Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 12 Commerce Accountancy Chapter 4 Admission Of A Partner are provided here with simple step-by-step explanations. These solutions for Admission Of A Partner are extremely popular among class 12 Commerce students for Accountancy Admission Of A Partner Solutions come handy for quickly completing your homework and preparing for exams. All questions and answers from the Double Entry Book Keeping Ts Grewal (2016) Book of class 12 Commerce Accountancy Chapter 4 are provided here for you for free. You will also love the ad-free experience on Meritnation’s Double Entry Book Keeping Ts Grewal (2016) Solutions. All Double Entry Book Keeping Ts Grewal (2016) Solutions for class 12 Commerce Accountancy are prepared by experts and are 100% accurate.
Page No 4.67:
Question 1:
Answer:
Old Ratio of A and B = 21 : 9
Let the total share be = 1
Page No 4.67:
Question 2:
Old Ratio of A and B = 21 : 9
Let the total share be = 1
Answer:
Ashok admits for share of profit
Ravi sacrifices in favour of Ashok =
Mukesh sacrifices in favour of Ashok =
New Ratio = Old Ratio − Sacrificing Ratio
Page No 4.67:
Question 3:
Ashok admits for share of profit
Ravi sacrifices in favour of Ashok =
Mukesh sacrifices in favour of Ashok =
New Ratio = Old Ratio − Sacrificing Ratio
Answer:
Old ratio of A and B = 7 : 3
Page No 4.67:
Question 4:
Old ratio of A and B = 7 : 3
Answer:
Old Ratio = 1 : 1
Let the total share be = 1
Page No 4.67:
Question 5:
Old Ratio = 1 : 1
Let the total share be = 1
Answer:
(i) Let the total share be = 1
W is admitted for share
Z’s share =
(ii) Old Ratio = 3 : 2 : 5
Page No 4.67:
Question 6:
(i) Let the total share be = 1
W is admitted for share
Z’s share =
(ii) Old Ratio = 3 : 2 : 5
Answer:
Old ratio = 3 : 2
Let the total share be = 1
Note: When nothing has been specified about the new profit sharing ratio, it has been assumed that the sacrificing ratio will be same as old ratio, i.e. 3 : 2.
Page No 4.67:
Question 7:
Old ratio = 3 : 2
Let the total share be = 1
Note: When nothing has been specified about the new profit sharing ratio, it has been assumed that the sacrificing ratio will be same as old ratio, i.e. 3 : 2.
Answer:
Sacrificing Share = Old Ratio − New Ratio
Page No 4.67:
Question 8:
Sacrificing Share = Old Ratio − New Ratio
Answer:
Old ratio = 3 : 2
Page No 4.67:
Question 9:
Old ratio = 3 : 2
Answer:
Profit sharing ratio of A and B = 4 : 1
Thus, Profit sharing ratio of B and C will also be 4 : 1
Let B’s Profit Share = 1
Since, C’s share of profit is 25% of B’s Profit Share
A’s Profit Share is 4 times the B’s Profit Share, thus, A’s Profit Share = 4
New Profit Share = 4 : 1 : 0.25 or 16 : 4 : 1
Sacrificing Ratio = Old Ratio – New Ratio
Page No 4.67:
Question 10:
Profit sharing ratio of A and B = 4 : 1
Thus, Profit sharing ratio of B and C will also be 4 : 1
Let B’s Profit Share = 1
Since, C’s share of profit is 25% of B’s Profit Share
A’s Profit Share is 4 times the B’s Profit Share, thus, A’s Profit Share = 4
New Profit Share = 4 : 1 : 0.25 or 16 : 4 : 1
Sacrificing Ratio = Old Ratio – New Ratio
Answer:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
P’s share = X’s Sacrifiece
Q’s share = Y’s Sacrifice
Page No 4.67:
Question 11:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
P’s share = X’s Sacrifiece
Q’s share = Y’s Sacrifice
Answer:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
∴New Profit Sharing Ratio = 75 : 48 : 37
Page No 4.67:
Question 12:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
∴New Profit Sharing Ratio = 75 : 48 : 37
Answer:
Sacrificing Ratio = Old Ratio − Sacrificing Ratio
Page No 4.67:
Question 13:
Sacrificing Ratio = Old Ratio − Sacrificing Ratio
Answer:
D is admitted for share of profit
Let the combined share of profit of A, B C and D be = 1
Combined share of A, B and C after D’s admission = 1 − D’s shares
New Ratio = Old Ratio × combined share of A, B and C
Sacrificing Ratio = Old Ratio − New Ratio
Page No 4.67:
Question 14:
D is admitted for share of profit
Let the combined share of profit of A, B C and D be = 1
Combined share of A, B and C after D’s admission = 1 − D’s shares
New Ratio = Old Ratio × combined share of A, B and C
Sacrificing Ratio = Old Ratio − New Ratio
Answer:
E is admitted for share
Let combined share of profit of all partners after E’s admission = 1
Combined share of A, B, C and D after E’s admission = 1 − E’s Share
New Ratio = Combined of A, B, C and D × Agreed Share of A, B, C and D
Page No 4.67:
Question 15:
E is admitted for share
Let combined share of profit of all partners after E’s admission = 1
Combined share of A, B, C and D after E’s admission = 1 − E’s Share
New Ratio = Combined of A, B, C and D × Agreed Share of A, B, C and D
Answer:
Old ratio = 3 : 2
Let the total share be = 1
Page No 4.68:
Question 16:
Old ratio = 3 : 2
Let the total share be = 1
Answer:
Since goodwill has been paid privately, thus, no entry will be recorded in the books of the firm.
Page No 4.68:
Question 17:
Since goodwill has been paid privately, thus, no entry will be recorded in the books of the firm.
Answer:
Since goodwill has been paid privately, thus, no entry will be recorded in the books of the firm.
Page No 4.68:
Question 18:
Since goodwill has been paid privately, thus, no entry will be recorded in the books of the firm.
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
48,000
|
||||
To Premium for Goodwill A/c |
48,000
|
|||||
(Goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
48,000
|
||||
To X’s Capital A/c |
28,800
|
|||||
To Y’s Capital A/c |
19,200
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
Working Notes:
Let the total share = 1
Z is admitted for share
Note: When nothing has been specified about the new profit sharing ratio, it has been assumed that the sacrificing ratio will be same as old ratio, i.e. 3 : 2.
Page No 4.68:
Question 19:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
48,000
|
||||
To Premium for Goodwill A/c |
48,000
|
|||||
(Goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
48,000
|
||||
To X’s Capital A/c |
28,800
|
|||||
To Y’s Capital A/c |
19,200
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
Working Notes:
Let the total share = 1
Z is admitted for share
Note: When nothing has been specified about the new profit sharing ratio, it has been assumed that the sacrificing ratio will be same as old ratio, i.e. 3 : 2.
Answer:
|
Books of...
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
10,000
|
|
|||
To Premium for Goodwill A/c |
|
|
10,000
|
|||
(Goodwill brought in by the new partner) |
|
|
|
|||
|
|
|
||||
Premium for Goodwill A/c |
Dr.
|
10,000
|
|
|||
F’s Capital A/c |
Dr.
|
2,000
|
|
|||
To E’s Capital A/c |
|
|
12,000
|
|||
(Goodwill distributed among old partners in their sacrificing ratio) |
|
|
|
Working Notes
Sacrificing ratio = Old ratio – New ratio
Old ratio between E and F = 4 : 1
New ratio between E, F and G = 2 : 1 : 1
Value of Firm’s Goodwill = 10,000 × 4 = Rs 40,000
Page No 4.68:
Question 20:
|
Books of...
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
10,000
|
|
|||
To Premium for Goodwill A/c |
|
|
10,000
|
|||
(Goodwill brought in by the new partner) |
|
|
|
|||
|
|
|
||||
Premium for Goodwill A/c |
Dr.
|
10,000
|
|
|||
F’s Capital A/c |
Dr.
|
2,000
|
|
|||
To E’s Capital A/c |
|
|
12,000
|
|||
(Goodwill distributed among old partners in their sacrificing ratio) |
|
|
|
Working Notes
Sacrificing ratio = Old ratio – New ratio
Old ratio between E and F = 4 : 1
New ratio between E, F and G = 2 : 1 : 1
Value of Firm’s Goodwill = 10,000 × 4 = Rs 40,000
Answer:
Books of...
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
1,10,000
|
||||
To Premium for Goodwill A/c |
30,000
|
|||||
To Z’s Capital A/c |
80,000
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
30,000
|
||||
To X’s Capital A/c |
10,000
|
|||||
To Y’s Capital A/c |
20,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) |
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Balance c/d |
2,10,000
|
1,20,000
|
80,000
|
Balance b/d |
2,00,000
|
1,00,000
|
|||
Bank A/c |
80,000
|
||||||||
Premium for Goodwill A/c |
10,000
|
20,000
|
|||||||
2,10,000
|
1,20,000
|
80,000
|
2,10,000
|
1,20,000
|
80,000
|
||||
Working Notes:
Old ratio = 2 : 1
Z is admitted for share
New ratio = 3 : 1 : 1
Sacrificing ratio = Old ratio – New Ratio
Page No 4.68:
Question 21:
Books of...
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
1,10,000
|
||||
To Premium for Goodwill A/c |
30,000
|
|||||
To Z’s Capital A/c |
80,000
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
30,000
|
||||
To X’s Capital A/c |
10,000
|
|||||
To Y’s Capital A/c |
20,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) |
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Balance c/d |
2,10,000
|
1,20,000
|
80,000
|
Balance b/d |
2,00,000
|
1,00,000
|
|||
Bank A/c |
80,000
|
||||||||
Premium for Goodwill A/c |
10,000
|
20,000
|
|||||||
2,10,000
|
1,20,000
|
80,000
|
2,10,000
|
1,20,000
|
80,000
|
||||
Working Notes:
Old ratio = 2 : 1
Z is admitted for share
New ratio = 3 : 1 : 1
Sacrificing ratio = Old ratio – New Ratio
Answer:
Books of…
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
Bank A/c |
Dr.
|
91,500
|
|
|||
To Premium for Goodwill A/c |
|
31,500
|
||||
To Samir’s Capital A/c |
|
|
60,000
|
|||
(Capital and goodwill brought in by the new partner) |
|
|
|
|||
|
|
|
||||
Premium for Goodwill A/c |
Dr.
|
31,500
|
|
|||
Satish’s Capital A/c |
Dr.
|
7,500
|
|
|||
To Sushil’s Capital A/c |
|
39,000
|
||||
(Goodwill distributed among old partners in their sacrificing ratio) |
|
|
|
|||
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Sushil
|
Satish
|
Samir
|
Particulars
|
Sushil
|
Satish
|
Samir
|
||
|
|
|
|
|
|
||||
Sushil’s Capital A/c |
|
7,500
|
|
Balance b/d |
48,000
|
42,000
|
|
||
Balance c/d |
87,000
|
34,500
|
60,000
|
Bank A/c |
|
|
60,000
|
||
|
|
|
Premium for Goodwill A/c |
31,500
|
|
|
|||
|
|
|
Satish’s Capital A/c |
7,500
|
|
|
|||
87,000
|
42,000
|
60,000
|
87,000
|
42,000
|
60,000
|
||||
|
|
|
|
|
|
as on April 01, 2016 after Samir’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Bank Loan |
23,000
|
Bank |
97,500
|
||
Creditors |
55,000
|
Stock |
12,000
|
||
Capital A/cs: |
|
Plant & Machinery |
30,000
|
||
Sushil |
87,000
|
|
Debtors |
18,300
|
|
Satish |
34,500
|
|
Less : Provision for Doubtful Debts |
300
|
18,000
|
Samir |
60,000 |
1,81,500
|
Building |
1,02,000
|
|
2,59,500
|
2,59,500
|
||||
|
|
Working Notes:
Old ratio = 5 : 2
New ratio = 2 : 3 : 3
Sacrificing ratio = Old ratio – New ratio
Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
|
|
||||
Balance b/d |
6,000
|
Balance c/d |
97,500
|
||
Premium for Goodwill A/c |
31,500
|
|
|||
Samir’s Capital A/c |
60,000
|
||||
97,500
|
97,500
|
||||
|
|
Page No 4.68:
Question 22:
Books of…
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
Bank A/c |
Dr.
|
91,500
|
|
|||
To Premium for Goodwill A/c |
|
31,500
|
||||
To Samir’s Capital A/c |
|
|
60,000
|
|||
(Capital and goodwill brought in by the new partner) |
|
|
|
|||
|
|
|
||||
Premium for Goodwill A/c |
Dr.
|
31,500
|
|
|||
Satish’s Capital A/c |
Dr.
|
7,500
|
|
|||
To Sushil’s Capital A/c |
|
39,000
|
||||
(Goodwill distributed among old partners in their sacrificing ratio) |
|
|
|
|||
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Sushil
|
Satish
|
Samir
|
Particulars
|
Sushil
|
Satish
|
Samir
|
||
|
|
|
|
|
|
||||
Sushil’s Capital A/c |
|
7,500
|
|
Balance b/d |
48,000
|
42,000
|
|
||
Balance c/d |
87,000
|
34,500
|
60,000
|
Bank A/c |
|
|
60,000
|
||
|
|
|
Premium for Goodwill A/c |
31,500
|
|
|
|||
|
|
|
Satish’s Capital A/c |
7,500
|
|
|
|||
87,000
|
42,000
|
60,000
|
87,000
|
42,000
|
60,000
|
||||
|
|
|
|
|
|
as on April 01, 2016 after Samir’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Bank Loan |
23,000
|
Bank |
97,500
|
||
Creditors |
55,000
|
Stock |
12,000
|
||
Capital A/cs: |
|
Plant & Machinery |
30,000
|
||
Sushil |
87,000
|
|
Debtors |
18,300
|
|
Satish |
34,500
|
|
Less : Provision for Doubtful Debts |
300
|
18,000
|
Samir |
60,000 |
1,81,500
|
Building |
1,02,000
|
|
2,59,500
|
2,59,500
|
||||
|
|
Working Notes:
Old ratio = 5 : 2
New ratio = 2 : 3 : 3
Sacrificing ratio = Old ratio – New ratio
Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
|
|
||||
Balance b/d |
6,000
|
Balance c/d |
97,500
|
||
Premium for Goodwill A/c |
31,500
|
|
|||
Samir’s Capital A/c |
60,000
|
||||
97,500
|
97,500
|
||||
|
|
Answer:
C is admitted for share
Let the combined share of A, B and C be = 1
Combined share of A and B after C’s admission = 1 − C’s share
New Ratio = Old Ratio × Combined share of A and B
Distribution of C’s share of Goodwill
C’s share of Goodwill = Rs 14,000
Page No 4.69:
Question 23:
C is admitted for share
Let the combined share of A, B and C be = 1
Combined share of A and B after C’s admission = 1 − C’s share
New Ratio = Old Ratio × Combined share of A and B
Distribution of C’s share of Goodwill
C’s share of Goodwill = Rs 14,000
Answer:
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
1,800 |
|
|
B’s Capital A/c |
Dr. |
|
1,200 |
|
|
To Goodwill A/c |
|
|
|
3,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
40,000 |
|
|
To C’s Capital A/c |
Dr. |
|
|
30,000 |
|
To Premium for Goodwill A/c |
|
|
|
10,000 |
|
(C brought capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
10,000 |
|
|
To A’s Capital A/c |
|
|
|
5,000 |
|
To B’s Capital A/c |
|
|
|
5,000 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
Sacrificing Ratio = Old Ratio − New Ratio
Distribution of Premium for Goodwill C’s share of Goodwill)
Goodwill written-off
Page No 4.69:
Question 24:
Journal Entries |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
1,800 |
|
|
B’s Capital A/c |
Dr. |
|
1,200 |
|
|
To Goodwill A/c |
|
|
|
3,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
40,000 |
|
|
To C’s Capital A/c |
Dr. |
|
|
30,000 |
|
To Premium for Goodwill A/c |
|
|
|
10,000 |
|
(C brought capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
10,000 |
|
|
To A’s Capital A/c |
|
|
|
5,000 |
|
To B’s Capital A/c |
|
|
|
5,000 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
Sacrificing Ratio = Old Ratio − New Ratio
Distribution of Premium for Goodwill C’s share of Goodwill)
Goodwill written-off
Answer:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
21,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
21,000 |
|
(C brought Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
21,000 |
|
|
To A’s Capital A/c |
|
|
|
9,000 |
|
To B’s Capital A/c |
|
|
|
12,000 |
|
(Premium for Goodwill brought by C distributed between A and B in sacrificing ratio i.e. 3:4) |
|
|
|
|
|
|
|
|
|
|
C’s share = A’s sacrifice + B’s sacrifice
New Ratio is 12:6:7
C’s will bring Premium for Goodwill
Distribution of Premium for Goodwill-
Page No 4.69:
Question 25:
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
21,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
21,000 |
|
(C brought Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
21,000 |
|
|
To A’s Capital A/c |
|
|
|
9,000 |
|
To B’s Capital A/c |
|
|
|
12,000 |
|
(Premium for Goodwill brought by C distributed between A and B in sacrificing ratio i.e. 3:4) |
|
|
|
|
|
|
|
|
|
|
C’s share = A’s sacrifice + B’s sacrifice
New Ratio is 12:6:7
C’s will bring Premium for Goodwill
Distribution of Premium for Goodwill-
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Stock A/c |
Dr. |
|
60,000 |
|
|
Debtors A/c |
Dr. |
|
80,000 |
|
|
Land A/c |
Dr. |
|
1,00,000 |
|
|
Plant and Machinery A/c |
Dr. |
|
40,000 |
|
|
To Z’s Capital A/c |
|
|
1,30,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,50,000 |
|
|
(Z brought assets for his share of goodwill and Capital) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,50,000 |
|
|
To X’s Capital A/c |
|
|
90,000 |
|
|
To Y’s Capital A/c |
|
|
60,000 |
|
|
(Z’s share of Goodwill distributed between X and Y in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Z’s Goodwill
Page No 4.69:
Question 26:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Stock A/c |
Dr. |
|
60,000 |
|
|
Debtors A/c |
Dr. |
|
80,000 |
|
|
Land A/c |
Dr. |
|
1,00,000 |
|
|
Plant and Machinery A/c |
Dr. |
|
40,000 |
|
|
To Z’s Capital A/c |
|
|
1,30,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,50,000 |
|
|
(Z brought assets for his share of goodwill and Capital) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,50,000 |
|
|
To X’s Capital A/c |
|
|
90,000 |
|
|
To Y’s Capital A/c |
|
|
60,000 |
|
|
(Z’s share of Goodwill distributed between X and Y in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Z’s Goodwill
Answer:
Books of...
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
2,36,000
|
||||
To Premium for Goodwill A/c |
36,000
|
|||||
To Amit’s Capital A/c |
2,00,000
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
36,000
|
||||
To Sachin’s Current A/c |
3,600
|
|||||
To Kapil’s Current A/c |
32,400
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
Sachin’s Current A/c |
Dr.
|
3,600
|
||||
Kapil’s Current A/c |
Dr.
|
32,400
|
||||
To Bank A/c |
36,000
|
|||||
(Goodwill withdrawn by the old partners) | ||||||
Working Notes
Page No 4.69:
Question 27:
Books of...
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
2,36,000
|
||||
To Premium for Goodwill A/c |
36,000
|
|||||
To Amit’s Capital A/c |
2,00,000
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
36,000
|
||||
To Sachin’s Current A/c |
3,600
|
|||||
To Kapil’s Current A/c |
32,400
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
Sachin’s Current A/c |
Dr.
|
3,600
|
||||
Kapil’s Current A/c |
Dr.
|
32,400
|
||||
To Bank A/c |
36,000
|
|||||
(Goodwill withdrawn by the old partners) | ||||||
Working Notes
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
13,000 |
|
|
To C’s Capital A/c |
|
|
10,000 |
|
|
To Premium for Goodwill A/c |
|
|
3,000 |
|
|
(C brought capital and Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
3,000 |
|
|
(Premium for Goodwill transferred to A’s Capital) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Cash A/c |
|
|
|
3,000 |
|
(Premium for Goodwill withdrawn) |
|
|
|
|
|
|
|
|
|
Working Notes:
Calculation of Sacrificing Ratio
Here only A is sacrificing his share of profit in favour of C. Hence, A will get the whole amount of premium for goodwill.
Page No 4.69:
Question 28:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
13,000 |
|
|
To C’s Capital A/c |
|
|
10,000 |
|
|
To Premium for Goodwill A/c |
|
|
3,000 |
|
|
(C brought capital and Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
3,000 |
|
|
(Premium for Goodwill transferred to A’s Capital) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Cash A/c |
|
|
|
3,000 |
|
(Premium for Goodwill withdrawn) |
|
|
|
|
|
|
|
|
|
Working Notes:
Calculation of Sacrificing Ratio
Here only A is sacrificing his share of profit in favour of C. Hence, A will get the whole amount of premium for goodwill.
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
24,000 |
|
|
To Shyam’s Capital A/c |
|
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
9,000 |
|
|
(Shyam brought capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
9,000 |
|
|
To Prabhu’s Capital A/c |
|
|
4,500 |
|
|
To Sat Kumar’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill brought by Shyam distributed between Prabhu and Sat Kumar i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
|
Prabhu’s Capital A/c |
Dr. |
|
4,500 |
|
|
Sat Kumar’s Capital A/c |
Dr. |
|
4,500 |
|
|
To Cash A/c |
|
|
|
9,000 |
|
(Amount of Premium for Goodwill withdrawn by Prabhu and Sat Kumar’s) |
|
|
|
|
|
|
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
Shyam admitted for share of profit
Let combined share of all partners after Shyam’s admission = 1
Combined share Phrabhu and Sat Kumar after Shyam’s admission
Page No 4.69:
Question 29:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
24,000 |
|
|
To Shyam’s Capital A/c |
|
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
9,000 |
|
|
(Shyam brought capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
9,000 |
|
|
To Prabhu’s Capital A/c |
|
|
4,500 |
|
|
To Sat Kumar’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill brought by Shyam distributed between Prabhu and Sat Kumar i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
|
Prabhu’s Capital A/c |
Dr. |
|
4,500 |
|
|
Sat Kumar’s Capital A/c |
Dr. |
|
4,500 |
|
|
To Cash A/c |
|
|
|
9,000 |
|
(Amount of Premium for Goodwill withdrawn by Prabhu and Sat Kumar’s) |
|
|
|
|
|
|
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
Shyam admitted for share of profit
Let combined share of all partners after Shyam’s admission = 1
Combined share Phrabhu and Sat Kumar after Shyam’s admission
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c (60% of 25,000) |
Dr.
|
15,000
|
||||
To Premium for Goodwill A/c |
15,000
|
|||||
(Goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
15,000
|
||||
To A’s Capital A/c |
10,000
|
|||||
To B’s Capital A/c |
5,000
|
|||||
(Goodwill distributed in among old partners in their sacrificing ratio) | ||||||
C’s Current A/c (40% of 25,000) |
Dr.
|
10,000
|
||||
To A’s Capital A/c |
6,667
|
|||||
To B’s Capital A/c |
3,333
|
|||||
(Amount of goodwill not brought by new partner debited from current account and distributed among old partners in their sacrificing ratio) |
Working Notes
Old ratio = 3 : 2
Page No 4.69:
Question 30:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c (60% of 25,000) |
Dr.
|
15,000
|
||||
To Premium for Goodwill A/c |
15,000
|
|||||
(Goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
15,000
|
||||
To A’s Capital A/c |
10,000
|
|||||
To B’s Capital A/c |
5,000
|
|||||
(Goodwill distributed in among old partners in their sacrificing ratio) | ||||||
C’s Current A/c (40% of 25,000) |
Dr.
|
10,000
|
||||
To A’s Capital A/c |
6,667
|
|||||
To B’s Capital A/c |
3,333
|
|||||
(Amount of goodwill not brought by new partner debited from current account and distributed among old partners in their sacrificing ratio) |
Working Notes
Old ratio = 3 : 2
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Cash A/c | Dr. | 10,000 | |||
To Premium for Goodwill A/c | 10,000 | ||||
(C brought premium for Goodwill) | |||||
Premium for Goodwill A/c | Dr. | 10,000 | |||
To A’s Capital A/c | 6,667 | ||||
To B’s Capital A/c | 3,333 | ||||
(Premium for Goodwill distributed in sacrificing Ratio) | |||||
C’s Current A/c | Dr. | 6,000 | |||
To A’s Capital | 4,000 | ||||
To B’s Capital | 2,000 | ||||
(Out of the share of goodwill Rs 6,000 not brought by C, and charged from his capital account and distributed) | |||||
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of Goodwill charged from C’s Capital Account
Page No 4.70:
Question 31:
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs |
|
Cash A/c | Dr. | 10,000 | |||
To Premium for Goodwill A/c | 10,000 | ||||
(C brought premium for Goodwill) | |||||
Premium for Goodwill A/c | Dr. | 10,000 | |||
To A’s Capital A/c | 6,667 | ||||
To B’s Capital A/c | 3,333 | ||||
(Premium for Goodwill distributed in sacrificing Ratio) | |||||
C’s Current A/c | Dr. | 6,000 | |||
To A’s Capital | 4,000 | ||||
To B’s Capital | 2,000 | ||||
(Out of the share of goodwill Rs 6,000 not brought by C, and charged from his capital account and distributed) | |||||
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of Goodwill charged from C’s Capital Account
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
80,000
|
||||
To C’s Capital A/c |
80,000
|
|||||
(Capital brought in by new partner) | ||||||
C’s Current A/c |
Dr.
|
7,500
|
||||
To A’s Capital A/c |
3,750
|
|||||
To B’s Capital A/c |
3,750
|
|||||
(Amount of goodwill not brought by new partner debited from his current account and distributed among old partners in their sacrificing ratio) | ||||||
Working Notes
Old ratio = 5 : 3
New ratio = 9 : 5 : 2
Page No 4.70:
Question 32:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
80,000
|
||||
To C’s Capital A/c |
80,000
|
|||||
(Capital brought in by new partner) | ||||||
C’s Current A/c |
Dr.
|
7,500
|
||||
To A’s Capital A/c |
3,750
|
|||||
To B’s Capital A/c |
3,750
|
|||||
(Amount of goodwill not brought by new partner debited from his current account and distributed among old partners in their sacrificing ratio) | ||||||
Working Notes
Old ratio = 5 : 3
New ratio = 9 : 5 : 2
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
3,30,000
|
||||
To D’s Capital A/c
|
1,20,000
|
|||||
To E’s Capital A/c
|
1,20,000
|
|||||
To Premium for Goodwill A/c
|
90,000
|
|||||
(Capital and goodwill brought in by the new partners)
|
||||||
E’s Current A/c |
Dr.
|
45,000
|
||||
C’s Capital A/c |
Dr.
|
36,000
|
||||
Premium for Goodwill A/c |
Dr.
|
90,000
|
||||
To A’s Capital A/c |
1,35,000
|
|||||
To B’s Capital A/c
|
36,000
|
|||||
(Amount of goodwill not brought by new partners debited from their capital account and distributed among old partners in their sacrificing ratio) | ||||||
Working Notes
Old ratio = 5 : 4 : 1
New ratio = 3 : 4 : 2 : 2 : 1
Sacrificing ratio = Old ratio – New ratio
Sacrificing ratio = 15 : 4
Page No 4.70:
Question 33:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
3,30,000
|
||||
To D’s Capital A/c
|
1,20,000
|
|||||
To E’s Capital A/c
|
1,20,000
|
|||||
To Premium for Goodwill A/c
|
90,000
|
|||||
(Capital and goodwill brought in by the new partners)
|
||||||
E’s Current A/c |
Dr.
|
45,000
|
||||
C’s Capital A/c |
Dr.
|
36,000
|
||||
Premium for Goodwill A/c |
Dr.
|
90,000
|
||||
To A’s Capital A/c |
1,35,000
|
|||||
To B’s Capital A/c
|
36,000
|
|||||
(Amount of goodwill not brought by new partners debited from their capital account and distributed among old partners in their sacrificing ratio) | ||||||
Working Notes
Old ratio = 5 : 4 : 1
New ratio = 3 : 4 : 2 : 2 : 1
Sacrificing ratio = Old ratio – New ratio
Sacrificing ratio = 15 : 4
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
80,000
|
||||
To Z’s Capital A/c
|
80,000
|
|||||
(Capital brought in by new partner) | ||||||
Z’s Current A/c |
Dr.
|
20,000
|
||||
To X’s Capital A/c |
10,000
|
|||||
To Y’s Capital A/c
|
10,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio) | ||||||
Since, nothing has been specified about the new profit sharing ratio, thus, it has been assumed that sacrificing ratio is same as old ratio, i.e. 1 : 1.
Working Notes
Page No 4.70:
Question 34:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
80,000
|
||||
To Z’s Capital A/c
|
80,000
|
|||||
(Capital brought in by new partner) | ||||||
Z’s Current A/c |
Dr.
|
20,000
|
||||
To X’s Capital A/c |
10,000
|
|||||
To Y’s Capital A/c
|
10,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio) | ||||||
Since, nothing has been specified about the new profit sharing ratio, thus, it has been assumed that sacrificing ratio is same as old ratio, i.e. 1 : 1.
Working Notes
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
C’s Current A/c |
Dr.
|
10,000
|
||||
To A’s Capital A/c |
6,000
|
|||||
To B’s Capital A/c
|
4,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio.) |
Since, nothing has been specified about new profit sharing ratio, it is assumed that sacrificing ratio is same as the old ratio.
Working Notes
Page No 4.70:
Question 35:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
C’s Current A/c |
Dr.
|
10,000
|
||||
To A’s Capital A/c |
6,000
|
|||||
To B’s Capital A/c
|
4,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio.) |
Since, nothing has been specified about new profit sharing ratio, it is assumed that sacrificing ratio is same as the old ratio.
Working Notes
Answer:
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + Undistributed Profit + Z’s Capital
Total Capital of the firm after Z’s admission = 50,000 + 50,000 + 40,000 + 80,000
Total Capital of the firm after Z’s admission = Rs 2,20,000
Share of Goodwill of Z: Rs 25,000
Z’s Current A/c | Dr. | 25,000 | |
To X’s Capital A/c | 12,500 | ||
To Y’s Capital A/c | 12,500 | ||
Page No 4.70:
Question 36:
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + Undistributed Profit + Z’s Capital
Total Capital of the firm after Z’s admission = 50,000 + 50,000 + 40,000 + 80,000
Total Capital of the firm after Z’s admission = Rs 2,20,000
Share of Goodwill of Z: Rs 25,000
Z’s Current A/c | Dr. | 25,000 | |
To X’s Capital A/c | 12,500 | ||
To Y’s Capital A/c | 12,500 | ||
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Cash A/c |
Dr.
|
50,000
|
||||
To Premium for Goodwill A/c |
50,000
|
|||||
(Goodwill amount brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
50,000
|
||||
C’s Current A/c |
Dr.
|
40,000
|
||||
To A’s Capital A/c
|
45,000
|
|||||
To B’s Capital A/c
|
45,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c |
Dr.
|
80,000
|
||||
B’s Capital A/c |
Dr.
|
80,000
|
||||
To Goodwill A/c
|
1,60,000
|
|||||
(Goodwill written-off between old partners) | ||||||
Note: Since no information about new ratio is given, it is assumed that old partners will sacrifice in their old ratio.
Page No 4.70:
Question 37:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Cash A/c |
Dr.
|
50,000
|
||||
To Premium for Goodwill A/c |
50,000
|
|||||
(Goodwill amount brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
50,000
|
||||
C’s Current A/c |
Dr.
|
40,000
|
||||
To A’s Capital A/c
|
45,000
|
|||||
To B’s Capital A/c
|
45,000
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c |
Dr.
|
80,000
|
||||
B’s Capital A/c |
Dr.
|
80,000
|
||||
To Goodwill A/c
|
1,60,000
|
|||||
(Goodwill written-off between old partners) | ||||||
Note: Since no information about new ratio is given, it is assumed that old partners will sacrifice in their old ratio.
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
39,600
|
||||
To C’s Capital A/c |
30,000
|
|||||
To Premium for Goodwill A/c |
9,600
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
9,600
|
||||
To A’s Capital A/c |
7,200
|
|||||
To B’s Capital A/c
|
2,400
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c |
Dr.
|
3,000
|
||||
B’s Capital A/c |
Dr.
|
1,000
|
||||
To Goodwill A/c
|
4,000
|
|||||
(Goodwill written off between old partners) |
Working Notes
WN 1: Calculation of Sacrificing Ratio
WN 2: Calculation of Goodwill
Total Profit = 15,000 + 12,000 + 18,000 + 19,000 = 64,000
Goodwill = Average profit for 4 years × Numbers of Years’ purchase
Goodwill = 16,000 × 3 = 48,000
Page No 4.70:
Question 38:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
39,600
|
||||
To C’s Capital A/c |
30,000
|
|||||
To Premium for Goodwill A/c |
9,600
|
|||||
(Capital and goodwill brought in by the new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
9,600
|
||||
To A’s Capital A/c |
7,200
|
|||||
To B’s Capital A/c
|
2,400
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c |
Dr.
|
3,000
|
||||
B’s Capital A/c |
Dr.
|
1,000
|
||||
To Goodwill A/c
|
4,000
|
|||||
(Goodwill written off between old partners) |
Working Notes
WN 1: Calculation of Sacrificing Ratio
WN 2: Calculation of Goodwill
Total Profit = 15,000 + 12,000 + 18,000 + 19,000 = 64,000
Goodwill = Average profit for 4 years × Numbers of Years’ purchase
Goodwill = 16,000 × 3 = 48,000
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
50,000
|
||||
To W’s Capital A/c |
50,000
|
|||||
(Capital amount brought in by new partner)
|
||||||
W’s Current A/c |
Dr.
|
15,000
|
||||
To X’s Capital A/c |
2,500
|
|||||
To Y’s Capital A/c
|
5,000
|
|||||
To Z’s Capital A/c
|
7,500
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed in old partners in their sacrificing ratio.) | ||||||
X’s Capital A/c |
Dr.
|
10,000
|
||||
Y’s Capital A/c |
Dr.
|
20,000
|
||||
Z’s Capital A/c |
Dr.
|
30,000
|
||||
To Goodwill A/c
|
60,000
|
|||||
(Old goodwill written off among old partners in their old ratio) |
Working Notes
Goodwill = Average profit for 3 years
Total Profit = 62,500 + 70,000 + 92,500 = 2,25,000
Goodwill = Rs 75,000
Note: As no information about new profit sharing ratio is given, it is assumed that old ratio is the sacrificing ratio. Since Z is not bringing any goodwill, his Current A/c will be debited.
Page No 4.71:
Question 39:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
50,000
|
||||
To W’s Capital A/c |
50,000
|
|||||
(Capital amount brought in by new partner)
|
||||||
W’s Current A/c |
Dr.
|
15,000
|
||||
To X’s Capital A/c |
2,500
|
|||||
To Y’s Capital A/c
|
5,000
|
|||||
To Z’s Capital A/c
|
7,500
|
|||||
(Amount of goodwill not brought by new partner debited from his capital account and distributed in old partners in their sacrificing ratio.) | ||||||
X’s Capital A/c |
Dr.
|
10,000
|
||||
Y’s Capital A/c |
Dr.
|
20,000
|
||||
Z’s Capital A/c |
Dr.
|
30,000
|
||||
To Goodwill A/c
|
60,000
|
|||||
(Old goodwill written off among old partners in their old ratio) |
Working Notes
Goodwill = Average profit for 3 years
Total Profit = 62,500 + 70,000 + 92,500 = 2,25,000
Goodwill = Rs 75,000
Note: As no information about new profit sharing ratio is given, it is assumed that old ratio is the sacrificing ratio. Since Z is not bringing any goodwill, his Current A/c will be debited.
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
5,15,200
|
||||
To B’s Capital A/c |
4,81,600
|
|||||
To Premium for Goodwill A/c |
33,600
|
|||||
(Capital and goodwill brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
33,600
|
||||
To A’s Capital A/c |
33,600
|
|||||
(Goodwill given to A brought in by B) |
Working Notes
Goodwill = Average Profit for 5 Years’ × Numbers of Years’ Purchase
Total Profit = (8,000) + 20,800 + 27,200 + 32,000 + 40,000 = 1,12,000
Calculation of A’s Capital
= Opening Balance of his Capital + 5 Years’ Profit+ A’s Share of Goodwill – Drawings
= 4,00,000 + 1,12,000 + 33,600 – 64,000= 4,81,600
Page No 4.71:
Question 40:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
5,15,200
|
||||
To B’s Capital A/c |
4,81,600
|
|||||
To Premium for Goodwill A/c |
33,600
|
|||||
(Capital and goodwill brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
33,600
|
||||
To A’s Capital A/c |
33,600
|
|||||
(Goodwill given to A brought in by B) |
Working Notes
Goodwill = Average Profit for 5 Years’ × Numbers of Years’ Purchase
Total Profit = (8,000) + 20,800 + 27,200 + 32,000 + 40,000 = 1,12,000
Calculation of A’s Capital
= Opening Balance of his Capital + 5 Years’ Profit+ A’s Share of Goodwill – Drawings
= 4,00,000 + 1,12,000 + 33,600 – 64,000= 4,81,600
Answer:
(i)
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
20,000
|
||||
To Premium for Goodwill A/c |
20,000
|
|||||
(Goodwill brought in by new partner in cash) | ||||||
Premium for Goodwill A/c |
Dr.
|
20,000
|
||||
To A’s Capital A/c |
18,000
|
|||||
To B’s Capital A/c |
2,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c | Dr. |
24,000
|
||||
B’s Capital A/c | Dr. |
16,000
|
||||
To Goodwill A/c |
40,000
|
|||||
(Old Goodwill written off among old partners in their old ratio) |
Working Notes
Old ratio = 3 : 2
New ratio = 3 : 3 : 2
Sacrificing ratio = Old ratio – New ratio
Sacrificing ratio = 9 : 1
(ii)
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
1,000
|
||||
To Premium for Goodwill A/c |
1,000
|
|||||
(Goodwill brought in by new partner in cash) | ||||||
Premium for Goodwill A/c |
Dr.
|
1,000
|
||||
C’s Current A/c |
Dr.
|
1,000
|
||||
To A’s Capital A/c |
1,000
|
|||||
To B’s Capital A/c |
1,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c | Dr. |
3,000
|
||||
B’s Capital A/c | Dr. |
3,000
|
||||
To Goodwill A/c |
6,000
|
|||||
(Old Goodwill written off among old partners in their old ratio) |
Page No 4.71:
Question 41:
(i)
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
20,000
|
||||
To Premium for Goodwill A/c |
20,000
|
|||||
(Goodwill brought in by new partner in cash) | ||||||
Premium for Goodwill A/c |
Dr.
|
20,000
|
||||
To A’s Capital A/c |
18,000
|
|||||
To B’s Capital A/c |
2,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c | Dr. |
24,000
|
||||
B’s Capital A/c | Dr. |
16,000
|
||||
To Goodwill A/c |
40,000
|
|||||
(Old Goodwill written off among old partners in their old ratio) |
Working Notes
Old ratio = 3 : 2
New ratio = 3 : 3 : 2
Sacrificing ratio = Old ratio – New ratio
Sacrificing ratio = 9 : 1
(ii)
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
1,000
|
||||
To Premium for Goodwill A/c |
1,000
|
|||||
(Goodwill brought in by new partner in cash) | ||||||
Premium for Goodwill A/c |
Dr.
|
1,000
|
||||
C’s Current A/c |
Dr.
|
1,000
|
||||
To A’s Capital A/c |
1,000
|
|||||
To B’s Capital A/c |
1,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio) | ||||||
A’s Capital A/c | Dr. |
3,000
|
||||
B’s Capital A/c | Dr. |
3,000
|
||||
To Goodwill A/c |
6,000
|
|||||
(Old Goodwill written off among old partners in their old ratio) |
Answer:
WN1: Calculation of Rao’s share of Goodwill
WN2: Adjustment of Rao’s share of Goodwill
(a) Where there is no Goodwill Account
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Rao’s Capital A/c |
Dr. |
|
7,500 |
|
|
To Murty’s Capital A/c |
|
|
4,500 |
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
(Rao’s share of goodwill charged from his capital account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
(b) Goodwill appears at Rs 10,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Murty’s Capital A/c |
Dr. |
|
6,000 |
|
|
Shah’s Capital A/c |
Dr. |
|
4,000 |
|
|
To Goodwill A/c |
|
|
10,000 |
|
|
(Goodwill written-off at the time of Rao’s admission in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Rao’s Capital A/c |
Dr. |
|
7,500 |
|
|
To Murty’s Capital A/c |
|
|
4,500 |
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
(Rao’s share of goodwill charged from his Capital Account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
Page No 4.71:
Question 42:
WN1: Calculation of Rao’s share of Goodwill
WN2: Adjustment of Rao’s share of Goodwill
(a) Where there is no Goodwill Account
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Rao’s Capital A/c |
Dr. |
|
7,500 |
|
|
To Murty’s Capital A/c |
|
|
4,500 |
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
(Rao’s share of goodwill charged from his capital account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
(b) Goodwill appears at Rs 10,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Murty’s Capital A/c |
Dr. |
|
6,000 |
|
|
Shah’s Capital A/c |
Dr. |
|
4,000 |
|
|
To Goodwill A/c |
|
|
10,000 |
|
|
(Goodwill written-off at the time of Rao’s admission in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Rao’s Capital A/c |
Dr. |
|
7,500 |
|
|
To Murty’s Capital A/c |
|
|
4,500 |
|
|
To Shah’s Capital A/c |
|
|
3,000 |
|
|
(Rao’s share of goodwill charged from his Capital Account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
Answer:
|
Books of ….
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Revaluation A/c |
Dr.
|
16,000
|
||||
To Machinery A/c
|
16,000
|
|||||
(Machinery value has reduced) | ||||||
Building A/c |
Dr.
|
40,000
|
||||
To Revaluation A/c
|
40,000
|
|||||
(Building account appreciated) | ||||||
Revaluation A/c |
Dr.
|
4,000
|
||||
To Provision for Doubtful Debts A/c
|
4,000
|
|||||
(Provision created against debtors) | ||||||
Revaluation A/c | Dr. |
12,000
|
||||
To Provision for Warranty Claims A/c
|
12,000
|
|||||
(Created provision against warranty claims) | ||||||
Page No 4.71:
Question 43:
|
Books of ….
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Revaluation A/c |
Dr.
|
16,000
|
||||
To Machinery A/c
|
16,000
|
|||||
(Machinery value has reduced) | ||||||
Building A/c |
Dr.
|
40,000
|
||||
To Revaluation A/c
|
40,000
|
|||||
(Building account appreciated) | ||||||
Revaluation A/c |
Dr.
|
4,000
|
||||
To Provision for Doubtful Debts A/c
|
4,000
|
|||||
(Provision created against debtors) | ||||||
Revaluation A/c | Dr. |
12,000
|
||||
To Provision for Warranty Claims A/c
|
12,000
|
|||||
(Created provision against warranty claims) | ||||||
Answer:
|
Books of ….
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Investments A/c |
Dr.
|
20,000
|
||||
To Revaluation A/c
|
20,000
|
|||||
(Investment value increased due to unrecorded investment) | ||||||
Revaluation A/c |
Dr.
|
5,000
|
||||
To Creditors A/c
|
5,000
|
|||||
(Creditors increased by 5,000 due to unrecorded liability) | ||||||
Sundry Creditors A/c |
Dr.
|
1,600
|
||||
To Revaluation A/c
|
1,600
|
|||||
(Liability for creditors reduced to the extent of 1,600) | ||||||
Page No 4.71:
Question 44:
|
Books of ….
|
|||||
|
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
Investments A/c |
Dr.
|
20,000
|
||||
To Revaluation A/c
|
20,000
|
|||||
(Investment value increased due to unrecorded investment) | ||||||
Revaluation A/c |
Dr.
|
5,000
|
||||
To Creditors A/c
|
5,000
|
|||||
(Creditors increased by 5,000 due to unrecorded liability) | ||||||
Sundry Creditors A/c |
Dr.
|
1,600
|
||||
To Revaluation A/c
|
1,600
|
|||||
(Liability for creditors reduced to the extent of 1,600) | ||||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
4,000 |
|
|
Revaluation A/c |
Dr. |
|
2,000 |
|
|
To A’S Capital A/c |
|
|
4,500 |
|
|
To B’s Capital A/c |
|
|
1,500 |
|
|
(Profit on Revaluation and General Reserve distributed between A and B in old ratio) |
|
|
|
|
|
|
|
|
|
Working Note:
Page No 4.72:
Question 45:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
4,000 |
|
|
Revaluation A/c |
Dr. |
|
2,000 |
|
|
To A’S Capital A/c |
|
|
4,500 |
|
|
To B’s Capital A/c |
|
|
1,500 |
|
|
(Profit on Revaluation and General Reserve distributed between A and B in old ratio) |
|
|
|
|
|
|
|
|
|
Working Note:
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Creditors A/c |
Dr. |
|
5,000 |
|
|
Building A/c |
Dr. |
|
40,000 |
|
|
Investments A/c |
Dr. |
|
15,000 |
|
|
To Revaluation A/c |
|
|
60,000 |
|
|
(Increase in assets and decrease in liabilities transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
10,000 |
|
|
To Provision for Doubtful Debts A/c |
|
|
5,000 |
|
|
To Reserve for outstanding Repairs Bill A/c |
|
|
2,000 |
|
|
To Creditors A/c |
|
|
3,000 |
|
|
(Increase in liabilities and creation of reserves and provisions transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
50,000 |
|
|
To Old Partners’ Capital A/c |
|
|
50,000 |
|
|
(Profit on Revaluation transferred to Partners’ Capital) |
|
|
|
|
|
|
|
|
|
Page No 4.72:
Question 46:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Creditors A/c |
Dr. |
|
5,000 |
|
|
Building A/c |
Dr. |
|
40,000 |
|
|
Investments A/c |
Dr. |
|
15,000 |
|
|
To Revaluation A/c |
|
|
60,000 |
|
|
(Increase in assets and decrease in liabilities transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
10,000 |
|
|
To Provision for Doubtful Debts A/c |
|
|
5,000 |
|
|
To Reserve for outstanding Repairs Bill A/c |
|
|
2,000 |
|
|
To Creditors A/c |
|
|
3,000 |
|
|
(Increase in liabilities and creation of reserves and provisions transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
50,000 |
|
|
To Old Partners’ Capital A/c |
|
|
50,000 |
|
|
(Profit on Revaluation transferred to Partners’ Capital) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Profit and Loss Adjustment A/c |
Dr. |
|
1,750 |
|
|
To Stock A/c |
|
|
500 |
|
|
To Plant and Machinery A/c |
|
|
875 |
|
|
To Reserve for Doubtful Debts A/c |
|
|
375 |
|
|
(Decrease in stock and Plant and creation of Reserve for Doubtful Debt transferred to Profit and Loss Adjustment Account) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
2,500 |
|
|
To Profit and Loss Adjustment A/c |
|
|
2,500 |
|
|
(Increase in value of Building of transferred to Profit and loss Adjustment Accounts) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Adjustment A/c |
|
750 |
|
|
|
To A’s Capital A/c |
|
|
500 |
|
|
To B’s Capital A/c |
|
|
250 |
|
|
(Profit on revaluation of asset and liabilities distributed between A and B in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
10,500 |
|
|
To C’s Capital A/c |
|
|
7,500 |
|
|
To Premium for Goodwill A/c |
|
|
3,000 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
2,000 |
|
|
To B’s Capital A/c |
|
|
1,000 |
|
|
(Premium for Goodwill distributed between A and B in their sacrificing ratio i.e 2:1) |
|
|
|
|
|
|
|
|
|
Profit and Loss Adjustment Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Stock |
500 |
|
|
Plant and Machinery |
875 |
Building |
2,500 |
Reserve for Doubtful Debts |
375 |
|
|
Profit transferred to |
|
|
|
A Capital |
500 |
|
|
B Capital |
250 |
|
|
|
2,500 |
|
2,500 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
15,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
7,500 |
|
|
|
|
Premium for Goodwill |
2,000 |
1,000 |
|
Balance c/d |
17,500 |
11,250 |
7,500 |
Profit and Loss Adjustment (Profit) |
500 |
250 |
|
|
17,500 |
11,250 |
7,500 |
|
17,500 |
11,250 |
7,500 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after admission of C |
|||||
Liabilities |
Amount Rs |
Assets |
Amounts Rs |
||
|
|
|
|
||
Capital Accounts: |
|
Building (25,000 + 2,500) |
27,500 |
||
A |
17,500 |
|
Plant and Machinery (17,500 – 875) |
16,625 |
|
B |
11,250 |
|
Stock (10,000 – 500) |
9,500 |
|
C |
7,500 |
36,250 |
|
|
|
Sundry Creditors |
32,950 |
Sundry Debtors |
4,850 |
|
|
|
|
Less: Provision for D. Debts |
375 |
4,475 |
|
|
|
Cash in Hand (600 + 10,500) |
11,100 |
||
|
69,200 |
|
69,200 |
||
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill (in sacrificing ratio)
WN3
Distribution of Profit from Profit and loss Adjustment Account (in old ratio)
Page No 4.72:
Question 47:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Profit and Loss Adjustment A/c |
Dr. |
|
1,750 |
|
|
To Stock A/c |
|
|
500 |
|
|
To Plant and Machinery A/c |
|
|
875 |
|
|
To Reserve for Doubtful Debts A/c |
|
|
375 |
|
|
(Decrease in stock and Plant and creation of Reserve for Doubtful Debt transferred to Profit and Loss Adjustment Account) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
2,500 |
|
|
To Profit and Loss Adjustment A/c |
|
|
2,500 |
|
|
(Increase in value of Building of transferred to Profit and loss Adjustment Accounts) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Adjustment A/c |
|
750 |
|
|
|
To A’s Capital A/c |
|
|
500 |
|
|
To B’s Capital A/c |
|
|
250 |
|
|
(Profit on revaluation of asset and liabilities distributed between A and B in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
10,500 |
|
|
To C’s Capital A/c |
|
|
7,500 |
|
|
To Premium for Goodwill A/c |
|
|
3,000 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
2,000 |
|
|
To B’s Capital A/c |
|
|
1,000 |
|
|
(Premium for Goodwill distributed between A and B in their sacrificing ratio i.e 2:1) |
|
|
|
|
|
|
|
|
|
Profit and Loss Adjustment Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Stock |
500 |
|
|
Plant and Machinery |
875 |
Building |
2,500 |
Reserve for Doubtful Debts |
375 |
|
|
Profit transferred to |
|
|
|
A Capital |
500 |
|
|
B Capital |
250 |
|
|
|
2,500 |
|
2,500 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
15,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
7,500 |
|
|
|
|
Premium for Goodwill |
2,000 |
1,000 |
|
Balance c/d |
17,500 |
11,250 |
7,500 |
Profit and Loss Adjustment (Profit) |
500 |
250 |
|
|
17,500 |
11,250 |
7,500 |
|
17,500 |
11,250 |
7,500 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after admission of C |
|||||
Liabilities |
Amount Rs |
Assets |
Amounts Rs |
||
|
|
|
|
||
Capital Accounts: |
|
Building (25,000 + 2,500) |
27,500 |
||
A |
17,500 |
|
Plant and Machinery (17,500 – 875) |
16,625 |
|
B |
11,250 |
|
Stock (10,000 – 500) |
9,500 |
|
C |
7,500 |
36,250 |
|
|
|
Sundry Creditors |
32,950 |
Sundry Debtors |
4,850 |
|
|
|
|
Less: Provision for D. Debts |
375 |
4,475 |
|
|
|
Cash in Hand (600 + 10,500) |
11,100 |
||
|
69,200 |
|
69,200 |
||
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill (in sacrificing ratio)
WN3
Distribution of Profit from Profit and loss Adjustment Account (in old ratio)
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
2,50,000
|
||||
To C’s Capital A/c |
2,00,000
|
|||||
To Premium for Goodwill A/c |
50,000
|
|||||
(Capital and Goodwill brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
50,000
|
||||
To A’s Capital A/c |
25,000
|
|||||
To B’s Capital A/c |
25,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio, i.e. 1 : 1) | ||||||
A’s Capital A/c | Dr. |
25,000
|
||||
B’s Capital A/c | Dr. |
25,000
|
||||
To Cash A/c |
50,000
|
|||||
(Goodwill brought in by C is withdrawn by old partners) | ||||||
Revaluation A/c (10,000 – 5,000) | Dr. |
5,000
|
||||
To Provision for Doubtful Debts |
5,000
|
|||||
(Created provision against debtors) | ||||||
Revaluation A/c | Dr. |
32,500
|
||||
To Machinery A/c |
20,000
|
|||||
To Furniture A/c |
12,500
|
|||||
(Value of machinery and furniture has depreciated) | ||||||
Stock A/c | Dr. |
30,000
|
||||
To Revaluation A/c |
30,000
|
|||||
(Value of stock has reduced) | ||||||
Building A/c | Dr. |
1,47,000
|
||||
To Revaluation A/c |
1,47,000
|
|||||
(Value of building has appreciated by 20%) | ||||||
Investments A/c | Dr. |
20,000
|
||||
To Revaluation A/c |
20,000
|
|||||
(Value of investments has increased due to unrecorded investments) | ||||||
Revaluation A/c | Dr. |
1,59,500
|
||||
To A’s Capital A/c |
79,750
|
|||||
To B’s Capital A/c |
79,750
|
|||||
(Revaluation profit distributed among old partners in their old ratio) |
Balance Sheet
as on March 31, 2016 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
6,50,000
|
Sundry Debtors |
2,00,000
|
||
Outstanding Expenses |
30,000
|
Less: Provision for Doubtful debts |
10,000
|
1,90,000
|
|
Capital A/c: | Stock |
2,30,000
|
|||
A | 6,79,750 | Furniture (1,00,000 – 12,500) |
87,500
|
||
B |
4,79,750
|
Investments |
20,000
|
||
C |
2,00,000
|
13,59,500
|
Machinery (1,80,000 – 20,000) |
1,60,000
|
|
Building (7,35,000 + 1,47,000) |
8,82,000
|
||||
Cash at Bank |
4,70,000
|
||||
20,39,500
|
20,39,500
|
||||
Working Notes
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Bank A/c |
25,000
|
25,000
|
Balance b/d |
6,00,000
|
4,00,000
|
||||
Bank A/c |
2,00,000
|
||||||||
Revaluation A/c |
79,750
|
79,750
|
|||||||
Balance c/d |
6,79,750
|
4,79,750
|
2,00,000
|
Premium for Goodwill A/c |
25,000
|
25,000
|
|||
7,04,750
|
5,04,750
|
2,00,000
|
7,04,750
|
5,04,750
|
2,00,000
|
||||
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,70,000
|
A’s Capital A/c |
25,000
|
||
C’s Capital A/c |
2,00,000
|
B’s Capital A/c |
25,000
|
||
Premium for Goodwill A/c |
50,000
|
Balance c/d |
4,70,000
|
||
5,20,000
|
5,20,000
|
||||
Page No 4.73:
Question 48:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
||
Bank A/c |
Dr.
|
2,50,000
|
||||
To C’s Capital A/c |
2,00,000
|
|||||
To Premium for Goodwill A/c |
50,000
|
|||||
(Capital and Goodwill brought in by new partner) | ||||||
Premium for Goodwill A/c |
Dr.
|
50,000
|
||||
To A’s Capital A/c |
25,000
|
|||||
To B’s Capital A/c |
25,000
|
|||||
(Goodwill distributed among old partners in their sacrificing ratio, i.e. 1 : 1) | ||||||
A’s Capital A/c | Dr. |
25,000
|
||||
B’s Capital A/c | Dr. |
25,000
|
||||
To Cash A/c |
50,000
|
|||||
(Goodwill brought in by C is withdrawn by old partners) | ||||||
Revaluation A/c (10,000 – 5,000) | Dr. |
5,000
|
||||
To Provision for Doubtful Debts |
5,000
|
|||||
(Created provision against debtors) | ||||||
Revaluation A/c | Dr. |
32,500
|
||||
To Machinery A/c |
20,000
|
|||||
To Furniture A/c |
12,500
|
|||||
(Value of machinery and furniture has depreciated) | ||||||
Stock A/c | Dr. |
30,000
|
||||
To Revaluation A/c |
30,000
|
|||||
(Value of stock has reduced) | ||||||
Building A/c | Dr. |
1,47,000
|
||||
To Revaluation A/c |
1,47,000
|
|||||
(Value of building has appreciated by 20%) | ||||||
Investments A/c | Dr. |
20,000
|
||||
To Revaluation A/c |
20,000
|
|||||
(Value of investments has increased due to unrecorded investments) | ||||||
Revaluation A/c | Dr. |
1,59,500
|
||||
To A’s Capital A/c |
79,750
|
|||||
To B’s Capital A/c |
79,750
|
|||||
(Revaluation profit distributed among old partners in their old ratio) |
Balance Sheet
as on March 31, 2016 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
6,50,000
|
Sundry Debtors |
2,00,000
|
||
Outstanding Expenses |
30,000
|
Less: Provision for Doubtful debts |
10,000
|
1,90,000
|
|
Capital A/c: | Stock |
2,30,000
|
|||
A | 6,79,750 | Furniture (1,00,000 – 12,500) |
87,500
|
||
B |
4,79,750
|
Investments |
20,000
|
||
C |
2,00,000
|
13,59,500
|
Machinery (1,80,000 – 20,000) |
1,60,000
|
|
Building (7,35,000 + 1,47,000) |
8,82,000
|
||||
Cash at Bank |
4,70,000
|
||||
20,39,500
|
20,39,500
|
||||
Working Notes
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Bank A/c |
25,000
|
25,000
|
Balance b/d |
6,00,000
|
4,00,000
|
||||
Bank A/c |
2,00,000
|
||||||||
Revaluation A/c |
79,750
|
79,750
|
|||||||
Balance c/d |
6,79,750
|
4,79,750
|
2,00,000
|
Premium for Goodwill A/c |
25,000
|
25,000
|
|||
7,04,750
|
5,04,750
|
2,00,000
|
7,04,750
|
5,04,750
|
2,00,000
|
||||
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,70,000
|
A’s Capital A/c |
25,000
|
||
C’s Capital A/c |
2,00,000
|
B’s Capital A/c |
25,000
|
||
Premium for Goodwill A/c |
50,000
|
Balance c/d |
4,70,000
|
||
5,20,000
|
5,20,000
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Stock A/c |
6,250
|
Provision for Doubtful Debts A/c |
18,750
|
|||
Plant and Machinery A/c |
21,250
|
Loss transferred to: | ||||
X’s Capital A/c | 5,250 | |||||
Y’s Capital A/c | 3,500 |
8,750
|
||||
27,500
|
27,500
|
|||||
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
1,50,000
|
Balance c/d |
4,89,250
|
||
Premium for Goodwill A/c |
89,250
|
||||
Samir’s Capital A/c |
2,50,000
|
||||
4,89,250
|
4,89,250
|
||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Revaluation A/c |
5,250
|
3,500
|
Balance b/d |
3,75,000
|
1,87,500
|
||||
Bank A/c |
2,50,000
|
||||||||
Balance c/d |
4,14,375
|
2,28,625
|
2,50,000
|
Premium for Goodwill A/c |
44,625
|
44,625
|
|||
4,19,625
|
2,32,125
|
2,50,000
|
4,19,625
|
2,32,125
|
2,50,000
|
||||
Balance Sheet
as on April 01, 2016 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
1,87,500
|
Debtors |
2,50,000
|
||
Bills Payable |
1,00,000
|
Less: Provision for Doubtful Debts |
6,250
|
2,43,750
|
|
Outstanding Rent |
25,000
|
Stock (62,500 – 6,250) |
56,250
|
||
Capital A/cs: | Plant and Machinery (4,25,000 – 21,250) |
4,03,750
|
|||
X |
4,14,375
|
Prepaid Expenses |
12,500
|
||
Y |
2,28,625
|
Cash at Bank |
4,89,250
|
||
Z |
2,50,000
|
8,93,000
|
|||
12,05,500
|
12,05,500
|
||||
Working Notes
WN 1:Calculation of Sacrificing Ratio
WN 2:Calculation of Hidden Goodwill
Page No 4.73:
Question 49:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Stock A/c |
6,250
|
Provision for Doubtful Debts A/c |
18,750
|
|||
Plant and Machinery A/c |
21,250
|
Loss transferred to: | ||||
X’s Capital A/c | 5,250 | |||||
Y’s Capital A/c | 3,500 |
8,750
|
||||
27,500
|
27,500
|
|||||
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
1,50,000
|
Balance c/d |
4,89,250
|
||
Premium for Goodwill A/c |
89,250
|
||||
Samir’s Capital A/c |
2,50,000
|
||||
4,89,250
|
4,89,250
|
||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Revaluation A/c |
5,250
|
3,500
|
Balance b/d |
3,75,000
|
1,87,500
|
||||
Bank A/c |
2,50,000
|
||||||||
Balance c/d |
4,14,375
|
2,28,625
|
2,50,000
|
Premium for Goodwill A/c |
44,625
|
44,625
|
|||
4,19,625
|
2,32,125
|
2,50,000
|
4,19,625
|
2,32,125
|
2,50,000
|
||||
Balance Sheet
as on April 01, 2016 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
1,87,500
|
Debtors |
2,50,000
|
||
Bills Payable |
1,00,000
|
Less: Provision for Doubtful Debts |
6,250
|
2,43,750
|
|
Outstanding Rent |
25,000
|
Stock (62,500 – 6,250) |
56,250
|
||
Capital A/cs: | Plant and Machinery (4,25,000 – 21,250) |
4,03,750
|
|||
X |
4,14,375
|
Prepaid Expenses |
12,500
|
||
Y |
2,28,625
|
Cash at Bank |
4,89,250
|
||
Z |
2,50,000
|
8,93,000
|
|||
12,05,500
|
12,05,500
|
||||
Working Notes
WN 1:Calculation of Sacrificing Ratio
WN 2:Calculation of Hidden Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
20,880 |
|
|
To C’s Capital A/c |
|
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
5,880 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
5,880 |
|
|
To A’s Capital A/c |
|
|
3,528 |
|
|
To B’s Capital A/c |
|
|
2,352 |
|
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
|
Cr. |
|||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
51,450 |
36,750 |
|
|
|
|
|
Cash |
|
|
15,000 |
Balance c/d |
54,978 |
39,102 |
15,000 |
Premium for Goodwill |
3,528 |
2,352 |
|
|
54,978 |
39,102 |
15,000 |
|
54,978 |
39,102 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet after Admission of C |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Cash (1,500 + 20,880) |
22,380 |
|
A |
54,978 |
|
Stock |
28,000 |
B |
39,102 |
|
Debtors |
19,500 |
C |
15,000 |
1,09,080 |
Furniture |
2,500 |
Creditors |
|
11,800 |
Machinery |
48,500 |
|
|
1,20,880 |
|
1,20,880 |
|
|
|
|
|
Calculation of New Profit Sharing Ratio
C is admitted for share of profit
Let combined share of all partners after admission of C be = 1
Combined share of A and B after C’s admission = 1 − C’s share
Working Note-
WN1
WN2
Page No 4.74:
Question 50:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
20,880 |
|
|
To C’s Capital A/c |
|
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
5,880 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
5,880 |
|
|
To A’s Capital A/c |
|
|
3,528 |
|
|
To B’s Capital A/c |
|
|
2,352 |
|
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
|
Cr. |
|||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
51,450 |
36,750 |
|
|
|
|
|
Cash |
|
|
15,000 |
Balance c/d |
54,978 |
39,102 |
15,000 |
Premium for Goodwill |
3,528 |
2,352 |
|
|
54,978 |
39,102 |
15,000 |
|
54,978 |
39,102 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet after Admission of C |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Cash (1,500 + 20,880) |
22,380 |
|
A |
54,978 |
|
Stock |
28,000 |
B |
39,102 |
|
Debtors |
19,500 |
C |
15,000 |
1,09,080 |
Furniture |
2,500 |
Creditors |
|
11,800 |
Machinery |
48,500 |
|
|
1,20,880 |
|
1,20,880 |
|
|
|
|
|
Calculation of New Profit Sharing Ratio
C is admitted for share of profit
Let combined share of all partners after admission of C be = 1
Combined share of A and B after C’s admission = 1 − C’s share
Working Note-
WN1
WN2
Answer:
Profit and Loss Adjustment Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Stock |
1,800 |
Building |
15,000 |
|
Furniture |
440 |
|
|
|
Provision for Doubtful Debts |
275 |
|
|
|
Profit transferred to |
|
|
|
|
Shyamlal Capital |
4,994 |
|
||
Sanjay Capital |
7,491 |
12,485 |
||
|
|
15,000 |
|
15,000 |
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
Cr. |
||||
Particulars |
Shyamlal |
Sanjay |
Shanker |
Particulars |
Shyamlal |
Sanjay |
Shanker |
|
|
|
|
Balance b/d |
34,050 |
34,050 |
|
|
|
|
|
Cash A/c |
|
|
30,000 |
|
|
|
|
Premium for Goodwill |
8,000 |
12,000 |
|
Balance c/d |
47,044 |
53,541 |
30,000 |
Revaluation |
4,994 |
7,491 |
|
|
47,044 |
53,541 |
30,000 |
|
47,044 |
53,541 |
30,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Shanker’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
12,435 |
Cash in Hand (710 + 50,000) |
50,710 |
||
Capital A/cs: |
|
Cash at Bank |
11,925 |
||
Shyamlal |
47,044 |
|
Sundry Debtors |
5,500 |
|
Sanjay |
53,541 |
|
Less: Provision for D. Debts |
275 |
5,225 |
Shanker |
30,000 |
1,30,585 |
Stock (18,000 – 1,800) |
16,200 |
|
|
|
Building (40,000 + 15,000) |
55,000 |
||
|
|
Furniture (4,400 – 440) |
3,960 |
||
|
1,43,020 |
|
1,43,020 |
||
|
|
|
|
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of Profit from Profit and Loss Adjustment Account (in old ratio)
Page No 4.74:
Question 51:
Profit and Loss Adjustment Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Stock |
1,800 |
Building |
15,000 |
|
Furniture |
440 |
|
|
|
Provision for Doubtful Debts |
275 |
|
|
|
Profit transferred to |
|
|
|
|
Shyamlal Capital |
4,994 |
|
||
Sanjay Capital |
7,491 |
12,485 |
||
|
|
15,000 |
|
15,000 |
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
Cr. |
||||
Particulars |
Shyamlal |
Sanjay |
Shanker |
Particulars |
Shyamlal |
Sanjay |
Shanker |
|
|
|
|
Balance b/d |
34,050 |
34,050 |
|
|
|
|
|
Cash A/c |
|
|
30,000 |
|
|
|
|
Premium for Goodwill |
8,000 |
12,000 |
|
Balance c/d |
47,044 |
53,541 |
30,000 |
Revaluation |
4,994 |
7,491 |
|
|
47,044 |
53,541 |
30,000 |
|
47,044 |
53,541 |
30,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Shanker’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
12,435 |
Cash in Hand (710 + 50,000) |
50,710 |
||
Capital A/cs: |
|
Cash at Bank |
11,925 |
||
Shyamlal |
47,044 |
|
Sundry Debtors |
5,500 |
|
Sanjay |
53,541 |
|
Less: Provision for D. Debts |
275 |
5,225 |
Shanker |
30,000 |
1,30,585 |
Stock (18,000 – 1,800) |
16,200 |
|
|
|
Building (40,000 + 15,000) |
55,000 |
||
|
|
Furniture (4,400 – 440) |
3,960 |
||
|
1,43,020 |
|
1,43,020 |
||
|
|
|
|
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of Profit from Profit and Loss Adjustment Account (in old ratio)
Answer:
Revaluation Account |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Provision for Damages |
1,500 |
Land and Building |
6,000 |
|
Outstanding Electricity Bill |
300 |
(30,000 × 20%) |
|
|
Stock |
2,000 |
Creditors (unclaimed) |
1,200 |
|
Furniture |
1,000 |
|
|
|
Reserve for Doubtful Debts (15,000 × 5%) |
750 |
|
|
|
Profit transferred to Capital Accounts |
1,650 |
|
|
|
M |
1,100 |
|||
S |
550 |
|||
|
7,200 |
|
7,200 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
M |
S |
R |
Particulars |
M |
S |
R |
Bank (Goodwill withdrawn) |
2,000 |
1,000 |
|
Balance b/d |
30,000 |
20,000 |
|
|
|
|
|
Bank |
|
|
15,000 |
|
|
|
|
Premium Goodwill |
4,000 |
2,000 |
|
Balance c/d |
33,100 |
21,550 |
15,000 |
Revaluation (profit) |
1,100 |
550 |
|
|
35,100 |
22,550 |
15,000 |
|
35,100 |
22,550 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after R’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Provision for Damages |
1,500 |
Cash at Bank (17,000 + 21,000 –3,000) |
35,000 |
||
Outstanding Electricity Bill |
300 |
Stock (25,000 –2,000) |
23,000 |
||
Sundry Creditors (44,000 – 1,200) |
42,800 |
Furniture and Fixtures (3,000 – 1,000) |
2,000 |
||
Capital A/cs: |
|
Sundry Debtors |
15,000 |
|
|
M |
33,100 |
|
Less: 5% Reserve for D. Debts |
750 |
14,250 |
S |
21,550 |
|
Bills Receivable |
4,000 |
|
R |
15,000 |
69,650 |
Land and Building (30,000 + 6,000) |
36,000 |
|
|
|
1,14,250 |
|
1,14,250 |
|
|
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution of Premium for Goodwill (in sacrificing ratio)
WN3: Withdrawn of Premium for Goodwill
WN4: Distribution of Revaluation Profit (in old ratio)
Page No 4.75:
Question 52:
Revaluation Account |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Provision for Damages |
1,500 |
Land and Building |
6,000 |
|
Outstanding Electricity Bill |
300 |
(30,000 × 20%) |
|
|
Stock |
2,000 |
Creditors (unclaimed) |
1,200 |
|
Furniture |
1,000 |
|
|
|
Reserve for Doubtful Debts (15,000 × 5%) |
750 |
|
|
|
Profit transferred to Capital Accounts |
1,650 |
|
|
|
M |
1,100 |
|||
S |
550 |
|||
|
7,200 |
|
7,200 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
M |
S |
R |
Particulars |
M |
S |
R |
Bank (Goodwill withdrawn) |
2,000 |
1,000 |
|
Balance b/d |
30,000 |
20,000 |
|
|
|
|
|
Bank |
|
|
15,000 |
|
|
|
|
Premium Goodwill |
4,000 |
2,000 |
|
Balance c/d |
33,100 |
21,550 |
15,000 |
Revaluation (profit) |
1,100 |
550 |
|
|
35,100 |
22,550 |
15,000 |
|
35,100 |
22,550 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after R’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Provision for Damages |
1,500 |
Cash at Bank (17,000 + 21,000 –3,000) |
35,000 |
||
Outstanding Electricity Bill |
300 |
Stock (25,000 –2,000) |
23,000 |
||
Sundry Creditors (44,000 – 1,200) |
42,800 |
Furniture and Fixtures (3,000 – 1,000) |
2,000 |
||
Capital A/cs: |
|
Sundry Debtors |
15,000 |
|
|
M |
33,100 |
|
Less: 5% Reserve for D. Debts |
750 |
14,250 |
S |
21,550 |
|
Bills Receivable |
4,000 |
|
R |
15,000 |
69,650 |
Land and Building (30,000 + 6,000) |
36,000 |
|
|
|
1,14,250 |
|
1,14,250 |
|
|
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution of Premium for Goodwill (in sacrificing ratio)
WN3: Withdrawn of Premium for Goodwill
WN4: Distribution of Revaluation Profit (in old ratio)
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
General Reserve A/c |
Dr.
|
1,60,000
|
||||
To A’s Capital A/c |
96,000
|
|||||
To B’s Capital A/c |
64,000
|
|||||
(General reserve distributed between old partners in their old ratio) | ||||||
A’s Capital A/c | Dr. |
72,000
|
||||
B’s Capital A/c | Dr. |
48,000
|
||||
To Profit and Loss A/c |
1,20,000
|
|||||
(Debit balance of profit and loss distributed between old partners in their old ratio) |
Page No 4.75:
Question 53:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
||
General Reserve A/c |
Dr.
|
1,60,000
|
||||
To A’s Capital A/c |
96,000
|
|||||
To B’s Capital A/c |
64,000
|
|||||
(General reserve distributed between old partners in their old ratio) | ||||||
A’s Capital A/c | Dr. |
72,000
|
||||
B’s Capital A/c | Dr. |
48,000
|
||||
To Profit and Loss A/c |
1,20,000
|
|||||
(Debit balance of profit and loss distributed between old partners in their old ratio) |
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
(a) |
General Reserve A/c |
Dr. |
|
36,000 |
|
|
Contingency Reserve A/c |
Dr. |
|
6,000 |
|
|
Profit and Loss A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
|
30,000 |
|
To Y’s Capital A/c |
|
|
|
18,000 |
|
To Z’s Capital A/c |
|
|
|
12,000 |
|
(Reserves and profits are distributed among the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
12,000 |
|
|
Y’s Capital A/c |
Dr. |
|
7,200 |
|
|
Z’s Capital A/c |
Dr. |
|
4,800 |
|
|
To Advertisement Suspense A/c |
|
|
|
24,000 |
|
(Balance of advertisement suspense is debited to partners’ capital accounts in old ratio) |
|
|
|
|
|
|
|
|
|
|
(b) |
General Reserve A/c |
Dr. |
|
84,000 |
|
|
To A’s Capital A/c |
|
|
|
48,000 |
|
To B’s Capital A/c |
|
|
|
36,000 |
|
(Reserve distributed between the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
4,800 |
|
|
B’s Capital A/c |
Dr. |
|
3,600 |
|
|
To Profit & Loss A/c |
|
|
|
8,400 |
|
(Balance of profit and loss debited to partners’ capital accounts in old ratio) |
|
|
|
|
|
|
|
|
|
|
(c) |
Workmen Compensation Reserve A/c |
Dr. |
|
72,000 |
|
|
To X’s Capital A/c |
|
|
|
36,000 |
|
To Y’s Capital A/c |
|
|
|
36,000 |
|
(Balance of WCR distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(d) |
Workmen Compensation Reserve A/c |
Dr. |
|
72,000 |
|
|
To Workmen Compensation Claim A/c |
|
|
|
48,000 |
|
To X’s Capital A/c |
|
|
|
12,000 |
|
To Y’s Capital A/c |
|
|
|
12,000 |
|
(Claim against WCF is created and excess balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(e) |
Investment Fluctuation Reserve A/c |
Dr. |
|
24,000 |
|
|
To Investments A/c |
|
|
|
10,000 |
|
To X’s Capital A/c |
|
|
|
7,000 |
|
To Y’s Capital A/c |
|
|
|
7,000 |
|
(Balance of IFR transferred to Investments for the decrease and excess balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(f) |
General Reserve A/c |
Dr. |
|
4,800 |
|
|
To Investment Fluctuation Reserve A/c |
|
|
|
960 |
|
To X’s Capital A/c |
|
|
|
1,920 |
|
To Y’s Capital A/c |
|
|
|
1,920 |
|
(20% of general reserve transferred to IFR and balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
Page No 4.75:
Question 54:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
(a) |
General Reserve A/c |
Dr. |
|
36,000 |
|
|
Contingency Reserve A/c |
Dr. |
|
6,000 |
|
|
Profit and Loss A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
|
30,000 |
|
To Y’s Capital A/c |
|
|
|
18,000 |
|
To Z’s Capital A/c |
|
|
|
12,000 |
|
(Reserves and profits are distributed among the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
12,000 |
|
|
Y’s Capital A/c |
Dr. |
|
7,200 |
|
|
Z’s Capital A/c |
Dr. |
|
4,800 |
|
|
To Advertisement Suspense A/c |
|
|
|
24,000 |
|
(Balance of advertisement suspense is debited to partners’ capital accounts in old ratio) |
|
|
|
|
|
|
|
|
|
|
(b) |
General Reserve A/c |
Dr. |
|
84,000 |
|
|
To A’s Capital A/c |
|
|
|
48,000 |
|
To B’s Capital A/c |
|
|
|
36,000 |
|
(Reserve distributed between the partners in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
4,800 |
|
|
B’s Capital A/c |
Dr. |
|
3,600 |
|
|
To Profit & Loss A/c |
|
|
|
8,400 |
|
(Balance of profit and loss debited to partners’ capital accounts in old ratio) |
|
|
|
|
|
|
|
|
|
|
(c) |
Workmen Compensation Reserve A/c |
Dr. |
|
72,000 |
|
|
To X’s Capital A/c |
|
|
|
36,000 |
|
To Y’s Capital A/c |
|
|
|
36,000 |
|
(Balance of WCR distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(d) |
Workmen Compensation Reserve A/c |
Dr. |
|
72,000 |
|
|
To Workmen Compensation Claim A/c |
|
|
|
48,000 |
|
To X’s Capital A/c |
|
|
|
12,000 |
|
To Y’s Capital A/c |
|
|
|
12,000 |
|
(Claim against WCF is created and excess balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(e) |
Investment Fluctuation Reserve A/c |
Dr. |
|
24,000 |
|
|
To Investments A/c |
|
|
|
10,000 |
|
To X’s Capital A/c |
|
|
|
7,000 |
|
To Y’s Capital A/c |
|
|
|
7,000 |
|
(Balance of IFR transferred to Investments for the decrease and excess balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
(f) |
General Reserve A/c |
Dr. |
|
4,800 |
|
|
To Investment Fluctuation Reserve A/c |
|
|
|
960 |
|
To X’s Capital A/c |
|
|
|
1,920 |
|
To Y’s Capital A/c |
|
|
|
1,920 |
|
(20% of general reserve transferred to IFR and balance is distributed between the partners in their old ratio, i.e. 1:1) |
|
|
|
|
|
|
|
|
|
Answer:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
General Reserve A/c |
Dr.
|
25,000
|
||||
Investment Fluctuation Reserve A/c |
Dr.
|
18,000
|
||||
Workmen Compensation Reserve A/c |
Dr.
|
50,000
|
||||
To X’s Capital A/c | 46,500 | |||||
To Y’s Capital A/c |
31,000
|
|||||
To Z’s Capital A/c |
15,500
|
|||||
(Accumulated profits and reserves distributed among old partners in their old ratio) |
Working Notes:
Decrease in the value of Investments = Rs 2,000
Therefore, balance in Investment Fluctuation Reserve will be = 20,000 – 2,000 = 18,000.
Page No 4.76:
Question 55:
Books of ….
|
||||||
Journal
|
||||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit
Amount Rs
|
||
General Reserve A/c |
Dr.
|
25,000
|
||||
Investment Fluctuation Reserve A/c |
Dr.
|
18,000
|
||||
Workmen Compensation Reserve A/c |
Dr.
|
50,000
|
||||
To X’s Capital A/c | 46,500 | |||||
To Y’s Capital A/c |
31,000
|
|||||
To Z’s Capital A/c |
15,500
|
|||||
(Accumulated profits and reserves distributed among old partners in their old ratio) |
Working Notes:
Decrease in the value of Investments = Rs 2,000
Therefore, balance in Investment Fluctuation Reserve will be = 20,000 – 2,000 = 18,000.
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Stock A/c |
30,000
|
Provision for Doubtful Debts A/c |
24,000
|
|||
Patents A/c |
74,000
|
Loss transferred to: | ||||
Claim for Damages A/c |
20,000
|
A’s Capital A/c | 60,000 | |||
B’s Capital A/c | 40,000 |
1,00,000
|
||||
1,24,000
|
1,24,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Revaluation A/c |
60,000
|
40,000
|
Balance b/d |
4,00,000
|
3,50,000
|
||||
Balance c/d |
5,08,000
|
4,22,000
|
3,00,000
|
Bank A/c |
3,00,000
|
||||
Premium for Goodwill A/c |
60,000
|
40,000
|
|||||||
General Reserve A/c |
1,08,000
|
72,000
|
|||||||
5,68,000
|
4,62,000
|
3,00,000
|
5,68,000
|
4,62,000
|
3,00,000
|
||||
Balance Sheet
as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
3,20,000
|
Debtors |
4,80,000
|
||
Claim for Damages |
20,000
|
Less: Provision for Doubtful Debts |
24,000
|
4,56,000
|
|
Stock (3,00,000 – 30,000) |
2,70,000
|
||||
Capital A/c: | Building |
2,04,000
|
|||
A |
5,08,000
|
Cash (2,40,000 + 4,00,000) |
6,40,000
|
||
B |
4,22,000
|
||||
C |
3,00,000
|
12,30,000
|
|||
15,70,000
|
15,70,000
|
||||
Working Notes
Page No 4.76:
Question 56:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Stock A/c |
30,000
|
Provision for Doubtful Debts A/c |
24,000
|
|||
Patents A/c |
74,000
|
Loss transferred to: | ||||
Claim for Damages A/c |
20,000
|
A’s Capital A/c | 60,000 | |||
B’s Capital A/c | 40,000 |
1,00,000
|
||||
1,24,000
|
1,24,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Revaluation A/c |
60,000
|
40,000
|
Balance b/d |
4,00,000
|
3,50,000
|
||||
Balance c/d |
5,08,000
|
4,22,000
|
3,00,000
|
Bank A/c |
3,00,000
|
||||
Premium for Goodwill A/c |
60,000
|
40,000
|
|||||||
General Reserve A/c |
1,08,000
|
72,000
|
|||||||
5,68,000
|
4,62,000
|
3,00,000
|
5,68,000
|
4,62,000
|
3,00,000
|
||||
Balance Sheet
as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
3,20,000
|
Debtors |
4,80,000
|
||
Claim for Damages |
20,000
|
Less: Provision for Doubtful Debts |
24,000
|
4,56,000
|
|
Stock (3,00,000 – 30,000) |
2,70,000
|
||||
Capital A/c: | Building |
2,04,000
|
|||
A |
5,08,000
|
Cash (2,40,000 + 4,00,000) |
6,40,000
|
||
B |
4,22,000
|
||||
C |
3,00,000
|
12,30,000
|
|||
15,70,000
|
15,70,000
|
||||
Working Notes
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
5,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
3,000 |
|
Y’s Capital A/c |
Dr. |
|
2,000 |
|
To Goodwill A/c |
|
|
5,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,010 |
|
To Stock A/c |
|
|
770 |
|
To Plant and Machinery A/c |
|
|
1,800 |
|
To Provision for Depreciation A/c |
|
|
440 |
|
(Decrease in stock and creation of Provision for Doubtful Debts) |
|
|
|
|
|
|
|
|
|
Investment A/c |
Dr. |
|
9,000 |
|
Provision for Distribution on Creditors A/c |
Dr. |
|
310 |
|
To Revaluation A/c |
|
|
9,310 |
|
(Increase in Investment and Provision Discount on Creditors made) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
6,300 |
|
To X’s Capital A/c |
|
|
3,780 |
|
To Y’s Capital A/c |
|
|
2,520 |
|
(Revaluation profit distributed between X and Y in old Ratio) |
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
22,000 |
|
To Z’s Capital A/c |
|
|
15,000 |
|
To Premium for Goodwill |
|
|
7,000 |
|
(Z brought capital and half of his share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
7,000 |
|
To X’s Capital A/c |
|
|
4,000 |
|
To Y’s Capital A/c |
|
|
3,000 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
7,000 |
|
To X’s Capital A/c |
|
|
4,000 |
|
To Y’s Capital A/c |
|
|
3,000 |
|
(Half of Z share of Goodwill which was not brought by Z in cash charged from his capital account) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||||
Dr. |
|
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Stock (7,700 × 10%) |
770 |
Investment |
9,000 |
||
Plant and Machinery (18,000 × 10%) |
1,800 |
Provision for Disc on Creditors |
310 |
||
Provision for D. Debts |
440 |
|
|
||
Profit transferred to |
|
|
|
||
X Capital |
3,780 |
|
|
||
Y Capital |
2,520 |
|
|
||
|
9,310 |
|
9,310 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Goodwill |
3,000 |
2,000 |
|
Balance b/d |
16,800 |
13,200 |
|
X’s Capital |
|
|
3,000 |
General Reserve |
3,000 |
2,000 |
|
Y’s Capital |
|
|
4,000 |
Cash |
|
|
15,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
4,000 |
|
Balance c/d |
26,580 |
23,720 |
8,000 |
Z’s Capital |
3,000 |
4,000 |
|
|
|
|
|
Revaluation |
3,780 |
2,520 |
|
|
29,580 |
25,720 |
15,000 |
|
29,580 |
25,720 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
6,200 |
|
Cash |
24,000 |
|
Less: Provision for D. Creditors |
310 |
5,890 |
Stock (7,700 – 770) |
6,930 |
|
Bills Payable |
3,300 |
Debtors |
8,800 |
|
|
Capital A/cs: |
|
Less: 5% Provision for D. Debts |
440 |
8,360 |
|
X |
26,580 |
|
Plant and Machinery (18,000 – 1,800) |
16,200 |
|
Y |
23,720 |
|
Investments (3,000 + 9,000) |
12,000 |
|
Z |
8,000 |
58,300 |
|
|
|
|
67,490 |
|
67,490 |
||
|
|
|
|
Calculation of Profit sharing Ratio
Working Notes
WN1: Distribution of General Reserve
WN2: Writing-off of Goodwill
WN3: Distribution of Z's Share of Goodwill
Page No 4.76:
Question 57:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
5,000 |
|
To X’s Capital A/c |
|
|
3,000 |
|
To Y’s Capital A/c |
|
|
2,000 |
|
(General Reserve distributed) |
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
3,000 |
|
Y’s Capital A/c |
Dr. |
|
2,000 |
|
To Goodwill A/c |
|
|
5,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,010 |
|
To Stock A/c |
|
|
770 |
|
To Plant and Machinery A/c |
|
|
1,800 |
|
To Provision for Depreciation A/c |
|
|
440 |
|
(Decrease in stock and creation of Provision for Doubtful Debts) |
|
|
|
|
|
|
|
|
|
Investment A/c |
Dr. |
|
9,000 |
|
Provision for Distribution on Creditors A/c |
Dr. |
|
310 |
|
To Revaluation A/c |
|
|
9,310 |
|
(Increase in Investment and Provision Discount on Creditors made) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
6,300 |
|
To X’s Capital A/c |
|
|
3,780 |
|
To Y’s Capital A/c |
|
|
2,520 |
|
(Revaluation profit distributed between X and Y in old Ratio) |
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
22,000 |
|
To Z’s Capital A/c |
|
|
15,000 |
|
To Premium for Goodwill |
|
|
7,000 |
|
(Z brought capital and half of his share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
7,000 |
|
To X’s Capital A/c |
|
|
4,000 |
|
To Y’s Capital A/c |
|
|
3,000 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
7,000 |
|
To X’s Capital A/c |
|
|
4,000 |
|
To Y’s Capital A/c |
|
|
3,000 |
|
(Half of Z share of Goodwill which was not brought by Z in cash charged from his capital account) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||||
Dr. |
|
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Stock (7,700 × 10%) |
770 |
Investment |
9,000 |
||
Plant and Machinery (18,000 × 10%) |
1,800 |
Provision for Disc on Creditors |
310 |
||
Provision for D. Debts |
440 |
|
|
||
Profit transferred to |
|
|
|
||
X Capital |
3,780 |
|
|
||
Y Capital |
2,520 |
|
|
||
|
9,310 |
|
9,310 |
||
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Goodwill |
3,000 |
2,000 |
|
Balance b/d |
16,800 |
13,200 |
|
X’s Capital |
|
|
3,000 |
General Reserve |
3,000 |
2,000 |
|
Y’s Capital |
|
|
4,000 |
Cash |
|
|
15,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
4,000 |
|
Balance c/d |
26,580 |
23,720 |
8,000 |
Z’s Capital |
3,000 |
4,000 |
|
|
|
|
|
Revaluation |
3,780 |
2,520 |
|
|
29,580 |
25,720 |
15,000 |
|
29,580 |
25,720 |
15,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
6,200 |
|
Cash |
24,000 |
|
Less: Provision for D. Creditors |
310 |
5,890 |
Stock (7,700 – 770) |
6,930 |
|
Bills Payable |
3,300 |
Debtors |
8,800 |
|
|
Capital A/cs: |
|
Less: 5% Provision for D. Debts |
440 |
8,360 |
|
X |
26,580 |
|
Plant and Machinery (18,000 – 1,800) |
16,200 |
|
Y |
23,720 |
|
Investments (3,000 + 9,000) |
12,000 |
|
Z |
8,000 |
58,300 |
|
|
|
|
67,490 |
|
67,490 |
||
|
|
|
|
Calculation of Profit sharing Ratio
Working Notes
WN1: Distribution of General Reserve
WN2: Writing-off of Goodwill
WN3: Distribution of Z's Share of Goodwill
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Provision for Doubtful Debts (20,000 × 4%) |
800 |
|
Land (1, 00,000 × 10%) |
10,000 |
Less: Old Provision |
500 |
300 |
|
|
Stock (30,000 × 5%) |
1,500 |
|
|
|
Profit transferred to |
|
|
|
|
V Capital |
5,740 |
|
|
|
N Capital |
2,460 |
|
|
|
|
10,000 |
|
10,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
V |
N |
P |
Particulars |
V |
N |
P |
|
|
|
|
Balance b/d |
1,50,000 |
50,000 |
|
|
|
|
|
Revaluation |
5,740 |
2,460 |
|
|
|
|
|
General Reserve |
7,000 |
3,000 |
|
|
|
|
|
P’s Loan |
|
|
80,000 |
Balance c/d |
1,90,740 |
67,460 |
80,000 |
Premium for Goodwill |
28,000 |
12,000 |
|
|
1,90,740 |
67,460 |
80,000 |
|
1,90,740 |
67,460 |
80,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after P’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
10,000 |
Cash (15,500 + 40,000) |
55,500 |
|
Bills Payable |
15,000 |
Debtors |
20,000 |
|
Capital A/cs: |
|
Bills Receivables |
50,000 |
|
V |
1,90,740 |
|
Stock (30,000 – 1,500) |
28,500 |
N |
67,460 |
|
Building |
1,00,000 |
P |
80,000 |
3,38,200 |
Land (1,00,000 + 10,000) |
1,10,000 |
Provision for Doubtful Debts |
800 |
|
|
|
|
3,64,000 |
|
3,64,000 |
|
|
|
|
|
Working Notes
WN1
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
15,500 |
|
|
Premium for Goodwill |
40,000 |
|
|
|
|
Balance c/d |
55,500 |
|
55,500 |
|
55,500 |
|
|
|
|
WN2
Distribution of Premium for Goodwill
Page No 4.77:
Question 58:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Provision for Doubtful Debts (20,000 × 4%) |
800 |
|
Land (1, 00,000 × 10%) |
10,000 |
Less: Old Provision |
500 |
300 |
|
|
Stock (30,000 × 5%) |
1,500 |
|
|
|
Profit transferred to |
|
|
|
|
V Capital |
5,740 |
|
|
|
N Capital |
2,460 |
|
|
|
|
10,000 |
|
10,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
V |
N |
P |
Particulars |
V |
N |
P |
|
|
|
|
Balance b/d |
1,50,000 |
50,000 |
|
|
|
|
|
Revaluation |
5,740 |
2,460 |
|
|
|
|
|
General Reserve |
7,000 |
3,000 |
|
|
|
|
|
P’s Loan |
|
|
80,000 |
Balance c/d |
1,90,740 |
67,460 |
80,000 |
Premium for Goodwill |
28,000 |
12,000 |
|
|
1,90,740 |
67,460 |
80,000 |
|
1,90,740 |
67,460 |
80,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after P’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
10,000 |
Cash (15,500 + 40,000) |
55,500 |
|
Bills Payable |
15,000 |
Debtors |
20,000 |
|
Capital A/cs: |
|
Bills Receivables |
50,000 |
|
V |
1,90,740 |
|
Stock (30,000 – 1,500) |
28,500 |
N |
67,460 |
|
Building |
1,00,000 |
P |
80,000 |
3,38,200 |
Land (1,00,000 + 10,000) |
1,10,000 |
Provision for Doubtful Debts |
800 |
|
|
|
|
3,64,000 |
|
3,64,000 |
|
|
|
|
|
Working Notes
WN1
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
15,500 |
|
|
Premium for Goodwill |
40,000 |
|
|
|
|
Balance c/d |
55,500 |
|
55,500 |
|
55,500 |
|
|
|
|
WN2
Distribution of Premium for Goodwill
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
1,500
|
Land and Building A/c |
3,000
|
|||
Profit transferred to: | Stock A/c |
2,500
|
||||
X’s Capital A/c | 2,400 | |||||
Y’s Capital A/c | 1,600 |
4,000
|
||||
5,500
|
5,500
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Advertisement Expenditure A/c |
3,000
|
2,000
|
Balance b/d |
15,000
|
10,000
|
||||
Balance c/d |
40,200
|
26,800
|
15,000
|
Bank A/c |
15,000
|
||||
Premium for Goodwill A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
2,400
|
1,600
|
|||||||
General Reserve A/c |
12,000
|
8,000
|
|||||||
Workmen Compensation Reserve A/c |
7,800
|
5,200
|
|||||||
43,200 | 28,800 | 15,000 |
43,200
|
28,800
|
15,000
|
||||
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
1,10,000
|
Debtors |
22,000
|
||
Employees’ Provident Fund |
8,000
|
Less: Provision for Doubtful Debts |
2,500
|
19,500
|
|
Workmen Compensation Reserve |
12,000
|
Land and Building (68,000 + 3,000) |
71,000
|
||
Capital A/cs: | Plant and Machinery |
12,000
|
|||
X |
40,200
|
Stock (11,000 + 2,500) |
13,500
|
||
Y |
26,800
|
Bank (71,000 + 10,000 + 15,000) |
96,000
|
||
Z |
15,000
|
82,000
|
|||
2,12,000
|
2,12,000
|
||||
Page No 4.78:
Question 59:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
1,500
|
Land and Building A/c |
3,000
|
|||
Profit transferred to: | Stock A/c |
2,500
|
||||
X’s Capital A/c | 2,400 | |||||
Y’s Capital A/c | 1,600 |
4,000
|
||||
5,500
|
5,500
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Advertisement Expenditure A/c |
3,000
|
2,000
|
Balance b/d |
15,000
|
10,000
|
||||
Balance c/d |
40,200
|
26,800
|
15,000
|
Bank A/c |
15,000
|
||||
Premium for Goodwill A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
2,400
|
1,600
|
|||||||
General Reserve A/c |
12,000
|
8,000
|
|||||||
Workmen Compensation Reserve A/c |
7,800
|
5,200
|
|||||||
43,200 | 28,800 | 15,000 |
43,200
|
28,800
|
15,000
|
||||
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
1,10,000
|
Debtors |
22,000
|
||
Employees’ Provident Fund |
8,000
|
Less: Provision for Doubtful Debts |
2,500
|
19,500
|
|
Workmen Compensation Reserve |
12,000
|
Land and Building (68,000 + 3,000) |
71,000
|
||
Capital A/cs: | Plant and Machinery |
12,000
|
|||
X |
40,200
|
Stock (11,000 + 2,500) |
13,500
|
||
Y |
26,800
|
Bank (71,000 + 10,000 + 15,000) |
96,000
|
||
Z |
15,000
|
82,000
|
|||
2,12,000
|
2,12,000
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
200
|
Accrued Commission A/c |
1,500
|
|||
Outstanding Rent A/c |
5,000
|
Loss transferred to: |
|
|||
Investments A/c |
2,000
|
X’s Capital A/c |
3,420
|
|||
|
Y’s Capital A/c |
2,280
|
5,700
|
|||
7,200
|
7,200
|
|||||
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
|
|
|
|
|
|
||||
Balance c/d |
1,54,000
|
1,36,000
|
1,20,000
|
Balance b/d |
1,54,000
|
1,36,000
|
|
||
|
|
|
Cash A/c |
|
|
1,20,000
|
|||
1,54,000
|
1,36,000
|
1,20,000
|
1,54,000
|
1,36,000
|
1,20,000
|
||||
|
|
|
|
|
|
Partners’ Current Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Cash A/c |
4,200
|
1,800
|
|
Balance b/d |
10,000
|
2,000
|
|
||
Revaluation A/c |
3,420
|
2,280
|
|
Premium for Goodwill A/c |
8,400
|
3,600
|
|
||
Goodwill A/c |
6,000
|
4,000
|
|
General Reserve A/c |
7,200
|
4,800
|
|
||
Investments A/c |
6,000
|
|
|
|
|||||
Balance c/d |
5,980
|
2,320
|
|
|
|
|
|||
25,600
|
10,400
|
|
25,600
|
10,400
|
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
15,000
|
Accrued Commission |
1,500
|
||
Outstanding Rent |
5,000
|
Debtors |
20,000
|
|
|
Capital A/c: |
|
Less: Provision for Doubtful Debts |
1,000
|
19,000
|
|
X | 1,54,000 |
|
Patents |
14,800
|
|
Y | 1,36,000 |
|
Cash in hand |
1,51,000
|
|
Z | 1,20,000 |
4,10,000
|
Cash at Bank |
1,80,000
|
|
Current A/c: |
|
Machinery |
72,000
|
||
X
|
5,980
|
|
|||
Y |
2,320
|
8,300
|
|
||
4,38,300
|
4,38,300
|
||||
|
|
Working Notes
WN 1: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
New profit sharing ratio = 4 : 3 : 2
Sacrificing ratio= Old ratio – New ratio
Sacrificing ratio = 7 : 3
WN 2: Calculation of Goodwill
Goodwill = Average Profits for Last 3 Years’ × Number of Years’ Purchase
Total Profit = 25,000 + 26000 + 30,000 = Rs 81,000
Goodwill = 27,000 × 2 = Rs 54,000
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
25,000
|
X’s Capital A/c |
4,200
|
||
Z’s Capital A/c |
1,20,000
|
Y’s Capital A/c |
1,800
|
||
Premium for Goodwill A/c |
12,000
|
Balance c/d |
1,51,000
|
||
|
|
||||
1,57,000
|
1,57,000
|
||||
Page No 4.78:
Question 60:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
200
|
Accrued Commission A/c |
1,500
|
|||
Outstanding Rent A/c |
5,000
|
Loss transferred to: |
|
|||
Investments A/c |
2,000
|
X’s Capital A/c |
3,420
|
|||
|
Y’s Capital A/c |
2,280
|
5,700
|
|||
7,200
|
7,200
|
|||||
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
|
|
|
|
|
|
||||
Balance c/d |
1,54,000
|
1,36,000
|
1,20,000
|
Balance b/d |
1,54,000
|
1,36,000
|
|
||
|
|
|
Cash A/c |
|
|
1,20,000
|
|||
1,54,000
|
1,36,000
|
1,20,000
|
1,54,000
|
1,36,000
|
1,20,000
|
||||
|
|
|
|
|
|
Partners’ Current Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Cash A/c |
4,200
|
1,800
|
|
Balance b/d |
10,000
|
2,000
|
|
||
Revaluation A/c |
3,420
|
2,280
|
|
Premium for Goodwill A/c |
8,400
|
3,600
|
|
||
Goodwill A/c |
6,000
|
4,000
|
|
General Reserve A/c |
7,200
|
4,800
|
|
||
Investments A/c |
6,000
|
|
|
|
|||||
Balance c/d |
5,980
|
2,320
|
|
|
|
|
|||
25,600
|
10,400
|
|
25,600
|
10,400
|
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
15,000
|
Accrued Commission |
1,500
|
||
Outstanding Rent |
5,000
|
Debtors |
20,000
|
|
|
Capital A/c: |
|
Less: Provision for Doubtful Debts |
1,000
|
19,000
|
|
X | 1,54,000 |
|
Patents |
14,800
|
|
Y | 1,36,000 |
|
Cash in hand |
1,51,000
|
|
Z | 1,20,000 |
4,10,000
|
Cash at Bank |
1,80,000
|
|
Current A/c: |
|
Machinery |
72,000
|
||
X
|
5,980
|
|
|||
Y |
2,320
|
8,300
|
|
||
4,38,300
|
4,38,300
|
||||
|
|
Working Notes
WN 1: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
New profit sharing ratio = 4 : 3 : 2
Sacrificing ratio= Old ratio – New ratio
Sacrificing ratio = 7 : 3
WN 2: Calculation of Goodwill
Goodwill = Average Profits for Last 3 Years’ × Number of Years’ Purchase
Total Profit = 25,000 + 26000 + 30,000 = Rs 81,000
Goodwill = 27,000 × 2 = Rs 54,000
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
25,000
|
X’s Capital A/c |
4,200
|
||
Z’s Capital A/c |
1,20,000
|
Y’s Capital A/c |
1,800
|
||
Premium for Goodwill A/c |
12,000
|
Balance c/d |
1,51,000
|
||
|
|
||||
1,57,000
|
1,57,000
|
||||
Answer:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
|
Bank A/c |
Dr.
|
40,000
|
|
||
To Z’s Capital A/c |
|
40,000
|
|||
(Capital amount brought in by new partners) |
|
|
|||
|
|
|
|||
Z’s Current A/c |
Dr.
|
3,000
|
|
||
To X’s Capital A/c |
|
|
1,800
|
||
To Y’s Capital A/c |
|
|
1,200
|
||
(Z’s Current Account debited for amount of goodwill not brought by him and credited to old partners in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
Provision for Doubtful Debts A/c |
|
4,000
|
|
||
To Debtors |
|
6,000
|
|||
(Bad Debts written-off) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
To Creditors A/c |
|
|
2,000
|
||
(Creditors are to be paid 2,000 more) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
To Claim for Damages A/c |
|
|
2,000
|
||
(Created claim for damages) |
|
|
|
||
|
|
|
|||
Outstanding Rent A/c | Dr. |
|
1,800
|
|
|
To Revaluation A/c |
|
|
1,800
|
||
(Outstanding rent reduced by 1,800) |
|
|
|
||
|
|
|
|||
X’s Capital A/c | Dr. |
|
2,520
|
|
|
Y’s Capital A/c | Dr. |
|
1,680
|
|
|
To Revaluation A/c |
|
4,200
|
|||
(Revaluation loss distributed among old partners in their old ratio) |
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
|
|
|
Balance b/d |
50,000
|
60,000
|
||||
Revaluation A/c |
2,520
|
1,680
|
|
Bank A/c |
40,000
|
||||
Profit and Loss A/c |
2,400
|
1,600
|
|
Z’s Current A/c |
1,800
|
1,200
|
|
||
Balance c/d |
48,440
|
58,960
|
40,000
|
Workmen Compensation Reserve A/c |
1,560
|
1,040
|
|
||
53,360
|
62,240
|
40,000
|
53,360
|
62,240
|
40,000
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Outstanding Rent |
11,200
|
Debtors |
80,000
|
|
|
Sundry Creditors |
22,000
|
Less: Provision for Doubtful Debts |
6,000
|
74,000
|
|
Workmen Compensation Reserve |
3,000
|
Stock |
20,000
|
||
Claim for Damages |
2,000
|
||||
Capital A/cs: |
|
Machinery |
38,600
|
||
X
|
48,440
|
|
Cash (10,000 + 40,000) |
50,000
|
|
Y |
58,960
|
|
Z’s Current A/c |
3,000
|
|
Z |
40,000
|
1,47,400
|
|
||
1,85,600
|
1,85,600
|
||||
|
|
Working Notes: Calculation of Goodwill
Total Profit = 10,000 + 20,000 + 30,000 = Rs 60,000
Goodwill = 20,000 × 1.5 – 12,000 = 18,000
Note: Opening Balance Sheet implies Balance Sheet as on April 01, 2014.
Page No 4.79:
Question 61:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
|
Bank A/c |
Dr.
|
40,000
|
|
||
To Z’s Capital A/c |
|
40,000
|
|||
(Capital amount brought in by new partners) |
|
|
|||
|
|
|
|||
Z’s Current A/c |
Dr.
|
3,000
|
|
||
To X’s Capital A/c |
|
|
1,800
|
||
To Y’s Capital A/c |
|
|
1,200
|
||
(Z’s Current Account debited for amount of goodwill not brought by him and credited to old partners in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
Provision for Doubtful Debts A/c |
|
4,000
|
|
||
To Debtors |
|
6,000
|
|||
(Bad Debts written-off) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
To Creditors A/c |
|
|
2,000
|
||
(Creditors are to be paid 2,000 more) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,000
|
|
|
To Claim for Damages A/c |
|
|
2,000
|
||
(Created claim for damages) |
|
|
|
||
|
|
|
|||
Outstanding Rent A/c | Dr. |
|
1,800
|
|
|
To Revaluation A/c |
|
|
1,800
|
||
(Outstanding rent reduced by 1,800) |
|
|
|
||
|
|
|
|||
X’s Capital A/c | Dr. |
|
2,520
|
|
|
Y’s Capital A/c | Dr. |
|
1,680
|
|
|
To Revaluation A/c |
|
4,200
|
|||
(Revaluation loss distributed among old partners in their old ratio) |
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
|
|
|
Balance b/d |
50,000
|
60,000
|
||||
Revaluation A/c |
2,520
|
1,680
|
|
Bank A/c |
40,000
|
||||
Profit and Loss A/c |
2,400
|
1,600
|
|
Z’s Current A/c |
1,800
|
1,200
|
|
||
Balance c/d |
48,440
|
58,960
|
40,000
|
Workmen Compensation Reserve A/c |
1,560
|
1,040
|
|
||
53,360
|
62,240
|
40,000
|
53,360
|
62,240
|
40,000
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Outstanding Rent |
11,200
|
Debtors |
80,000
|
|
|
Sundry Creditors |
22,000
|
Less: Provision for Doubtful Debts |
6,000
|
74,000
|
|
Workmen Compensation Reserve |
3,000
|
Stock |
20,000
|
||
Claim for Damages |
2,000
|
||||
Capital A/cs: |
|
Machinery |
38,600
|
||
X
|
48,440
|
|
Cash (10,000 + 40,000) |
50,000
|
|
Y |
58,960
|
|
Z’s Current A/c |
3,000
|
|
Z |
40,000
|
1,47,400
|
|
||
1,85,600
|
1,85,600
|
||||
|
|
Working Notes: Calculation of Goodwill
Total Profit = 10,000 + 20,000 + 30,000 = Rs 60,000
Goodwill = 20,000 × 1.5 – 12,000 = 18,000
Note: Opening Balance Sheet implies Balance Sheet as on April 01, 2014.
Answer:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
|
Cash A/c |
Dr.
|
22,500
|
|
||
To T’s Capital A/c |
|
20,000
|
|||
To Premium for Goodwill A/c |
|
2,500
|
|||
(Capital and goodwill brought in by T) |
|
|
|||
|
|
|
|||
T’s Current A/c |
Dr.
|
7,500
|
|
||
Premium for Goodwill A/c |
Dr.
|
2,500
|
|
||
To X’s Capital A/c |
|
|
5,000
|
||
To Y’s Capital A/c |
|
|
5,000
|
||
(Goodwill amount distributed between sacrificing partners in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Stock A/c | Dr. |
|
10,000
|
|
|
To Revaluation A/c |
|
10,000
|
|||
(Increase in value of stock) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,600
|
|
|
To Furniture A/c |
|
|
2,600
|
||
(Depreciated furniture @ 10%) |
|
|
|
||
|
|
|
|||
Land and Building A/c | Dr. |
|
20,000
|
|
|
To Revaluation A/c |
|
|
20,000
|
||
(Value of land and building appreciated by 20%) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,200
|
|
|
To Provision for Doubtful Debts A/c |
|
|
2,200
|
||
(Provision created against debtors) |
|
|
|
||
|
|
|
|||
Outstanding Liabilities A/c | Dr. |
|
2,000
|
|
|
To X’s Capital A/c |
|
|
2,000
|
||
(Reimbursed X for the payment made by hi, for the outstanding liabilities) |
|
|
|
||
|
|
|
|||
Creditors A/c | Dr. |
5,000
|
|
||
To Revaluation A/c |
|
|
5,000
|
||
(Creditors reduced by 5,000) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
30,200
|
|
|
To X’s Capital A/c |
|
|
12,080
|
||
To Y’s Capital A/c |
|
|
12,080
|
||
To Z’s Capital A/c |
|
6,040
|
|||
(Revaluation profit distributed among old partners in their old ratio) |
|
|
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
Cr.
|
|||||||||||
Particulars
|
X
|
Y
|
Z
|
T
|
Particulars
|
X
|
Y
|
Z
|
T
|
|||
Balance c/d |
77,480
|
75,480
|
31,240
|
20,000
|
Balance b/d |
48,000
|
48,000
|
20,000
|
|
|||
|
|
|
|
Bank A/c |
|
|
|
20,000
|
||||
|
|
|
T’s Current A/c |
3,750
|
3,750
|
|
|
|||||
|
|
|
Premium for Goodwill A/c |
1,250
|
1,250
|
|
|
|||||
|
|
|
|
General Reserve A/c |
10,400
|
10,400
|
5,200
|
|
||||
|
|
|
|
Revaluation A/c | 12,080 |
12,080
|
6,040
|
|
||||
|
|
|
|
Outstanding Liabilities A/c | 2,000 |
|
|
|
||||
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||
77,480 | 75,480 |
31,240
|
20,000
|
77,480 | 75,480 |
31,240
|
20,000
|
|||||
|
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after T’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors (51,400 – 5,000) |
46,400
|
Land and Building (1,00,000 + 20,000) |
1,20,000
|
||
Outstanding Liabilities |
4,000
|
Furniture (26,000 – 2,600) |
23,400
|
||
|
Stock (47,000 + 10,000) |
57,000
|
|||
Capital A/c: |
|
Sundry Debtors |
22,000
|
|
|
X
|
77,480
|
|
Less: Provision for Doubtful Debts |
2,200
|
19,800
|
Y |
75,480
|
|
Cash |
26,900
|
|
Z |
31,240
|
|
T’s Current A/c |
7,500
|
|
T
|
20,000
|
2,04,200
|
|
||
2,54,600
|
2,54,600
|
||||
|
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
4,400
|
Balance c/d |
26,900
|
||
T’s Capital A/c |
20,000
|
|
|||
Premium for goodwill A/c |
2,500
|
||||
26,900
|
26,900
|
||||
Working Notes:
Calculation of Sacrificing Ratio
Page No 4.79:
Question 62:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit
Amount Rs
|
Credit Amount
Rs
|
|
Cash A/c |
Dr.
|
22,500
|
|
||
To T’s Capital A/c |
|
20,000
|
|||
To Premium for Goodwill A/c |
|
2,500
|
|||
(Capital and goodwill brought in by T) |
|
|
|||
|
|
|
|||
T’s Current A/c |
Dr.
|
7,500
|
|
||
Premium for Goodwill A/c |
Dr.
|
2,500
|
|
||
To X’s Capital A/c |
|
|
5,000
|
||
To Y’s Capital A/c |
|
|
5,000
|
||
(Goodwill amount distributed between sacrificing partners in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Stock A/c | Dr. |
|
10,000
|
|
|
To Revaluation A/c |
|
10,000
|
|||
(Increase in value of stock) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,600
|
|
|
To Furniture A/c |
|
|
2,600
|
||
(Depreciated furniture @ 10%) |
|
|
|
||
|
|
|
|||
Land and Building A/c | Dr. |
|
20,000
|
|
|
To Revaluation A/c |
|
|
20,000
|
||
(Value of land and building appreciated by 20%) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
2,200
|
|
|
To Provision for Doubtful Debts A/c |
|
|
2,200
|
||
(Provision created against debtors) |
|
|
|
||
|
|
|
|||
Outstanding Liabilities A/c | Dr. |
|
2,000
|
|
|
To X’s Capital A/c |
|
|
2,000
|
||
(Reimbursed X for the payment made by hi, for the outstanding liabilities) |
|
|
|
||
|
|
|
|||
Creditors A/c | Dr. |
5,000
|
|
||
To Revaluation A/c |
|
|
5,000
|
||
(Creditors reduced by 5,000) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
30,200
|
|
|
To X’s Capital A/c |
|
|
12,080
|
||
To Y’s Capital A/c |
|
|
12,080
|
||
To Z’s Capital A/c |
|
6,040
|
|||
(Revaluation profit distributed among old partners in their old ratio) |
|
|
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
Cr.
|
|||||||||||
Particulars
|
X
|
Y
|
Z
|
T
|
Particulars
|
X
|
Y
|
Z
|
T
|
|||
Balance c/d |
77,480
|
75,480
|
31,240
|
20,000
|
Balance b/d |
48,000
|
48,000
|
20,000
|
|
|||
|
|
|
|
Bank A/c |
|
|
|
20,000
|
||||
|
|
|
T’s Current A/c |
3,750
|
3,750
|
|
|
|||||
|
|
|
Premium for Goodwill A/c |
1,250
|
1,250
|
|
|
|||||
|
|
|
|
General Reserve A/c |
10,400
|
10,400
|
5,200
|
|
||||
|
|
|
|
Revaluation A/c | 12,080 |
12,080
|
6,040
|
|
||||
|
|
|
|
Outstanding Liabilities A/c | 2,000 |
|
|
|
||||
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|||||
77,480 | 75,480 |
31,240
|
20,000
|
77,480 | 75,480 |
31,240
|
20,000
|
|||||
|
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after T’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors (51,400 – 5,000) |
46,400
|
Land and Building (1,00,000 + 20,000) |
1,20,000
|
||
Outstanding Liabilities |
4,000
|
Furniture (26,000 – 2,600) |
23,400
|
||
|
Stock (47,000 + 10,000) |
57,000
|
|||
Capital A/c: |
|
Sundry Debtors |
22,000
|
|
|
X
|
77,480
|
|
Less: Provision for Doubtful Debts |
2,200
|
19,800
|
Y |
75,480
|
|
Cash |
26,900
|
|
Z |
31,240
|
|
T’s Current A/c |
7,500
|
|
T
|
20,000
|
2,04,200
|
|
||
2,54,600
|
2,54,600
|
||||
|
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
4,400
|
Balance c/d |
26,900
|
||
T’s Capital A/c |
20,000
|
|
|||
Premium for goodwill A/c |
2,500
|
||||
26,900
|
26,900
|
||||
Working Notes:
Calculation of Sacrificing Ratio
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c (5% of 85,000) |
4,250
|
Advertisement Expense A/c |
3,000
|
|||
A’s Capital A/c (Revaluation Expenses) |
5,250
|
B’s Capital A/c (Personal expenses) |
5,000
|
|||
|
Loss transferred to: |
|
||||
|
A’s Capital A/c |
750
|
||||
|
B’s Capital A/c |
500
|
||||
|
C’s Capital A/c |
250
|
1,500
|
|||
9,500
|
9,500
|
|||||
|
|
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
Cr.
|
|||||||||||
Particulars | A | B | C | D | Particulars | A | B | C | D | |||
Revaluation A/c | 5,000 | Balance b/d | 1,50,000 | 1,50,000 | 1,00,000 | |||||||
Revaluation A/c (Loss) | 750 | 500 | 250 | Bank A/c | 1,00,000 | |||||||
A’s Capital A/c | 18,854 | Revaluation A/c | 5,250 | |||||||||
B’s Capital A/c | 12,569 | Creditors A/c | 25,000 | |||||||||
Balance c/d | 6,285 | C’s Capital A/c | 18,854 | 12,569 | 6,285 | |||||||
Balance c/d | 1,73,354 | 1,57,069 | 1,06,035 | 87,292 | ||||||||
1,74,104 | 1,62,569 | 1,06,285 | 1,25,000 | 1,74,104 | 1,62,569 | 1,06,285 | 1,25,000 | |||||
|
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after D’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
50,000
|
Building |
1,25,000
|
||
Bills Payable |
25,000
|
Plant and Machinery |
1,00,000
|
||
|
Furniture |
75,000
|
|||
|
Stock |
50,000
|
|||
Capital A/cs: |
|
Debtors |
75,000
|
|
|
|
Add: Bill dishonoured |
10,000
|
|
||
A |
1,73,354
|
|
Less: Provision for Doubtful Debts |
4,250
|
80,750
|
B |
1,57,069
|
|
Bills Receivable |
50,000
|
|
C |
1,06,035
|
|
Advertisement Expenses |
3,000
|
|
D |
87,292
|
5,23,750
|
Bank |
1,15,000
|
|
5,98,750
|
5,98,750
|
||||
Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
25,000
|
Debtors A/c (Bill Dishonoured) |
10,000
|
||
D’s Capital A/c |
1,00,000
|
Balance c/d |
1,15,000
|
||
1,25,000
|
1,25,000
|
||||
Working Notes:
WN1 Calculation of Hidden Goodwill
Net Worth of Firm = Adjusted Capital of Partners + Accumulated Reserves – Accumulated Losses
= 1,55,400 + 1,44,500 + 99,750 + 1,25,000 = 5,23,750
Hidden Goodwill = Capital Value of Firm – Net Worth of Firm
= 7,50,000 – 5,23,750 = Rs 2,26,250
This share will be shared by the old partners in their sacrificing ratio i.e. 3 : 2 : 1
The following Journal entry will be passed:
D’s Capital A/c | Dr. | 37,708 | |||
To A’s Capital A/c | 18,854 | ||||
To B’s Capital A/c | 12,569 | ||||
To C’s Capital A/c | 6,285 | ||||
(Adjustment for goodwill made) |
Page No 4.80:
Question 63:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c (5% of 85,000) |
4,250
|
Advertisement Expense A/c |
3,000
|
|||
A’s Capital A/c (Revaluation Expenses) |
5,250
|
B’s Capital A/c (Personal expenses) |
5,000
|
|||
|
Loss transferred to: |
|
||||
|
A’s Capital A/c |
750
|
||||
|
B’s Capital A/c |
500
|
||||
|
C’s Capital A/c |
250
|
1,500
|
|||
9,500
|
9,500
|
|||||
|
|
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
Cr.
|
|||||||||||
Particulars | A | B | C | D | Particulars | A | B | C | D | |||
Revaluation A/c | 5,000 | Balance b/d | 1,50,000 | 1,50,000 | 1,00,000 | |||||||
Revaluation A/c (Loss) | 750 | 500 | 250 | Bank A/c | 1,00,000 | |||||||
A’s Capital A/c | 18,854 | Revaluation A/c | 5,250 | |||||||||
B’s Capital A/c | 12,569 | Creditors A/c | 25,000 | |||||||||
Balance c/d | 6,285 | C’s Capital A/c | 18,854 | 12,569 | 6,285 | |||||||
Balance c/d | 1,73,354 | 1,57,069 | 1,06,035 | 87,292 | ||||||||
1,74,104 | 1,62,569 | 1,06,285 | 1,25,000 | 1,74,104 | 1,62,569 | 1,06,285 | 1,25,000 | |||||
|
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after D’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Sundry Creditors |
50,000
|
Building |
1,25,000
|
||
Bills Payable |
25,000
|
Plant and Machinery |
1,00,000
|
||
|
Furniture |
75,000
|
|||
|
Stock |
50,000
|
|||
Capital A/cs: |
|
Debtors |
75,000
|
|
|
|
Add: Bill dishonoured |
10,000
|
|
||
A |
1,73,354
|
|
Less: Provision for Doubtful Debts |
4,250
|
80,750
|
B |
1,57,069
|
|
Bills Receivable |
50,000
|
|
C |
1,06,035
|
|
Advertisement Expenses |
3,000
|
|
D |
87,292
|
5,23,750
|
Bank |
1,15,000
|
|
5,98,750
|
5,98,750
|
||||
Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
25,000
|
Debtors A/c (Bill Dishonoured) |
10,000
|
||
D’s Capital A/c |
1,00,000
|
Balance c/d |
1,15,000
|
||
1,25,000
|
1,25,000
|
||||
Working Notes:
WN1 Calculation of Hidden Goodwill
Net Worth of Firm = Adjusted Capital of Partners + Accumulated Reserves – Accumulated Losses
= 1,55,400 + 1,44,500 + 99,750 + 1,25,000 = 5,23,750
Hidden Goodwill = Capital Value of Firm – Net Worth of Firm
= 7,50,000 – 5,23,750 = Rs 2,26,250
This share will be shared by the old partners in their sacrificing ratio i.e. 3 : 2 : 1
The following Journal entry will be passed:
D’s Capital A/c | Dr. | 37,708 | |||
To A’s Capital A/c | 18,854 | ||||
To B’s Capital A/c | 12,569 | ||||
To C’s Capital A/c | 6,285 | ||||
(Adjustment for goodwill made) |
Answer:
Revaluation Account
|
|||||
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Bad Debts A/c |
2,000
|
Stock A/c |
2,000
|
||
Provision for Doubtful Debts A/c |
2,000
|
Creditors A/c |
800
|
||
|
Loss transferred to: |
|
|||
|
X’s Capital A/c |
720
|
|||
|
Y’s Capital A/c |
480
|
1,200
|
||
4,000
|
4,000
|
||||
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Revaluation A/c |
720
|
480
|
|
Balance b/d |
50,000
|
40,000
|
|
||
Balance c/d |
58,280
|
45,520
|
30,000
|
Bank A/c |
|
|
30,000
|
||
|
Premium for Goodwill A/c |
3,000
|
2,000
|
|
|||||
Reserve A/c |
6,000
|
4,000
|
|
||||||
59,000
|
46,000
|
30,000
|
59,000
|
46,000
|
30,000
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2012 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Employees’ Provident Fund |
5,000
|
Debtors |
22,000
|
|
|
Sundry Creditors |
19,200
|
Less: Provision for Doubtful Debts |
2,000
|
||
Less: Bad Debts |
2,000
|
18,000
|
|||
Capital A/cs: |
|
Stock (18,000 + 2,000) |
20,000
|
||
X |
58,280
|
|
Machinery |
30,000
|
|
Y |
45,520
|
|
Building |
50,000
|
|
Z |
30,000
|
1,33,800
|
Cash at Bank |
40,000
|
|
1,58,000
|
1,58,000
|
||||
|
|
Working Notes: Calculation of Increase in Stock
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
5,000
|
Balance c/d |
40,000
|
||
Z’s Capital A/c |
30,000
|
|
|||
Premium for Goodwill a/c |
5,000
|
||||
40,000
|
40,000
|
||||
Page No 4.80:
Question 64:
Revaluation Account
|
|||||
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Bad Debts A/c |
2,000
|
Stock A/c |
2,000
|
||
Provision for Doubtful Debts A/c |
2,000
|
Creditors A/c |
800
|
||
|
Loss transferred to: |
|
|||
|
X’s Capital A/c |
720
|
|||
|
Y’s Capital A/c |
480
|
1,200
|
||
4,000
|
4,000
|
||||
|
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Revaluation A/c |
720
|
480
|
|
Balance b/d |
50,000
|
40,000
|
|
||
Balance c/d |
58,280
|
45,520
|
30,000
|
Bank A/c |
|
|
30,000
|
||
|
Premium for Goodwill A/c |
3,000
|
2,000
|
|
|||||
Reserve A/c |
6,000
|
4,000
|
|
||||||
59,000
|
46,000
|
30,000
|
59,000
|
46,000
|
30,000
|
||||
|
|
|
|
|
|
Balance Sheet
as on April 01, 2012 after Z’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
Employees’ Provident Fund |
5,000
|
Debtors |
22,000
|
|
|
Sundry Creditors |
19,200
|
Less: Provision for Doubtful Debts |
2,000
|
||
Less: Bad Debts |
2,000
|
18,000
|
|||
Capital A/cs: |
|
Stock (18,000 + 2,000) |
20,000
|
||
X |
58,280
|
|
Machinery |
30,000
|
|
Y |
45,520
|
|
Building |
50,000
|
|
Z |
30,000
|
1,33,800
|
Cash at Bank |
40,000
|
|
1,58,000
|
1,58,000
|
||||
|
|
Working Notes: Calculation of Increase in Stock
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
5,000
|
Balance c/d |
40,000
|
||
Z’s Capital A/c |
30,000
|
|
|||
Premium for Goodwill a/c |
5,000
|
||||
40,000
|
40,000
|
||||
Answer:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2011 |
|
|
|
|
|
Apr. 01 |
Revaluation A/c |
Dr. |
|
18,000 |
|
|
To Investments A/c |
|
|
12,000 |
|
|
To Plant A/c |
|
|
6,000 |
|
|
(Decrease in investments and plant transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Creditors A/c |
Dr. |
|
3,000 |
|
|
To Revaluation A/c |
|
|
3,000 |
|
|
(Decrease in creditors transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Hari’s Capital A/c |
Dr. |
|
7,500 |
|
Ram’s Capital A/c | Dr. | 7,500 | |||
|
To Revaluation A/c |
|
|
15,000 |
|
|
(Revaluation loss distributed between Hari and Ram in their old ratio i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Bank A/c |
Dr. |
|
63,000 |
|
|
To Suraj’s Capital A/c |
|
|
23,000 |
|
|
To Premium for Goodwill A/c |
|
|
40,000 |
|
|
(Suraj brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Premium for Goodwill A/c |
Dr. |
|
40,000 |
|
|
To Hari’s Capital A/c |
|
|
40,000 |
|
|
(Goodwill brought by Suraj transferred to Hari’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Hari’s Capital A/c |
Dr. |
|
30,000 |
|
|
To Bank A/c |
|
|
30,000 |
|
|
(Hari withdraw Rs 30,000 on account of goodwill) |
|
|
|
|
2012 |
|
|
|
|
|
Mar. 31 |
Profit and Loss appropriate A/c |
Dr. |
|
60,000 |
|
|
To Hari’s Capital A/c |
|
|
20,000 |
|
|
To Ram’s Capital A/c |
|
|
30,000 |
|
|
To Suraj’s Capital A/c |
|
|
10,000 |
|
|
(Profit earned after Suraj’s admission distributed) |
|
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Investments (30,000 – 18,000) |
12,000 |
Creditors |
3,000 |
Plant (35,000 – 29,000) |
6,000 |
Loss transferred to |
|
|
|
Hari Capital |
7,500 |
|
|
Ram Capital |
7,500 |
|
18,000 |
|
18,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Hari |
Ram |
Suraj |
Particulars |
Hari |
Ram |
Suraj |
Revaluation |
7,500 |
7,500 |
|
Balance b/d |
60,000 |
60,000 |
|
Bank (withdrawal of Goodwill) |
30,000 |
|
|
Premium for Goodwill |
40,000 |
|
|
Balance c/d |
62,500 |
52,500 |
|
|
|
|
|
|
1,00,000 |
60,000 |
|
|
1,00,000 |
60,000 |
|
Bank (Drawings) |
15,000 |
22,500 |
7,500 |
Balance c/d |
62,500 |
52,500 |
|
|
|
|
|
Bank |
|
|
23,000 |
Balance c/d |
67,500 |
60,000 |
25,500 |
Profit and Loss Appropriation |
20,000 |
30,000 |
10,000 |
|
82,500 |
82,500 |
33,000 |
|
82,500 |
82,500 |
33,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (1,05,000 – 3,000) |
1,02,000 |
Cash at Bank |
88,000 |
|
Capital A/cs: |
|
Book Debts |
60,000 |
|
Hari |
67,500 |
|
Stock |
50,000 |
Ram |
60,000 |
|
Investments (30,000 – 12,000) |
18,000 |
Suraj |
25,500 |
1,53,000 |
Furniture |
10,000 |
|
|
Plant |
29,000 |
|
|
2,55,000 |
|
2,55,000 |
|
|
|
|
|
Working Notes
WN1
Hari Sacrifices share in favour of Suraj
WN2
Calculation of Suraj’s Capital
Let the combined share of all partners be = 1
Combined share of Hari and Ram = 1 − Suraj’s share
Combined Capital of Hari and Ram after all adjustments = 62,500 + 52,500 = Rs 1,15,000
WN3
Distribution of Profit earned after Suraj’s admission
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
40,000 |
Hari’s Capital (Goodwill) |
30,000 |
Suraj’s Capital |
23,000 |
Hari’s Capital (Drawings) |
15,000 |
Premium for Goodwill |
40,000 |
Ram’s Capital (Drawings) |
22,500 |
Revenue (Profit) |
60,000 |
Suraj’s Capital (Drawings) |
7,500 |
|
|
Balance c/d |
88,000 |
|
1,63,000 |
|
1,63,000 |
|
|
|
|
WN4
Journal entry for recording drawings of partners
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Hari’s Capital A/c |
Dr. |
|
15,000 |
|
Ram’s Capital A/c |
Dr. |
|
22,500 |
|
Suraj’s Capital A/c |
Dr. |
|
7,500 |
|
To Bank A/c |
|
|
45,000 |
|
(Drawings made by partners) |
|
|
|
|
|
|
|
|
Page No 4.81:
Question 65:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
2011 |
|
|
|
|
|
Apr. 01 |
Revaluation A/c |
Dr. |
|
18,000 |
|
|
To Investments A/c |
|
|
12,000 |
|
|
To Plant A/c |
|
|
6,000 |
|
|
(Decrease in investments and plant transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Creditors A/c |
Dr. |
|
3,000 |
|
|
To Revaluation A/c |
|
|
3,000 |
|
|
(Decrease in creditors transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Hari’s Capital A/c |
Dr. |
|
7,500 |
|
Ram’s Capital A/c | Dr. | 7,500 | |||
|
To Revaluation A/c |
|
|
15,000 |
|
|
(Revaluation loss distributed between Hari and Ram in their old ratio i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Bank A/c |
Dr. |
|
63,000 |
|
|
To Suraj’s Capital A/c |
|
|
23,000 |
|
|
To Premium for Goodwill A/c |
|
|
40,000 |
|
|
(Suraj brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Premium for Goodwill A/c |
Dr. |
|
40,000 |
|
|
To Hari’s Capital A/c |
|
|
40,000 |
|
|
(Goodwill brought by Suraj transferred to Hari’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
Apr. 01 |
Hari’s Capital A/c |
Dr. |
|
30,000 |
|
|
To Bank A/c |
|
|
30,000 |
|
|
(Hari withdraw Rs 30,000 on account of goodwill) |
|
|
|
|
2012 |
|
|
|
|
|
Mar. 31 |
Profit and Loss appropriate A/c |
Dr. |
|
60,000 |
|
|
To Hari’s Capital A/c |
|
|
20,000 |
|
|
To Ram’s Capital A/c |
|
|
30,000 |
|
|
To Suraj’s Capital A/c |
|
|
10,000 |
|
|
(Profit earned after Suraj’s admission distributed) |
|
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Investments (30,000 – 18,000) |
12,000 |
Creditors |
3,000 |
Plant (35,000 – 29,000) |
6,000 |
Loss transferred to |
|
|
|
Hari Capital |
7,500 |
|
|
Ram Capital |
7,500 |
|
18,000 |
|
18,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Hari |
Ram |
Suraj |
Particulars |
Hari |
Ram |
Suraj |
Revaluation |
7,500 |
7,500 |
|
Balance b/d |
60,000 |
60,000 |
|
Bank (withdrawal of Goodwill) |
30,000 |
|
|
Premium for Goodwill |
40,000 |
|
|
Balance c/d |
62,500 |
52,500 |
|
|
|
|
|
|
1,00,000 |
60,000 |
|
|
1,00,000 |
60,000 |
|
Bank (Drawings) |
15,000 |
22,500 |
7,500 |
Balance c/d |
62,500 |
52,500 |
|
|
|
|
|
Bank |
|
|
23,000 |
Balance c/d |
67,500 |
60,000 |
25,500 |
Profit and Loss Appropriation |
20,000 |
30,000 |
10,000 |
|
82,500 |
82,500 |
33,000 |
|
82,500 |
82,500 |
33,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (1,05,000 – 3,000) |
1,02,000 |
Cash at Bank |
88,000 |
|
Capital A/cs: |
|
Book Debts |
60,000 |
|
Hari |
67,500 |
|
Stock |
50,000 |
Ram |
60,000 |
|
Investments (30,000 – 12,000) |
18,000 |
Suraj |
25,500 |
1,53,000 |
Furniture |
10,000 |
|
|
Plant |
29,000 |
|
|
2,55,000 |
|
2,55,000 |
|
|
|
|
|
Working Notes
WN1
Hari Sacrifices share in favour of Suraj
WN2
Calculation of Suraj’s Capital
Let the combined share of all partners be = 1
Combined share of Hari and Ram = 1 − Suraj’s share
Combined Capital of Hari and Ram after all adjustments = 62,500 + 52,500 = Rs 1,15,000
WN3
Distribution of Profit earned after Suraj’s admission
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
40,000 |
Hari’s Capital (Goodwill) |
30,000 |
Suraj’s Capital |
23,000 |
Hari’s Capital (Drawings) |
15,000 |
Premium for Goodwill |
40,000 |
Ram’s Capital (Drawings) |
22,500 |
Revenue (Profit) |
60,000 |
Suraj’s Capital (Drawings) |
7,500 |
|
|
Balance c/d |
88,000 |
|
1,63,000 |
|
1,63,000 |
|
|
|
|
WN4
Journal entry for recording drawings of partners
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Hari’s Capital A/c |
Dr. |
|
15,000 |
|
Ram’s Capital A/c |
Dr. |
|
22,500 |
|
Suraj’s Capital A/c |
Dr. |
|
7,500 |
|
To Bank A/c |
|
|
45,000 |
|
(Drawings made by partners) |
|
|
|
|
|
|
|
|
Answer:
Calculation of total capital of the new firm
Calculation of new capital
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
X
|
Y
|
New Capitalvipin |
2,62,500
|
1,57,500
|
Less: Existing Capital |
2,40,000
|
1,80,000
|
Net Effect
|
22,500
to be brought in
|
(22,500)
to be withdrawn
|
Working Notes: Calculation of New Profit Sharing Ratio
Page No 4.81:
Question 66:
Calculation of total capital of the new firm
Calculation of new capital
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
X
|
Y
|
New Capitalvipin |
2,62,500
|
1,57,500
|
Less: Existing Capital |
2,40,000
|
1,80,000
|
Net Effect
|
22,500
to be brought in
|
(22,500)
to be withdrawn
|
Working Notes: Calculation of New Profit Sharing Ratio
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Furniture A/c |
2,520
|
Stock A/c |
2,400
|
|||
Investment A/c |
2,880
|
Prepaid Salaries A/c |
480
|
|||
Machinery A/c |
3,060
|
Loss transferred to: |
|
|||
Outstanding Rent A/c |
1,080
|
A’s Capital A/c |
1,332
|
|||
|
B’s Capital A/c |
1,998
|
||||
|
C’s Capital A/c |
3,330
|
6,660
|
|||
9,540
|
9,540
|
|||||
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
|
|
Cr.
|
|||||||
Particulars
|
A
|
B
|
C
|
D
|
Particulars
|
A
|
B
|
C
|
D
|
|
Goodwill A/c |
2,400
|
3,600
|
6,000
|
Balance b/d |
21,600
|
26,400
|
31,200
|
|
||
Revaluation A/c |
1,332
|
1,998
|
3,330
|
Bank A/c |
|
|
|
19,200
|
||
Balance c/d |
20,028
|
24,042
|
27,270
|
19,200
|
Premium for Goodwill A/c |
480
|
720
|
1,200
|
|
|
|
|
|
Profit and Loss A/c |
1,680
|
2,520
|
4,200
|
|
|||
|
|
|
|
|
|
|
||||
23,760
|
29,640
|
36,600
|
19,200
|
23,760
|
29,640
|
36,600
|
19,200
|
|||
|
|
|
|
|
|
|
||||
Cash A/c |
828
|
|
|
Balance b/d |
20,028
|
24,042
|
27,270
|
19,200
|
||
Balance c/d |
19,200
|
28,800
|
48,000
|
19,200 | Cash A/c |
|
4,758
|
20,730
|
||
20,002
|
28,800
|
48,000
|
19,200 |
20,002
|
28,800
|
48,000
|
19,200 | |||
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after D’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
38,400
|
Cash |
57,060
|
|
Employees’ Provident Fund |
19,200
|
Bills Receivable |
14,400
|
|
Outstanding Rent |
1,080
|
Furniture (16,800 – 2,520) |
14,280
|
|
|
Stock |
28,800
|
||
Capital A/cs: |
|
Debtors |
25,200
|
|
A |
19,200
|
|
Investment (19,200 – 2,880) |
16,320
|
B |
28,800
|
|
Machinery (20,400 – 3,060) |
17,340
|
C |
48,000
|
|
Prepaid Salaries |
480
|
D |
19,200
|
1,15,200
|
|
|
1,73,880
|
1,73,880
|
|||
Working Notes
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
A
|
B
|
C
|
New Capital |
19,200
|
28,800
|
48,000
|
Less: Existing Capital |
20,028
|
24,042
|
27,270
|
Net Effect
|
(828)
to be withdrawn
|
4,758
to be brought in
|
20,730
to be brought in
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
10,800
|
A’s Capital A/c |
828
|
||
D’s Capital A/c |
19,200
|
Balance c/d |
57,060
|
||
Premium for Goodwill A/c |
2,400
|
||||
B’s Capital A/c |
4,758
|
|
|||
C’s Capital A/c |
20,730
|
|
|||
|
|
||||
57,888
|
57,888
|
||||
Page No 4.82:
Question 67:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Furniture A/c |
2,520
|
Stock A/c |
2,400
|
|||
Investment A/c |
2,880
|
Prepaid Salaries A/c |
480
|
|||
Machinery A/c |
3,060
|
Loss transferred to: |
|
|||
Outstanding Rent A/c |
1,080
|
A’s Capital A/c |
1,332
|
|||
|
B’s Capital A/c |
1,998
|
||||
|
C’s Capital A/c |
3,330
|
6,660
|
|||
9,540
|
9,540
|
|||||
|
|
Partners’ Capital Accounts
|
||||||||||
Dr. |
|
|
Cr.
|
|||||||
Particulars
|
A
|
B
|
C
|
D
|
Particulars
|
A
|
B
|
C
|
D
|
|
Goodwill A/c |
2,400
|
3,600
|
6,000
|
Balance b/d |
21,600
|
26,400
|
31,200
|
|
||
Revaluation A/c |
1,332
|
1,998
|
3,330
|
Bank A/c |
|
|
|
19,200
|
||
Balance c/d |
20,028
|
24,042
|
27,270
|
19,200
|
Premium for Goodwill A/c |
480
|
720
|
1,200
|
|
|
|
|
|
Profit and Loss A/c |
1,680
|
2,520
|
4,200
|
|
|||
|
|
|
|
|
|
|
||||
23,760
|
29,640
|
36,600
|
19,200
|
23,760
|
29,640
|
36,600
|
19,200
|
|||
|
|
|
|
|
|
|
||||
Cash A/c |
828
|
|
|
Balance b/d |
20,028
|
24,042
|
27,270
|
19,200
|
||
Balance c/d |
19,200
|
28,800
|
48,000
|
19,200 | Cash A/c |
|
4,758
|
20,730
|
||
20,002
|
28,800
|
48,000
|
19,200 |
20,002
|
28,800
|
48,000
|
19,200 | |||
|
|
|
|
|
|
|
Balance Sheet
as on April 01, 2014 after D’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
38,400
|
Cash |
57,060
|
|
Employees’ Provident Fund |
19,200
|
Bills Receivable |
14,400
|
|
Outstanding Rent |
1,080
|
Furniture (16,800 – 2,520) |
14,280
|
|
|
Stock |
28,800
|
||
Capital A/cs: |
|
Debtors |
25,200
|
|
A |
19,200
|
|
Investment (19,200 – 2,880) |
16,320
|
B |
28,800
|
|
Machinery (20,400 – 3,060) |
17,340
|
C |
48,000
|
|
Prepaid Salaries |
480
|
D |
19,200
|
1,15,200
|
|
|
1,73,880
|
1,73,880
|
|||
Working Notes
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
A
|
B
|
C
|
New Capital |
19,200
|
28,800
|
48,000
|
Less: Existing Capital |
20,028
|
24,042
|
27,270
|
Net Effect
|
(828)
to be withdrawn
|
4,758
to be brought in
|
20,730
to be brought in
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
10,800
|
A’s Capital A/c |
828
|
||
D’s Capital A/c |
19,200
|
Balance c/d |
57,060
|
||
Premium for Goodwill A/c |
2,400
|
||||
B’s Capital A/c |
4,758
|
|
|||
C’s Capital A/c |
20,730
|
|
|||
|
|
||||
57,888
|
57,888
|
||||
Answer:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
Bank A/c |
Dr.
|
80,000
|
|
||
To C’s Capital A/c |
|
60,000
|
|||
To Premium for Goodwill A/c |
|
20,000
|
|||
(Capital and Goodwill amount brought in by C) |
|
|
|||
|
|
|
|||
Premium for Goodwill A/c |
Dr.
|
20,000
|
|
||
To A’s Capital A/c |
|
|
14,000
|
||
To B’s Capital A/c |
|
|
6,000
|
||
(Goodwill brought in by C credited to old partners’ capital accounts in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Reserve | Dr. |
|
20,000
|
|
|
To Provision for Doubtful Debts A/c |
|
4,000
|
|||
To A’s Capital A/c |
|
11,200
|
|||
To B’s Capital A/c |
|
4,800
|
|||
(20% of the reserve is to remain as a provision against debtors and remaining reserve distributed between old partners in their old ratio) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
76,000
|
|
|
To Furniture A/c |
|
|
36,000
|
||
To Stock A/c |
|
|
40,000
|
||
(Furniture and Stock value depreciated) |
|
|
|
||
|
|
|
|||
A’s Capital A/c | Dr. |
|
53,200
|
|
|
B’s Capital A/c | Dr. |
|
22,800
|
|
|
To Revaluation A/c |
|
|
76,000
|
||
(Revaluation loss distributed between old partners in their old ratio) |
|
|
|
||
|
|
|
|||
Bank Overdraft A/c | Dr. |
|
40,000
|
|
|
To A’s Capital A/c |
|
|
40,000
|
||
(A took over bank overdraft) |
|
|
|
||
|
|
|
|||
Cash A/c | Dr. |
14,000
|
|
||
To A’s Capital A/c |
|
|
14,000
|
||
( Cash brought in by A as capital adjustment) |
|
|
|
||
|
|
|
|||
B’s Capital A/c | Dr. |
|
14,000
|
|
|
To Cash A/c |
|
|
14,000
|
||
(Cash withdrawn by B as a capital adjustment) |
|
|
|
||
|
|
Balance Sheet
as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
|
Sundry Debtors |
92,000
|
|
||
Sundry Creditors |
80,000
|
Less: Provision for Doubtful Debts |
8,000
|
84,000
|
|
|
Stock-in-Trade (1,00,000 – 40,000) |
60,000
|
|||
Capital A/c: |
|
Furniture (60,000 – 36,000) |
24,000
|
||
A |
1,26,000
|
|
Cash in hand | 1,52,000 | |
B |
54,000
|
|
|||
C |
60,000
|
2,40,000
|
|
||
3,20,000
|
3,20,000
|
||||
|
|
Working Notes
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
A
|
B
|
New Capital |
1,26,000
|
54,000
|
Less: Existing Capital |
1,12,000
|
68,000
|
Net Effect
|
14,000
to be brought in
|
(14,000)
to be withdrawn
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
|
|
|
Balance b/d |
1,00,000
|
80,000
|
|
|||
|
|
|
Cash A/c |
|
|
60,000
|
|||
Revaluation A/c |
53,200
|
22,800
|
|
Premium for Goodwill A/c |
14,000
|
6,000
|
|
||
Balance c/d |
1,12,000
|
68,000
|
60,000
|
Reserve |
11,200
|
4,800
|
|
||
|
|
|
Bank Overdraft A/c |
40,000
|
|
|
|||
1,65,200
|
90,800
|
60,000
|
1,65,200
|
90,800
|
60,000
|
||||
|
|
|
|
|
|
||||
Cash A/c |
|
14,000
|
|
Balance b/d |
1,12,000
|
68,000
|
60,000
|
||
Balance C/d |
1,26,000
|
54,000
|
60,000
|
Cash A/c |
14,000
|
|
|
||
1,26,000
|
68,000
|
60,000
|
1,26,000
|
68,000
|
60,000
|
||||
|
|
|
|
|
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
72,000
|
Balance c/d |
1,52,000
|
||
C’s Capital A/c |
60,000
|
|
|||
Premium for Goodwill A/c |
20,000
|
||||
1,52,000
|
1,52,000
|
||||
Page No 4.82:
Question 68:
|
Books of ….
|
||||
|
Journal
|
||||
Date
|
Particulars
|
L.F.
|
Debit Amount
Rs
|
Credit Amount
Rs
|
|
Bank A/c |
Dr.
|
80,000
|
|
||
To C’s Capital A/c |
|
60,000
|
|||
To Premium for Goodwill A/c |
|
20,000
|
|||
(Capital and Goodwill amount brought in by C) |
|
|
|||
|
|
|
|||
Premium for Goodwill A/c |
Dr.
|
20,000
|
|
||
To A’s Capital A/c |
|
|
14,000
|
||
To B’s Capital A/c |
|
|
6,000
|
||
(Goodwill brought in by C credited to old partners’ capital accounts in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Reserve | Dr. |
|
20,000
|
|
|
To Provision for Doubtful Debts A/c |
|
4,000
|
|||
To A’s Capital A/c |
|
11,200
|
|||
To B’s Capital A/c |
|
4,800
|
|||
(20% of the reserve is to remain as a provision against debtors and remaining reserve distributed between old partners in their old ratio) |
|
|
|||
|
|
|
|||
Revaluation A/c | Dr. |
|
76,000
|
|
|
To Furniture A/c |
|
|
36,000
|
||
To Stock A/c |
|
|
40,000
|
||
(Furniture and Stock value depreciated) |
|
|
|
||
|
|
|
|||
A’s Capital A/c | Dr. |
|
53,200
|
|
|
B’s Capital A/c | Dr. |
|
22,800
|
|
|
To Revaluation A/c |
|
|
76,000
|
||
(Revaluation loss distributed between old partners in their old ratio) |
|
|
|
||
|
|
|
|||
Bank Overdraft A/c | Dr. |
|
40,000
|
|
|
To A’s Capital A/c |
|
|
40,000
|
||
(A took over bank overdraft) |
|
|
|
||
|
|
|
|||
Cash A/c | Dr. |
14,000
|
|
||
To A’s Capital A/c |
|
|
14,000
|
||
( Cash brought in by A as capital adjustment) |
|
|
|
||
|
|
|
|||
B’s Capital A/c | Dr. |
|
14,000
|
|
|
To Cash A/c |
|
|
14,000
|
||
(Cash withdrawn by B as a capital adjustment) |
|
|
|
||
|
|
Balance Sheet
as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
|
Sundry Debtors |
92,000
|
|
||
Sundry Creditors |
80,000
|
Less: Provision for Doubtful Debts |
8,000
|
84,000
|
|
|
Stock-in-Trade (1,00,000 – 40,000) |
60,000
|
|||
Capital A/c: |
|
Furniture (60,000 – 36,000) |
24,000
|
||
A |
1,26,000
|
|
Cash in hand | 1,52,000 | |
B |
54,000
|
|
|||
C |
60,000
|
2,40,000
|
|
||
3,20,000
|
3,20,000
|
||||
|
|
Working Notes
Calculation of cash to be brought in or to be paid by existing partners
Particulars
|
A
|
B
|
New Capital |
1,26,000
|
54,000
|
Less: Existing Capital |
1,12,000
|
68,000
|
Net Effect
|
14,000
to be brought in
|
(14,000)
to be withdrawn
|
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
|
|
|
Balance b/d |
1,00,000
|
80,000
|
|
|||
|
|
|
Cash A/c |
|
|
60,000
|
|||
Revaluation A/c |
53,200
|
22,800
|
|
Premium for Goodwill A/c |
14,000
|
6,000
|
|
||
Balance c/d |
1,12,000
|
68,000
|
60,000
|
Reserve |
11,200
|
4,800
|
|
||
|
|
|
Bank Overdraft A/c |
40,000
|
|
|
|||
1,65,200
|
90,800
|
60,000
|
1,65,200
|
90,800
|
60,000
|
||||
|
|
|
|
|
|
||||
Cash A/c |
|
14,000
|
|
Balance b/d |
1,12,000
|
68,000
|
60,000
|
||
Balance C/d |
1,26,000
|
54,000
|
60,000
|
Cash A/c |
14,000
|
|
|
||
1,26,000
|
68,000
|
60,000
|
1,26,000
|
68,000
|
60,000
|
||||
|
|
|
|
|
|
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
72,000
|
Balance c/d |
1,52,000
|
||
C’s Capital A/c |
60,000
|
|
|||
Premium for Goodwill A/c |
20,000
|
||||
1,52,000
|
1,52,000
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Stock A/c |
2,000
|
Land and Building A/c |
5,000
|
|||
Office Furniture A/c |
100
|
|
||||
Provision for Doubtful Debts A/c |
800
|
|
||||
Profit transferred to: |
|
|
||||
A’s Capital A/c | 1,575 |
|
|
|||
B’s Capital A/c |
525
|
2,100
|
|
|||
5,000
|
5,000
|
|||||
|
|
Partners’ Capital Accounts |
|||||||||||
Dr. |
Cr.
|
||||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||||
Advertisement Expenditure A/c |
1,500
|
500
|
|
Balance b/d |
30,000
|
16,000
|
|
||||
Balance c/d |
37,575
|
18,525
|
14,000
|
Bank A/c |
|
|
14,000
|
||||
C’s Current A/c |
3,000
|
1,000
|
|
||||||||
|
|
|
Revaluation A/c |
1,575
|
525
|
|
|||||
|
|
|
General Reserve A/c |
4,500
|
1,500
|
|
|||||
39,075
|
19,025
|
14,000
|
39,075
|
19,025
|
14,000
|
||||||
|
|
|
|
|
|
||||||
Current A/c |
|
4,525
|
|
Balance b/d |
37,575
|
18,525
|
14,000
|
||||
Balance c/d |
42,000
|
14,000
|
14,000
|
Current A/c |
4,425
|
|
|
||||
42,000
|
18,525
|
14,000
|
42,000
|
18,525
|
14,000
|
||||||
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
37,500
|
Debtors |
16,000
|
|
|
|
Less: Provision for Doubtful Debts |
800
|
15,200
|
||
|
Land and Building (25,000 + 5,000) |
30,000
|
|||
Capital A/c: |
|
Bills Receivable |
3,000
|
||
A |
42,000
|
|
Stock (20,000 – 2,000) |
18,000
|
|
B |
14,000
|
|
Furniture (1,000 – 100) |
900
|
|
C |
14,000
|
70,000
|
Cash at Bank |
36,500
|
|
|
|
Current A/c: |
|
||
Current A/c: |
|
A | 4,425 |
|
|
B |
4,525
|
C | 4,000 |
8,425
|
|
1,12,025
|
1,12,025
|
||||
|
|
Working Notes
Particulars
|
A
|
B
|
New Capital |
42,000
|
14,000
|
Less: Existing Capital |
37,575
|
18,525
|
Net Effect
|
4,425
to be brought in
|
(4,525)
to be withdrawn
|
Cash at Bank Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
22,500
|
Balance c/d |
36,500
|
||
C’s Capital A/c |
14,000
|
|
|||
36,500
|
36,500
|
||||
Page No 4.83:
Question 69:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Stock A/c |
2,000
|
Land and Building A/c |
5,000
|
|||
Office Furniture A/c |
100
|
|
||||
Provision for Doubtful Debts A/c |
800
|
|
||||
Profit transferred to: |
|
|
||||
A’s Capital A/c | 1,575 |
|
|
|||
B’s Capital A/c |
525
|
2,100
|
|
|||
5,000
|
5,000
|
|||||
|
|
Partners’ Capital Accounts |
|||||||||||
Dr. |
Cr.
|
||||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||||
Advertisement Expenditure A/c |
1,500
|
500
|
|
Balance b/d |
30,000
|
16,000
|
|
||||
Balance c/d |
37,575
|
18,525
|
14,000
|
Bank A/c |
|
|
14,000
|
||||
C’s Current A/c |
3,000
|
1,000
|
|
||||||||
|
|
|
Revaluation A/c |
1,575
|
525
|
|
|||||
|
|
|
General Reserve A/c |
4,500
|
1,500
|
|
|||||
39,075
|
19,025
|
14,000
|
39,075
|
19,025
|
14,000
|
||||||
|
|
|
|
|
|
||||||
Current A/c |
|
4,525
|
|
Balance b/d |
37,575
|
18,525
|
14,000
|
||||
Balance c/d |
42,000
|
14,000
|
14,000
|
Current A/c |
4,425
|
|
|
||||
42,000
|
18,525
|
14,000
|
42,000
|
18,525
|
14,000
|
||||||
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
37,500
|
Debtors |
16,000
|
|
|
|
Less: Provision for Doubtful Debts |
800
|
15,200
|
||
|
Land and Building (25,000 + 5,000) |
30,000
|
|||
Capital A/c: |
|
Bills Receivable |
3,000
|
||
A |
42,000
|
|
Stock (20,000 – 2,000) |
18,000
|
|
B |
14,000
|
|
Furniture (1,000 – 100) |
900
|
|
C |
14,000
|
70,000
|
Cash at Bank |
36,500
|
|
|
|
Current A/c: |
|
||
Current A/c: |
|
A | 4,425 |
|
|
B |
4,525
|
C | 4,000 |
8,425
|
|
1,12,025
|
1,12,025
|
||||
|
|
Working Notes
Particulars
|
A
|
B
|
New Capital |
42,000
|
14,000
|
Less: Existing Capital |
37,575
|
18,525
|
Net Effect
|
4,425
to be brought in
|
(4,525)
to be withdrawn
|
Cash at Bank Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
22,500
|
Balance c/d |
36,500
|
||
C’s Capital A/c |
14,000
|
|
|||
36,500
|
36,500
|
||||
Answer:
Books of …. | |||||
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs | |
Bank A/c |
Dr.
|
1,50,000
|
|
||
To C’s Capital A/c |
1,00,000
|
||||
To Premium for Goodwill A/c |
|
50,000
|
|||
(Capital and Goodwill amount brought in by C) |
|
|
|||
|
|
|
|||
Premium for Goodwill A/c |
Dr.
|
50,000
|
|
||
To A’s Capital A/c |
|
|
30,000
|
||
To B’s Capital A/c |
|
|
20,000
|
||
(Goodwill brought in by C credited to old partners’ capital accounts in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Plant A/c | Dr. |
|
10,000
|
|
|
Creditors A/c | Dr. |
|
7,000
|
|
|
To Revaluation A/c |
|
17,000
|
|||
(Plant value appreciated and creditors liability reduced) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
24,500
|
|
|
To Provision for Doubtful Debts A/c |
|
|
4,500
|
||
To Liability for Compensation A/c |
|
|
10,000
|
||
To Stock A/c |
|
|
10,000
|
||
(Stock value decreased, provision against debtors created, workers liability increased) |
|
|
|
||
|
|
|
|||
A’s Capital A/c | Dr. |
|
4,500
|
|
|
B’s Capital A/c | Dr. |
|
3,000
|
|
|
To Revaluation A/c |
|
|
7,500
|
||
(Revaluation loss distributed among old partners in their old ratio) |
|
|
|
||
|
|
|
|||
General Reserve A/c | Dr. |
|
50,000
|
|
|
To A’s Capital A/c |
|
|
30,000
|
||
To B’s Capital A/c |
|
|
20,000
|
||
(General Reserve distributed between old partners in their old ratio) |
|
|
|
||
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission |
|||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Sundry Creditors (75,000 – 7,000) |
68,000
|
Debtors |
90,000
|
|
|
Liability for Compensation |
10,000
|
Less: Provision for Doubtful Debts |
4,500
|
85,500
|
|
|
Plant |
1,60,000
|
|||
Capital A/cs: |
|
Patents |
50,000
|
||
A |
1,80,000
|
|
Stock |
90,000
|
|
B |
1,20,000
|
|
Cash at Bank (10,000 + 50,000 +1,00,000) |
1,60,000
|
|
C |
1,00,000
|
4,00,000
|
|
||
|
|
|
|||
Current A/c: |
|
|
|||
A |
25,500
|
|
|
||
B |
42,000
|
67,500
|
|
||
5,45,500
|
5,45,500
|
||||
|
|
Working Notes
Particulars | A | B |
New Capital |
1,80,000
|
1,20,000
|
Less: Existing Capital |
2,05,500
|
1,62,000
|
Net Effect |
(25,500)
to be withdrawn
|
(42,000)
to be withdrawn
|
Partners’ Capital Accounts |
|||||||
Dr. |
Cr.
|
||||||
Particulars | A | B | C | Particulars | A | B | C |
|
|
|
|
|
|
||
Revaluation A/c |
4,500
|
3,000
|
|
Balance b/d |
1,50,000
|
1,25,000
|
|
|
|
|
Bank A/c |
|
|
1,00,000
|
|
Balance c/d |
2,05,500
|
1,62,000
|
1,00,000
|
Premium for Goodwill A/c |
30,000
|
20,000
|
|
|
|
|
General Reserve A/c |
30,000
|
20,000
|
|
|
|
|
|
|
|
|
||
2,10,000
|
1,65,000
|
1,00,000
|
2,10,000
|
1,65,000
|
1,00,000
|
||
|
|
|
|
|
|
||
Balance c/d |
1,80,000
|
1,20,000
|
1,00,000
|
Balance b/d |
2,05,500
|
1,62,000
|
1,00,000
|
Current A/c |
25,500
|
42,000
|
|
|
|
|
|
2,05,500
|
1,62,000
|
1,00,000
|
2,05,500
|
1,62,000
|
1,00,000
|
||
|
|
|
|
|
|
Page No 4.83:
Question 70:
Books of …. | |||||
Journal | |||||
Date | Particulars | L.F. | Debit Amount Rs |
Credit Amount Rs | |
Bank A/c |
Dr.
|
1,50,000
|
|
||
To C’s Capital A/c |
1,00,000
|
||||
To Premium for Goodwill A/c |
|
50,000
|
|||
(Capital and Goodwill amount brought in by C) |
|
|
|||
|
|
|
|||
Premium for Goodwill A/c |
Dr.
|
50,000
|
|
||
To A’s Capital A/c |
|
|
30,000
|
||
To B’s Capital A/c |
|
|
20,000
|
||
(Goodwill brought in by C credited to old partners’ capital accounts in their sacrificing ratio) |
|
|
|
||
|
|
|
|||
Plant A/c | Dr. |
|
10,000
|
|
|
Creditors A/c | Dr. |
|
7,000
|
|
|
To Revaluation A/c |
|
17,000
|
|||
(Plant value appreciated and creditors liability reduced) |
|
|
|
||
|
|
|
|||
Revaluation A/c | Dr. |
|
24,500
|
|
|
To Provision for Doubtful Debts A/c |
|
|
4,500
|
||
To Liability for Compensation A/c |
|
|
10,000
|
||
To Stock A/c |
|
|
10,000
|
||
(Stock value decreased, provision against debtors created, workers liability increased) |
|
|
|
||
|
|
|
|||
A’s Capital A/c | Dr. |
|
4,500
|
|
|
B’s Capital A/c | Dr. |
|
3,000
|
|
|
To Revaluation A/c |
|
|
7,500
|
||
(Revaluation loss distributed among old partners in their old ratio) |
|
|
|
||
|
|
|
|||
General Reserve A/c | Dr. |
|
50,000
|
|
|
To A’s Capital A/c |
|
|
30,000
|
||
To B’s Capital A/c |
|
|
20,000
|
||
(General Reserve distributed between old partners in their old ratio) |
|
|
|
||
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission |
|||||
Liabilities | Amount Rs | Assets | Amount Rs | ||
Sundry Creditors (75,000 – 7,000) |
68,000
|
Debtors |
90,000
|
|
|
Liability for Compensation |
10,000
|
Less: Provision for Doubtful Debts |
4,500
|
85,500
|
|
|
Plant |
1,60,000
|
|||
Capital A/cs: |
|
Patents |
50,000
|
||
A |
1,80,000
|
|
Stock |
90,000
|
|
B |
1,20,000
|
|
Cash at Bank (10,000 + 50,000 +1,00,000) |
1,60,000
|
|
C |
1,00,000
|
4,00,000
|
|
||
|
|
|
|||
Current A/c: |
|
|
|||
A |
25,500
|
|
|
||
B |
42,000
|
67,500
|
|
||
5,45,500
|
5,45,500
|
||||
|
|
Working Notes
Particulars | A | B |
New Capital |
1,80,000
|
1,20,000
|
Less: Existing Capital |
2,05,500
|
1,62,000
|
Net Effect |
(25,500)
to be withdrawn
|
(42,000)
to be withdrawn
|
Partners’ Capital Accounts |
|||||||
Dr. |
Cr.
|
||||||
Particulars | A | B | C | Particulars | A | B | C |
|
|
|
|
|
|
||
Revaluation A/c |
4,500
|
3,000
|
|
Balance b/d |
1,50,000
|
1,25,000
|
|
|
|
|
Bank A/c |
|
|
1,00,000
|
|
Balance c/d |
2,05,500
|
1,62,000
|
1,00,000
|
Premium for Goodwill A/c |
30,000
|
20,000
|
|
|
|
|
General Reserve A/c |
30,000
|
20,000
|
|
|
|
|
|
|
|
|
||
2,10,000
|
1,65,000
|
1,00,000
|
2,10,000
|
1,65,000
|
1,00,000
|
||
|
|
|
|
|
|
||
Balance c/d |
1,80,000
|
1,20,000
|
1,00,000
|
Balance b/d |
2,05,500
|
1,62,000
|
1,00,000
|
Current A/c |
25,500
|
42,000
|
|
|
|
|
|
2,05,500
|
1,62,000
|
1,00,000
|
2,05,500
|
1,62,000
|
1,00,000
|
||
|
|
|
|
|
|
Answer:
Revaluation Account
|
||||
Particulars
|
Amount
(Rs)
|
Particulars
|
Amount (Rs)
|
|
Bad Debts A/c |
2,000
|
Creditors A/c |
7,000
|
|
Provision for Doubtful Debts A/c (1,50,000 @ 5%) |
7,500
|
Building A/c |
1,10,000
|
|
Stock A/c |
10,000
|
|||
Machinery A/c |
10,000
|
|||
Profit transferred to: | ||||
Siddharth’s Capital A/c |
52,500
|
|||
Veenu’s Capital A /c |
35,000
|
87,500
|
||
1,17,000
|
1,17,000
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Siddharth
|
Veenu
|
Beenu
|
Particulars
|
Siddharth
|
Veenu
|
Beenu
|
||
Balance c/d |
5,72,500
|
4,15,000
|
4,50,000
|
Balance b/d |
4,60,000
|
3,40,000
|
–
|
||
Bank A/c |
–
|
–
|
4,50,000
|
||||||
Beenu’s A/c |
60,000
|
40,000
|
–
|
||||||
Revaluation A/c |
52,500
|
35,000
|
–
|
||||||
5,72,500
|
4,15,000
|
4,50,000
|
5,72,500
|
4,15,000
|
4,50,000
|
||||
Balance c/d |
10,80,000
|
7,20,000
|
4,50,000
|
Balance b/d |
5,72,500
|
4,15,000
|
4,50,000
|
||
Bank A/c |
5,07,500
|
3,05,000
|
|||||||
10,80,000
|
7,20,000
|
4,50,000
|
10,80,000
|
7,20,000
|
4,50,000
|
||||
Bank Account |
|||
Particulars
|
Amount
(Rs)
|
|
Amount (Rs)
|
Balance b/d |
20,000
|
Balance c/d |
13,82,500
|
Investments A/c |
1,00,000
|
||
Beenu’s Capital A/c |
4,50,000
|
||
Siddharth’s Capital A/c |
5,07,500
|
||
Veenu’s Capital A/c |
3,05,000
|
||
13,82,500
|
13,82,500
|
||
Balance Sheet
as on April 01, 2014
|
|||||
Liabilities
|
Amount
(Rs)
|
Assets
|
Amount (Rs)
|
||
Capital A/cs: | Building |
4,10,000
|
|||
Siddharth |
10,80,000
|
Machinery |
3,40,000
|
||
Veenu |
7,20,000
|
Stock |
18,000
|
||
Beenu |
4,50,000
|
22,50,000
|
Beenu’s Current A/c |
1,00,000
|
|
Creditors (1,50,000 – 7,000) |
1,43,000
|
Debtors |
1,60,000
|
||
Less: Bad Debts |
10,000
|
||||
Less: Provision for Doubtful Debts |
7,500
|
1,42,500
|
|||
Bank |
13,82,500
|
||||
23,93,000
|
23,93,000
|
||||
Working Notes:
WN 1: Calculation of Capital
Particulars
|
Siddharth
|
Veenu
|
New Capital |
10,80,000
|
7,20,000
|
Less: Existing Capital |
5,72,500
|
4,15,000
|
Net Effect
|
5,07,500
to be withdrawn
|
3,05,000
to be withdrawn
|
WN 2: Calculation of Beenu’s Goodwill
WN 3: Calculation of Rate of Provision of Doubtful Debts
Page No 4.84:
Question 71:
Revaluation Account
|
||||
Particulars
|
Amount
(Rs)
|
Particulars
|
Amount (Rs)
|
|
Bad Debts A/c |
2,000
|
Creditors A/c |
7,000
|
|
Provision for Doubtful Debts A/c (1,50,000 @ 5%) |
7,500
|
Building A/c |
1,10,000
|
|
Stock A/c |
10,000
|
|||
Machinery A/c |
10,000
|
|||
Profit transferred to: | ||||
Siddharth’s Capital A/c |
52,500
|
|||
Veenu’s Capital A /c |
35,000
|
87,500
|
||
1,17,000
|
1,17,000
|
|||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Siddharth
|
Veenu
|
Beenu
|
Particulars
|
Siddharth
|
Veenu
|
Beenu
|
||
Balance c/d |
5,72,500
|
4,15,000
|
4,50,000
|
Balance b/d |
4,60,000
|
3,40,000
|
–
|
||
Bank A/c |
–
|
–
|
4,50,000
|
||||||
Beenu’s A/c |
60,000
|
40,000
|
–
|
||||||
Revaluation A/c |
52,500
|
35,000
|
–
|
||||||
5,72,500
|
4,15,000
|
4,50,000
|
5,72,500
|
4,15,000
|
4,50,000
|
||||
Balance c/d |
10,80,000
|
7,20,000
|
4,50,000
|
Balance b/d |
5,72,500
|
4,15,000
|
4,50,000
|
||
Bank A/c |
5,07,500
|
3,05,000
|
|||||||
10,80,000
|
7,20,000
|
4,50,000
|
10,80,000
|
7,20,000
|
4,50,000
|
||||
Bank Account |
|||
Particulars
|
Amount
(Rs)
|
|
Amount (Rs)
|
Balance b/d |
20,000
|
Balance c/d |
13,82,500
|
Investments A/c |
1,00,000
|
||
Beenu’s Capital A/c |
4,50,000
|
||
Siddharth’s Capital A/c |
5,07,500
|
||
Veenu’s Capital A/c |
3,05,000
|
||
13,82,500
|
13,82,500
|
||
Balance Sheet
as on April 01, 2014
|
|||||
Liabilities
|
Amount
(Rs)
|
Assets
|
Amount (Rs)
|
||
Capital A/cs: | Building |
4,10,000
|
|||
Siddharth |
10,80,000
|
Machinery |
3,40,000
|
||
Veenu |
7,20,000
|
Stock |
18,000
|
||
Beenu |
4,50,000
|
22,50,000
|
Beenu’s Current A/c |
1,00,000
|
|
Creditors (1,50,000 – 7,000) |
1,43,000
|
Debtors |
1,60,000
|
||
Less: Bad Debts |
10,000
|
||||
Less: Provision for Doubtful Debts |
7,500
|
1,42,500
|
|||
Bank |
13,82,500
|
||||
23,93,000
|
23,93,000
|
||||
Working Notes:
WN 1: Calculation of Capital
Particulars
|
Siddharth
|
Veenu
|
New Capital |
10,80,000
|
7,20,000
|
Less: Existing Capital |
5,72,500
|
4,15,000
|
Net Effect
|
5,07,500
to be withdrawn
|
3,05,000
to be withdrawn
|
WN 2: Calculation of Beenu’s Goodwill
WN 3: Calculation of Rate of Provision of Doubtful Debts
Answer:
Let the total share be = 1
Total combined capital of X and Y after adjustment = 2,40,000 + 1,80,000 = Rs 4,20,000
Page No 4.84:
Question 72:
Let the total share be = 1
Total combined capital of X and Y after adjustment = 2,40,000 + 1,80,000 = Rs 4,20,000
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
5,000
|
Land and Building A/c |
25,000
|
|||
Profit transferred to: | Stock A/c |
10,000
|
||||
X’s Capital A/c | 18,000 | |||||
Y’s Capital A/c |
12,000
|
30,000
|
||||
35,000
|
35,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Balance c/d |
85,000
|
60,000
|
36,250
|
Balance b/d |
25,000
|
20,000
|
|||
Bank A/c |
36,250
|
||||||||
Premium for Goodwill A/c |
15,000
|
10,000
|
|||||||
General Reserve A/c |
21,000
|
14,000
|
|||||||
Workmen Compensation Reserve A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
18,000
|
12,000
|
|||||||
85,000
|
60,000
|
36,250
|
85,000
|
60,000
|
36,250
|
||||
Balance Sheet (after Z’s admission) as on ….
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
30,000
|
Debtors |
30,000
|
||
Workmen Compensation Reserve |
5,000
|
Less: Provision for Doubtful Debts |
7,500
|
22,500
|
|
Land and Building |
45,000
|
||||
Capital A/c: | Plant and Machinery |
25,000
|
|||
X |
85,000
|
Stock (30,000 + 10,000) |
40,000
|
||
Y |
60,000
|
Cash at Bank |
83,750
|
||
Z |
36,250
|
1,81,250
|
|||
2,16,250
|
2,16,250
|
||||
Working Notes
Let the total share be = 1
Total Capital of X and Y after adjustment = 85,000 + 60,000 = Rs 1,45,000
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
22,500
|
Balance c/d |
83,750
|
||
C’s Capital A/c |
36,250
|
||||
Premium for Goodwill A/c |
25,000
|
||||
83,750
|
83,750
|
||||
Page No 4.84:
Question 73:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Provision for Doubtful Debts A/c |
5,000
|
Land and Building A/c |
25,000
|
|||
Profit transferred to: | Stock A/c |
10,000
|
||||
X’s Capital A/c | 18,000 | |||||
Y’s Capital A/c |
12,000
|
30,000
|
||||
35,000
|
35,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Balance c/d |
85,000
|
60,000
|
36,250
|
Balance b/d |
25,000
|
20,000
|
|||
Bank A/c |
36,250
|
||||||||
Premium for Goodwill A/c |
15,000
|
10,000
|
|||||||
General Reserve A/c |
21,000
|
14,000
|
|||||||
Workmen Compensation Reserve A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
18,000
|
12,000
|
|||||||
85,000
|
60,000
|
36,250
|
85,000
|
60,000
|
36,250
|
||||
Balance Sheet (after Z’s admission) as on ….
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
30,000
|
Debtors |
30,000
|
||
Workmen Compensation Reserve |
5,000
|
Less: Provision for Doubtful Debts |
7,500
|
22,500
|
|
Land and Building |
45,000
|
||||
Capital A/c: | Plant and Machinery |
25,000
|
|||
X |
85,000
|
Stock (30,000 + 10,000) |
40,000
|
||
Y |
60,000
|
Cash at Bank |
83,750
|
||
Z |
36,250
|
1,81,250
|
|||
2,16,250
|
2,16,250
|
||||
Working Notes
Let the total share be = 1
Total Capital of X and Y after adjustment = 85,000 + 60,000 = Rs 1,45,000
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
22,500
|
Balance c/d |
83,750
|
||
C’s Capital A/c |
36,250
|
||||
Premium for Goodwill A/c |
25,000
|
||||
83,750
|
83,750
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Stock A/c |
1,150
|
Provision for Doubtful Debts A/c |
2,000
|
|||
Furniture A/c |
1,500
|
Loss transferred to: | ||||
Outstanding Liabilities A/c |
1,000
|
A’s Capital A/c |
990
|
|||
B’s Capital A/c |
660
|
1,650
|
||||
3,650
|
3,650
|
|||||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Investment A/c |
6,000
|
4,000
|
Balance b/d |
35,000
|
30,000
|
||||
Revaluation A/c |
990
|
660
|
Cash A/c |
23,450
|
|||||
Balance c/d |
40,310
|
30,040
|
23,450
|
Premium for Goodwill A/c |
6,300
|
700
|
|||
General Reserve A/c |
6,000
|
4,000
|
|||||||
47,300
|
34,700
|
23,450
|
47,300
|
34,700
|
23,450
|
||||
Balance Sheet as on April 01, 2014 after C’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
37,000
|
Debtors |
19,000
|
|
Furniture (15,000 – 1,500) |
13,500
|
|||
Investments (20,000 – 10,000) |
10,000
|
|||
Capital A/c: | Machinery |
33,000
|
||
X |
40,310
|
Stock (23,000 – 1,150) |
21,850
|
|
Y |
30,040
|
Cash |
33,450
|
|
Z |
23,450
|
93,800
|
||
1,30,800
|
1,30,800
|
|||
Working Notes
WN 1: Calculation of Capital
Let the total share be 1
Total Capital of A and B after adjustment = 40,310 + 30,040 = Rs 70,350
WN 2: Calculation of Sacrificing Ratio
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
12,000
|
Bank Loan A/c |
9,000
|
||
C’s Capital A/c |
23,450
|
||||
Premium for Goodwill A/c |
7,000
|
Balance c/d |
33,450
|
||
42,450
|
42,450
|
||||
Page No 4.85:
Question 74:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
Stock A/c |
1,150
|
Provision for Doubtful Debts A/c |
2,000
|
|||
Furniture A/c |
1,500
|
Loss transferred to: | ||||
Outstanding Liabilities A/c |
1,000
|
A’s Capital A/c |
990
|
|||
B’s Capital A/c |
660
|
1,650
|
||||
3,650
|
3,650
|
|||||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Investment A/c |
6,000
|
4,000
|
Balance b/d |
35,000
|
30,000
|
||||
Revaluation A/c |
990
|
660
|
Cash A/c |
23,450
|
|||||
Balance c/d |
40,310
|
30,040
|
23,450
|
Premium for Goodwill A/c |
6,300
|
700
|
|||
General Reserve A/c |
6,000
|
4,000
|
|||||||
47,300
|
34,700
|
23,450
|
47,300
|
34,700
|
23,450
|
||||
Balance Sheet as on April 01, 2014 after C’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
37,000
|
Debtors |
19,000
|
|
Furniture (15,000 – 1,500) |
13,500
|
|||
Investments (20,000 – 10,000) |
10,000
|
|||
Capital A/c: | Machinery |
33,000
|
||
X |
40,310
|
Stock (23,000 – 1,150) |
21,850
|
|
Y |
30,040
|
Cash |
33,450
|
|
Z |
23,450
|
93,800
|
||
1,30,800
|
1,30,800
|
|||
Working Notes
WN 1: Calculation of Capital
Let the total share be 1
Total Capital of A and B after adjustment = 40,310 + 30,040 = Rs 70,350
WN 2: Calculation of Sacrificing Ratio
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
12,000
|
Bank Loan A/c |
9,000
|
||
C’s Capital A/c |
23,450
|
||||
Premium for Goodwill A/c |
7,000
|
Balance c/d |
33,450
|
||
42,450
|
42,450
|
||||
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Provision for Doubtful Debt |
200 |
Building |
2,500 |
|
Profit transferred to Capital Accounts |
|
|
|
|
A |
1,380 |
|
|
|
B |
920 |
2,300 |
|
|
|
2,500 |
|
2,500 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
18,000 |
14,000 |
|
|
|
|
|
Cash |
|
|
15,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
2,000 |
|
Balance c/d |
25,980 |
19,320 |
15,000 |
Revaluation |
1,380 |
920 |
|
|
|
|
|
General Reserve |
3,600 |
2,400 |
|
|
25,980 |
19,320 |
15,000 |
|
25,980 |
19,320 |
15,000 |
Cash |
|
1,320 |
|
Balance c/d |
25,980 |
19,320 |
15,000 |
Balance c/d (adjusted) |
27,000 |
18,000 |
15,000 |
Cash |
1,020 |
|
|
|
27,000 |
19,320 |
15,000 |
|
27,000 |
19,320 |
15,000 |
|
|
|
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
1,000 |
B’s Capital |
1,320 |
C’s Capital |
15,000 |
|
|
Premium for Goodwill |
5,000 |
|
|
A’s Capital |
1,020 |
Balance c/d |
20,700 |
|
22,020 |
|
22,020 |
|
|
|
|
Working Notes
WN1
WN2
Distribution of Revaluation Profit (in old ratio)
WN3
Distribution of Premium for Goodwill
WN4
Adjustment of Capital
Total Capital of the firm on the basis of C’s share
Total Capital of the new firm |
= |
60,000 |
Less: C’s Capital |
= |
15,000 |
Combined Capital of A and B. |
= |
45,000 |
Page No 4.85:
Question 75:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Provision for Doubtful Debt |
200 |
Building |
2,500 |
|
Profit transferred to Capital Accounts |
|
|
|
|
A |
1,380 |
|
|
|
B |
920 |
2,300 |
|
|
|
2,500 |
|
2,500 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
18,000 |
14,000 |
|
|
|
|
|
Cash |
|
|
15,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
2,000 |
|
Balance c/d |
25,980 |
19,320 |
15,000 |
Revaluation |
1,380 |
920 |
|
|
|
|
|
General Reserve |
3,600 |
2,400 |
|
|
25,980 |
19,320 |
15,000 |
|
25,980 |
19,320 |
15,000 |
Cash |
|
1,320 |
|
Balance c/d |
25,980 |
19,320 |
15,000 |
Balance c/d (adjusted) |
27,000 |
18,000 |
15,000 |
Cash |
1,020 |
|
|
|
27,000 |
19,320 |
15,000 |
|
27,000 |
19,320 |
15,000 |
|
|
|
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
1,000 |
B’s Capital |
1,320 |
C’s Capital |
15,000 |
|
|
Premium for Goodwill |
5,000 |
|
|
A’s Capital |
1,020 |
Balance c/d |
20,700 |
|
22,020 |
|
22,020 |
|
|
|
|
Working Notes
WN1
WN2
Distribution of Revaluation Profit (in old ratio)
WN3
Distribution of Premium for Goodwill
WN4
Adjustment of Capital
Total Capital of the firm on the basis of C’s share
Total Capital of the new firm |
= |
60,000 |
Less: C’s Capital |
= |
15,000 |
Combined Capital of A and B. |
= |
45,000 |
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
14,700 |
|
|
To Typewriter A/c |
|
|
1,000 |
|
|
To Fixed Assets A/c |
|
|
13,700 |
|
|
(Decrease in value of typewriter and fixed assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Stationery A/c |
Dr. |
|
1,000 |
|
|
Investment A/c |
Dr. |
|
2,000 |
|
|
To Revaluation A/c |
|
|
3,000 |
|
|
(Increase in stationery and investment transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
7,800 |
|
|
Y’s Capital A/c |
Dr. |
|
3,900 |
|
|
To Revaluation A/c |
|
|
11,700 |
|
|
(Revaluation loss transferred to X and Y’s Capital Account in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Reserve Fund A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
12,000 |
|
|
To Y’s Capital A/c |
|
|
6,000 |
|
|
(Reserve Fund distributed) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
55,000 |
|
|
To Z’s Capital A/c |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
15,000 |
|
|
(Z brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
15,000 |
|
|
To X’s Capital A/c |
|
|
10,000 |
|
|
To Y’s Capital A/c |
|
|
5,000 |
|
|
(Premium for Goodwill distributed between X and Y in their sacrificing ratio i.e 2:1) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
5,000 |
|
|
Y’s Capital A/c |
Dr. |
|
2,500 |
|
|
To Cash |
|
|
7,500 |
|
|
(Half of the Premium for Goodwill withdrawn by X and Y) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
10,000 |
|
|
To Investments A/c |
|
|
10,000 |
|
|
(X took over the Investment) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,800 |
|
|
To X’s Capital A/c |
|
|
4,800 |
|
|
(X’ brought cash to make up deficiency in capital) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
26,600 |
|
To Cash A/c | 26,600 | ||||
(Y withdrew excess capital after all adjustments) | |||||
Cash A/c | Dr. | 1,000 | |||
To Bad Debts Recovered A/c | 1,000 | ||||
(Amount received from customer which was written-of as Bad Debts) | |||||
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
5,000 |
X’s Capital (Goodwill) |
5,000 |
Z’s Capital |
40,000 |
Y’s Capital (Goodwill) |
2,500 |
Premium for Goodwill |
15,000 |
Y’s Capital |
26,600 |
Bad Debts Recovered | 1,000 | ||
X’s Capital |
5,800 |
Balance c/d |
32,700 |
|
66,800 |
|
66,800 |
|
|
|
|
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Typewriter (5,000 × 20%) |
1,000 |
Investment |
2,000 |
Fixed Assets (1,37,000 × 10%) |
13,700 |
Stationery |
1,000 |
|
|
Loss transferred to |
|
|
|
X Capital |
7,800 |
|
|
Y Capital |
3,900 |
|
14,700 |
|
14,700 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation |
7,800 |
3,900 |
|
Balance b/d |
75,000 |
62,000 |
|
Investment |
10,000 |
|
|
Reserve Fund |
12,000 |
6,000 |
|
Cash (withdraw of goodwill) |
5,000 |
2,500 |
|
Cash |
|
|
40,000 |
Balance c/d |
74,200 |
66,600 |
40,000 |
Premium for Goodwill |
10,000 |
5,000 |
|
|
97,000 |
73,000 |
40,000 |
|
97,000 |
73,000 |
40,000 |
Cash |
|
26,600 |
|
Balance b/d |
74,200 |
66,600 |
40,000 |
Balance c/d adjusted |
80,000 |
40,000 |
40,000 |
Cash |
5,800 |
|
|
|
80,000 |
66,600 |
40,000 |
|
80,000 |
66,600 |
40,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
25,000 |
Cash |
32,700 |
|
Capital A/cs: |
|
Sundry Debtors |
15,000 |
|
X |
80,000 |
|
Stock |
10,000 |
Y |
40,000 |
|
Typewriter (5,000 – 1,000) |
4,000 |
Z |
40,000 |
1,60,000 |
Fixed Assets (1,37,000 – 13,700) |
1,23,300 |
|
|
|
||
|
|
|
|
|
|
1,85,000 |
|
1,85,000 |
|
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution of Revaluation Loss
WN3: Distribution of Premium for Goodwill
WN4: Adjustment of Capital
Total Capital of the firm on the basis of Z’s share
Total Capital of the firm |
= |
1,60,000 |
Less: Z’s Capital |
= |
40,000 |
Combined Capital of X and Y |
= |
1,20,000 |
|
|
|
Page No 4.86:
Question 76:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
14,700 |
|
|
To Typewriter A/c |
|
|
1,000 |
|
|
To Fixed Assets A/c |
|
|
13,700 |
|
|
(Decrease in value of typewriter and fixed assets transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Stationery A/c |
Dr. |
|
1,000 |
|
|
Investment A/c |
Dr. |
|
2,000 |
|
|
To Revaluation A/c |
|
|
3,000 |
|
|
(Increase in stationery and investment transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
7,800 |
|
|
Y’s Capital A/c |
Dr. |
|
3,900 |
|
|
To Revaluation A/c |
|
|
11,700 |
|
|
(Revaluation loss transferred to X and Y’s Capital Account in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Reserve Fund A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
12,000 |
|
|
To Y’s Capital A/c |
|
|
6,000 |
|
|
(Reserve Fund distributed) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
55,000 |
|
|
To Z’s Capital A/c |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
15,000 |
|
|
(Z brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
15,000 |
|
|
To X’s Capital A/c |
|
|
10,000 |
|
|
To Y’s Capital A/c |
|
|
5,000 |
|
|
(Premium for Goodwill distributed between X and Y in their sacrificing ratio i.e 2:1) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
5,000 |
|
|
Y’s Capital A/c |
Dr. |
|
2,500 |
|
|
To Cash |
|
|
7,500 |
|
|
(Half of the Premium for Goodwill withdrawn by X and Y) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
10,000 |
|
|
To Investments A/c |
|
|
10,000 |
|
|
(X took over the Investment) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,800 |
|
|
To X’s Capital A/c |
|
|
4,800 |
|
|
(X’ brought cash to make up deficiency in capital) |
|
|
|
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
26,600 |
|
To Cash A/c | 26,600 | ||||
(Y withdrew excess capital after all adjustments) | |||||
Cash A/c | Dr. | 1,000 | |||
To Bad Debts Recovered A/c | 1,000 | ||||
(Amount received from customer which was written-of as Bad Debts) | |||||
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
5,000 |
X’s Capital (Goodwill) |
5,000 |
Z’s Capital |
40,000 |
Y’s Capital (Goodwill) |
2,500 |
Premium for Goodwill |
15,000 |
Y’s Capital |
26,600 |
Bad Debts Recovered | 1,000 | ||
X’s Capital |
5,800 |
Balance c/d |
32,700 |
|
66,800 |
|
66,800 |
|
|
|
|
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Typewriter (5,000 × 20%) |
1,000 |
Investment |
2,000 |
Fixed Assets (1,37,000 × 10%) |
13,700 |
Stationery |
1,000 |
|
|
Loss transferred to |
|
|
|
X Capital |
7,800 |
|
|
Y Capital |
3,900 |
|
14,700 |
|
14,700 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation |
7,800 |
3,900 |
|
Balance b/d |
75,000 |
62,000 |
|
Investment |
10,000 |
|
|
Reserve Fund |
12,000 |
6,000 |
|
Cash (withdraw of goodwill) |
5,000 |
2,500 |
|
Cash |
|
|
40,000 |
Balance c/d |
74,200 |
66,600 |
40,000 |
Premium for Goodwill |
10,000 |
5,000 |
|
|
97,000 |
73,000 |
40,000 |
|
97,000 |
73,000 |
40,000 |
Cash |
|
26,600 |
|
Balance b/d |
74,200 |
66,600 |
40,000 |
Balance c/d adjusted |
80,000 |
40,000 |
40,000 |
Cash |
5,800 |
|
|
|
80,000 |
66,600 |
40,000 |
|
80,000 |
66,600 |
40,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
25,000 |
Cash |
32,700 |
|
Capital A/cs: |
|
Sundry Debtors |
15,000 |
|
X |
80,000 |
|
Stock |
10,000 |
Y |
40,000 |
|
Typewriter (5,000 – 1,000) |
4,000 |
Z |
40,000 |
1,60,000 |
Fixed Assets (1,37,000 – 13,700) |
1,23,300 |
|
|
|
||
|
|
|
|
|
|
1,85,000 |
|
1,85,000 |
|
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution of Revaluation Loss
WN3: Distribution of Premium for Goodwill
WN4: Adjustment of Capital
Total Capital of the firm on the basis of Z’s share
Total Capital of the firm |
= |
1,60,000 |
Less: Z’s Capital |
= |
40,000 |
Combined Capital of X and Y |
= |
1,20,000 |
|
|
|
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery |
1,200 |
|
|
Building |
2,850 |
Loss transferred to |
|
Furniture |
600 |
Madan Capital |
3,075 |
Provision for Doubt Debts |
1,500 |
Krishna Capital |
3,075 |
|
6150 |
|
6150 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Madan |
Krishna |
Ram |
Particulars |
Madan |
Krishna |
Ram |
Revaluation (Loss) |
3,075 |
3,075 |
|
Balance b/d |
45,000 |
30,000 |
|
Madan’s Capital |
|
|
15,000 |
Cash |
|
|
45,000 |
Krishna’s Capital |
|
|
15,000 |
Reserve |
9,000 |
9,000 |
|
|
|
|
|
Ram’s Capital |
15,000 |
15,000 |
|
Balance c/d |
65,925 |
50,925 |
15,000 |
(share of Goodwill) |
|
|
|
|
69,000 |
54,000 |
45,000 |
|
69,000 |
54,000 |
45,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Ram’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Outstanding Expenses |
10,000 |
Cash in Hand (4,000 + 45,000) |
49,000 |
||
Sundry Creditors |
30,000 |
Cash at Bank |
56,000 |
||
Bank Overdraft |
20,000 |
Debtors |
30,000 |
|
|
Bills Payable |
30,000 |
Less: 5% Prov. For D. Debts |
1,500 |
28,500 |
|
Capital A/cs |
|
Furniture (12,000 – 600) |
11,400 |
||
Madan |
65,925 |
|
Machinery (24,000 – 1,200) |
22,800 |
|
Krishna |
50,925 |
|
Building (57,000 – 2,850) |
54,150 |
|
Ram |
15,000 |
1,31,850 |
|
|
|
|
2,21,850 |
|
2,21,850 |
||
|
|
|
|
WN1
Treatment of Goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Ram’s Capital A/c |
Dr. |
|
30,000 |
|
To Madan’s Capital |
|
|
15,000 |
|
To Krishna’s Capital |
|
|
15,000 |
|
(Ram’s share of goodwill charged from his capital) |
|
|
|
|
|
|
|
|
WN2
Distribution of Revaluation Loss
Madan and Krishna Capital Account will be debited by
Note: The answer given in book is different as goodwill has been adjusted through Current Accounts of the Partners.
Page No 4.86:
Question 77:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery |
1,200 |
|
|
Building |
2,850 |
Loss transferred to |
|
Furniture |
600 |
Madan Capital |
3,075 |
Provision for Doubt Debts |
1,500 |
Krishna Capital |
3,075 |
|
6150 |
|
6150 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Madan |
Krishna |
Ram |
Particulars |
Madan |
Krishna |
Ram |
Revaluation (Loss) |
3,075 |
3,075 |
|
Balance b/d |
45,000 |
30,000 |
|
Madan’s Capital |
|
|
15,000 |
Cash |
|
|
45,000 |
Krishna’s Capital |
|
|
15,000 |
Reserve |
9,000 |
9,000 |
|
|
|
|
|
Ram’s Capital |
15,000 |
15,000 |
|
Balance c/d |
65,925 |
50,925 |
15,000 |
(share of Goodwill) |
|
|
|
|
69,000 |
54,000 |
45,000 |
|
69,000 |
54,000 |
45,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Ram’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Outstanding Expenses |
10,000 |
Cash in Hand (4,000 + 45,000) |
49,000 |
||
Sundry Creditors |
30,000 |
Cash at Bank |
56,000 |
||
Bank Overdraft |
20,000 |
Debtors |
30,000 |
|
|
Bills Payable |
30,000 |
Less: 5% Prov. For D. Debts |
1,500 |
28,500 |
|
Capital A/cs |
|
Furniture (12,000 – 600) |
11,400 |
||
Madan |
65,925 |
|
Machinery (24,000 – 1,200) |
22,800 |
|
Krishna |
50,925 |
|
Building (57,000 – 2,850) |
54,150 |
|
Ram |
15,000 |
1,31,850 |
|
|
|
|
2,21,850 |
|
2,21,850 |
||
|
|
|
|
WN1
Treatment of Goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Ram’s Capital A/c |
Dr. |
|
30,000 |
|
To Madan’s Capital |
|
|
15,000 |
|
To Krishna’s Capital |
|
|
15,000 |
|
(Ram’s share of goodwill charged from his capital) |
|
|
|
|
|
|
|
|
WN2
Distribution of Revaluation Loss
Madan and Krishna Capital Account will be debited by
Note: The answer given in book is different as goodwill has been adjusted through Current Accounts of the Partners.
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Reserve for D. Debts (80,000 × 3%) |
2,400 |
Loss transferred to |
|
Furniture (6,000 × 5%) |
300 |
A Capital |
2,800 |
Stock (12,000 – 10,500) |
1,500 |
B Capital |
1,400 |
|
|
|
|
|
4,200 |
|
4,200 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
P |
Particulars |
A |
B |
P |
Revaluation |
2,800 |
1,400 |
|
Balance b/d |
60,000 |
30,000 |
|
|
|
|
|
Cash (21,000 – 9,000) |
|
|
12,000 |
Balance c/d |
79,200 |
39,600 |
12,000 |
Premium for Goodwill |
6,000 |
3,000 |
|
|
|
|
|
General Reserve |
16,000 |
8,000 |
|
|
82,000 |
41,000 |
12,000 |
|
82,000 |
41,000 |
12,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after P’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Free hold Property |
20,000 |
||
A |
79,200 |
|
Furniture (6,000 – 300) |
5,700 |
|
B |
39,600 |
|
Stock (12,000 – 1,500) |
10,500 |
|
P |
12,000 |
1,30,800 |
Debtors |
80,000 |
|
Creditors |
16,000 |
Less: 3% Reserve for D. Debts |
2,400 |
77,600 |
|
|
|
Cash (12,000 + 21,000) |
33,000 |
||
|
1,46,800 |
|
1,46,800 |
||
|
|
|
|
Working Note:
WN1: Distribution of Premium for Goodwill
WN2: Distribution of Loss on Revaluation
Page No 4.86:
Question 78:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Reserve for D. Debts (80,000 × 3%) |
2,400 |
Loss transferred to |
|
Furniture (6,000 × 5%) |
300 |
A Capital |
2,800 |
Stock (12,000 – 10,500) |
1,500 |
B Capital |
1,400 |
|
|
|
|
|
4,200 |
|
4,200 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
P |
Particulars |
A |
B |
P |
Revaluation |
2,800 |
1,400 |
|
Balance b/d |
60,000 |
30,000 |
|
|
|
|
|
Cash (21,000 – 9,000) |
|
|
12,000 |
Balance c/d |
79,200 |
39,600 |
12,000 |
Premium for Goodwill |
6,000 |
3,000 |
|
|
|
|
|
General Reserve |
16,000 |
8,000 |
|
|
82,000 |
41,000 |
12,000 |
|
82,000 |
41,000 |
12,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after P’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Free hold Property |
20,000 |
||
A |
79,200 |
|
Furniture (6,000 – 300) |
5,700 |
|
B |
39,600 |
|
Stock (12,000 – 1,500) |
10,500 |
|
P |
12,000 |
1,30,800 |
Debtors |
80,000 |
|
Creditors |
16,000 |
Less: 3% Reserve for D. Debts |
2,400 |
77,600 |
|
|
|
Cash (12,000 + 21,000) |
33,000 |
||
|
1,46,800 |
|
1,46,800 |
||
|
|
|
|
Working Note:
WN1: Distribution of Premium for Goodwill
WN2: Distribution of Loss on Revaluation
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
3,000 |
Provision for D. Debts |
600 |
Creditors |
1,000 |
|
|
Fixed Assets |
10,000 |
Loss transferred to |
|
Provident Fund |
5,000 |
X Capital |
11,500 |
|
|
Y Capital |
6,900 |
|
19,000 |
|
19,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation (Loss) |
11,500 |
6,900 |
|
Balance b/d |
70,000 |
31,000 |
|
Profit and Loss |
1,500 |
900 |
|
Workmen’s Comp. Fund |
3,625 |
2,175 |
|
Balance c/d |
72,625 |
25,375 |
20,000 |
Cash |
|
|
20,000 |
|
|
|
|
Premium for Goodwill |
12,000 |
|
|
|
85,625 |
33,175 |
20,000 |
|
85,625 |
33,175 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Z’s admission |
||||
Particulars |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (15,000 + 1,000) |
16,000 |
|
|
|
Provident Fund (10,000 + 5,000) |
15,000 |
Sundry Debtors |
20,000 |
|
Capital A/cs: |
|
Stock (25,000 – 3,000) |
22,000 |
|
X |
72,625 |
|
Fixed Assets (80,000 – 10,000) |
70,000 |
Y |
25,375 |
|
Cash (32,000 + 5,000) |
37,000 |
Z |
20,000 |
1,18,000 |
|
|
|
1,49,000 |
|
1,49,000 |
|
|
|
|
|
Working Notes
WN1: Distribution of Revaluation Loss
WN2: Distribution Accumulated Loss
WN3: Distribution of Workmen’s Compensation Fund
WN4: Z’s premium for goodwill will be transferred to X’s Capital Account because Z receives his entire share from X.
WN5: Calculation of New Profit Sharing Ratio
Page No 4.87:
Question 79:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
3,000 |
Provision for D. Debts |
600 |
Creditors |
1,000 |
|
|
Fixed Assets |
10,000 |
Loss transferred to |
|
Provident Fund |
5,000 |
X Capital |
11,500 |
|
|
Y Capital |
6,900 |
|
19,000 |
|
19,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation (Loss) |
11,500 |
6,900 |
|
Balance b/d |
70,000 |
31,000 |
|
Profit and Loss |
1,500 |
900 |
|
Workmen’s Comp. Fund |
3,625 |
2,175 |
|
Balance c/d |
72,625 |
25,375 |
20,000 |
Cash |
|
|
20,000 |
|
|
|
|
Premium for Goodwill |
12,000 |
|
|
|
85,625 |
33,175 |
20,000 |
|
85,625 |
33,175 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Z’s admission |
||||
Particulars |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (15,000 + 1,000) |
16,000 |
|
|
|
Provident Fund (10,000 + 5,000) |
15,000 |
Sundry Debtors |
20,000 |
|
Capital A/cs: |
|
Stock (25,000 – 3,000) |
22,000 |
|
X |
72,625 |
|
Fixed Assets (80,000 – 10,000) |
70,000 |
Y |
25,375 |
|
Cash (32,000 + 5,000) |
37,000 |
Z |
20,000 |
1,18,000 |
|
|
|
1,49,000 |
|
1,49,000 |
|
|
|
|
|
Working Notes
WN1: Distribution of Revaluation Loss
WN2: Distribution Accumulated Loss
WN3: Distribution of Workmen’s Compensation Fund
WN4: Z’s premium for goodwill will be transferred to X’s Capital Account because Z receives his entire share from X.
WN5: Calculation of New Profit Sharing Ratio
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Provision for Doubtful Debts |
1,000 |
Machinery |
3,000 |
Outstanding Salaries |
2,000 |
Stock |
2,000 |
|
|
|
|
Profit transferred to |
|
|
|
M Capital |
1,250 |
|
|
N Capital |
750 |
|
|
|
5,000 |
|
5,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
M |
N |
R |
Particulars |
M |
N |
R |
|
|
|
|
Balance b/d |
12,000 |
10,000 |
|
Cash |
1,500 |
500 |
|
Cash |
|
|
8,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
1,000 |
|
Balance c/d |
14,750 |
11,250 |
8,000 |
Revaluation (Profit) |
1,250 |
750 |
|
|
16,250 |
11,750 |
8,000 |
|
16,250 |
11,750 |
8,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after R’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
|
|
Machinery (12,000 + 3,000) |
15,000 |
||
Outstanding Salaries |
2,000 |
Stock (8,000 + 2,000) |
10,000 |
||
Creditors |
4,000 |
Sundry Debtors |
7,200 |
|
|
Bills Payable |
2,000 |
Less: Provision for D. Debts |
1,000 |
6,200 |
|
Capital A/cs |
|
Cash at Bank |
500 |
||
M |
14,750 |
|
Cash in hand (300 + 12,000 – 2,000) |
10,300 |
|
N |
11,250 |
|
|
|
|
R |
8,000 |
34,000 |
|
|
|
|
42,000 |
|
42,000 |
||
|
|
|
|
Working Notes
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2 Distribution of Premium for Goodwill
WN3 Withdrawn of Premium for Goodwill
Page No 4.87:
Question 80:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Provision for Doubtful Debts |
1,000 |
Machinery |
3,000 |
Outstanding Salaries |
2,000 |
Stock |
2,000 |
|
|
|
|
Profit transferred to |
|
|
|
M Capital |
1,250 |
|
|
N Capital |
750 |
|
|
|
5,000 |
|
5,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
M |
N |
R |
Particulars |
M |
N |
R |
|
|
|
|
Balance b/d |
12,000 |
10,000 |
|
Cash |
1,500 |
500 |
|
Cash |
|
|
8,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
1,000 |
|
Balance c/d |
14,750 |
11,250 |
8,000 |
Revaluation (Profit) |
1,250 |
750 |
|
|
16,250 |
11,750 |
8,000 |
|
16,250 |
11,750 |
8,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after R’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
|
|
Machinery (12,000 + 3,000) |
15,000 |
||
Outstanding Salaries |
2,000 |
Stock (8,000 + 2,000) |
10,000 |
||
Creditors |
4,000 |
Sundry Debtors |
7,200 |
|
|
Bills Payable |
2,000 |
Less: Provision for D. Debts |
1,000 |
6,200 |
|
Capital A/cs |
|
Cash at Bank |
500 |
||
M |
14,750 |
|
Cash in hand (300 + 12,000 – 2,000) |
10,300 |
|
N |
11,250 |
|
|
|
|
R |
8,000 |
34,000 |
|
|
|
|
42,000 |
|
42,000 |
||
|
|
|
|
Working Notes
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2 Distribution of Premium for Goodwill
WN3 Withdrawn of Premium for Goodwill
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Land and Building |
20,000 |
Sundry Creditors |
1,200 |
Stock |
3,200 |
Loss transferred to |
|
Provision for Doubtful Debts |
1,000 |
A Capital |
13,800 |
|
|
B Capital |
9,200 |
|
24,200 |
|
24,200 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
A’s Capital |
|
|
4,000 |
Balance b/d |
86,000 |
64,000 |
|
B’s Capital |
|
|
4,000 |
General Reserve |
12,000 |
8,000 |
|
Revaluation |
13,800 |
9,200 |
|
Cash |
|
|
50,000 |
Goodwill |
6,000 |
4,000 |
|
C’s Capital |
4,000 |
4,000 |
|
Balance c/d |
82,200 |
62,800 |
42,000 |
|
|
|
|
|
1,02,000 |
76,000 |
50,000 |
|
1,02,000 |
76,000 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 (after C’s admission) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (60,000 – 20,000) |
40,000 |
||
A |
82,200 |
|
Plant and Machinery |
70,000 |
|
B |
62,800 |
|
Sundry Debtors |
20,000 |
|
C |
42,000 |
1,87,000 |
Less: Provision for D. Debts |
1,000 |
19,000 |
|
|
|
Stock (36,000 – 3,200) |
|
32,800 |
Sundry Creditors (31,200 – 1,200) |
30,000 |
Cash at Bank |
4,000 |
||
|
|
Cash in Hand (1,200 + 50,000) |
51,200 |
||
|
2,17,000 |
|
2,17,000 |
||
|
|
|
|
WN1: Calculation of C’s share of Goodwill
Particulars |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
C’s Capital A/c |
Dr. |
8,000 |
|
To A’s Capital A/c |
|
4,000 |
|
To B’s Capital A/c |
|
4,000 |
|
(C’s share of goodwill charge from his capital) |
|
|
|
|
|
|
WN2: Distribution of General Reserve (in old ratio)
WN3: Writing-off of Goodwill
Note: The answer given in book is different as the amount of goodwill has been adjusted through Partner's Capital Account in our solution.
Page No 4.88:
Question 81:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Land and Building |
20,000 |
Sundry Creditors |
1,200 |
Stock |
3,200 |
Loss transferred to |
|
Provision for Doubtful Debts |
1,000 |
A Capital |
13,800 |
|
|
B Capital |
9,200 |
|
24,200 |
|
24,200 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
A’s Capital |
|
|
4,000 |
Balance b/d |
86,000 |
64,000 |
|
B’s Capital |
|
|
4,000 |
General Reserve |
12,000 |
8,000 |
|
Revaluation |
13,800 |
9,200 |
|
Cash |
|
|
50,000 |
Goodwill |
6,000 |
4,000 |
|
C’s Capital |
4,000 |
4,000 |
|
Balance c/d |
82,200 |
62,800 |
42,000 |
|
|
|
|
|
1,02,000 |
76,000 |
50,000 |
|
1,02,000 |
76,000 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 (after C’s admission) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (60,000 – 20,000) |
40,000 |
||
A |
82,200 |
|
Plant and Machinery |
70,000 |
|
B |
62,800 |
|
Sundry Debtors |
20,000 |
|
C |
42,000 |
1,87,000 |
Less: Provision for D. Debts |
1,000 |
19,000 |
|
|
|
Stock (36,000 – 3,200) |
|
32,800 |
Sundry Creditors (31,200 – 1,200) |
30,000 |
Cash at Bank |
4,000 |
||
|
|
Cash in Hand (1,200 + 50,000) |
51,200 |
||
|
2,17,000 |
|
2,17,000 |
||
|
|
|
|
WN1: Calculation of C’s share of Goodwill
Particulars |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
C’s Capital A/c |
Dr. |
8,000 |
|
To A’s Capital A/c |
|
4,000 |
|
To B’s Capital A/c |
|
4,000 |
|
(C’s share of goodwill charge from his capital) |
|
|
|
|
|
|
WN2: Distribution of General Reserve (in old ratio)
WN3: Writing-off of Goodwill
Note: The answer given in book is different as the amount of goodwill has been adjusted through Partner's Capital Account in our solution.
Answer:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Reserve Fund A/c |
Dr. |
|
4,000 |
|
To A’s Capital A/c |
|
|
3,000 |
|
To B’s Capital A/c |
|
|
1,000 |
|
(Reserve Fund distributed) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,050 |
|
To Stock A/c |
|
|
2,000 |
|
To Fixtures A/c |
|
|
100 |
|
To Provision for Doubtful Debts A/c |
|
|
950 |
|
To Outstanding Claim for Damages A/c |
|
|
1,000 |
|
(Decrease in assets, increase in liability and provision for doubtful debts created) |
|
|
|
|
|
|
|
|
|
Land and Building A/c |
Dr. |
|
5,000 |
|
Sundry Creditors A/c |
Dr. |
|
650 |
|
To Revaluation A/c |
|
|
5,650 |
|
(Decrease in creditors and increase in land and building transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,600 |
|
To A’s Capital A/c |
|
|
1,200 |
|
To B’s Capital A/c |
|
|
400 |
|
(Profit on revaluation transferred to A and B’s Capital Accounts in their old profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
15,000 |
|
To C’s Capital A/c |
|
|
10,000 |
|
To Premium for Goodwill A/c |
|
|
5,000 |
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
5,000 |
|
To A’s Capital A/c |
|
|
3,750 |
|
To B’s Capital A/c |
|
|
1,250 |
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
1,875 |
|
B’s Capital A/c |
Dr. |
|
625 |
|
To Bank A/c |
|
|
2,500 |
|
(Half of the Premium for Goodwill withdrawn) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
2,000 |
Land and Building |
5,000 |
Fixtures |
100 |
Sundry Creditors |
650 |
Provision for D. Debts (19,000 × 5%) |
950 |
|
|
Outstanding Claim for Damages |
1,000 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,200 |
|
|
B Capital |
400 |
|
|
|
5,650 |
|
5,650 |
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
Bank (withdrawn of Goodwill) |
1,875 |
625 |
|
Balance b/d |
30,000 |
16,000 |
|
|
|
|
|
|
Bank |
|
|
10,000 |
|
|
|
|
|
Revaluation (Profit) |
1,200 |
400 |
|
|
|
|
|
|
Reserve Fund |
3,000 |
1,000 |
|
|
Balance c/d |
36,075 |
18,025 |
10,000 |
Premium for Goodwill |
3,750 |
1,250 |
|
|
|
37,950 |
18,650 |
10,000 |
|
37,950 |
18,650 |
10,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Capital A/cs: |
|
Land and Building |
30,000 |
|||
A |
36,075 |
|
Fixtures |
900 |
||
B |
18,025 |
|
Stock |
18,000 |
||
C |
10,000 |
64,100 |
|
|
||
|
|
|
|
|
||
Creditors (41,500 – 650) |
40,850 |
Debtors |
16,000 |
|
||
|
|
Bills Receivable |
3,000 |
|
||
Outstanding Claim for Damages |
1,000 |
|
19,000 |
|
||
|
|
Less: 5% Prov. for D. Debts |
950 |
18,050 |
||
|
|
Bank |
39,000 |
|||
|
|
|
|
|
||
|
1,05,950 |
|
1,05,950 |
|||
|
|
|
|
Page No 4.89:
Question 82:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Reserve Fund A/c |
Dr. |
|
4,000 |
|
To A’s Capital A/c |
|
|
3,000 |
|
To B’s Capital A/c |
|
|
1,000 |
|
(Reserve Fund distributed) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,050 |
|
To Stock A/c |
|
|
2,000 |
|
To Fixtures A/c |
|
|
100 |
|
To Provision for Doubtful Debts A/c |
|
|
950 |
|
To Outstanding Claim for Damages A/c |
|
|
1,000 |
|
(Decrease in assets, increase in liability and provision for doubtful debts created) |
|
|
|
|
|
|
|
|
|
Land and Building A/c |
Dr. |
|
5,000 |
|
Sundry Creditors A/c |
Dr. |
|
650 |
|
To Revaluation A/c |
|
|
5,650 |
|
(Decrease in creditors and increase in land and building transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,600 |
|
To A’s Capital A/c |
|
|
1,200 |
|
To B’s Capital A/c |
|
|
400 |
|
(Profit on revaluation transferred to A and B’s Capital Accounts in their old profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
15,000 |
|
To C’s Capital A/c |
|
|
10,000 |
|
To Premium for Goodwill A/c |
|
|
5,000 |
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
5,000 |
|
To A’s Capital A/c |
|
|
3,750 |
|
To B’s Capital A/c |
|
|
1,250 |
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
1,875 |
|
B’s Capital A/c |
Dr. |
|
625 |
|
To Bank A/c |
|
|
2,500 |
|
(Half of the Premium for Goodwill withdrawn) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
2,000 |
Land and Building |
5,000 |
Fixtures |
100 |
Sundry Creditors |
650 |
Provision for D. Debts (19,000 × 5%) |
950 |
|
|
Outstanding Claim for Damages |
1,000 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,200 |
|
|
B Capital |
400 |
|
|
|
5,650 |
|
5,650 |
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
Bank (withdrawn of Goodwill) |
1,875 |
625 |
|
Balance b/d |
30,000 |
16,000 |
|
|
|
|
|
|
Bank |
|
|
10,000 |
|
|
|
|
|
Revaluation (Profit) |
1,200 |
400 |
|
|
|
|
|
|
Reserve Fund |
3,000 |
1,000 |
|
|
Balance c/d |
36,075 |
18,025 |
10,000 |
Premium for Goodwill |
3,750 |
1,250 |
|
|
|
37,950 |
18,650 |
10,000 |
|
37,950 |
18,650 |
10,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Capital A/cs: |
|
Land and Building |
30,000 |
|||
A |
36,075 |
|
Fixtures |
900 |
||
B |
18,025 |
|
Stock |
18,000 |
||
C |
10,000 |
64,100 |
|
|
||
|
|
|
|
|
||
Creditors (41,500 – 650) |
40,850 |
Debtors |
16,000 |
|
||
|
|
Bills Receivable |
3,000 |
|
||
Outstanding Claim for Damages |
1,000 |
|
19,000 |
|
||
|
|
Less: 5% Prov. for D. Debts |
950 |
18,050 |
||
|
|
Bank |
39,000 |
|||
|
|
|
|
|
||
|
1,05,950 |
|
1,05,950 |
|||
|
|
|
|
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Stock |
750 |
Building |
5,000 |
|
Provision for D. Debts |
500 |
|
|
|
Less: Old Provision |
400 |
100 |
|
|
Furniture |
500 |
|
|
|
|
|
|
|
|
Profit on Revaluation transferred to |
|
|
|
|
Rajesh Capital |
2,190 |
|
|
|
Ravi Capital |
1,460 |
|
|
|
|
|
|
|
|
|
5,000 |
|
5,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Rajesh |
Ravi |
Raman |
Particulars |
Rajesh |
Ravi |
Raman |
|
|
|
|
Balance b/d |
29,000 |
15,000 |
|
|
|
|
|
Revaluation |
2,190 |
1,460 |
|
Balance c/d |
31,190 |
16,460 |
16,000 |
Cash |
|
|
16,000 |
(before and just went of |
|
|
|
|
|
|
|
Goodwill) |
|
|
|
|
|
|
|
|
31,190 |
16,460 |
16,000 |
|
31,190 |
16,460 |
16,000 |
Rajesh’s Capital |
|
|
1,635 |
Balance c/d |
31,190 |
16,460 |
16,000 |
Raman’s Capital |
|
|
1,635 |
Raman’s Capital |
1,635 |
1,635 |
|
Balance c/d |
32,825 |
18,095 |
12,730 |
|
|
|
|
|
32,825 |
18,095 |
16,000 |
|
32,825 |
18,095 |
16,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Raman’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
38,500 |
Cash (2,000 + 16,000) |
18,000 |
||
Outstanding Rent |
4,000 |
Stock (15,000 – 750) |
14,250 |
||
Capital A/cs: |
|
Prepaid Insurance |
1,500 |
||
Rajesh |
32,825 |
|
Debtors |
9,400 |
|
Ravi |
18,095 |
|
Less: Provision for D. Debts |
500 |
8,900 |
Raman |
12,730 |
63,730 |
Machinery |
19,000 |
|
|
|
Building (35,000 + 5,000) |
40,000 |
||
|
|
Furniture (5,000 – 500) |
4,500 |
||
|
1,06,150 |
|
1,06,150 |
||
|
|
|
|
Working Notes-
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Calculation of Goodwill
Actual Capital of all Partners before adjustment of goodwill = Rajesh’s Capital + Ravi’s Capital + Raman’s Capital
= 31,190 + 16,460 + 16,000
= Rs 63,650
Capitalised value on the basis of Raman’s share
Raman’s share of Goodwill
WN3
Adjustment of Raman’s share of goodwill
Rajesh and Ravi each Capital Accounts will be credited by
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Raman’s Capital A/c |
Dr. |
|
3,270 |
|
To Rajesh’s Capital A/c |
|
|
1,635 |
|
To Ravi’s Capital A/c |
|
|
1,635 |
|
(Raman’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
WN4
Distribution of Profit on Revaluation (in old ratio)
Note: The answer given in book is different as the adjustment of goodwill has been made through Capital Account of the Partner and not through Current Accounts.
Page No 4.89:
Question 83:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Stock |
750 |
Building |
5,000 |
|
Provision for D. Debts |
500 |
|
|
|
Less: Old Provision |
400 |
100 |
|
|
Furniture |
500 |
|
|
|
|
|
|
|
|
Profit on Revaluation transferred to |
|
|
|
|
Rajesh Capital |
2,190 |
|
|
|
Ravi Capital |
1,460 |
|
|
|
|
|
|
|
|
|
5,000 |
|
5,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Rajesh |
Ravi |
Raman |
Particulars |
Rajesh |
Ravi |
Raman |
|
|
|
|
Balance b/d |
29,000 |
15,000 |
|
|
|
|
|
Revaluation |
2,190 |
1,460 |
|
Balance c/d |
31,190 |
16,460 |
16,000 |
Cash |
|
|
16,000 |
(before and just went of |
|
|
|
|
|
|
|
Goodwill) |
|
|
|
|
|
|
|
|
31,190 |
16,460 |
16,000 |
|
31,190 |
16,460 |
16,000 |
Rajesh’s Capital |
|
|
1,635 |
Balance c/d |
31,190 |
16,460 |
16,000 |
Raman’s Capital |
|
|
1,635 |
Raman’s Capital |
1,635 |
1,635 |
|
Balance c/d |
32,825 |
18,095 |
12,730 |
|
|
|
|
|
32,825 |
18,095 |
16,000 |
|
32,825 |
18,095 |
16,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Raman’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
38,500 |
Cash (2,000 + 16,000) |
18,000 |
||
Outstanding Rent |
4,000 |
Stock (15,000 – 750) |
14,250 |
||
Capital A/cs: |
|
Prepaid Insurance |
1,500 |
||
Rajesh |
32,825 |
|
Debtors |
9,400 |
|
Ravi |
18,095 |
|
Less: Provision for D. Debts |
500 |
8,900 |
Raman |
12,730 |
63,730 |
Machinery |
19,000 |
|
|
|
Building (35,000 + 5,000) |
40,000 |
||
|
|
Furniture (5,000 – 500) |
4,500 |
||
|
1,06,150 |
|
1,06,150 |
||
|
|
|
|
Working Notes-
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Calculation of Goodwill
Actual Capital of all Partners before adjustment of goodwill = Rajesh’s Capital + Ravi’s Capital + Raman’s Capital
= 31,190 + 16,460 + 16,000
= Rs 63,650
Capitalised value on the basis of Raman’s share
Raman’s share of Goodwill
WN3
Adjustment of Raman’s share of goodwill
Rajesh and Ravi each Capital Accounts will be credited by
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Raman’s Capital A/c |
Dr. |
|
3,270 |
|
To Rajesh’s Capital A/c |
|
|
1,635 |
|
To Ravi’s Capital A/c |
|
|
1,635 |
|
(Raman’s share of goodwill adjusted) |
|
|
|
|
|
|
|
|
WN4
Distribution of Profit on Revaluation (in old ratio)
Note: The answer given in book is different as the adjustment of goodwill has been made through Capital Account of the Partner and not through Current Accounts.
Answer:
Revaluation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
|
|
Fixed Assets: |
|
|
|
|
Furniture |
95,000 × 10% |
9,500 |
Profit transferred to |
|
Business Premises |
2,05,000 × 10% |
20,500 |
A Capital |
15,000 |
|
|
|
B Capital |
10,000 |
|
|
|
C Capital |
5,000 |
|
|
|
|
|
|
|
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
A’s Capital (Goodwill) |
|
|
7,500 |
|
Balance b/d |
1,20,000 |
1,20,000 |
1,20,000 |
|
B’s Capital (Goodwill) |
|
|
2,500 |
|
Revaluation (Profit) |
15,000 |
10,000 |
5,000 |
|
|
|
|
|
|
Cash |
|
|
|
1,20,000 |
Balance c/d |
1,65,000 |
1,40,000 |
1,15,000 |
1,20,000 |
Premium for Goodwill |
22,500 |
7,500 |
|
|
|
|
|
|
|
C’s Capital (Goodwill) |
7,500 |
2,500 |
|
|
|
1,65,000 |
1,40,000 |
1,25,000 |
1,20,000 |
|
1,65,000 |
1,40,000 |
1,25,000 |
1,20,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016, after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Furniture (95,000 + 9,500) |
1,04,500 |
|
A |
1,65,000 |
|
Business Premises (2,05,000+20,500) |
2,25,500 |
B |
1,40,000 |
|
Stock-in-Trade |
40,000 |
C |
1,15,000 |
|
Debtors |
28,000 |
D |
1,20,000 |
5,40,000 |
Cash at Bank |
15,000 |
Sundry Creditors |
20,000 |
Cash in hand (4,200 + 1,50,000) |
1,54,200 |
|
Outstanding salaries and wages |
7,200 |
|
|
|
|
5,67,200 |
|
5,67,200 |
|
|
|
|
|
Working Note:
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Calculation of C’s gain in goodwill
WN3
Amount of Goodwill to be distributed between A and B (Sacrificing Partners)
WN4
Journal Entries for D’s Capital and distribution of goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,50,000 |
|
To D’s Capital A/c |
|
|
1,20,000 |
|
To Premium for Goodwill A/c |
|
|
30,000 |
|
(D brought Capital and share of Capital) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
30,000 |
|
C’s Capital A/c |
Dr. |
|
10,000 |
|
To A’s Capital A/c |
|
|
30,000 |
|
To B’s Capital |
|
|
10,000 |
|
(Gain goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
Page No 4.90:
Question 84:
Revaluation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
|
|
Fixed Assets: |
|
|
|
|
Furniture |
95,000 × 10% |
9,500 |
Profit transferred to |
|
Business Premises |
2,05,000 × 10% |
20,500 |
A Capital |
15,000 |
|
|
|
B Capital |
10,000 |
|
|
|
C Capital |
5,000 |
|
|
|
|
|
|
|
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
A’s Capital (Goodwill) |
|
|
7,500 |
|
Balance b/d |
1,20,000 |
1,20,000 |
1,20,000 |
|
B’s Capital (Goodwill) |
|
|
2,500 |
|
Revaluation (Profit) |
15,000 |
10,000 |
5,000 |
|
|
|
|
|
|
Cash |
|
|
|
1,20,000 |
Balance c/d |
1,65,000 |
1,40,000 |
1,15,000 |
1,20,000 |
Premium for Goodwill |
22,500 |
7,500 |
|
|
|
|
|
|
|
C’s Capital (Goodwill) |
7,500 |
2,500 |
|
|
|
1,65,000 |
1,40,000 |
1,25,000 |
1,20,000 |
|
1,65,000 |
1,40,000 |
1,25,000 |
1,20,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016, after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Furniture (95,000 + 9,500) |
1,04,500 |
|
A |
1,65,000 |
|
Business Premises (2,05,000+20,500) |
2,25,500 |
B |
1,40,000 |
|
Stock-in-Trade |
40,000 |
C |
1,15,000 |
|
Debtors |
28,000 |
D |
1,20,000 |
5,40,000 |
Cash at Bank |
15,000 |
Sundry Creditors |
20,000 |
Cash in hand (4,200 + 1,50,000) |
1,54,200 |
|
Outstanding salaries and wages |
7,200 |
|
|
|
|
5,67,200 |
|
5,67,200 |
|
|
|
|
|
Working Note:
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Calculation of C’s gain in goodwill
WN3
Amount of Goodwill to be distributed between A and B (Sacrificing Partners)
WN4
Journal Entries for D’s Capital and distribution of goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,50,000 |
|
To D’s Capital A/c |
|
|
1,20,000 |
|
To Premium for Goodwill A/c |
|
|
30,000 |
|
(D brought Capital and share of Capital) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
30,000 |
|
C’s Capital A/c |
Dr. |
|
10,000 |
|
To A’s Capital A/c |
|
|
30,000 |
|
To B’s Capital |
|
|
10,000 |
|
(Gain goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
950
|
Land and Building A/c |
10,000
|
|||
Furniture A/c |
600
|
|||||
Stock A/c |
3,850
|
|||||
Profit transferred to: | ||||||
A’s Capital A/c |
2,760
|
|||||
B’s Capital A/c |
1,840
|
4,600
|
||||
10,000
|
10,000
|
|||||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Balance c/d |
38,960
|
41,240
|
30,000
|
Balance b/d |
30,200
|
35,400
|
|||
Bank A/c |
30,000
|
||||||||
C’s Current A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
2,760
|
1,840
|
|||||||
38,960
|
41,240
|
30,000
|
38,960
|
41,240
|
30,000
|
||||
Balance Sheet as on March 31, 2016 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
20,800
|
Debtors |
19,000
|
||
Bills Payable |
10,000
|
Less: Provision for Doubtful Debts |
950
|
18,050
|
|
Furniture (10,600 – 600) |
10,000
|
||||
Land and Building (40,000 + 10,000) |
50,000
|
||||
Capital A/c: | Stock (38,500 – 3,850) |
34,650
|
|||
A |
38,960
|
C’s Current A/c |
10,000
|
||
B |
41,240
|
Cash |
18,300
|
||
C |
30,000
|
1,10,200
|
|||
1,41,000
|
1,41,000
|
||||
Cash Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance B/d |
8,300
|
Bank Loan A/c |
20,000
|
||
C’s Capital A/c |
30,000
|
Balance c/d |
18,300
|
||
38,300
|
38,300
|
||||
Page No 4.90:
Question 85:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
950
|
Land and Building A/c |
10,000
|
|||
Furniture A/c |
600
|
|||||
Stock A/c |
3,850
|
|||||
Profit transferred to: | ||||||
A’s Capital A/c |
2,760
|
|||||
B’s Capital A/c |
1,840
|
4,600
|
||||
10,000
|
10,000
|
|||||
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Balance c/d |
38,960
|
41,240
|
30,000
|
Balance b/d |
30,200
|
35,400
|
|||
Bank A/c |
30,000
|
||||||||
C’s Current A/c |
6,000
|
4,000
|
|||||||
Revaluation A/c |
2,760
|
1,840
|
|||||||
38,960
|
41,240
|
30,000
|
38,960
|
41,240
|
30,000
|
||||
Balance Sheet as on March 31, 2016 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
20,800
|
Debtors |
19,000
|
||
Bills Payable |
10,000
|
Less: Provision for Doubtful Debts |
950
|
18,050
|
|
Furniture (10,600 – 600) |
10,000
|
||||
Land and Building (40,000 + 10,000) |
50,000
|
||||
Capital A/c: | Stock (38,500 – 3,850) |
34,650
|
|||
A |
38,960
|
C’s Current A/c |
10,000
|
||
B |
41,240
|
Cash |
18,300
|
||
C |
30,000
|
1,10,200
|
|||
1,41,000
|
1,41,000
|
||||
Cash Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance B/d |
8,300
|
Bank Loan A/c |
20,000
|
||
C’s Capital A/c |
30,000
|
Balance c/d |
18,300
|
||
38,300
|
38,300
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
1,100
|
Land and Building A/c |
10,000
|
|||
Furniture A/c |
1,300
|
Stock A/c |
5,000
|
|||
Profit transferred to: | ||||||
John’s Capital A/c |
5,040
|
|||||
Bull’s Capital A/c |
5,040
|
|||||
Wool’s Capital A/c |
2,520
|
12,600
|
||||
15,000
|
15,000
|
|||||
Partners’ Capital Accounts |
||||||||||
Dr. |
Cr.
|
|||||||||
Particulars | John | Bull | Wool | Tuna | Particulars | John | Bull | Wool | Tuna | |
Balance c/d | 36,240 | 35,240 | 15,120 | 10,000 | Balance b/d | 24,000 | 24,000 | 10,000 | ||
Bank A/c | 10,000 | |||||||||
Tuna’s Current A/c | 1,000 | 1,000 | ||||||||
General Reserve A/c | 5,200 | 5,200 | 2,600 | |||||||
Revaluation A/c | 5,040 | 5,040 | 2,520 | |||||||
Outstanding Liabilities A/c | 1,000 | |||||||||
36,240 | 35,240 | 15,120 | 10,000 | 36,240 | 35,240 | 15,120 | 10,000 | |||
Balance Sheet
as on April 01, 2015 after Tuna’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
25,700
|
Debtors |
11,000
|
||
Outstanding Liabilities |
2,000
|
Less: Provision for Doubtful Debts |
1,100
|
9,900
|
|
Capital A/cs: | Land and Building (50,000 + 10,000) |
60,000
|
|||
John |
36,240
|
Furniture (13,000 – 1,300) |
11,700
|
||
Bull |
35,240
|
Stock (23,500 + 5,000) |
28,500
|
||
Wool |
15,120
|
Cash |
12,200
|
||
Tuna |
10,000
|
96,600
|
Tuna’s Current A/c |
2,000
|
|
1,24,300
|
1,24,300
|
||||
Working Notes
New Profit Sharing ratio = 5 : 5 : 3 : 2
Old ratio = 2 : 2 : 1
Therefore only John and Bull Sacrifices in ratio of 1 : 1.
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,200
|
Balance c/d |
12,200
|
||
Tuna’s Capital A/c |
10,000
|
||||
12,200
|
12,200
|
||||
Page No 4.91:
Question 86:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
1,100
|
Land and Building A/c |
10,000
|
|||
Furniture A/c |
1,300
|
Stock A/c |
5,000
|
|||
Profit transferred to: | ||||||
John’s Capital A/c |
5,040
|
|||||
Bull’s Capital A/c |
5,040
|
|||||
Wool’s Capital A/c |
2,520
|
12,600
|
||||
15,000
|
15,000
|
|||||
Partners’ Capital Accounts |
||||||||||
Dr. |
Cr.
|
|||||||||
Particulars | John | Bull | Wool | Tuna | Particulars | John | Bull | Wool | Tuna | |
Balance c/d | 36,240 | 35,240 | 15,120 | 10,000 | Balance b/d | 24,000 | 24,000 | 10,000 | ||
Bank A/c | 10,000 | |||||||||
Tuna’s Current A/c | 1,000 | 1,000 | ||||||||
General Reserve A/c | 5,200 | 5,200 | 2,600 | |||||||
Revaluation A/c | 5,040 | 5,040 | 2,520 | |||||||
Outstanding Liabilities A/c | 1,000 | |||||||||
36,240 | 35,240 | 15,120 | 10,000 | 36,240 | 35,240 | 15,120 | 10,000 | |||
Balance Sheet
as on April 01, 2015 after Tuna’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Sundry Creditors |
25,700
|
Debtors |
11,000
|
||
Outstanding Liabilities |
2,000
|
Less: Provision for Doubtful Debts |
1,100
|
9,900
|
|
Capital A/cs: | Land and Building (50,000 + 10,000) |
60,000
|
|||
John |
36,240
|
Furniture (13,000 – 1,300) |
11,700
|
||
Bull |
35,240
|
Stock (23,500 + 5,000) |
28,500
|
||
Wool |
15,120
|
Cash |
12,200
|
||
Tuna |
10,000
|
96,600
|
Tuna’s Current A/c |
2,000
|
|
1,24,300
|
1,24,300
|
||||
Working Notes
New Profit Sharing ratio = 5 : 5 : 3 : 2
Old ratio = 2 : 2 : 1
Therefore only John and Bull Sacrifices in ratio of 1 : 1.
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,200
|
Balance c/d |
12,200
|
||
Tuna’s Capital A/c |
10,000
|
||||
12,200
|
12,200
|
||||
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Bad Debts |
3,000 |
A's Capital A/c |
300 |
Provision for Doubtful Debts |
1,200 |
Loss transferred to |
|
Investment (5,000 – 4,900) |
100 |
A Capital |
2,400 |
|
|
B Capital |
1,600 |
|
4,300 |
|
4,300 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
2,400 |
1,600 |
|
Balance b/d |
50,000 |
30,000 |
|
Revaluation |
300 |
|
|
Bank |
|
|
20,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
2,000 |
|
Balance c/d |
50,300 |
30,400 |
20,000 |
|
|
|
|
|
53,000 |
32,000 |
20,000 |
|
53,000 |
32,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2015 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Buildings |
35,000 |
||
A |
50,300 |
|
Machinery |
25,000 |
|
B |
30,400 |
|
Stock |
15,000 |
|
C |
20,000 |
1,00,700 |
Debtors |
15,000 |
|
Creditors |
20,000 |
Less: Bad Debts |
3,000 |
|
|
|
|
|
12,000 |
|
|
|
|
Less: 10% Provision for Doubtful Debts |
1,200 |
10,800 |
|
|
|
Bank |
34,900 |
||
|
1,20,700 |
|
1,20,700 |
||
|
|
|
|
Bank Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
5,000 |
|
|
C’s Capital |
20,000 |
|
|
Premium for Goodwill |
5,000 |
|
|
Investments |
4,900 |
Balance c/d |
34,900 |
|
|
||
|
34,900 |
|
34,900 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Sale of Investments
Bank A/c |
Dr. |
4,900 |
|
Revaluation A/c |
Dr. |
100 |
|
To Investment |
|
5,000 |
WN4
Bad debt Recovered
A's Capital A/c |
Dr. |
300 |
|
To Revaluation A/c |
|
|
300 |
Page No 4.92:
Question 87:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Bad Debts |
3,000 |
A's Capital A/c |
300 |
Provision for Doubtful Debts |
1,200 |
Loss transferred to |
|
Investment (5,000 – 4,900) |
100 |
A Capital |
2,400 |
|
|
B Capital |
1,600 |
|
4,300 |
|
4,300 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
2,400 |
1,600 |
|
Balance b/d |
50,000 |
30,000 |
|
Revaluation |
300 |
|
|
Bank |
|
|
20,000 |
|
|
|
|
Premium for Goodwill |
3,000 |
2,000 |
|
Balance c/d |
50,300 |
30,400 |
20,000 |
|
|
|
|
|
53,000 |
32,000 |
20,000 |
|
53,000 |
32,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2015 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Buildings |
35,000 |
||
A |
50,300 |
|
Machinery |
25,000 |
|
B |
30,400 |
|
Stock |
15,000 |
|
C |
20,000 |
1,00,700 |
Debtors |
15,000 |
|
Creditors |
20,000 |
Less: Bad Debts |
3,000 |
|
|
|
|
|
12,000 |
|
|
|
|
Less: 10% Provision for Doubtful Debts |
1,200 |
10,800 |
|
|
|
Bank |
34,900 |
||
|
1,20,700 |
|
1,20,700 |
||
|
|
|
|
Bank Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
5,000 |
|
|
C’s Capital |
20,000 |
|
|
Premium for Goodwill |
5,000 |
|
|
Investments |
4,900 |
Balance c/d |
34,900 |
|
|
||
|
34,900 |
|
34,900 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Sale of Investments
Bank A/c |
Dr. |
4,900 |
|
Revaluation A/c |
Dr. |
100 |
|
To Investment |
|
5,000 |
WN4
Bad debt Recovered
A's Capital A/c |
Dr. |
300 |
|
To Revaluation A/c |
|
|
300 |
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
5,000
|
Land and Building A/c |
1,00,000
|
|||
Stock A/c |
60,000
|
Investments A/c |
5,000
|
|||
Profit transferred to: | ||||||
Amit’s Capital A/c |
24,000
|
|||||
Sumit’s Capital A/c |
16,000
|
40,000
|
||||
1,05,000
|
1,05,000
|
|||||
Partners’ Capital Accounts |
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Amit
|
Sumit
|
Puneet
|
Particulars
|
Amit
|
Sumit
|
Puneet
|
Cash A/c |
60,000
|
30,000
|
Balance b/d |
1,76,000
|
2,54,000
|
||
Loan from Puneet’s A/c |
3,00,000
|
||||||
Balance c/d |
2,18,000
|
2,82,000
|
3,00,000
|
Premium for Goodwill A/c |
60,000
|
30,000
|
|
Revaluation A/c |
24,000
|
16,000
|
|||||
General Reserve A/c |
18,000
|
12,000
|
|||||
2,78,000
|
3,12,000
|
3,00,000
|
2,78,000
|
3,12,000
|
3,00,000
|
||
Balance c/d |
4,00,000
|
3,00,000
|
3,00,000
|
Balance b/d |
2,18,000
|
2,82,000
|
3,00,000
|
Cash A/c |
1,82,000
|
18,000
|
|||||
4,00,000
|
3,00,000
|
3,00,000
|
4,00,000
|
3,00,000
|
3,00,000
|
||
Balance Sheet as on April 01, 2011 after Puneet’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
50,000
|
Debtors |
3,00,000
|
||
Employees’ Provident Fund |
10,000
|
Less: Provision for Doubtful Debts |
15,000
|
2,85,000
|
|
Investments |
55,000
|
||||
Land and Building (3,20,000 + 1,00,000) |
4,20,000
|
||||
Capital A/c: | Stock (1,10,000 – 60,000) |
50,000
|
|||
Amit |
4,00,000
|
Cash at Bank |
2,50,000
|
||
Sumit |
3,00,000
|
||||
Puneet |
3,00,000
|
10,00,000
|
|||
10,60,000
|
10,60,000
|
||||
Working Notes
WN 1: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
Sacrificing ratio between Amit and Sumit is 2 : 1
WN 2: Calculation of Goodwill
WN 3: Calculation of New Profit Sharing Ratio
New Profit Sharing Ratio = 4 : 3 : 3
WN 4: Calculation of New Capital and Adjustment for Cash
Total Capital of the firm = Rs 10,00,000
Particulars
|
Amit
|
Sumit
|
Puneet
|
New Capital |
4,00,000
|
3,00,000
|
3,00,000
|
Less: Existing Capital |
2,18,000
|
2,82,000
|
3,00,000
|
Net Effect
|
1,82,000
to be brought in
|
18,000
to be brought in
|
NIL
|
Cash at Bank Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
50,000
|
Amit’s Capital A/c |
60,000
|
||
Premium for Goodwill A/c |
90,000
|
Sumit’s Capital A/c |
30,000
|
||
Amit’s Capital A/c |
1,82,000
|
Balance c/d |
2,50,000
|
||
Sumit’s Capital A/c |
18,000
|
||||
3,40,000
|
3,40,000
|
||||
Page No 4.92:
Question 88:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
5,000
|
Land and Building A/c |
1,00,000
|
|||
Stock A/c |
60,000
|
Investments A/c |
5,000
|
|||
Profit transferred to: | ||||||
Amit’s Capital A/c |
24,000
|
|||||
Sumit’s Capital A/c |
16,000
|
40,000
|
||||
1,05,000
|
1,05,000
|
|||||
Partners’ Capital Accounts |
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Amit
|
Sumit
|
Puneet
|
Particulars
|
Amit
|
Sumit
|
Puneet
|
Cash A/c |
60,000
|
30,000
|
Balance b/d |
1,76,000
|
2,54,000
|
||
Loan from Puneet’s A/c |
3,00,000
|
||||||
Balance c/d |
2,18,000
|
2,82,000
|
3,00,000
|
Premium for Goodwill A/c |
60,000
|
30,000
|
|
Revaluation A/c |
24,000
|
16,000
|
|||||
General Reserve A/c |
18,000
|
12,000
|
|||||
2,78,000
|
3,12,000
|
3,00,000
|
2,78,000
|
3,12,000
|
3,00,000
|
||
Balance c/d |
4,00,000
|
3,00,000
|
3,00,000
|
Balance b/d |
2,18,000
|
2,82,000
|
3,00,000
|
Cash A/c |
1,82,000
|
18,000
|
|||||
4,00,000
|
3,00,000
|
3,00,000
|
4,00,000
|
3,00,000
|
3,00,000
|
||
Balance Sheet as on April 01, 2011 after Puneet’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
50,000
|
Debtors |
3,00,000
|
||
Employees’ Provident Fund |
10,000
|
Less: Provision for Doubtful Debts |
15,000
|
2,85,000
|
|
Investments |
55,000
|
||||
Land and Building (3,20,000 + 1,00,000) |
4,20,000
|
||||
Capital A/c: | Stock (1,10,000 – 60,000) |
50,000
|
|||
Amit |
4,00,000
|
Cash at Bank |
2,50,000
|
||
Sumit |
3,00,000
|
||||
Puneet |
3,00,000
|
10,00,000
|
|||
10,60,000
|
10,60,000
|
||||
Working Notes
WN 1: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
Sacrificing ratio between Amit and Sumit is 2 : 1
WN 2: Calculation of Goodwill
WN 3: Calculation of New Profit Sharing Ratio
New Profit Sharing Ratio = 4 : 3 : 3
WN 4: Calculation of New Capital and Adjustment for Cash
Total Capital of the firm = Rs 10,00,000
Particulars
|
Amit
|
Sumit
|
Puneet
|
New Capital |
4,00,000
|
3,00,000
|
3,00,000
|
Less: Existing Capital |
2,18,000
|
2,82,000
|
3,00,000
|
Net Effect
|
1,82,000
to be brought in
|
18,000
to be brought in
|
NIL
|
Cash at Bank Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
50,000
|
Amit’s Capital A/c |
60,000
|
||
Premium for Goodwill A/c |
90,000
|
Sumit’s Capital A/c |
30,000
|
||
Amit’s Capital A/c |
1,82,000
|
Balance c/d |
2,50,000
|
||
Sumit’s Capital A/c |
18,000
|
||||
3,40,000
|
3,40,000
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
100
|
Building A/c |
6,350
|
|||
Stock |
750
|
|||||
Furniture |
500
|
|||||
Profit transferred to: | ||||||
A’s Capital A/c | 3,000 | |||||
B’s Capital A/c |
2,000
|
5,000
|
||||
6,350
|
6,350
|
|||||
Partners’ Capital Accounts
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
Balance c/d |
40,500
|
23,500
|
21,000
|
Balance b/d |
29,000
|
15,000
|
|
Bank A/c |
21,000
|
||||||
Premium for Goodwill A/c |
2,500
|
2,500
|
|||||
Revaluation A/c |
3,000
|
2,000
|
|||||
General Reserve A/c |
3,000
|
2,000
|
|||||
Workmen Compensation Reserve A/c |
3,000
|
2,000
|
|||||
40,500
|
23,500
|
21,000
|
40,500
|
23,500
|
21,000
|
||
Balance c/d |
52,500
|
31,500
|
21,000
|
Balance b/d |
40,500
|
23,500
|
21,000
|
Cash A/c |
12,000
|
8,000
|
|||||
52,500
|
31,500
|
21,000
|
52,500
|
31,500
|
21,000
|
||
Balance Sheet as on April 01, 2015 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
30,000
|
Debtors |
9,400
|
||
Outstanding Expenses |
2,500
|
Less: Provision for Doubtful Debts |
500
|
8,900
|
|
Machinery |
9,000
|
||||
Building |
51,350
|
||||
Furniture (5,000 – 500) |
4,500
|
||||
Capital A/c: | Stock (15,000 – 750) |
14,250
|
|||
A |
52,500
|
Cash |
49,500
|
||
B |
31,500
|
||||
C |
21,000
|
1,05,000
|
|||
1,37,500
|
1,37,500
|
||||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
New ratio = 5 : 3 : 2
Therefore, sacrificing ratio between A and B is 1 : 1.
WN 3: Calculation of New Capital and Adjustment for Cash
Particulars
|
A
|
B
|
New Capital |
52,500
|
31,500
|
Less: Existing Capital |
40,500
|
23,500
|
Net Effect
|
12,000
to be brought in
|
8,000
to be brought in
|
Cash Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
3,500
|
Balance c/d |
49,500
|
||
C’s Capital A/c |
21,000
|
||||
Premium for Goodwill A/c |
5,000
|
||||
Amit’s Capital A/c |
12,000
|
||||
Sumit’s Capital A/c |
8,000
|
||||
49,500
|
49,500
|
||||
Page No 4.93:
Question 89:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Provision for Doubtful Debts A/c |
100
|
Building A/c |
6,350
|
|||
Stock |
750
|
|||||
Furniture |
500
|
|||||
Profit transferred to: | ||||||
A’s Capital A/c | 3,000 | |||||
B’s Capital A/c |
2,000
|
5,000
|
||||
6,350
|
6,350
|
|||||
Partners’ Capital Accounts
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
Balance c/d |
40,500
|
23,500
|
21,000
|
Balance b/d |
29,000
|
15,000
|
|
Bank A/c |
21,000
|
||||||
Premium for Goodwill A/c |
2,500
|
2,500
|
|||||
Revaluation A/c |
3,000
|
2,000
|
|||||
General Reserve A/c |
3,000
|
2,000
|
|||||
Workmen Compensation Reserve A/c |
3,000
|
2,000
|
|||||
40,500
|
23,500
|
21,000
|
40,500
|
23,500
|
21,000
|
||
Balance c/d |
52,500
|
31,500
|
21,000
|
Balance b/d |
40,500
|
23,500
|
21,000
|
Cash A/c |
12,000
|
8,000
|
|||||
52,500
|
31,500
|
21,000
|
52,500
|
31,500
|
21,000
|
||
Balance Sheet as on April 01, 2015 after C’s admission
|
|||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
||
|
|
|
|
||
Creditors |
30,000
|
Debtors |
9,400
|
||
Outstanding Expenses |
2,500
|
Less: Provision for Doubtful Debts |
500
|
8,900
|
|
Machinery |
9,000
|
||||
Building |
51,350
|
||||
Furniture (5,000 – 500) |
4,500
|
||||
Capital A/c: | Stock (15,000 – 750) |
14,250
|
|||
A |
52,500
|
Cash |
49,500
|
||
B |
31,500
|
||||
C |
21,000
|
1,05,000
|
|||
1,37,500
|
1,37,500
|
||||
Working Notes:
WN 1: Calculation of Goodwill
WN 2: Calculation of Sacrificing Ratio
Old ratio = 3 : 2
New ratio = 5 : 3 : 2
Therefore, sacrificing ratio between A and B is 1 : 1.
WN 3: Calculation of New Capital and Adjustment for Cash
Particulars
|
A
|
B
|
New Capital |
52,500
|
31,500
|
Less: Existing Capital |
40,500
|
23,500
|
Net Effect
|
12,000
to be brought in
|
8,000
to be brought in
|
Cash Account |
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
3,500
|
Balance c/d |
49,500
|
||
C’s Capital A/c |
21,000
|
||||
Premium for Goodwill A/c |
5,000
|
||||
Amit’s Capital A/c |
12,000
|
||||
Sumit’s Capital A/c |
8,000
|
||||
49,500
|
49,500
|
||||
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Furniture |
920 |
Land and Building (65,100 – 50,400) |
14,700 |
Stock (29,400 × 10%) |
2,940 |
|
|
Provision for Outstanding |
|
|
|
Repair Bills |
1,320 |
|
|
Profit transferred to |
|
|
|
A's Capital A/c |
4,080 |
|
|
B's Capital A/c |
3,400 |
|
|
C's Capital A/c |
2,040 |
|
|
|
14,700 |
|
14,700 |
|
|
|
|
Partners’ Capital Account |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
|
|
|
|
|
Balance b/d |
36,900 |
33,600 |
19,800 |
|
|
|
|
|
|
Cash |
|
|
|
16,000 |
|
|
|
|
|
Premium for Goodwill |
3,780 |
3,150 |
1,890 |
|
Balance c/d |
44,760 |
40,150 |
23,730 |
16,000 |
Revaluation (Profit) |
4,080 |
3,400 |
2,040 |
|
|
44,760 |
40,150 |
23,730 |
16,000 |
|
44,760 |
40,150 |
23,730 |
16,000 |
Cash |
|
150 |
|
|
Balance b/d |
44,760 |
40,150 |
23,730 |
|
Balance c/d (adjusted) |
48,000 |
40,000 |
24,000 |
16,000 |
Cash |
3,240 |
|
270 |
16,000 |
|
48,000 |
40,150 |
24,000 |
16,000 |
|
48,000 |
40,150 |
24,000 |
16,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet after D’s adjustment |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors |
18,900 |
Land and Building |
65,100 |
|
Bills Payable |
6,300 |
|
|
|
Provision for outstanding |
|
|
|
|
Repair Bills |
1,320 |
Furniture (7,350 – 920) |
6,430 |
|
Capital A/cs: |
|
Stock (29,400 – 2,940) |
26,460 |
|
A |
48,000 |
|
Debtors |
26,460 |
B |
40,000 |
|
Cash |
30,070 |
C |
24,000 |
|
|
|
D |
16,000 |
1,28,000 |
|
|
|
|
|
|
|
|
1,54,520 |
|
1,54,520 |
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
1,890 |
B’s Capital |
150 |
D’s Capital |
16,000 |
|
|
Premium for Goodwill |
8,820 |
Balance c/d |
30,070 |
A’s Capital |
3,240 |
|
|
C’s Capital |
270 |
|
|
|
30,220 |
|
30,220 |
|
|
|
|
Working Notes-
WN1
WN2
Distribution of Revaluation Profit
WN3
Distribution of Premium for Goodwill
WN4
Adjustment of Capital
Page No 4.93:
Question 90:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Furniture |
920 |
Land and Building (65,100 – 50,400) |
14,700 |
Stock (29,400 × 10%) |
2,940 |
|
|
Provision for Outstanding |
|
|
|
Repair Bills |
1,320 |
|
|
Profit transferred to |
|
|
|
A's Capital A/c |
4,080 |
|
|
B's Capital A/c |
3,400 |
|
|
C's Capital A/c |
2,040 |
|
|
|
14,700 |
|
14,700 |
|
|
|
|
Partners’ Capital Account |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
|
|
|
|
|
Balance b/d |
36,900 |
33,600 |
19,800 |
|
|
|
|
|
|
Cash |
|
|
|
16,000 |
|
|
|
|
|
Premium for Goodwill |
3,780 |
3,150 |
1,890 |
|
Balance c/d |
44,760 |
40,150 |
23,730 |
16,000 |
Revaluation (Profit) |
4,080 |
3,400 |
2,040 |
|
|
44,760 |
40,150 |
23,730 |
16,000 |
|
44,760 |
40,150 |
23,730 |
16,000 |
Cash |
|
150 |
|
|
Balance b/d |
44,760 |
40,150 |
23,730 |
|
Balance c/d (adjusted) |
48,000 |
40,000 |
24,000 |
16,000 |
Cash |
3,240 |
|
270 |
16,000 |
|
48,000 |
40,150 |
24,000 |
16,000 |
|
48,000 |
40,150 |
24,000 |
16,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet after D’s adjustment |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors |
18,900 |
Land and Building |
65,100 |
|
Bills Payable |
6,300 |
|
|
|
Provision for outstanding |
|
|
|
|
Repair Bills |
1,320 |
Furniture (7,350 – 920) |
6,430 |
|
Capital A/cs: |
|
Stock (29,400 – 2,940) |
26,460 |
|
A |
48,000 |
|
Debtors |
26,460 |
B |
40,000 |
|
Cash |
30,070 |
C |
24,000 |
|
|
|
D |
16,000 |
1,28,000 |
|
|
|
|
|
|
|
|
1,54,520 |
|
1,54,520 |
|
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
1,890 |
B’s Capital |
150 |
D’s Capital |
16,000 |
|
|
Premium for Goodwill |
8,820 |
Balance c/d |
30,070 |
A’s Capital |
3,240 |
|
|
C’s Capital |
270 |
|
|
|
30,220 |
|
30,220 |
|
|
|
|
Working Notes-
WN1
WN2
Distribution of Revaluation Profit
WN3
Distribution of Premium for Goodwill
WN4
Adjustment of Capital
Answer:
Revaluation Account
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||||
Profit transferred to: | Plant and Machinery A/c |
14,000
|
|||||
Ishu’s Capital A/c |
18,480
|
Provision for Doubtful Debts A/c |
7,000
|
||||
Vishu’s Capital A/c |
12,320
|
30,800
|
Creditors A/c |
9,800
|
|||
30,800
|
30,800
|
||||||
Partners’ Capital Accounts
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Ishu
|
Vishu
|
Nishu
|
Particulars
|
Ishu
|
Vishu
|
Nishu
|
Balance b/d |
1,19,000
|
1,12,000
|
|||||
Bank A/c |
56,000
|
||||||
Balance c/d |
1,53,080
|
1,34,720
|
56,000
|
Premium for Goodwill A/c |
8,400
|
5,600
|
|
Revaluation A/c |
18,480
|
12,320
|
|||||
General Reserve A/c |
6,000
|
4,000
|
|||||
Investment Fluctuation Reserve A/c |
1,200
|
800
|
|||||
1,53,080
|
1,34,720
|
56,000
|
1,53,080
|
1,34,720
|
56,000
|
||
Cash A/c |
22,720
|
Balance b/d |
1,53,080
|
1,34,720
|
56,000
|
||
Balance c/d |
1,68,000
|
1,12,000
|
56,000
|
Cash A/c |
14,920
|
||
1,68,000
|
1,34,720
|
56,000
|
1,68,000
|
1,34,720
|
56,000
|
||
Balance Sheet
as on April 01, 2015 after Nishu’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors (66,000 – 9,800) |
56,200
|
Debtors |
42,000
|
|
Plant and Machinery (70,000 + 14,000) |
84,000
|
|||
Building |
98,000
|
|||
Capital A/cs: | Investments |
19,000
|
||
Ishu |
1,68,000
|
Cash at Bank |
1,49,200
|
|
Vishu |
1,12,000
|
|||
Nishu |
56,000
|
3,36,000
|
||
3,92,200
|
3,92,200
|
|||
Working Notes
WN 1: Calculation of New Profit Sharing Ratio
Let the total share be 1
NPR = 15 : 10 : 5 or 3 : 2 : 1
WN 2: Calculation of New Capital
WN 3: Adjustment for Cash
Ishu = 1,68,000 – 1,53,080 = 14,920 (To be brought in)
Vishu = 1,12,000 – 1,34,720 = (22,720) (To be withdrawn)
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
87,000
|
Vishu’s Capital A/c |
22,720
|
||
Nishu’s Capital A/c |
56,000
|
Balance c/d |
1,49,200
|
||
Premium for Goodwill A/c |
14,000
|
||||
Ishu’s Capital A/c |
14,920
|
||||
1,71,920
|
1,71,920
|
||||
Page No 4.94:
Question 91:
Revaluation Account
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||||
Profit transferred to: | Plant and Machinery A/c |
14,000
|
|||||
Ishu’s Capital A/c |
18,480
|
Provision for Doubtful Debts A/c |
7,000
|
||||
Vishu’s Capital A/c |
12,320
|
30,800
|
Creditors A/c |
9,800
|
|||
30,800
|
30,800
|
||||||
Partners’ Capital Accounts
|
|||||||
Dr. |
Cr.
|
||||||
Particulars
|
Ishu
|
Vishu
|
Nishu
|
Particulars
|
Ishu
|
Vishu
|
Nishu
|
Balance b/d |
1,19,000
|
1,12,000
|
|||||
Bank A/c |
56,000
|
||||||
Balance c/d |
1,53,080
|
1,34,720
|
56,000
|
Premium for Goodwill A/c |
8,400
|
5,600
|
|
Revaluation A/c |
18,480
|
12,320
|
|||||
General Reserve A/c |
6,000
|
4,000
|
|||||
Investment Fluctuation Reserve A/c |
1,200
|
800
|
|||||
1,53,080
|
1,34,720
|
56,000
|
1,53,080
|
1,34,720
|
56,000
|
||
Cash A/c |
22,720
|
Balance b/d |
1,53,080
|
1,34,720
|
56,000
|
||
Balance c/d |
1,68,000
|
1,12,000
|
56,000
|
Cash A/c |
14,920
|
||
1,68,000
|
1,34,720
|
56,000
|
1,68,000
|
1,34,720
|
56,000
|
||
Balance Sheet
as on April 01, 2015 after Nishu’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors (66,000 – 9,800) |
56,200
|
Debtors |
42,000
|
|
Plant and Machinery (70,000 + 14,000) |
84,000
|
|||
Building |
98,000
|
|||
Capital A/cs: | Investments |
19,000
|
||
Ishu |
1,68,000
|
Cash at Bank |
1,49,200
|
|
Vishu |
1,12,000
|
|||
Nishu |
56,000
|
3,36,000
|
||
3,92,200
|
3,92,200
|
|||
Working Notes
WN 1: Calculation of New Profit Sharing Ratio
Let the total share be 1
NPR = 15 : 10 : 5 or 3 : 2 : 1
WN 2: Calculation of New Capital
WN 3: Adjustment for Cash
Ishu = 1,68,000 – 1,53,080 = 14,920 (To be brought in)
Vishu = 1,12,000 – 1,34,720 = (22,720) (To be withdrawn)
Cash at Bank Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
87,000
|
Vishu’s Capital A/c |
22,720
|
||
Nishu’s Capital A/c |
56,000
|
Balance c/d |
1,49,200
|
||
Premium for Goodwill A/c |
14,000
|
||||
Ishu’s Capital A/c |
14,920
|
||||
1,71,920
|
1,71,920
|
||||
Answer:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
15,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Goodwill A/c |
|
|
20,000 |
||
(Goodwill written-off) |
|
|
|
||
|
|
|
|
||
Revaluation A/c |
Dr. |
|
10,000 |
|
|
To Plant A/c |
|
|
6,000 |
||
To Stock A/c |
|
|
1,000 |
||
To Reserve for Doubtful Debts A/c |
|
|
3,000 |
||
(Decrease in Plant and stock and creation of Reserve for Doubtful Debts transferred to Revaluation Account) |
|
|
|
||
|
|
|
|
||
A’s Capital A/c |
Dr. |
|
7,500 |
|
|
B’s Capital A/c |
Dr. |
|
2,500 |
|
|
To Revaluation A/c |
|
|
10,000 |
||
(Revaluation loss transferred to partners’ capital accounts in old ratio) |
|
|
|
||
|
|
|
|
||
Bank A/c |
Dr. |
|
55,000 |
|
|
To C’s Capital A/c |
|
|
35,000 |
||
To Premium for Goodwill A/c |
|
|
20,000 |
||
(C brought capital and Premium for Goodwill) |
|
|
|
||
|
|
|
|
||
Premium for Goodwill A/c |
Dr. |
|
20,000 |
|
|
To A’s Capital A/c |
|
|
15,000 |
||
To B’s Capital A/c |
|
|
5,000 |
||
(Premium for Goodwill distributed between A and B in sacrificing ratio) |
|
|
|
||
|
|
|
|
|
Revaluation Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Plant (30,000 ´ 20%) |
6,000 |
|
|
||
Stock (10,000 ´ 10%) |
1,000 |
Loss transferred to |
|
||
Reserve for Doubtful Debts |
3,000 |
A Capital |
7,500 |
||
(30,000 ´ 10%) |
|
B Capital |
2,500 |
||
|
10,000 |
|
10,000 |
||
|
|
|
|
||
Partners’ Capital Accounts |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Goodwill |
15,000 |
5,000 |
|
Balance b/d |
50,000 |
30,000 |
|
Revaluation (Loss) |
7,500 |
2,500 |
|
Premium for Goodwill |
15,000 |
5,000 |
|
Balance c/d |
42,500 |
27,500 |
|
|
|
|
|
|
65,000 |
35,000 |
|
|
65,000 |
35,000 |
|
|
|
|
|
Balance c/d |
42,500 |
27,50 |
|
Balance c/d |
42,500 |
27,500 |
35,000 |
Bank |
|
|
35,000 |
|
42,500 |
27,500 |
35,000 |
|
42,500 |
27,500 |
35,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Plant (30,000 – 6,000) |
24,000 |
||
A |
42,500 |
|
Stock (10,000 – 1,000) |
9,000 |
|
B |
27,500 |
|
Debtors |
30,000 |
|
C |
35,000 |
1,05,000 |
Less: Reserve for D. Debts |
3,000 |
27,000 |
Sundry Creditors |
20,000 |
Cash at Bank |
65,000 |
||
|
|
|
|
||
|
1,25,000 |
|
1,25,000 |
||
|
|
|
|
Working Notes
WN1
WN2
Writing-off of Goodwill
WN3
Distribution of Premium for Goodwill
WN4
Calculation of C’s share of capital
Combined Capital of A and B after adjustments = 42,500 + 27,500
= 70,000
Bank Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Balance b/d |
10,000 |
|
|
||
C’s Capital |
35,000 |
|
|
||
Premium for Goodwill |
20,000 |
Balance c/d |
65,000 |
||
|
|
|
|
||
|
65,000 |
|
65,000 |
||
|
|
|
|
Page No 4.94:
Question 92:
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
15,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Goodwill A/c |
|
|
20,000 |
||
(Goodwill written-off) |
|
|
|
||
|
|
|
|
||
Revaluation A/c |
Dr. |
|
10,000 |
|
|
To Plant A/c |
|
|
6,000 |
||
To Stock A/c |
|
|
1,000 |
||
To Reserve for Doubtful Debts A/c |
|
|
3,000 |
||
(Decrease in Plant and stock and creation of Reserve for Doubtful Debts transferred to Revaluation Account) |
|
|
|
||
|
|
|
|
||
A’s Capital A/c |
Dr. |
|
7,500 |
|
|
B’s Capital A/c |
Dr. |
|
2,500 |
|
|
To Revaluation A/c |
|
|
10,000 |
||
(Revaluation loss transferred to partners’ capital accounts in old ratio) |
|
|
|
||
|
|
|
|
||
Bank A/c |
Dr. |
|
55,000 |
|
|
To C’s Capital A/c |
|
|
35,000 |
||
To Premium for Goodwill A/c |
|
|
20,000 |
||
(C brought capital and Premium for Goodwill) |
|
|
|
||
|
|
|
|
||
Premium for Goodwill A/c |
Dr. |
|
20,000 |
|
|
To A’s Capital A/c |
|
|
15,000 |
||
To B’s Capital A/c |
|
|
5,000 |
||
(Premium for Goodwill distributed between A and B in sacrificing ratio) |
|
|
|
||
|
|
|
|
|
Revaluation Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Plant (30,000 ´ 20%) |
6,000 |
|
|
||
Stock (10,000 ´ 10%) |
1,000 |
Loss transferred to |
|
||
Reserve for Doubtful Debts |
3,000 |
A Capital |
7,500 |
||
(30,000 ´ 10%) |
|
B Capital |
2,500 |
||
|
10,000 |
|
10,000 |
||
|
|
|
|
||
Partners’ Capital Accounts |
|||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Goodwill |
15,000 |
5,000 |
|
Balance b/d |
50,000 |
30,000 |
|
Revaluation (Loss) |
7,500 |
2,500 |
|
Premium for Goodwill |
15,000 |
5,000 |
|
Balance c/d |
42,500 |
27,500 |
|
|
|
|
|
|
65,000 |
35,000 |
|
|
65,000 |
35,000 |
|
|
|
|
|
Balance c/d |
42,500 |
27,50 |
|
Balance c/d |
42,500 |
27,500 |
35,000 |
Bank |
|
|
35,000 |
|
42,500 |
27,500 |
35,000 |
|
42,500 |
27,500 |
35,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Plant (30,000 – 6,000) |
24,000 |
||
A |
42,500 |
|
Stock (10,000 – 1,000) |
9,000 |
|
B |
27,500 |
|
Debtors |
30,000 |
|
C |
35,000 |
1,05,000 |
Less: Reserve for D. Debts |
3,000 |
27,000 |
Sundry Creditors |
20,000 |
Cash at Bank |
65,000 |
||
|
|
|
|
||
|
1,25,000 |
|
1,25,000 |
||
|
|
|
|
Working Notes
WN1
WN2
Writing-off of Goodwill
WN3
Distribution of Premium for Goodwill
WN4
Calculation of C’s share of capital
Combined Capital of A and B after adjustments = 42,500 + 27,500
= 70,000
Bank Account |
|||||
Dr. |
|
Cr. |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Balance b/d |
10,000 |
|
|
||
C’s Capital |
35,000 |
|
|
||
Premium for Goodwill |
20,000 |
Balance c/d |
65,000 |
||
|
|
|
|
||
|
65,000 |
|
65,000 |
||
|
|
|
|
Answer:
Partner’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
3,00,000 |
3,00,000 |
|
|
|
|
|
Bank |
|
|
2,00,000 |
|
|
|
|
Premium for Goodwill |
16,000 |
4,000 |
|
Balance c/d |
3,16,000 |
3,04,000 |
2,00,000 |
|
|
|
|
|
3,16,000 |
3,04,000 |
2,00,000 |
|
3,16,000 |
3,04,000 |
2,00,000 |
Bank |
1,16,000 |
1,04,000 |
|
Balance b/d |
3,16,000 |
3,04,000 |
2,00,000 |
Balance c/d |
2,00,000 |
2,00,000 |
2,00,000 |
|
|
|
|
Proportionate |
|
|
|
|
|
|
|
|
3,16,000 |
3,04,000 |
2,00,000 |
|
3,16,000 |
3,04,000 |
2,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Sundry Creditors |
60,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
36,000 |
|
Capital A/cs: |
|
Stock |
84,000 |
|
A |
2,00,000 |
|
Furniture and Fittings |
65,000 |
B |
2,00,000 |
|
Plant and Machinery |
4,50,000 |
C |
2,00,000 |
6,00,000 |
|
|
|
6,75,000 |
|
6,75,000 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Cash |
40,000 |
A’s Capital |
1,16,000 |
C’s Capital |
2,00,000 |
B’s Capital |
1,04,000 |
Premium for Goodwill |
20,000 |
|
|
|
|
Balance c/d |
40,000 |
|
2,60,000 |
|
2,60,000 |
|
|
|
|
Calculation of Goodwill
Goodwill = Super Profit × Number of Years Purchases
= 30,000 × 2 = Rs 60,000
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
20,000 |
|
To A’s Capital A/C |
Dr. |
|
|
16,000 |
To B’s Capital A/c |
|
|
4,000 |
|
(Premium for Goodwill distributed between A and B in their sacrificing ratio i.e. 4:1) |
|
|
|
|
|
|
|
|
Calculation of Proportionate Capital
Capital of the firm is Rs 6,00,000
Page No 4.95:
Question 93:
Partner’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
3,00,000 |
3,00,000 |
|
|
|
|
|
Bank |
|
|
2,00,000 |
|
|
|
|
Premium for Goodwill |
16,000 |
4,000 |
|
Balance c/d |
3,16,000 |
3,04,000 |
2,00,000 |
|
|
|
|
|
3,16,000 |
3,04,000 |
2,00,000 |
|
3,16,000 |
3,04,000 |
2,00,000 |
Bank |
1,16,000 |
1,04,000 |
|
Balance b/d |
3,16,000 |
3,04,000 |
2,00,000 |
Balance c/d |
2,00,000 |
2,00,000 |
2,00,000 |
|
|
|
|
Proportionate |
|
|
|
|
|
|
|
|
3,16,000 |
3,04,000 |
2,00,000 |
|
3,16,000 |
3,04,000 |
2,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Sundry Creditors |
60,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
36,000 |
|
Capital A/cs: |
|
Stock |
84,000 |
|
A |
2,00,000 |
|
Furniture and Fittings |
65,000 |
B |
2,00,000 |
|
Plant and Machinery |
4,50,000 |
C |
2,00,000 |
6,00,000 |
|
|
|
6,75,000 |
|
6,75,000 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Cash |
40,000 |
A’s Capital |
1,16,000 |
C’s Capital |
2,00,000 |
B’s Capital |
1,04,000 |
Premium for Goodwill |
20,000 |
|
|
|
|
Balance c/d |
40,000 |
|
2,60,000 |
|
2,60,000 |
|
|
|
|
Calculation of Goodwill
Goodwill = Super Profit × Number of Years Purchases
= 30,000 × 2 = Rs 60,000
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
20,000 |
|
To A’s Capital A/C |
Dr. |
|
|
16,000 |
To B’s Capital A/c |
|
|
4,000 |
|
(Premium for Goodwill distributed between A and B in their sacrificing ratio i.e. 4:1) |
|
|
|
|
|
|
|
|
Calculation of Proportionate Capital
Capital of the firm is Rs 6,00,000
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Patents |
1,000 |
Provision for Doubtful Debts |
2,000 |
Profit on transferred to |
|
Typewriter |
2,400 |
Pappu Capital |
2,550 |
|
|
Dhanraj Capital |
850 |
|
|
|
4,400 |
|
4,400 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Pappu |
Dhanraj |
Leander |
Particulars |
Pappu |
Dhanraj |
Leander |
|
|
|
|
Balance b/d |
60,000 |
20,000 |
|
Balance c/d |
90,550 |
24,850 |
|
Reserve Fund |
12,000 |
4,000 |
|
(after adjustments) |
|
|
|
Revaluation |
2,550 |
850 |
|
|
|
|
|
Premium for Goodwill |
16,000 |
|
|
|
90,550 |
24,850 |
|
|
90,550 |
24,850 |
|
|
|
|
|
Balance c/d |
90,550 |
24,850 |
|
|
|
|
|
Cash |
|
|
69,240 |
Balance c/d |
90,550 |
24,850 |
69,240 |
|
|
|
|
|
90,550 |
24,850 |
69,240 |
|
90,550 |
24,850 |
69,240 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Leander’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
30,000 |
Debtors |
50,000 |
|
|
Bills Receivable |
1,000 |
Less: Prov. for D. Debts |
3,000 |
47,000 |
|
Outstanding Salary |
3,000 |
Stock |
30,000 |
||
Capital A/cs: |
|
Bills Receivable |
10,000 |
||
Pappu |
90,550 |
|
Machinery |
40,000 |
|
Dhanraj |
24,850 |
|
Scooter |
2,400 |
|
Leander |
69,240 |
1,84,640 |
Cash |
89,240 |
|
|
|
|
|
|
|
|
2,18,640 |
|
2,18,640 |
||
|
|
|
|
Working Notes
WN1
Leander acquires his share of profit from Pappu only. Therefore, amount for goodwill brought by Leander will be taken by Pappu alone.
WN2
Distribution of Revaluation Profit
WN3
Distribution of Reserve Fund
WN4
Calculation of Leander’s Capital
Combined Capital of Pappu and Dhanraj after all adjustments = 90,550 + 24,850 = 1, 15,400
Combined share of profit of Pappu and Dhanraj = 1 − Leander share
Total Capital of the firm on the basis of combined capital of Pappu and Dhanraj
WN5
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
4,000 |
|
|
Leander’s Capital |
69,240 |
|
|
Premium for Goodwill |
16,000 |
Balance c/d |
89,240 |
|
|
|
|
|
89,240 |
|
89,240 |
|
|
|
|
Note: The amount of Machinery has not been provided in the question. It is to be recorded at Rs 40,000.
Page No 4.95:
Question 94:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Patents |
1,000 |
Provision for Doubtful Debts |
2,000 |
Profit on transferred to |
|
Typewriter |
2,400 |
Pappu Capital |
2,550 |
|
|
Dhanraj Capital |
850 |
|
|
|
4,400 |
|
4,400 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Pappu |
Dhanraj |
Leander |
Particulars |
Pappu |
Dhanraj |
Leander |
|
|
|
|
Balance b/d |
60,000 |
20,000 |
|
Balance c/d |
90,550 |
24,850 |
|
Reserve Fund |
12,000 |
4,000 |
|
(after adjustments) |
|
|
|
Revaluation |
2,550 |
850 |
|
|
|
|
|
Premium for Goodwill |
16,000 |
|
|
|
90,550 |
24,850 |
|
|
90,550 |
24,850 |
|
|
|
|
|
Balance c/d |
90,550 |
24,850 |
|
|
|
|
|
Cash |
|
|
69,240 |
Balance c/d |
90,550 |
24,850 |
69,240 |
|
|
|
|
|
90,550 |
24,850 |
69,240 |
|
90,550 |
24,850 |
69,240 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2016 after Leander’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
30,000 |
Debtors |
50,000 |
|
|
Bills Receivable |
1,000 |
Less: Prov. for D. Debts |
3,000 |
47,000 |
|
Outstanding Salary |
3,000 |
Stock |
30,000 |
||
Capital A/cs: |
|
Bills Receivable |
10,000 |
||
Pappu |
90,550 |
|
Machinery |
40,000 |
|
Dhanraj |
24,850 |
|
Scooter |
2,400 |
|
Leander |
69,240 |
1,84,640 |
Cash |
89,240 |
|
|
|
|
|
|
|
|
2,18,640 |
|
2,18,640 |
||
|
|
|
|
Working Notes
WN1
Leander acquires his share of profit from Pappu only. Therefore, amount for goodwill brought by Leander will be taken by Pappu alone.
WN2
Distribution of Revaluation Profit
WN3
Distribution of Reserve Fund
WN4
Calculation of Leander’s Capital
Combined Capital of Pappu and Dhanraj after all adjustments = 90,550 + 24,850 = 1, 15,400
Combined share of profit of Pappu and Dhanraj = 1 − Leander share
Total Capital of the firm on the basis of combined capital of Pappu and Dhanraj
WN5
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
4,000 |
|
|
Leander’s Capital |
69,240 |
|
|
Premium for Goodwill |
16,000 |
Balance c/d |
89,240 |
|
|
|
|
|
89,240 |
|
89,240 |
|
|
|
|
Note: The amount of Machinery has not been provided in the question. It is to be recorded at Rs 40,000.
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant |
7,000 |
Building |
14,000 |
Provision for D. Debts (1,000 – 300) |
700 |
|
|
Profit transferred to |
|
|
|
Jain Capital |
3,600 |
|
|
Gupta Capital |
2,700 |
|
|
|
14,000 |
|
14,000 |
|
|
|
|
Partner’s Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
|
Jain |
Gupta |
Mishra |
Particulars |
Jain |
Gupta |
Mishra |
|
|
|
|
Balance b/d |
70,000 |
60,000 |
|
|
|
|
|
Revaluation |
3,600 |
2,700 |
|
Balance c/d |
85,600 |
71,700 |
|
Premium for Goodwill |
12,000 |
9,000 |
|
|
85,600 |
71,700 |
|
|
85,600 |
71,700 |
|
|
|
|
|
Balance b/d |
85,600 |
71,700 |
|
|
|
|
|
Cash |
|
|
52,433 |
Balance c/d |
85,600 |
71,700 |
52,433 |
|
|
|
|
|
85,600 |
71,700 |
52,433 |
|
85,600 |
71,700 |
52,433 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after Mishra’s admission |
|||||
Liabilities |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
20,000 |
Cash |
88,233 |
||
Bills Payable |
3,000 |
Debtors |
20,500 |
|
|
Bank Over draft |
17,000 |
Less: Prov. for D. Debts |
1,000 |
19,500 |
|
Capital A/cs: |
|
Stock |
20,000 |
||
Jain |
85,600 |
|
Plant (40,000 – 7,000) |
33,000 |
|
Gupta |
71,700 |
|
Building (75,000 + 14,000) |
89,000 |
|
Mishra |
52,433 |
2,09,733 |
|
|
|
|
2,49,733 |
|
2,49,733 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Revaluation Profit
WN3
Calculation of Mishra’s Capital
Combined Capital of Jain and Gupta after all adjustments = 85,600 + 71,700 = Rs 1,57,300
WN4
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
14,800 |
|
|
Mishra’s Capital A/c |
52,433 |
|
|
Premium for Goodwill |
21,000 |
Balance c/d |
88,233 |
|
88,233 |
|
88,233 |
|
|
|
|
Page No 4.96:
Question 95:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant |
7,000 |
Building |
14,000 |
Provision for D. Debts (1,000 – 300) |
700 |
|
|
Profit transferred to |
|
|
|
Jain Capital |
3,600 |
|
|
Gupta Capital |
2,700 |
|
|
|
14,000 |
|
14,000 |
|
|
|
|
Partner’s Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
|
Jain |
Gupta |
Mishra |
Particulars |
Jain |
Gupta |
Mishra |
|
|
|
|
Balance b/d |
70,000 |
60,000 |
|
|
|
|
|
Revaluation |
3,600 |
2,700 |
|
Balance c/d |
85,600 |
71,700 |
|
Premium for Goodwill |
12,000 |
9,000 |
|
|
85,600 |
71,700 |
|
|
85,600 |
71,700 |
|
|
|
|
|
Balance b/d |
85,600 |
71,700 |
|
|
|
|
|
Cash |
|
|
52,433 |
Balance c/d |
85,600 |
71,700 |
52,433 |
|
|
|
|
|
85,600 |
71,700 |
52,433 |
|
85,600 |
71,700 |
52,433 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2016 after Mishra’s admission |
|||||
Liabilities |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
20,000 |
Cash |
88,233 |
||
Bills Payable |
3,000 |
Debtors |
20,500 |
|
|
Bank Over draft |
17,000 |
Less: Prov. for D. Debts |
1,000 |
19,500 |
|
Capital A/cs: |
|
Stock |
20,000 |
||
Jain |
85,600 |
|
Plant (40,000 – 7,000) |
33,000 |
|
Gupta |
71,700 |
|
Building (75,000 + 14,000) |
89,000 |
|
Mishra |
52,433 |
2,09,733 |
|
|
|
|
2,49,733 |
|
2,49,733 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Revaluation Profit
WN3
Calculation of Mishra’s Capital
Combined Capital of Jain and Gupta after all adjustments = 85,600 + 71,700 = Rs 1,57,300
WN4
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
14,800 |
|
|
Mishra’s Capital A/c |
52,433 |
|
|
Premium for Goodwill |
21,000 |
Balance c/d |
88,233 |
|
88,233 |
|
88,233 |
|
|
|
|
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Plant and Machinery A/c |
2,000
|
Land and Building A/c |
4,000
|
|||
Provision for Doubtful Debts A/c |
4,000
|
|||||
Profit transferred to: | ||||||
Neha’s Capital A/c | 3,600 | |||||
Tara’s Capital A/c |
2,400
|
6,000
|
||||
8,000
|
8,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Neha
|
Tara
|
Prachi
|
Particulars
|
Neha
|
Tara
|
Prachi
|
||
Balance c/d |
26,600
|
22,400
|
12,250
|
Balance b/d |
8,000
|
10,000
|
|||
Bank A/c |
12,250
|
||||||||
Premium for Goodwill A/c |
6,000
|
4,000
|
|||||||
General Reserve A/c |
7,200
|
4,800
|
|||||||
Workmen Compensation Fund A/c |
1,800
|
1,200
|
|||||||
Revaluation A/c |
3,600
|
2,400
|
|||||||
26,600
|
22,400
|
12,250
|
26,600
|
22,400
|
12,250
|
||||
Balance Sheet as on April 01, 2012 after Prachi’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
15,000
|
Debtors |
19,000
|
|
Workmen Compensation Reserve |
2,000
|
Land and Building |
18,000
|
|
Plant and Machinery (12,000 – 2,000) |
10,000
|
|||
Capital A/c: | Stock |
6,000
|
||
Neha |
26,600
|
Cash |
25,250
|
|
Tara |
22,400
|
|||
Prachi |
12,250
|
61,250
|
||
78,250
|
78,250
|
|||
Working Notes
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
3,000
|
Balance c/d |
25,250
|
||
Prachi’s Capital A/c |
12,250
|
||||
Premium for Goodwill A/c |
10,000
|
||||
25,250
|
25,250
|
||||
Page No 4.97:
Question 96:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Plant and Machinery A/c |
2,000
|
Land and Building A/c |
4,000
|
|||
Provision for Doubtful Debts A/c |
4,000
|
|||||
Profit transferred to: | ||||||
Neha’s Capital A/c | 3,600 | |||||
Tara’s Capital A/c |
2,400
|
6,000
|
||||
8,000
|
8,000
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
Neha
|
Tara
|
Prachi
|
Particulars
|
Neha
|
Tara
|
Prachi
|
||
Balance c/d |
26,600
|
22,400
|
12,250
|
Balance b/d |
8,000
|
10,000
|
|||
Bank A/c |
12,250
|
||||||||
Premium for Goodwill A/c |
6,000
|
4,000
|
|||||||
General Reserve A/c |
7,200
|
4,800
|
|||||||
Workmen Compensation Fund A/c |
1,800
|
1,200
|
|||||||
Revaluation A/c |
3,600
|
2,400
|
|||||||
26,600
|
22,400
|
12,250
|
26,600
|
22,400
|
12,250
|
||||
Balance Sheet as on April 01, 2012 after Prachi’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors |
15,000
|
Debtors |
19,000
|
|
Workmen Compensation Reserve |
2,000
|
Land and Building |
18,000
|
|
Plant and Machinery (12,000 – 2,000) |
10,000
|
|||
Capital A/c: | Stock |
6,000
|
||
Neha |
26,600
|
Cash |
25,250
|
|
Tara |
22,400
|
|||
Prachi |
12,250
|
61,250
|
||
78,250
|
78,250
|
|||
Working Notes
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
3,000
|
Balance c/d |
25,250
|
||
Prachi’s Capital A/c |
12,250
|
||||
Premium for Goodwill A/c |
10,000
|
||||
25,250
|
25,250
|
||||
Answer:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Plant and Machinery A/c |
5,000
|
Land and Building A/c |
13,000
|
|||
Outstanding Repairs A/c |
100
|
Provision for doubtful debts A/c |
500
|
|||
Profit transferred to: | Creditors A/c |
1,200
|
||||
A’s Capital A/c | 6,000 | |||||
B’s Capital A/c |
3,600
|
9,600
|
||||
14,700
|
14,700
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Goodwill A/c |
6,250
|
3,750
|
Balance b/d |
55,000
|
30,000
|
||||
Investment A/c |
6,250
|
3,750
|
Bank A/c |
23,350
|
|||||
Cash A/c |
2,400
|
Premium for Goodwill A/c |
3,250
|
1,950
|
|||||
General Reserve A/c |
10,000
|
6,000
|
|||||||
Balance c/d |
61,750
|
31,650
|
23,350
|
Revaluation A/c |
6,000
|
3,600
|
|||
74,250
|
41,550
|
23,350
|
74,250
|
41,550
|
23,350
|
||||
Balance Sheet
as on April 01, 2016 after C’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors (19,000 – 1,200) |
17,800
|
Debtors |
25,000
|
|
Bills Payable |
8,000
|
Land and Building |
38,000
|
|
Outstanding Salaries |
2,400
|
Plant and Machinery |
30,000
|
|
Provision for Bad and Doubtful Debts |
1,000
|
Investments |
4,000
|
|
Outstanding Repairs |
100
|
Prepaid Insurance |
500
|
|
Capital A/cs: | Stock |
20,000
|
||
A |
61,750
|
Cash |
28,550
|
|
B |
31,650
|
|||
C |
23,350
|
1,16,750
|
||
1,46,050
|
1,46,050
|
|||
Working Notes
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,400
|
B’s Capital A/c |
2,400
|
||
C’s Capital A/c |
23,350
|
||||
Premium for Goodwill A/c |
5,200
|
||||
Balance c/d |
28,550
|
||||
31,250
|
31,250
|
||||
Page No 4.97:
Question 97:
Revaluation Account
|
||||||
Dr. |
Cr.
|
|||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
|||
|
|
|
||||
Plant and Machinery A/c |
5,000
|
Land and Building A/c |
13,000
|
|||
Outstanding Repairs A/c |
100
|
Provision for doubtful debts A/c |
500
|
|||
Profit transferred to: | Creditors A/c |
1,200
|
||||
A’s Capital A/c | 6,000 | |||||
B’s Capital A/c |
3,600
|
9,600
|
||||
14,700
|
14,700
|
|||||
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
A
|
B
|
C
|
Particulars
|
A
|
B
|
C
|
||
Goodwill A/c |
6,250
|
3,750
|
Balance b/d |
55,000
|
30,000
|
||||
Investment A/c |
6,250
|
3,750
|
Bank A/c |
23,350
|
|||||
Cash A/c |
2,400
|
Premium for Goodwill A/c |
3,250
|
1,950
|
|||||
General Reserve A/c |
10,000
|
6,000
|
|||||||
Balance c/d |
61,750
|
31,650
|
23,350
|
Revaluation A/c |
6,000
|
3,600
|
|||
74,250
|
41,550
|
23,350
|
74,250
|
41,550
|
23,350
|
||||
Balance Sheet
as on April 01, 2016 after C’s admission
|
||||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
|
|
|
|
|
|
Creditors (19,000 – 1,200) |
17,800
|
Debtors |
25,000
|
|
Bills Payable |
8,000
|
Land and Building |
38,000
|
|
Outstanding Salaries |
2,400
|
Plant and Machinery |
30,000
|
|
Provision for Bad and Doubtful Debts |
1,000
|
Investments |
4,000
|
|
Outstanding Repairs |
100
|
Prepaid Insurance |
500
|
|
Capital A/cs: | Stock |
20,000
|
||
A |
61,750
|
Cash |
28,550
|
|
B |
31,650
|
|||
C |
23,350
|
1,16,750
|
||
1,46,050
|
1,46,050
|
|||
Working Notes
Cash Account
|
|||||
Dr. |
Cr.
|
||||
Particulars
|
Amount
Rs
|
Particulars
|
Amount
Rs
|
||
Balance b/d |
2,400
|
B’s Capital A/c |
2,400
|
||
C’s Capital A/c |
23,350
|
||||
Premium for Goodwill A/c |
5,200
|
||||
Balance c/d |
28,550
|
||||
31,250
|
31,250
|
||||
Answer:
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Provision for Doubtful Debts |
2,000 |
Land and Building |
10,000 |
|||
Profit transferred to: |
|
Stock |
4,000 |
|||
A’s Capital A/c |
7,200 |
|
|
|
||
B’s Capital A/c |
4,800 |
12,000 |
|
|
||
|
14,000 |
|
14,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
Profit and Loss A/c |
3,000 |
2,000 |
|
Balance b/d |
10,000 |
10,000 |
|
|
Balance c/d |
34,000 |
26,000 |
15,000 |
Cash A/c (WN3) |
|
|
15,000 |
|
|
|
|
|
Premium for Goodwill A/c |
6,000 |
4,000 |
|
|
|
|
|
|
Revaluation A/c |
7,200 |
4,800 |
|
|
|
|
|
|
General Reserve A/c |
9,000 |
6,000 |
|
|
|
|
|
|
Workmen Compensation Reserve A/c |
4,800 |
3,200 |
|
|
|
34,000 |
26,000 |
15,000 |
|
34,000 |
26,000 |
15,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as at April 01, 2016 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Plant and Machinery |
10,000 |
||
A |
34,000 |
|
Land and Building |
8,000 |
|
B |
26,000 |
|
Add: Appreciation |
10,000 |
18,000 |
C |
15,000 |
75,000 |
Debtors |
12,000 |
|
Workmen Compensation Claim |
2,000 |
Less: Provision for DD |
3,000 |
9,000 |
|
Creditors |
10,000 |
Stock |
16,000 |
||
|
|
Cash (9,000 + 15,000 + 10,000) |
34,000 |
||
|
87,000 |
|
87,000 |
||
|
|
|
|
Working Notes:
WN 1: Calculation of adjusted capital balances of A and B
Adjusted Capital of A = 34,000
Adjusted Capital of B = 26,000
Combined Capital of A and B = Rs 60,000
WN 2: Calculation of Total Capital of New Firm
WN 3: Calculation of C’s Capital
View NCERT Solutions for all chapters of Class 15