 x 3/4 B = 3,750 x ¼ |
5,000 2,812.50 937.50 |
|
|
8,750 |
|
8,750 |
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