Chintu was admitted on the following terms:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.
Prepare the Capital Accounts of the partners and Bank Account.
They agreed to admit Z for 1/5 th share from 1st April, 2010 on the following terms: -
i) Goodwill of the firm was valued at Rs. 60,000 and Z bring in his share of premium for goodwill in cash.
ii) Provision bad debts raised ny Rs. 1500 iii) Patents are valueless
iv) Stock be reduced by 10%.
v) Outstanding expenses be Increased by Rs. 6000.
vi) Rs. 2500 be provided for an unforeseen liability.
viii) Z to bring in Capital equal to 1/5 th of the combined capital of X and Y
Revaluation Account, Partner's Capital Accounts and the Opening Balance Sheet
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
What are the factors affecting goodwill?
Explain various methods of valuation of goodwill.
Meaning of Undervalued and Overvalued (in case of an asset) and its treatment. Also are liabilities undervalued, overvalued too?
what is the treatment for investment fluctuation fund in partnership
expenses on revaluation amounted to 2100 is paid by A.. this is a loss and hence debited to revaluation account but why is this a loss?
Q. 28. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2015 they admitted Chintu into partnership for 1/5th share in the profits Of the firm.
On that date their Balance Sheet stood as under:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.
Prepare the Capital Accounts of the partners and Bank Account.
what is aims and objectives of admission of partners
what are the provision of as-26 for the treatment of goodwill at the time of admission of a new partner ?
Creditors were written back Rs. 5000.
Which side of the Revaluation a/c will this adjustment fall in?
Why are assets and liabilities revalued at the time of admission of a partner? By revaluing the assets and liabilities dont we violate Going concern and Cost concept??
sir my book is of B.B. dam new course of AHSEC PART A THEORY ND PRACTICE OF ACCOUNTANCY in this book chapter 3 i cant find exercise question of pg no.3.149 plz sir tell me where i got the answers?
why is revaluation a/c prepared when we make the balance sheet as per all the adjustments
of the last year
admission of a partner question with solution?
x,y,z are partners in the ratio of 3:2:1. W is admitted for 1/6th share in profits . Z would retain his original share. Find out the new profit sharing ratio.
........please explain me this question as best as you can
what does exactly 'number of year purchase' mean in the valuation of goodwill?
amalgamation of partnership firms means?
Q. X and Y were partners sharing profits in the ratio of 1:2. Their Balance sheet as on 31st Mar. 2010 was as follows:
They agreed to admit Z for 1/5 th share from 1st April, 2010 on the following terms: -
i) Goodwill of the firm was valued at Rs. 60,000 and Z bring in his share of premium for goodwill in cash.
ii) Provision bad debts raised ny Rs. 1500 iii) Patents are valueless
iv) Stock be reduced by 10%.
v) Outstanding expenses be Increased by Rs. 6000.
vi) Rs. 2500 be provided for an unforeseen liability.
viii) Z to bring in Capital equal to 1/5 th of the combined capital of X and Y
Revaluation Account, Partner's Capital Accounts and the Opening Balance Sheet
give any two reasons for the prepartion of revaluation account on the admission of a new parter.
is there any difference between average profit or average super profit
stock is undervalued by 10% the amount of stock is 18000.
How come in revaluation its written 2000 ?
pls give solutions of dk goel accountancy ch 4 fast
A provision for doubtful debts was to be made equal to 5% of the debtors??? what does it mean how to treat this??balance sheet-asset side- debtors-30,000.
how to treat bank overdraft?
A sum on partnership with journal , ledger, trial balance, trading, profit & loss, profit & loss appropriation ,balance sheet & partner's capital account.
A nd B are partners sharing profits and losses in the ratio 3:1. On 1st april 2012 their balance sheet was as follows."
Liabilities = Sundry creditors- 70000; Capital a/cs- A - 200000, B- 80000; TOTAL= 350000.
Assets= Goodwill- 20000; plant- 100000; patents- 10000; stock- 142000,; Sundry debtors- 50000; cash ta bank- 8000; profit and loss account- 20000. Total- 350000.
They admit C into partnership with 1/6th share in profits on the following terms:
(a). Goodwill is to be valued at one’s year purchase of the five years’ average profit which were Rs.20000; Rs.30000 ; Rs.30000; rs.50000 and Rs.50000.
(b). C agrees to contribute 1/4th of the combined capital of A and B in the new firm.
( c ). Plant is to be written down to Rs.90000 and patents written up to Rs.12000.
(d). A reserve for bad and doubtful debts is to be created @2%p.a. of the debtors.
( e). A liability of Rs.5000 included in sundry creditors is not likely to arise.
Give journal entries, revaluation account, partners capital account, cash account and balance sheet after the admission of C.
What is the meaning of Undervalued and Overvalued?????
Liabilities
Creditors =50000
Provident fund=15000
Workmen's compensation reserve=40000
Capital account
X = 2,60,000
Y = 1,35,000
Assets
Bank =29000
Debtors =180000
Stock =125000
premises =150000
advertisement expenses=16000
on 1st April 2018 z is admitted as a partner .x surrenders one upon fourth of his share and Y one upon three of his share in favour of Z .Goodwill is valued at 160000 z brings in only 2 upon 5 of his share of goodwill in cash and 150000 as his capital following terms are agreed upon :
1. Premises is to be increased to rupees 200000 and stock by 5000
2. Creditors prove at rupees 60000 one bill for goods purchased having been omitted for the book
3. Outstanding rent amounted to rupees 12000 and prepaid salaries rupees 2000
4. Liability on account of provident fund was only rupees 10,000
5. liability for workmen's compensation claim was rupees 16000
prepare revaluation account capital account and the opening balance sheet also calculate the new profit sharing ratio
lease give me solution of 85 question in dr.s.c sharma as i am not getting goodwill.
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
How to treat the following adjustment.
-Provision for bad debt found in excess by 400 Rs.