Double Entry Book Keeping Ts Grewal (2016) Solutions for Class 12 Commerce Accountancy Chapter 5 Change In Profit Sharing Ratio are provided here with simple step-by-step explanations. These solutions for Change In Profit Sharing Ratio are extremely popular among class 12 Commerce students for Accountancy Change In Profit Sharing Ratio 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 5 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 5.28:
Question 1:
Answer:
Old Ratio = 2 : 2 : 1
Case 1:If C acquires 1/5th share from B
Case 2: If C acquires 1/5th share equally from A and B
Case 3: If A, B and C decide to share future profits and losses equally
Case 4: If A, B and C decide to share future profits and losses in the ratio of 2 : 1 : 2
Page No 5.28:
Question 2:
Old Ratio = 2 : 2 : 1
Case 1:If C acquires 1/5th share from B
Case 2: If C acquires 1/5th share equally from A and B
Case 3: If A, B and C decide to share future profits and losses equally
Case 4: If A, B and C decide to share future profits and losses in the ratio of 2 : 1 : 2
Answer:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Y’s Gain = 1/30
Z’s Gain = 4/30
X’s Sacrifice = 5/30
Page No 5.28:
Question 3:
Old Ratio (X, Y and Z) = 5 : 3 : 2
New Ratio (X, Y and Z) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
∴ Y’s Gain = 1/30
Z’s Gain = 4/30
X’s Sacrifice = 5/30
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
April 01
|
|||||
Case 1
|
B’s Capital A/c
|
Dr.
|
1,800
|
||
C’s Capital A/c
|
Dr.
|
7,200
|
|||
To A’s Capital A/c
|
9,000
|
||||
(Adjustment entry made for goodwill)
|
|||||
Case 2
|
A’s Capital A/c
|
Dr.
|
27,000
|
||
B’s Capital A/c
|
Dr.
|
16,200
|
|||
C’s Capital A/c
|
Dr.
|
10,800
|
|||
To Goodwill A/c
|
54,000
|
||||
(Existing goodwill written-off)
|
|||||
B’s Capital A/c
|
Dr.
|
1,800
|
|||
C’s Capital A/c
|
Dr.
|
7,200
|
|||
To A’s Capital A/c
|
9,000
|
||||
(Adjustment entry made for goodwill)
|
|||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Share in Goodwill
Page No 5.29:
Question 4:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
April 01
|
|||||
Case 1
|
B’s Capital A/c
|
Dr.
|
1,800
|
||
C’s Capital A/c
|
Dr.
|
7,200
|
|||
To A’s Capital A/c
|
9,000
|
||||
(Adjustment entry made for goodwill)
|
|||||
Case 2
|
A’s Capital A/c
|
Dr.
|
27,000
|
||
B’s Capital A/c
|
Dr.
|
16,200
|
|||
C’s Capital A/c
|
Dr.
|
10,800
|
|||
To Goodwill A/c
|
54,000
|
||||
(Existing goodwill written-off)
|
|||||
B’s Capital A/c
|
Dr.
|
1,800
|
|||
C’s Capital A/c
|
Dr.
|
7,200
|
|||
To A’s Capital A/c
|
9,000
|
||||
(Adjustment entry made for goodwill)
|
|||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Share in Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
|
3,000 |
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Old Ratio (A, B and C) = 3 : 2 : 1
New Ratio (A, B and C) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Goodwill of the firm = Rs 18,000
A will receive for goodwill =
C will give for goodwill =
Page No 5.29:
Question 5:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
|
3,000 |
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Old Ratio (A, B and C) = 3 : 2 : 1
New Ratio (A, B and C) = 1 : 1 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
Goodwill of the firm = Rs 18,000
A will receive for goodwill =
C will give for goodwill =
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
6,000 |
|
|
To B’s Capital A/c |
|
|
6,000 |
|
|
(Adjustment of profit for 2015-16 on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c |
Dr. |
|
9,000 |
|
|
To A’s Capital A/c |
|
|
9,000 |
|
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
B's Capital A/c |
6,000 |
– |
Balance b/d |
1,50,000 |
90,000 |
(Adjustment of profit) |
|
|
A's Capital A/c |
– |
6,000 |
A's Capital A/c |
– |
9,000 |
(Adjustment Profit) |
|
|
(Adjustment of Goodwill) |
|
|
B's Capital A/c |
9,000 |
– |
Balance c/d |
1,53,000 |
87,000 |
(Adjustment of Goodwill) |
|
|
|
1,59,000 |
96,000 |
|
1,59,000 |
96,000 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 2 : 1
New Ratio (A and B) = 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of Profit for 2015-16
WN 3 Calculation of New Goodwill
WN 4 Adjustment of Goodwill
Page No 5.29:
Question 6:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
6,000 |
|
|
To B’s Capital A/c |
|
|
6,000 |
|
|
(Adjustment of profit for 2015-16 on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
|
|
B’s Capital A/c |
Dr. |
|
9,000 |
|
|
To A’s Capital A/c |
|
|
9,000 |
|
|
(Adjustment of goodwill made on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
|
|
|
Cr. |
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
B's Capital A/c |
6,000 |
– |
Balance b/d |
1,50,000 |
90,000 |
(Adjustment of profit) |
|
|
A's Capital A/c |
– |
6,000 |
A's Capital A/c |
– |
9,000 |
(Adjustment Profit) |
|
|
(Adjustment of Goodwill) |
|
|
B's Capital A/c |
9,000 |
– |
Balance c/d |
1,53,000 |
87,000 |
(Adjustment of Goodwill) |
|
|
|
1,59,000 |
96,000 |
|
1,59,000 |
96,000 |
|
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 2 : 1
New Ratio (A and B) = 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of Profit for 2015-16
WN 3 Calculation of New Goodwill
WN 4 Adjustment of Goodwill
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | General Reserve A/c | Dr. |
36,000
|
||
Profit & Loss A/c | Dr. |
72,000
|
|||
To X’s Capital A/c |
54,000
|
||||
To Y’s Capital A/c |
36,000
|
||||
To Z’s Capital A/c |
18,000
|
||||
(Distributed balance of general reserve & profit & loss in old profit sharing ratio) | |||||
Page No 5.29:
Question 7:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | General Reserve A/c | Dr. |
36,000
|
||
Profit & Loss A/c | Dr. |
72,000
|
|||
To X’s Capital A/c |
54,000
|
||||
To Y’s Capital A/c |
36,000
|
||||
To Z’s Capital A/c |
18,000
|
||||
(Distributed balance of general reserve & profit & loss in old profit sharing ratio) | |||||
Answer:
Journal | |||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
|
A’s Capital A/c | Dr. |
18,000
|
||
|
B’s Capital A/c | Dr. |
12,000
|
||
|
To Profit & Loss A/c |
30,000
|
|||
|
(Distributed debit balance of Profit & Loss Account in old profit sharing ratio) | ||||
|
Page No 5.29:
Question 8:
Journal | |||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
|
A’s Capital A/c | Dr. |
18,000
|
||
|
B’s Capital A/c | Dr. |
12,000
|
||
|
To Profit & Loss A/c |
30,000
|
|||
|
(Distributed debit balance of Profit & Loss Account in old profit sharing ratio) | ||||
|
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) | |
2014 | |||||
Apr. 01 | C’s Capital A/c | Dr. |
9,000
|
||
To A’s Capital A/c |
4,500
|
||||
To B’s Capital A/c |
4,500
|
||||
(Adjustment entry made for credit balance of Profit and Loss Account) | |||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Share of Goodwill
Page No 5.29:
Question 9:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) | |
2014 | |||||
Apr. 01 | C’s Capital A/c | Dr. |
9,000
|
||
To A’s Capital A/c |
4,500
|
||||
To B’s Capital A/c |
4,500
|
||||
(Adjustment entry made for credit balance of Profit and Loss Account) | |||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Share of Goodwill
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | |||||
Case 1 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
To X’s Capital A/c |
6,000
|
||||
To Y’s Capital A/c |
3,600
|
||||
To Z’s Capital A/c |
2,400
|
||||
(Distributed workmen compensation reserve in old ratio) | |||||
Case 2 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
To Provision for Workmen Compensation Claim A/c |
1,500
|
||||
To X’s Capital A/c |
5,250
|
||||
To Y’s Capital A/c |
3,150
|
||||
To Z’s Capital A/c |
2,100
|
||||
(Provision created and excess amount is distributed among the partners in old ratio) | |||||
Case 3 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
Revaluation A/c |
10,000
|
||||
To Provision for Workmen Compensation Claim A/c |
22,000
|
||||
(Created provision for workmen compensation reserve) | |||||
X’s Capital A/c | Dr. |
5,000
|
|||
Y’s Capital A/c | Dr. |
3,000
|
|||
Z’s Capital A/c | Dr. |
2,000
|
|||
To Revaluation A/c |
10,000
|
||||
(Transferred loss of revaluation to Partners’ Capital Account in old ratio) | |||||
Page No 5.29:
Question 10:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) |
Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | |||||
Case 1 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
To X’s Capital A/c |
6,000
|
||||
To Y’s Capital A/c |
3,600
|
||||
To Z’s Capital A/c |
2,400
|
||||
(Distributed workmen compensation reserve in old ratio) | |||||
Case 2 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
To Provision for Workmen Compensation Claim A/c |
1,500
|
||||
To X’s Capital A/c |
5,250
|
||||
To Y’s Capital A/c |
3,150
|
||||
To Z’s Capital A/c |
2,100
|
||||
(Provision created and excess amount is distributed among the partners in old ratio) | |||||
Case 3 | Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
Revaluation A/c |
10,000
|
||||
To Provision for Workmen Compensation Claim A/c |
22,000
|
||||
(Created provision for workmen compensation reserve) | |||||
X’s Capital A/c | Dr. |
5,000
|
|||
Y’s Capital A/c | Dr. |
3,000
|
|||
Z’s Capital A/c | Dr. |
2,000
|
|||
To Revaluation A/c |
10,000
|
||||
(Transferred loss of revaluation to Partners’ Capital Account in old ratio) | |||||
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
April 01
|
|||||
Case: 1
|
Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
|
To Liability for Workmen Compensation A/c |
1,500
|
|||
|
To X’s Capital A/c |
5,250
|
|||
|
To Y’s Capital A/c |
3,150
|
|||
|
To Z’s Capital A/c |
2,100
|
|||
|
(Transferred to liability and excess amount is transferred to partners’ capital account in old ratio) | ||||
|
|||||
Case: 2
|
Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
|
Revaluation A/c |
10,000
|
|||
|
To Liability for Workmen Compensation A/c |
22,000
|
|||
|
(Transferred liability of workmen compensation reserve) | ||||
|
|||||
|
X’s Capital A/c | Dr. |
5,000
|
||
|
Y’s Capital A/c | Dr. |
3,000
|
||
|
Z’s Capital A/c | Dr. |
2,000
|
||
|
To Revaluation A/c |
10,000
|
|||
|
(Transferred loss of revaluation to Partners’ Capital Account) | ||||
|
Page No 5.30:
Question 11:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
April 01
|
|||||
Case: 1
|
Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
|
To Liability for Workmen Compensation A/c |
1,500
|
|||
|
To X’s Capital A/c |
5,250
|
|||
|
To Y’s Capital A/c |
3,150
|
|||
|
To Z’s Capital A/c |
2,100
|
|||
|
(Transferred to liability and excess amount is transferred to partners’ capital account in old ratio) | ||||
|
|||||
Case: 2
|
Workmen Compensation Reserve A/c | Dr. |
12,000
|
||
|
Revaluation A/c |
10,000
|
|||
|
To Liability for Workmen Compensation A/c |
22,000
|
|||
|
(Transferred liability of workmen compensation reserve) | ||||
|
|||||
|
X’s Capital A/c | Dr. |
5,000
|
||
|
Y’s Capital A/c | Dr. |
3,000
|
||
|
Z’s Capital A/c | Dr. |
2,000
|
||
|
To Revaluation A/c |
10,000
|
|||
|
(Transferred loss of revaluation to Partners’ Capital Account) | ||||
|
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | |||||
Case 1 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Case 2 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Case 3 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To Investments A/c |
5,000
|
||||
To X’s Capital A/c |
2,500
|
||||
To Y’s Capital A/c |
1,500
|
||||
To Z’s Capital A/c |
1,000
|
||||
(Transferred to investments and distributed excess amount in old ratio) | |||||
Case 4 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
Revaluation A/c | Dr. |
5,000
|
|||
To Investments A/c |
15,000
|
||||
(Amount transferred to Investments Account) | |||||
X’s Capital A/c | Dr. |
2,500
|
|||
Y’s Capital A/c | Dr. |
1,500
|
|||
Z’s Capital A/c | Dr. |
1,000
|
|||
To Revaluation A/c |
5,000
|
||||
(Revaluation loss transferred to Partners’ Capital Account in old ratio) | |||||
Case 5 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c | 3,000 | ||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Investments A/c | Dr. |
10,000
|
|||
To Revaluation A/c |
10,000
|
||||
(Profit on revaluation of investments transferred to Revaluation A/c) | |||||
Revaluation A/c | Dr. |
10,000
|
|||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed profit on revaluation among the partners in old ratio) | |||||
Page No 5.30:
Question 12:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
2016 | |||||
Apr. 01 | |||||
Case 1 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Case 2 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Case 3 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To Investments A/c |
5,000
|
||||
To X’s Capital A/c |
2,500
|
||||
To Y’s Capital A/c |
1,500
|
||||
To Z’s Capital A/c |
1,000
|
||||
(Transferred to investments and distributed excess amount in old ratio) | |||||
Case 4 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
Revaluation A/c | Dr. |
5,000
|
|||
To Investments A/c |
15,000
|
||||
(Amount transferred to Investments Account) | |||||
X’s Capital A/c | Dr. |
2,500
|
|||
Y’s Capital A/c | Dr. |
1,500
|
|||
Z’s Capital A/c | Dr. |
1,000
|
|||
To Revaluation A/c |
5,000
|
||||
(Revaluation loss transferred to Partners’ Capital Account in old ratio) | |||||
Case 5 | Investment Fluctuation Reserve A/c | Dr. |
10,000
|
||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c | 3,000 | ||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed investment fluctuation reserve in old ratio) | |||||
Investments A/c | Dr. |
10,000
|
|||
To Revaluation A/c |
10,000
|
||||
(Profit on revaluation of investments transferred to Revaluation A/c) | |||||
Revaluation A/c | Dr. |
10,000
|
|||
To X’s Capital A/c |
5,000
|
||||
To Y’s Capital A/c |
3,000
|
||||
To Z’s Capital A/c |
2,000
|
||||
(Distributed profit on revaluation among the partners in old ratio) | |||||
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
1 | X’s Capital A/c | Dr. |
12,000
|
||
Y’s Capital A/c | Dr. |
8,000
|
|||
Z’s Capital A/c | Dr. |
4,000
|
|||
To Goodwill A/c |
24,000
|
||||
(Goodwill written-off among the partners in old ratio) | |||||
2 | X’s Capital A/c | Dr. |
18,000
|
||
Y’s Capital A/c | Dr. |
12,000
|
|||
Z’s Capital A/c | Dr. |
6,000
|
|||
To Profit & Loss A/c |
36,000
|
||||
(Loss is distributed among partners in old ratio) | |||||
3 | General Reserve A/c | Dr. |
60,000
|
||
To X’s Capital A/c |
30,000
|
||||
To Y’s Capital A/c |
20,000
|
||||
To Z’s Capital A/c |
10,000
|
||||
(Distributed General Reserve in old ratio) | |||||
4 | Workmen Compensation Reserve A/c | Dr. |
30,000
|
||
To Liability against Workmen Compensation Reserve A/c |
12,000
|
||||
To X’s Capital A/c |
9,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
3,000
|
||||
(Liability against workmen compensation reserve is transferred and distributed excess reserve in old ratio) | |||||
5 | Z’s Capital A/c | Dr. |
30,000
|
||
To X’s Capital A/c |
30,000
|
||||
(Goodwill adjusted through partners’ capital accounts in sacrificing or gaining ratio) |
Working Notes: Calculation of Sacrificing or Gaining Ratio
Page No 5.30:
Question 13:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
1 | X’s Capital A/c | Dr. |
12,000
|
||
Y’s Capital A/c | Dr. |
8,000
|
|||
Z’s Capital A/c | Dr. |
4,000
|
|||
To Goodwill A/c |
24,000
|
||||
(Goodwill written-off among the partners in old ratio) | |||||
2 | X’s Capital A/c | Dr. |
18,000
|
||
Y’s Capital A/c | Dr. |
12,000
|
|||
Z’s Capital A/c | Dr. |
6,000
|
|||
To Profit & Loss A/c |
36,000
|
||||
(Loss is distributed among partners in old ratio) | |||||
3 | General Reserve A/c | Dr. |
60,000
|
||
To X’s Capital A/c |
30,000
|
||||
To Y’s Capital A/c |
20,000
|
||||
To Z’s Capital A/c |
10,000
|
||||
(Distributed General Reserve in old ratio) | |||||
4 | Workmen Compensation Reserve A/c | Dr. |
30,000
|
||
To Liability against Workmen Compensation Reserve A/c |
12,000
|
||||
To X’s Capital A/c |
9,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
3,000
|
||||
(Liability against workmen compensation reserve is transferred and distributed excess reserve in old ratio) | |||||
5 | Z’s Capital A/c | Dr. |
30,000
|
||
To X’s Capital A/c |
30,000
|
||||
(Goodwill adjusted through partners’ capital accounts in sacrificing or gaining ratio) |
Working Notes: Calculation of Sacrificing or Gaining Ratio
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
1
|
Workmen Compensation Reserve A/c | Dr. |
25,000
|
||
|
To Claim against Workmen Compensation Reserve A/c |
5,000
|
|||
|
To A’s Capital A/c |
10,000
|
|||
|
To B’s Capital A/c |
6,000
|
|||
|
To C’s Capital A/c |
4,000
|
|||
|
(Claim against workmen compensation reserve is transferred and distributed excess reserve in old ratio) | ||||
|
|||||
2.
|
Investment Fluctuation Reserve A/c | Dr. |
15,000
|
||
|
To Investments A/c |
5,000
|
|||
|
To A’s Capital A/c |
5,000
|
|||
|
To B’s Capital A/c |
3,000
|
|||
|
To C’s Capital A/c |
2,000
|
|||
|
(Transferred and distributed Investment Fluctuation Reserve in old ratio) | ||||
|
|||||
3
|
General Reserve A/c | Dr. |
50,000
|
||
To A’s Capital A/c |
25,000
|
||||
|
To B’s Capital A/c |
15,000
|
|||
|
To C’s Capital A/c |
10,000
|
|||
|
(Distributed general reserve in old ratio) | ||||
|
|||||
4
|
Profit & Loss A/c | Dr. |
40,000
|
||
|
To A’s Capital A/c |
20,000
|
|||
|
To B’s Capital A/c |
12,000
|
|||
|
To C’s Capital A/c |
8,000
|
|||
|
(Distributed profits in old ratio) | ||||
|
|||||
5
|
A’s Capital A/c | Dr. |
10,000
|
||
|
B’s Capital A/c | Dr. |
6,000
|
||
|
C’s Capital A/c | Dr. |
4,000
|
||
|
To Advertisement Expenses A/c |
20,000
|
|||
|
(Deferred revenue expenditure distributed among the partners in old ratio) | ||||
|
Page No 5.30:
Question 14:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
1
|
Workmen Compensation Reserve A/c | Dr. |
25,000
|
||
|
To Claim against Workmen Compensation Reserve A/c |
5,000
|
|||
|
To A’s Capital A/c |
10,000
|
|||
|
To B’s Capital A/c |
6,000
|
|||
|
To C’s Capital A/c |
4,000
|
|||
|
(Claim against workmen compensation reserve is transferred and distributed excess reserve in old ratio) | ||||
|
|||||
2.
|
Investment Fluctuation Reserve A/c | Dr. |
15,000
|
||
|
To Investments A/c |
5,000
|
|||
|
To A’s Capital A/c |
5,000
|
|||
|
To B’s Capital A/c |
3,000
|
|||
|
To C’s Capital A/c |
2,000
|
|||
|
(Transferred and distributed Investment Fluctuation Reserve in old ratio) | ||||
|
|||||
3
|
General Reserve A/c | Dr. |
50,000
|
||
To A’s Capital A/c |
25,000
|
||||
|
To B’s Capital A/c |
15,000
|
|||
|
To C’s Capital A/c |
10,000
|
|||
|
(Distributed general reserve in old ratio) | ||||
|
|||||
4
|
Profit & Loss A/c | Dr. |
40,000
|
||
|
To A’s Capital A/c |
20,000
|
|||
|
To B’s Capital A/c |
12,000
|
|||
|
To C’s Capital A/c |
8,000
|
|||
|
(Distributed profits in old ratio) | ||||
|
|||||
5
|
A’s Capital A/c | Dr. |
10,000
|
||
|
B’s Capital A/c | Dr. |
6,000
|
||
|
C’s Capital A/c | Dr. |
4,000
|
||
|
To Advertisement Expenses A/c |
20,000
|
|||
|
(Deferred revenue expenditure distributed among the partners in old ratio) | ||||
|
Answer:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Investment Fluctuation Reserve A/c | Dr. |
15,000
|
|||
Revaluation A/c | Dr. |
35,000
|
|||
To Investments A/c |
50,000
|
||||
(Transferred fall in the value of investments from reserve and revaluation) | |||||
X’s Capital A/c | Dr. |
17,500
|
|||
Y’s Capital A/c | Dr. |
10,500
|
|||
Z’s Capital A/c | Dr. |
7,000
|
|||
To Revaluation A/c |
35,000
|
||||
(Transferred loss on revaluation of investments to partners’ capital accounts) | |||||
Workmen Compensation Reserve A/c | Dr. |
25,000
|
|||
To Claim for Workmen Compensation Reserve A/c |
5,000
|
||||
To X’s Capital A/c |
10,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
4,000
|
||||
(Transferred to Claim and distributed excess reserve in old ratio) | |||||
General Reserve A/c | Dr. |
1,50,000
|
|||
To X’s Capital A/c |
75,000
|
||||
To Y’s Capital A/c |
45,000
|
||||
To Z’s Capital A/c |
30,000
|
||||
(Distributed general reserve among partners in old ratio) | |||||
Profit & Loss A/c | Dr. |
20,000
|
|||
To X’s Capital A/c |
10,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
4,000
|
||||
(Distributed profits among partners in old ratio) | |||||
Page No 5.31:
Question 15:
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Investment Fluctuation Reserve A/c | Dr. |
15,000
|
|||
Revaluation A/c | Dr. |
35,000
|
|||
To Investments A/c |
50,000
|
||||
(Transferred fall in the value of investments from reserve and revaluation) | |||||
X’s Capital A/c | Dr. |
17,500
|
|||
Y’s Capital A/c | Dr. |
10,500
|
|||
Z’s Capital A/c | Dr. |
7,000
|
|||
To Revaluation A/c |
35,000
|
||||
(Transferred loss on revaluation of investments to partners’ capital accounts) | |||||
Workmen Compensation Reserve A/c | Dr. |
25,000
|
|||
To Claim for Workmen Compensation Reserve A/c |
5,000
|
||||
To X’s Capital A/c |
10,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
4,000
|
||||
(Transferred to Claim and distributed excess reserve in old ratio) | |||||
General Reserve A/c | Dr. |
1,50,000
|
|||
To X’s Capital A/c |
75,000
|
||||
To Y’s Capital A/c |
45,000
|
||||
To Z’s Capital A/c |
30,000
|
||||
(Distributed general reserve among partners in old ratio) | |||||
Profit & Loss A/c | Dr. |
20,000
|
|||
To X’s Capital A/c |
10,000
|
||||
To Y’s Capital A/c |
6,000
|
||||
To Z’s Capital A/c |
4,000
|
||||
(Distributed profits among partners in old ratio) | |||||
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
Apr. 01
|
Revaluation A/c | Dr. |
28,600
|
||
|
To Stock A/c |
10,000
|
|||
|
To Machinery A/c |
15,900
|
|||
|
To Provision for Doubtful Debts A/c |
2,700
|
|||
|
(Value of assets decreased and provision is created for debtors) | ||||
|
|||||
Apr. 01
|
Land & Building A/c | Dr. |
40,000
|
||
|
Creditors A/c | Dr. |
3,000
|
||
|
To Revaluation A/c |
43,000
|
|||
|
(Value of Land & Building and creditors increased) | ||||
|
|||||
Apr. 01
|
Revaluation A/c | Dr. |
14,400
|
||
|
To A’s Capital A/c |
5,400
|
|||
|
To B’s Capital A/c |
5,400
|
|||
|
To C’s Capital A/c |
3,600
|
|||
|
(Profit made on revaluation transferred to Partners’ Capital Account) | ||||
|
|||||
Apr. 01
|
A’s Capital A/c | Dr. |
9,000
|
||
|
B’s Capital A/c | Dr. |
9,000
|
||
|
C’s Capital A/c | Dr. |
6,000
|
||
|
To Advertisement Expenditure A/c |
24,000
|
|||
|
(Distributed deferred revenue expenditure) | ||||
|
|||||
Apr. 01
|
A’s Capital A/c | Dr. |
5,000
|
||
|
To B’s Capital A/c |
3,000
|
|||
|
To C’s Capital A/c |
2,000
|
|||
|
(Adjustment entry made for general reserve through partners’ capital accounts) | ||||
|
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
Page No 5.31:
Question 16:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
|||||
Apr. 01
|
Revaluation A/c | Dr. |
28,600
|
||
|
To Stock A/c |
10,000
|
|||
|
To Machinery A/c |
15,900
|
|||
|
To Provision for Doubtful Debts A/c |
2,700
|
|||
|
(Value of assets decreased and provision is created for debtors) | ||||
|
|||||
Apr. 01
|
Land & Building A/c | Dr. |
40,000
|
||
|
Creditors A/c | Dr. |
3,000
|
||
|
To Revaluation A/c |
43,000
|
|||
|
(Value of Land & Building and creditors increased) | ||||
|
|||||
Apr. 01
|
Revaluation A/c | Dr. |
14,400
|
||
|
To A’s Capital A/c |
5,400
|
|||
|
To B’s Capital A/c |
5,400
|
|||
|
To C’s Capital A/c |
3,600
|
|||
|
(Profit made on revaluation transferred to Partners’ Capital Account) | ||||
|
|||||
Apr. 01
|
A’s Capital A/c | Dr. |
9,000
|
||
|
B’s Capital A/c | Dr. |
9,000
|
||
|
C’s Capital A/c | Dr. |
6,000
|
||
|
To Advertisement Expenditure A/c |
24,000
|
|||
|
(Distributed deferred revenue expenditure) | ||||
|
|||||
Apr. 01
|
A’s Capital A/c | Dr. |
5,000
|
||
|
To B’s Capital A/c |
3,000
|
|||
|
To C’s Capital A/c |
2,000
|
|||
|
(Adjustment entry made for general reserve through partners’ capital accounts) | ||||
|
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
Answer:
(i) If revised values are not to be shown in the books
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Z’s Capital A/c | Dr. |
10,500
|
|||
To X’s Capital A/c |
10,500
|
||||
(Revaluation adjusted through capitals) | |||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2 Calculation of Profit or Loss on Revaluation
Increase in value of Land & Building | = |
50,000
|
Decrease in value of Creditors | = |
10,000
|
Less: Decrease in value of P & M
|
= |
10,000
|
Less: Increase in O/s Expenses
|
= |
15,000
|
Profit on Revaluation | = |
Rs 35,000
|
(ii) If revised values are to be shown in the books
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
|
Revaluation A/c | Dr. |
10,000
|
||
|
To Plant & Machinery A/c |
10,000
|
|||
|
(Decrease in the value of plant & machinery) | ||||
|
|||||
|
Land & Building A/c | Dr. |
50,000
|
||
|
To Revaluation A/c |
50,000
|
|||
|
(Increase in the value of Land & Building) | ||||
Trade Creditors A/c | Dr. |
10,000
|
|||
|
To Revaluation A/c |
10,000
|
|||
|
(Decrease in the value of creditors) | ||||
|
|||||
|
Revaluation A/c | Dr. |
15,000
|
||
|
To Outstanding Expenses A/c |
15,000
|
|||
|
(Increase in Outstanding expenses) | ||||
|
|||||
Revaluation A/c | Dr. |
35,000
|
|||
|
To X’s Capital A/c |
17,500
|
|||
|
To Y’s Capital A/c |
10,500
|
|||
|
To Z’s Capital A/c |
7,000
|
|||
|
(Profit on revaluation transferred to Partners’ Capital Accounts) | ||||
|
Page No 5.32:
Question 17:
(i) If revised values are not to be shown in the books
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
Z’s Capital A/c | Dr. |
10,500
|
|||
To X’s Capital A/c |
10,500
|
||||
(Revaluation adjusted through capitals) | |||||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2 Calculation of Profit or Loss on Revaluation
Increase in value of Land & Building | = |
50,000
|
Decrease in value of Creditors | = |
10,000
|
Less: Decrease in value of P & M
|
= |
10,000
|
Less: Increase in O/s Expenses
|
= |
15,000
|
Profit on Revaluation | = |
Rs 35,000
|
(ii) If revised values are to be shown in the books
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
|
Revaluation A/c | Dr. |
10,000
|
||
|
To Plant & Machinery A/c |
10,000
|
|||
|
(Decrease in the value of plant & machinery) | ||||
|
|||||
|
Land & Building A/c | Dr. |
50,000
|
||
|
To Revaluation A/c |
50,000
|
|||
|
(Increase in the value of Land & Building) | ||||
Trade Creditors A/c | Dr. |
10,000
|
|||
|
To Revaluation A/c |
10,000
|
|||
|
(Decrease in the value of creditors) | ||||
|
|||||
|
Revaluation A/c | Dr. |
15,000
|
||
|
To Outstanding Expenses A/c |
15,000
|
|||
|
(Increase in Outstanding expenses) | ||||
|
|||||
Revaluation A/c | Dr. |
35,000
|
|||
|
To X’s Capital A/c |
17,500
|
|||
|
To Y’s Capital A/c |
10,500
|
|||
|
To Z’s Capital A/c |
7,000
|
|||
|
(Profit on revaluation transferred to Partners’ Capital Accounts) | ||||
|
Answer:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
White’s Capital A/c | Dr. |
16,000
|
||
Apr. 01
|
To Black’s Capital A/c |
16,000
|
|||
|
(Adjustment entry made for change in ratio) | ||||
|
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of amount to be distributed
\>\>
Page No 5.32:
Question 18:
Journal
|
|||||
Date
|
Particulars
|
L.F.
|
Debit
Amount
(Rs)
|
Credit
Amount
(Rs)
|
|
2016
|
White’s Capital A/c | Dr. |
16,000
|
||
Apr. 01
|
To Black’s Capital A/c |
16,000
|
|||
|
(Adjustment entry made for change in ratio) | ||||
|
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of amount to be distributed
\>\>
Answer:
Revaluation Account
|
||||
Particulars
|
Amount
(Rs)
|
Particulars
|
Amount (Rs)
|
|
Provision for Doubtful Debts |
10,000
|
Land & Building |
1,50,000
|
|
Depreciation on Furniture |
50,000
|
|||
Profit transferred to: | ||||
X’s Capital A/c |
60,000
|
|||
Y’s Capital A/c |
30,000
|
90,000
|
||
1,50,000
|
1,50,000
|
|||
Partners’ Capital Accounts |
||||||||||
Dr. |
Cr.
|
|||||||||
Date
|
Particulars
|
X
|
Y
|
Date
|
Particulars
|
X
|
Y
|
|||
2016
|
2016
|
|||||||||
April 01 | Balance c/d |
7,10,000
|
3,80,000
|
April 01
|
Balance b/d |
6,50,000
|
3,50,000
|
|||
Revaluation A/c |
60,000
|
30,000
|
||||||||
7,10,000
|
3,80,000
|
7,10,000
|
3,80,000
|
|||||||
Page No 5.32:
Question 19:
Revaluation Account
|
||||
Particulars
|
Amount
(Rs)
|
Particulars
|
Amount (Rs)
|
|
Provision for Doubtful Debts |
10,000
|
Land & Building |
1,50,000
|
|
Depreciation on Furniture |
50,000
|
|||
Profit transferred to: | ||||
X’s Capital A/c |
60,000
|
|||
Y’s Capital A/c |
30,000
|
90,000
|
||
1,50,000
|
1,50,000
|
|||
Partners’ Capital Accounts |
||||||||||
Dr. |
Cr.
|
|||||||||
Date
|
Particulars
|
X
|
Y
|
Date
|
Particulars
|
X
|
Y
|
|||
2016
|
2016
|
|||||||||
April 01 | Balance c/d |
7,10,000
|
3,80,000
|
April 01
|
Balance b/d |
6,50,000
|
3,50,000
|
|||
Revaluation A/c |
60,000
|
30,000
|
||||||||
7,10,000
|
3,80,000
|
7,10,000
|
3,80,000
|
|||||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
4,000 |
|
|
To B’s Capital A/c |
|
|
|
4,000 |
|
(Adjustment of General Reserve on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
B’s Capital A/c |
4,000 |
– |
Balance b/d |
2,40,000 |
1,20,000 |
|
(Adjustment of General Reserve) |
|
|
Revaluation (Profit) |
18,000 |
13,500 |
|
Balance c/d |
2,54,000 |
1,37,500 |
A’s Capital A/c |
– |
4,000 |
|
|
|
|
(Adjustment of General Reserve) |
|
|
|
|
2,58,000 |
1,37,500 |
|
2,58,000 |
1,37,500 |
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sunday Creditors (28,000 –3,700) |
24,300 |
Cash |
20,000 |
||
General Reserve |
42,000 |
Sundry Debtors |
1,20,000 |
|
|
Capital Account |
|
Less: Provision for Doubtful Debts |
(7,200) |
1,12,800 |
|
A |
2,54,000 |
|
Stock |
1,90,000 |
|
B |
1,37,500 |
3,91,500 |
Fixed Assets (1,50,000 – 15,000) |
1,35,000 |
|
|
4,57,800 |
|
4,57,800 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 4 : 3
New Ratio (A and B) = 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve
WN 3
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
15,000 |
Stock |
50,000 |
|
Provision for Doubtful Debts (1,20,000 × 6%) |
7,200 |
Creditors |
3,700 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
18,000 |
|
|
|
B’s Capital A/c |
13,500 |
31,500 |
|
|
|
53,700 |
|
53,700 |
|
|
|
|
|
Page No 5.33:
Question 20:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
4,000 |
|
|
To B’s Capital A/c |
|
|
|
4,000 |
|
(Adjustment of General Reserve on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
||||||
Dr. |
Cr. |
|||||
Particulars |
A |
B |
Particulars |
A |
B |
|
B’s Capital A/c |
4,000 |
– |
Balance b/d |
2,40,000 |
1,20,000 |
|
(Adjustment of General Reserve) |
|
|
Revaluation (Profit) |
18,000 |
13,500 |
|
Balance c/d |
2,54,000 |
1,37,500 |
A’s Capital A/c |
– |
4,000 |
|
|
|
|
(Adjustment of General Reserve) |
|
|
|
|
2,58,000 |
1,37,500 |
|
2,58,000 |
1,37,500 |
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Sunday Creditors (28,000 –3,700) |
24,300 |
Cash |
20,000 |
||
General Reserve |
42,000 |
Sundry Debtors |
1,20,000 |
|
|
Capital Account |
|
Less: Provision for Doubtful Debts |
(7,200) |
1,12,800 |
|
A |
2,54,000 |
|
Stock |
1,90,000 |
|
B |
1,37,500 |
3,91,500 |
Fixed Assets (1,50,000 – 15,000) |
1,35,000 |
|
|
4,57,800 |
|
4,57,800 |
||
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 4 : 3
New Ratio (A and B) = 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Adjustment of General Reserve
WN 3
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Fixed Assets |
15,000 |
Stock |
50,000 |
|
Provision for Doubtful Debts (1,20,000 × 6%) |
7,200 |
Creditors |
3,700 |
|
Profit transferred to: |
|
|
|
|
A’s Capital A/c |
18,000 |
|
|
|
B’s Capital A/c |
13,500 |
31,500 |
|
|
|
53,700 |
|
53,700 |
|
|
|
|
|
Answer:
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Y’s Capital |
10,000
|
– | – | Balance b/d |
6,00,000
|
4,00,000
|
2,00,000
|
||
Z’s Capital |
5,000
|
– | – | X’s Capital | – |
10,000
|
5,000
|
||
Balance c/d |
5,85,000
|
4,10,000
|
2,05,000
|
||||||
6,00,000
|
4,10,000
|
2,05,000
|
6,00,000
|
4,10,000
|
2,05,000
|
||||
Revised Balance Sheet as at April 01, 2016
|
||||
Liabilities
|
Amount
(Rs)
|
Assets
|
Amount (Rs)
|
|
Capital : | Land & Building |
7,00,000
|
||
X |
5,85,000
|
Plant & Machinery |
3,00,000
|
|
Y |
4,10,000
|
Stock |
2,00,000
|
|
Z |
2,05,000
|
12,00,000
|
Debtors |
70,000
|
Creditors |
1,00,000
|
Cash at Bank |
30,000
|
|
13,00,000
|
13,00,000
|
|||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Profit or Loss on Revaluation
Plant & Machinery |
=
|
Rs | 30,000 |
Land & Building |
=
|
Rs | 1,50,000 |
Stock |
=
|
Rs | (30,000) |
Total |
=
|
Rs | 1,50,000 |
ââ
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. |
15,000
|
|||
To Y’s Capital A/c |
10,000
|
||||
To Z’s Capital A/c |
5,000
|
||||
(Adjustment entry made for change in ratio) | |||||
Page No 5.33:
Question 21:
Partners’ Capital Accounts
|
|||||||||
Dr. |
Cr.
|
||||||||
Particulars
|
X
|
Y
|
Z
|
Particulars
|
X
|
Y
|
Z
|
||
Y’s Capital |
10,000
|
– | – | Balance b/d |
6,00,000
|
4,00,000
|
2,00,000
|
||
Z’s Capital |
5,000
|
– | – | X’s Capital | – |
10,000
|
5,000
|
||
Balance c/d |
5,85,000
|
4,10,000
|
2,05,000
|
||||||
6,00,000
|
4,10,000
|
2,05,000
|
6,00,000
|
4,10,000
|
2,05,000
|
||||
Revised Balance Sheet as at April 01, 2016
|
||||
Liabilities
|
Amount
(Rs)
|
Assets
|
Amount (Rs)
|
|
Capital : | Land & Building |
7,00,000
|
||
X |
5,85,000
|
Plant & Machinery |
3,00,000
|
|
Y |
4,10,000
|
Stock |
2,00,000
|
|
Z |
2,05,000
|
12,00,000
|
Debtors |
70,000
|
Creditors |
1,00,000
|
Cash at Bank |
30,000
|
|
13,00,000
|
13,00,000
|
|||
Working Notes:
WN1: Calculation of Sacrificing or Gaining Ratio
WN2: Calculation of Profit or Loss on Revaluation
Plant & Machinery |
=
|
Rs | 30,000 |
Land & Building |
=
|
Rs | 1,50,000 |
Stock |
=
|
Rs | (30,000) |
Total |
=
|
Rs | 1,50,000 |
ââ
Journal | |||||
Date | Particulars | L.F. | Debit Amount (Rs) | Credit Amount (Rs) | |
X’s Capital A/c | Dr. |
15,000
|
|||
To Y’s Capital A/c |
10,000
|
||||
To Z’s Capital A/c |
5,000
|
||||
(Adjustment entry made for change in ratio) | |||||
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A's Capital A/c |
Dr. |
|
2,500 |
|
|
To C's Capital A/c |
|
|
|
2,500 |
|
(Revaluation Profit and General Reserve adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
40,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
2,10,000 |
|
General Reserve |
75,000 |
Stock |
3,00,000 |
|
Capital Accounts: |
|
Furniture |
60,000 |
|
A |
3,97,500 |
|
Plant and Machinery |
4,20,000 |
B |
3,00,000 |
|
|
|
C |
2,02,500 |
9,00,000 |
|
|
|
10,30,000 |
|
10,30,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A, B and C) = 5 : 4 : 3
New Ratio (A, B and C) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
|
Increase in Stock |
60,000 |
(Cr.) |
Decrease in Furniture |
(12,000) |
(Dr.) |
Decrease in Plant and Machinery |
(20,000) |
(Dr.) |
Increase in Provision for Debtors | (10,000) (Dr.) | |
Increase in Outstanding Expenses |
(3,000) |
(Dr.) |
Profit on Revaluation |
15,000 |
(Cr.) |
|
|
|
WN 3 Adjustment of Profit on Revaluation and General Reserve
Amount for Adjustment = Profit on Revaluation + General Reserve = 15,000 + 75,000 = Rs 90,000
WN 4
Partners’ Capital Accounts |
|||||||
Dr. |
Cr. |
||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
C's Capital A/c |
2,500 |
– |
– |
Balance c/d |
4,00,000 |
3,00,000 |
2,00,000 |
|
|
|
|
A's Capital A/c |
– |
– |
2,500 |
Balance c/d |
3,97,500 |
3,00,000 |
2,02,500 |
|
|
|
|
|
4,00,000 |
3,00,000 |
2,02,500 |
|
4,00,000 |
3,00,000 |
2,02,500 |
|
|
|
|
|
|
|
|
Page No 5.34:
Question 22:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A's Capital A/c |
Dr. |
|
2,500 |
|
|
To C's Capital A/c |
|
|
|
2,500 |
|
(Revaluation Profit and General Reserve adjusted on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
Balance Sheet |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
40,000 |
Cash at Bank |
40,000 |
|
Outstanding Expenses |
15,000 |
Sundry Debtors |
2,10,000 |
|
General Reserve |
75,000 |
Stock |
3,00,000 |
|
Capital Accounts: |
|
Furniture |
60,000 |
|
A |
3,97,500 |
|
Plant and Machinery |
4,20,000 |
B |
3,00,000 |
|
|
|
C |
2,02,500 |
9,00,000 |
|
|
|
10,30,000 |
|
10,30,000 |
|
|
|
|
|
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A, B and C) = 5 : 4 : 3
New Ratio (A, B and C) = 4 : 3 : 2
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
WN 2 Calculation of Profit or Loss on Revaluation
Particulars |
Amount (Rs) |
|
Increase in Stock |
60,000 |
(Cr.) |
Decrease in Furniture |
(12,000) |
(Dr.) |
Decrease in Plant and Machinery |
(20,000) |
(Dr.) |
Increase in Provision for Debtors | (10,000) (Dr.) | |
Increase in Outstanding Expenses |
(3,000) |
(Dr.) |
Profit on Revaluation |
15,000 |
(Cr.) |
|
|
|
WN 3 Adjustment of Profit on Revaluation and General Reserve
Amount for Adjustment = Profit on Revaluation + General Reserve = 15,000 + 75,000 = Rs 90,000
WN 4
Partners’ Capital Accounts |
|||||||
Dr. |
Cr. |
||||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
C's Capital A/c |
2,500 |
– |
– |
Balance c/d |
4,00,000 |
3,00,000 |
2,00,000 |
|
|
|
|
A's Capital A/c |
– |
– |
2,500 |
Balance c/d |
3,97,500 |
3,00,000 |
2,02,500 |
|
|
|
|
|
4,00,000 |
3,00,000 |
2,02,500 |
|
4,00,000 |
3,00,000 |
2,02,500 |
|
|
|
|
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
2016 |
|
|
|
|
|
March 31 |
X’s Capital A/c |
Dr. |
|
20,000 |
|
|
Y’s Capital A/c |
Dr. |
|
30,000 |
|
|
Z’s Capital A/c |
Dr. |
|
10,000 |
|
|
To Goodwill A/c |
|
|
|
60,000 |
|
(Existing goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
1,55,000 |
|
|
To Y’s Capital A/c |
|
|
|
1,55,000 |
|
(Goodwill adjusted by debiting gaining partner and crediting sacrificing partner) |
|
|
|
|
|
|
|
|
|
|
|
Land and Building A/c |
Dr. |
|
1,25,000 |
|
|
To Revaluation A/c |
|
|
|
1,25,000 |
|
(Increase in value of land & building recorded in Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
67,500 |
|
|
To Stock A/c |
|
|
|
40,000 |
|
To Provision for Doubtful Debts A/c |
|
|
|
27,500 |
|
(Decrease in value of stock and increase in provision for doubtful debts, recorded in revaluation) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
57,500 |
|
|
To X’s Capital A/c |
|
|
|
19,167 |
|
To Y’s Capital A/c |
|
|
|
28,750 |
|
To Z’s Capital A/c |
|
|
|
9,583 |
|
(Profit on revaluation transferred to Partners’ Capital Accounts in old profit sharing ratio of 2 : 3 : 1) |
|
|
|
|
|
|
|
|
|
|
|
Workmen Compensation Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To Workmen Compensation Claim A/c |
|
|
|
40,000 |
|
To X’s Capital A/c |
|
|
|
20,000 |
|
To Y’s Capital A/c |
|
|
|
30,000 |
|
To Z’s Capital A/c |
|
|
|
10,000 |
|
(Excess balance of WCR transferred to partners’ capital account) |
|
|
|
|
|
|
|
|
|
|
|
Investments Fluctuation Reserve A/c |
Dr. |
|
50,000 |
|
|
To Investments A/c |
|
|
|
20,000 |
|
To X’s Capital A/c |
|
|
|
10,000 |
|
To Y’s Capital A/c |
|
|
|
15,000 |
|
To Z’s Capital A/c |
|
|
|
5,000 |
|
(Decrease in market value of investments settled through IFF and excess balance is transferred to partners’ capital accounts) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
20,000 |
|
|
Y’s Capital A/c |
Dr. |
|
30,000 |
|
|
Z’s Capital A/c |
Dr. |
|
10,000 |
|
|
To Advertisement A/c |
|
|
|
60,000 |
|
(Balance of Advertisement Suspense Account is debited to Partners’ Capital Account) |
|
|
|
|
|
|
|
|
|
Revaluation Account |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
Stock |
40,000 |
Land and Building |
1,25,000 |
|||
Provision for Doubtful Debts |
27,500 |
|
|
|||
Profit transferred to: |
|
|
|
|||
X’s Capital A/c |
19,167 |
|
|
|
||
Y’s Capital A/c |
28,750 |
|
|
|
||
Z’s Capital A/c |
9,583 |
57,500 |
|
|
||
|
1,25,000 |
|
1,25,000 |
|||
|
|
|
|
|||
Partners’ Capital Accounts |
||||||||
Dr. |
|
Cr. |
||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Y’s Capital A/c |
1,55,000 |
|
|
Balance b/d |
5,00,000 |
10,00,000 |
15,00,000 |
|
Advertisement Suspense A/c |
20,000 |
30,000 |
10,000 |
Revaluation A/c |
19,167 |
28,750 |
9,583 |
|
Goodwill A/c |
20,000 |
30,000 |
10,000 |
Workmen Compensation Reserve |
20,000 |
30,000 |
10,000 |
|
Balance c/d |
3,54,167 |
11,68,750 |
15,04,583 |
Investment Fluctuation Reserve |
10,000 |
15,000 |
5,000 |
|
|
|
|
|
X’s Capital A/c |
|
1,55,000 |
|
|
|
|
|
|
|
|
|
|
|
|
5,49,167 |
12,28,750 |
15,24,583 |
|
5,49,167 |
12,28,750 |
15,24,583 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as at March 31, 2016 |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Investments |
2,30,000 |
||
X |
3,54,167 |
|
Land and Building |
12,50,000 |
|
Y |
11,68,750 |
|
Add: Undervaluation |
1,25,000 |
13,75,000 |
Z |
15,04,583 |
30,27,500 |
Stock |
4,00,000 |
|
Workmen Compensation Claim |
40,000 |
Less: Overvaluation |
40,000 |
3,60,000 |
|
Employees Provident Fund |
50,000 |
Debtors |
15,50,000 |
|
|
Creditors |
18,00,000 |
Less: Prov. For D/D |
77,500 |
14,72,500 |
|
|
|
Bank |
14,80,000 |
||
|
49,17,500 |
|
49,17,500 |
||
|
|
|
|
Working Notes:
WN 1: Calculation of sacrificing/gaining ratio
WN 2: Calculation of goodwill
View NCERT Solutions for all chapters of Class 15