On this date Z was admitted as a partner on the following terms:
(1) He was to get 4/l5ths of profits.
(2) He was to introduce 2,00,000 as capital and his share of goodwill in cash.Goodwill brought by Z shall be withdrawn by X and Y.
(3) Goodwill shall be valued on the basis of 1 1/2 years purchase of the average
profits of the last four years which were:
2009 Rs. 20,000
2010 Rs. 35,000
2011 Rs. 15,000 (Loss)
2012 Rs. 40,000
4) It is further agreed that y shall introduce additional capital of Rs. 40,000.
5) Assets are to be revalued as : Freehold Premises Rs. 2,50,000; Plant at Rs. 80,000. Prepaid Expenses Nil;
6) It is decided to write off Bad Debts amounting to Rs. Rs. 8,000
7) Creditors approved at Rs. 45,000, one bill for goods purchased having been omitted from the books.
Pass necessary journal entries and prepare Ledger accounts to record the above and balance sheet after Z's admmisson
On that date Esha is admitted as a partner:
(a) Charu gives 1/3rd of her share while Divya gives 1/10th from her share to Esha.
(b) Goodwill of the firm is valued at 2 years' purchase of average profit of last 5 years which are Rs. 50,000 (Loss); Rs. 1,20,000; Rs. 10,000 (Loss); Rs. 3,00,000 and Rs. 3,40,000 respectively. Esha does not bring her share of goodwill in cash.
(c) Esha brings in proportion to her share of profit in the firm.
Pass Journal Entries and show your workings clearly.
Other terms agreed upon were:
1- Goodwill of firm was valued at 12,000.
2- The land and building were to be valued at Rs. 35,000 and plant and machinery at Rs 25,000
3- The provision for doubtful debts was found to be in excess
by Rs.400.
4- A liability for Rs- 1,000 included in creditors was not likely to
arise.
5- The capital of the partners be adjusted on the basis of Z's
contribution of capital in the firm.
6- Excess or Shortfall if any to be transferred to current account.
7 -By admitting Z which value was followed by partnership firm?
Prepare revaluation account, partners' capital account and the balance sheet of the new firm.
(1) He was to get 4/l5ths of profits.
(2) He was to introduce 2,00,000 as capital and his share of goodwill in cash.Goodwill brought by Z shall be withdrawn by X and Y.
(3) Goodwill shall be valued on the basis of 1 1/2 years purchase of the average
profits of the last four years which were:
2009 Rs. 20,000
2010 Rs. 35,000
2011 Rs. 15,000 (Loss)
2012 Rs. 40,000
4) It is further agreed that y shall introduce additional capital of Rs. 40,000.
5) Assets are to be revalued as : Freehold Premises Rs. 2,50,000; Plant at Rs. 80,000. Prepaid Expenses Nil;
6) It is decided to write off Bad Debts amounting to Rs. Rs. 8,000
7) Creditors approved at Rs. 45,000, one bill for goods purchased having been omitted from the books.
Pass necessary journal entries and prepare Ledger accounts to record the above and balance sheet after Z's admmisson
On that date Esha is admitted as a partner:
(a) Charu gives 1/3rd of her share while Divya gives 1/10th from her share to Esha.
(b) Goodwill of the firm is valued at 2 years' purchase of average profit of last 5 years which are Rs. 50,000 (Loss); Rs. 1,20,000; Rs. 10,000 (Loss); Rs. 3,00,000 and Rs. 3,40,000 respectively. Esha does not bring her share of goodwill in cash.
(c) Esha brings in proportion to her share of profit in the firm.
Pass Journal Entries and show your workings clearly.
Q. What is the treatment of Provision for bad and doubtful debts is to be kept at same rate in revaluation account?
Q14. A and B are partners sharing profit in the ratio of 3 : 2. They admitted C as a new partner for 1/3 share in profit of the firm. C acquires his share as 2/9 from A and 1/3 of his share from B, C brings in Rs.1,50,000 as his capital.
(i) The firm's goodwill was valued at Rs. 1,80,000.
(ii) General Reserve appearing in the books was Rs. 75,000.
(iii) Loss on revaluation of assets and liabilities was Rs.40,000.
Before any adjustment was made, the capital of A and B were Rs.1,60,000 and Rs.80,000 respectively. It is decided that after C's admission , the capitals of A and B will be adjusted on the basis of C's share of capital, any surplus or deficiency to be adjusted through current accounts.
You are required to pass necessary journal entries on C's admission.
General reserve 36000
Advertisemwnt suspense 18000
Goodwill 9000
The revaluation of assets and liabilities worked out in a profit of 4500.partners decide readjust capital on basis of kitty's contribution .find the amount to be brought in or withdrawn by each partner and pass necessary journal entry to give effect.
On application - Rs. 2 per share
On allotment - Rs. 4.50 per share (including premium)
On call - Rs. 6 per share
Owing to heavy subscription the allotment was made on pro-rata basis as follows:
(a) Application for 20,000 shares were allotted 10,000 shares
(b) Applicants for 56,000 shares Were allotted 14,000 shares
(c) Applicants for 48,000 shares were allotted 16,000 shares.
It was decided that excess amount received on application would be utilised on allotment and the surplus would be refunded.
Ram, to whom 1,000 shares were allotted, who belong to category (a) failed to pay allotment money. His shares were forfeited after the call.
Pass the necessry Journal Entries in the books of X Ltd. for the above transactions.
Q 11.Dont send links please.
a) new psr of uday ,kaushal , govind and hari on hari's admission
b)new psr of uday , kaushal , hari after govind's death
What will be the entry of this above transaction.
Q. X and Y are partners in the firm in sharing profit in 5:3 ratio. They admitted Z as a new partner for 1/3 share of profit. Z was contribute Rs. 20,000 as his capital. The balance sheet of X & Y as at 1st April 2007, the date of Z's admission was as follow.
Other terms agreed upon were:
1- Goodwill of firm was valued at 12,000.
2- The land and building were to be valued at Rs. 35,000 and plant and machinery at Rs 25,000
3- The provision for doubtful debts was found to be in excess
by Rs.400.
4- A liability for Rs- 1,000 included in creditors was not likely to
arise.
5- The capital of the partners be adjusted on the basis of Z's
contribution of capital in the firm.
6- Excess or Shortfall if any to be transferred to current account.
7 -By admitting Z which value was followed by partnership firm?
Prepare revaluation account, partners' capital account and the balance sheet of the new firm.