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Page No 4.100:
Question 68:
Answer:
Revaluation Accounts |
||||
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, 2014 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)
Page No 4.100:
Question 69:
Revaluation Accounts |
||||
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, 2014 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)
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery |
3,000 |
Building |
7,000 |
Provision for Doubtful Debts |
500 |
|
|
Creditors |
1,500 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,200 |
|
|
B Capital |
800 |
|
|
|
|
|
|
|
7,000 |
|
7,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
20,000 |
25,000 |
|
|
|
|
|
Revaluation (Profit) |
1,200 |
800 |
|
|
|
|
|
Bank |
|
|
25,000 |
Balance c/d |
26,200 |
30,800 |
25,000 |
Premium for Goodwill |
5,000 |
5,000 |
|
|
26,200 |
30,800 |
25,000 |
|
26,200 |
30,800 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors (15,000 + 1,500) |
16,500 |
Building (18,000 + 7,000) |
25,000 |
||
Capital A/cs: |
|
Machinery (15,000 – 3,000) |
12,000 |
||
A |
26,200 |
|
Stock |
12,000 |
|
B |
30,800 |
|
Debtors |
10,000 |
|
C |
25,000 |
82,000 |
Less: Prov. for D. Debts |
500 |
9,500 |
|
|
Bank (5,000 + 35,000) |
40,000 |
||
|
98,500 |
|
98,500 |
||
|
|
|
|
Working Notes-
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Distribution on Premium for Goodwill
WN3
Distribution of Revaluation Profit (in old ratio)
Page No 4.101:
Question 70:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery |
3,000 |
Building |
7,000 |
Provision for Doubtful Debts |
500 |
|
|
Creditors |
1,500 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,200 |
|
|
B Capital |
800 |
|
|
|
|
|
|
|
7,000 |
|
7,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
20,000 |
25,000 |
|
|
|
|
|
Revaluation (Profit) |
1,200 |
800 |
|
|
|
|
|
Bank |
|
|
25,000 |
Balance c/d |
26,200 |
30,800 |
25,000 |
Premium for Goodwill |
5,000 |
5,000 |
|
|
26,200 |
30,800 |
25,000 |
|
26,200 |
30,800 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors (15,000 + 1,500) |
16,500 |
Building (18,000 + 7,000) |
25,000 |
||
Capital A/cs: |
|
Machinery (15,000 – 3,000) |
12,000 |
||
A |
26,200 |
|
Stock |
12,000 |
|
B |
30,800 |
|
Debtors |
10,000 |
|
C |
25,000 |
82,000 |
Less: Prov. for D. Debts |
500 |
9,500 |
|
|
Bank (5,000 + 35,000) |
40,000 |
||
|
98,500 |
|
98,500 |
||
|
|
|
|
Working Notes-
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Distribution on Premium for Goodwill
WN3
Distribution of Revaluation Profit (in old ratio)
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (2,000 – 400) |
1,600 |
|
|
Bank (charges) |
200 |
Prepaid Insurance |
600 |
Building |
3,000 |
|
|
Creditors |
800 |
Loss transferred to |
|
|
|
A Capital |
3,000 |
|
|
B Capital |
2,000 |
|
|
|
|
|
5,600 |
|
5,600 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
3,000 |
2,000 |
|
Balance b/d |
60,000 |
40,000 |
|
|
|
|
|
Bank |
|
|
30,000 |
|
|
|
|
Premium for Goodwill |
6,000 |
4,000 |
|
Balance c/d |
63,000 |
42,000 |
30,000 |
|
|
|
|
|
66,000 |
44,000 |
30,000 |
|
66,000 |
44,000 |
30,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Building (50,000 – 3,000) |
47,000 |
|
A |
63,000 |
|
Plant and Machinery |
30,000 |
B |
42,000 |
|
Stock (20,000 – 1,600) |
18,400 |
C |
30,000 |
1,35,000 |
Debtors |
10,000 |
Creditors (20,000 + 800) |
20,800 |
Bank |
49,800 |
|
|
|
Prepaid Insurance |
600 |
|
|
1,55,800 |
|
1,55,800 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
10,000 |
Revaluation (Bank charges) |
200 |
C’s Capital |
30,000 |
|
|
Premium for Goodwill |
10,000 |
Balance c/d |
49,800 |
|
50,000 |
|
50,000 |
|
|
|
|
Working Notes:
WN1 Sacrificing Ratio
Old Ratio (A and B) 3 : 2
Sacrificing Ratio = 3 : 2
WN2 Distribution of Premium for Goodwill
Page No 4.101:
Question 71:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (2,000 – 400) |
1,600 |
|
|
Bank (charges) |
200 |
Prepaid Insurance |
600 |
Building |
3,000 |
|
|
Creditors |
800 |
Loss transferred to |
|
|
|
A Capital |
3,000 |
|
|
B Capital |
2,000 |
|
|
|
|
|
5,600 |
|
5,600 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
3,000 |
2,000 |
|
Balance b/d |
60,000 |
40,000 |
|
|
|
|
|
Bank |
|
|
30,000 |
|
|
|
|
Premium for Goodwill |
6,000 |
4,000 |
|
Balance c/d |
63,000 |
42,000 |
30,000 |
|
|
|
|
|
66,000 |
44,000 |
30,000 |
|
66,000 |
44,000 |
30,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Building (50,000 – 3,000) |
47,000 |
|
A |
63,000 |
|
Plant and Machinery |
30,000 |
B |
42,000 |
|
Stock (20,000 – 1,600) |
18,400 |
C |
30,000 |
1,35,000 |
Debtors |
10,000 |
Creditors (20,000 + 800) |
20,800 |
Bank |
49,800 |
|
|
|
Prepaid Insurance |
600 |
|
|
1,55,800 |
|
1,55,800 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
10,000 |
Revaluation (Bank charges) |
200 |
C’s Capital |
30,000 |
|
|
Premium for Goodwill |
10,000 |
Balance c/d |
49,800 |
|
50,000 |
|
50,000 |
|
|
|
|
Working Notes:
WN1 Sacrificing Ratio
Old Ratio (A and B) 3 : 2
Sacrificing Ratio = 3 : 2
WN2 Distribution of Premium for Goodwill
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Bad Debts |
2,000 |
Stock |
2,000 |
Provision for Doubtful Debts |
2,000 |
Creditors (4,000 – 3,200) |
800 |
(4,000 × 50%) |
|
|
|
|
|
Loss transferred to |
|
|
|
A Capital |
720 |
|
|
B Capital |
480 |
|
4,000 |
|
4,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
720 |
480 |
|
Balance b/d |
50,000 |
40,000 |
|
|
|
|
|
Reserve |
6,000 |
4,000 |
|
|
|
|
|
Bank |
|
|
25,000 |
Balance c/d |
58,280 |
45,520 |
25,000 |
Premium for Goodwill |
3,000 |
2,000 |
|
|
59,000 |
46,000 |
25,000 |
|
59,000 |
46,000 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Building |
50,000 |
||
A |
58,280 |
|
Plan and Machinery |
30,000 |
|
B |
45,520 |
|
Stock (18,000 × 100/90) |
20,000 |
|
C |
25,000 |
1,28,800 |
Debtors |
22,000 |
|
Creditors (20,000 – 800) |
19,200 |
Less: Bad Debts |
2,000 |
|
|
Outstanding Expenses |
5,000 |
Less: Prov. for D. Debts |
2,000 |
18,000 |
|
|
|
Bank (5,000 + 30,000) |
35,000 |
||
|
1,53,000 |
|
1,53,000 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Reserve
WN3
Distribution of Premium for Goodwill
Page No 4.102:
Question 72:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Bad Debts |
2,000 |
Stock |
2,000 |
Provision for Doubtful Debts |
2,000 |
Creditors (4,000 – 3,200) |
800 |
(4,000 × 50%) |
|
|
|
|
|
Loss transferred to |
|
|
|
A Capital |
720 |
|
|
B Capital |
480 |
|
4,000 |
|
4,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
720 |
480 |
|
Balance b/d |
50,000 |
40,000 |
|
|
|
|
|
Reserve |
6,000 |
4,000 |
|
|
|
|
|
Bank |
|
|
25,000 |
Balance c/d |
58,280 |
45,520 |
25,000 |
Premium for Goodwill |
3,000 |
2,000 |
|
|
59,000 |
46,000 |
25,000 |
|
59,000 |
46,000 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Building |
50,000 |
||
A |
58,280 |
|
Plan and Machinery |
30,000 |
|
B |
45,520 |
|
Stock (18,000 × 100/90) |
20,000 |
|
C |
25,000 |
1,28,800 |
Debtors |
22,000 |
|
Creditors (20,000 – 800) |
19,200 |
Less: Bad Debts |
2,000 |
|
|
Outstanding Expenses |
5,000 |
Less: Prov. for D. Debts |
2,000 |
18,000 |
|
|
|
Bank (5,000 + 30,000) |
35,000 |
||
|
1,53,000 |
|
1,53,000 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Reserve
WN3
Distribution of Premium for Goodwill
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 1, 2014, 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 4.102:
Question 73:
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 1, 2014, 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:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,250 |
|
To Stock A/c |
|
|
1,250 |
|
(Decrease in stock transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Freehold Premises A/c |
Dr. |
|
5,000 |
|
Provision for D. Debts A/c |
Dr. |
|
1,000 |
|
To Revaluation A/c |
|
|
6,000 |
|
(Increase in freehold premises and decrease in provision for doubtful debts transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,750 |
|
To Sushil’s Capital A/c |
|
|
2,850 |
|
To Satish’s Capital A/c |
|
|
1,900 |
|
(Profit on revaluation transferred to Capital A/cs in old Ratio) |
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
10,800 |
|
To Samir’s Capital A/c |
|
|
6,000 |
|
To Premium for Goodwill A/c |
|
|
4,800 |
|
(Samir brought Capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
4,800 |
|
To Sushil’s Capital A/c |
|
|
2,880 |
|
To Satish’s Capital A/c |
|
|
1,920 |
|
(Premium for Goodwill distributed between Sushil and Satish in Sacrificing ratio i.e. 3:2) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (12,500 × 10%) |
1,250 |
Free hold Premises (15,000 – 10,000) |
5,000 |
Profit transferred to |
|
Provision for Doubtful Debts |
1,000 |
Sushil Capital |
2,850 |
|
|
Satish Capital |
1,900 |
|
|
|
6,000 |
|
6,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Sushil |
Satish |
Samir |
Particulars |
Sushil |
Satish |
Samir |
|
|
|
|
Balance b/d |
25,000 |
9,000 |
|
|
|
|
|
Revaluation (Profit) |
2,850 |
1,900 |
|
|
|
|
|
Bank |
|
|
6,000 |
Balance c/d |
30,730 |
12,820 |
6,000 |
Premium for Goodwill |
2,880 |
1,920 |
|
|
30,730 |
12,820 |
6,000 |
|
30,730 |
12,820 |
6,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Samir’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
18,400 |
Freehold Premises |
15,000 |
||
Capital A/cs: |
|
Machinery |
5,400 |
||
Sushil |
30,730 |
|
Stock (12,500 – 1,250) |
11,250 |
|
Satish |
12,820 |
|
Debtors |
22,500 |
|
Samir |
6,000 |
49,550 |
Less: Provision for Doubtful Debts |
3,000 |
19,500 |
|
|
Cash at Bank (6,000 + 10,800) |
16,800 |
||
|
67,950 |
|
67,950 |
||
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution for Premium for Goodwill (in sacrificing ratio)
WN3: Distribution Revaluation Profit (in old ratio)
Page No 4.103:
Question 74:
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,250 |
|
To Stock A/c |
|
|
1,250 |
|
(Decrease in stock transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Freehold Premises A/c |
Dr. |
|
5,000 |
|
Provision for D. Debts A/c |
Dr. |
|
1,000 |
|
To Revaluation A/c |
|
|
6,000 |
|
(Increase in freehold premises and decrease in provision for doubtful debts transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,750 |
|
To Sushil’s Capital A/c |
|
|
2,850 |
|
To Satish’s Capital A/c |
|
|
1,900 |
|
(Profit on revaluation transferred to Capital A/cs in old Ratio) |
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
10,800 |
|
To Samir’s Capital A/c |
|
|
6,000 |
|
To Premium for Goodwill A/c |
|
|
4,800 |
|
(Samir brought Capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
4,800 |
|
To Sushil’s Capital A/c |
|
|
2,880 |
|
To Satish’s Capital A/c |
|
|
1,920 |
|
(Premium for Goodwill distributed between Sushil and Satish in Sacrificing ratio i.e. 3:2) |
|
|
|
|
|
|
|
|
Revaluation Account |
|||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (12,500 × 10%) |
1,250 |
Free hold Premises (15,000 – 10,000) |
5,000 |
Profit transferred to |
|
Provision for Doubtful Debts |
1,000 |
Sushil Capital |
2,850 |
|
|
Satish Capital |
1,900 |
|
|
|
6,000 |
|
6,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Sushil |
Satish |
Samir |
Particulars |
Sushil |
Satish |
Samir |
|
|
|
|
Balance b/d |
25,000 |
9,000 |
|
|
|
|
|
Revaluation (Profit) |
2,850 |
1,900 |
|
|
|
|
|
Bank |
|
|
6,000 |
Balance c/d |
30,730 |
12,820 |
6,000 |
Premium for Goodwill |
2,880 |
1,920 |
|
|
30,730 |
12,820 |
6,000 |
|
30,730 |
12,820 |
6,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Samir’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
18,400 |
Freehold Premises |
15,000 |
||
Capital A/cs: |
|
Machinery |
5,400 |
||
Sushil |
30,730 |
|
Stock (12,500 – 1,250) |
11,250 |
|
Satish |
12,820 |
|
Debtors |
22,500 |
|
Samir |
6,000 |
49,550 |
Less: Provision for Doubtful Debts |
3,000 |
19,500 |
|
|
Cash at Bank (6,000 + 10,800) |
16,800 |
||
|
67,950 |
|
67,950 |
||
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution for Premium for Goodwill (in sacrificing ratio)
WN3: Distribution Revaluation Profit (in old ratio)
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Investment (5,000 – 4,500) |
500 |
Loss transferred to |
|
|
|
A Capital |
375 |
|
|
B Capital |
125 |
|
500 |
|
500 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Goodwill |
750 |
250 |
|
Balance b/d |
9,000 |
3,000 |
|
Revaluation (Loss) |
375 |
125 |
|
Workmen’s Compensation Fund |
750 |
250 |
|
|
|
|
|
Bank |
|
|
8,000 |
Balance c/d |
10,125 |
3,375 |
8,000 |
Premium for Goodwill |
1,500 |
500 |
|
|
11,250 |
3,750 |
8,000 |
|
11,250 |
3,750 |
8,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Bank (1,000 + 10,000) |
11,000 |
|
A |
10,125 |
|
Debtors |
6,000 |
B |
3,375 |
|
Stock |
3,000 |
C |
8,000 |
21,500 |
Investments (5,000 – 500) |
4,500 |
Creditors |
2,000 |
|
|
|
Workmen’s Compensation Claim |
1,000 |
|
|
|
|
24,500 |
|
24,500 |
|
|
|
|
|
Working Notes:
WN1
WN2
Goodwill written-off
WN3
Distribution of Premium for Goodwill
WN4
Distribution of Revaluation Loss
WN5
Treatment of Workmen’s Compensation Reserve
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
Dr. |
|
2,000 |
|
To Workmen’s Compensation Claim A/c |
|
|
1,000 |
|
To A’s Capital A/c |
|
|
750 |
|
To B’s Capital A/c |
|
|
250 |
|
(Workmen Compensation Fund utilised) |
|
|
|
|
|
|
|
|
Page No 4.103:
Question 75:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Investment (5,000 – 4,500) |
500 |
Loss transferred to |
|
|
|
A Capital |
375 |
|
|
B Capital |
125 |
|
500 |
|
500 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Goodwill |
750 |
250 |
|
Balance b/d |
9,000 |
3,000 |
|
Revaluation (Loss) |
375 |
125 |
|
Workmen’s Compensation Fund |
750 |
250 |
|
|
|
|
|
Bank |
|
|
8,000 |
Balance c/d |
10,125 |
3,375 |
8,000 |
Premium for Goodwill |
1,500 |
500 |
|
|
11,250 |
3,750 |
8,000 |
|
11,250 |
3,750 |
8,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after C’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Bank (1,000 + 10,000) |
11,000 |
|
A |
10,125 |
|
Debtors |
6,000 |
B |
3,375 |
|
Stock |
3,000 |
C |
8,000 |
21,500 |
Investments (5,000 – 500) |
4,500 |
Creditors |
2,000 |
|
|
|
Workmen’s Compensation Claim |
1,000 |
|
|
|
|
24,500 |
|
24,500 |
|
|
|
|
|
Working Notes:
WN1
WN2
Goodwill written-off
WN3
Distribution of Premium for Goodwill
WN4
Distribution of Revaluation Loss
WN5
Treatment of Workmen’s Compensation Reserve
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
Dr. |
|
2,000 |
|
To Workmen’s Compensation Claim A/c |
|
|
1,000 |
|
To A’s Capital A/c |
|
|
750 |
|
To B’s Capital A/c |
|
|
250 |
|
(Workmen Compensation Fund utilised) |
|
|
|
|
|
|
|
|
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 â 4,900) |
100 |
A Capital |
2,400 |
|
|
B Capital |
1,600 |
|
4,300 |
|
4,300 |
|
|
|
|
Partnersâ 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 Câs 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 |
|
|
Câs 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 |
Note: A's Capital Balance and Total of Balance Sheet as per above solution is Rs 50,300 and Rs 1,20,700 respectively. However, as per the book A's Capital Balance and Total of Balance Sheet should be Rs 50,600 and Rs 1,21,000 respectively.
Page No 4.104:
Question 76:
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 â 4,900) |
100 |
A Capital |
2,400 |
|
|
B Capital |
1,600 |
|
4,300 |
|
4,300 |
|
|
|
|
Partnersâ 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 Câs 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 |
|
|
Câs 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 |
Note: A's Capital Balance and Total of Balance Sheet as per above solution is Rs 50,300 and Rs 1,20,700 respectively. However, as per the book A's Capital Balance and Total of Balance Sheet should be Rs 50,600 and Rs 1,21,000 respectively.
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
10,000 |
Land and Building |
25,000 |
Furniture |
500 |
(1, 25,000 × 20%) |
|
Provision for D. Debts |
4,000 |
|
|
Profit transferred to |
|
|
|
X Capital |
7,875 |
|
|
Y Capital |
2,625 |
|
|
|
25,000 |
|
25,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
X’s Capital |
|
|
15,000 |
Balance b/d |
1,50,000 |
80,000 |
|
Y’s Capital |
|
|
5,000 |
Workmen’s Compensation Fund |
15,000 |
5,000 |
|
|
|
|
|
Revaluation (Profit) |
7,875 |
2,625 |
|
Balance c/d |
1,87,875 |
92,625 |
30,000 |
Cash |
|
|
50,000 |
|
|
|
|
Z’s Capital |
15,000 |
5,000 |
|
|
1,87,875 |
92,625 |
50,000 |
|
1,87,875 |
92,625 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (1,25,000 + 25,000) |
1,50,000 |
||
X |
1,87,875 |
|
|
|
|
Y |
92,625 |
|
Office Furniture (5,000 – 500) |
4,500 |
|
Z |
30,000 |
3,10,500 |
Stock (1,00,000 – 10,000) |
90,000 |
|
Sundry Creditors |
1,50,000 |
Sundry Debtors |
80,000 |
|
|
Bills Payable |
37,500 |
Less: 5% Provision for D. Debts |
4,000 |
76,000 |
|
|
|
Cash at Bank |
1,00,000 |
||
|
|
Cash in Hand (12,500 + 50,000) |
62,500 |
||
|
|
Bills Receivable |
15,000 |
||
|
4,98,000 |
|
4,98,000 |
||
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Calculation of Partners' Share of Goodwill
Goodwill of the firm = 1, 00,000
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
20,000 |
|
|
To X’s Capital A/c |
|
|
15,000 |
|
|
To Y’s Capital A/c |
|
|
5,000 |
|
|
(Z’s share of goodwill changed from his Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
|
20,000 |
|
|
|
To X’s Capital A/c |
|
|
15,000 |
|
|
To Y’s Capital |
|
|
5,000 |
|
|
(Workmen’s Compensation Fund distributed) |
|
|
|
|
|
|
|
|
|
Page No 4.104:
Question 77:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock |
10,000 |
Land and Building |
25,000 |
Furniture |
500 |
(1, 25,000 × 20%) |
|
Provision for D. Debts |
4,000 |
|
|
Profit transferred to |
|
|
|
X Capital |
7,875 |
|
|
Y Capital |
2,625 |
|
|
|
25,000 |
|
25,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
X’s Capital |
|
|
15,000 |
Balance b/d |
1,50,000 |
80,000 |
|
Y’s Capital |
|
|
5,000 |
Workmen’s Compensation Fund |
15,000 |
5,000 |
|
|
|
|
|
Revaluation (Profit) |
7,875 |
2,625 |
|
Balance c/d |
1,87,875 |
92,625 |
30,000 |
Cash |
|
|
50,000 |
|
|
|
|
Z’s Capital |
15,000 |
5,000 |
|
|
1,87,875 |
92,625 |
50,000 |
|
1,87,875 |
92,625 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (1,25,000 + 25,000) |
1,50,000 |
||
X |
1,87,875 |
|
|
|
|
Y |
92,625 |
|
Office Furniture (5,000 – 500) |
4,500 |
|
Z |
30,000 |
3,10,500 |
Stock (1,00,000 – 10,000) |
90,000 |
|
Sundry Creditors |
1,50,000 |
Sundry Debtors |
80,000 |
|
|
Bills Payable |
37,500 |
Less: 5% Provision for D. Debts |
4,000 |
76,000 |
|
|
|
Cash at Bank |
1,00,000 |
||
|
|
Cash in Hand (12,500 + 50,000) |
62,500 |
||
|
|
Bills Receivable |
15,000 |
||
|
4,98,000 |
|
4,98,000 |
||
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Calculation of Partners' Share of Goodwill
Goodwill of the firm = 1, 00,000
|
Journal |
||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
20,000 |
|
|
To X’s Capital A/c |
|
|
15,000 |
|
|
To Y’s Capital A/c |
|
|
5,000 |
|
|
(Z’s share of goodwill changed from his Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
|
20,000 |
|
|
|
To X’s Capital A/c |
|
|
15,000 |
|
|
To Y’s Capital |
|
|
5,000 |
|
|
(Workmen’s Compensation Fund distributed) |
|
|
|
|
|
|
|
|
|
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Reserve for D. Debts |
4,000 |
|
Plant and Machinery |
12,000 |
Less: Old Reserve |
800 |
3,200 |
(60,000 – 48,000) |
|
|
|
|
|
|
Furniture |
10,000 × 10% |
1,000 |
Stock (40,000 – 32,000) |
8,000 |
Outstanding salary |
8,000 |
|
|
|
Profit transferred to |
|
Land and Building |
10,000 |
|
Deepika Capital |
10,680 |
(50,000 × 20%) |
|
|
Rajshree Capital |
7,120 |
|
|
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Deepika |
Rajshree |
Anshu |
Particulars |
Deepika |
Rajshree |
Anshu |
Balance c/d |
58,680 |
47,120 |
32,000 |
Balance b/d |
48,000 |
40,000 |
|
(before adjustment of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation |
10,680 |
7,120 |
|
|
|
|
|
Cash |
|
|
32,000 |
|
58,680 |
47,120 |
32,000 |
|
58,680 |
47,120 |
32,000 |
|
|
|
|
|
|
|
|
Deepika |
|
|
2,220 |
Balance b/d |
58,680 |
47,120 |
32,000 |
Rajshree |
|
|
2,220 |
Anshu’s Capital (Goodwill) |
2,220 |
2,220 |
|
Balance c/d |
60,900 |
49,340 |
27,560 |
|
|
|
|
|
60,900 |
49,340 |
32,000 |
|
60,900 |
49,340 |
32,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Anshu’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Outstanding Salaries |
8,000 |
Cash in Hand |
1,200 |
||
Sundry Creditors |
16,000 |
Cash at Bank |
28,800 |
||
Public Deposits |
61,000 |
Stock |
40,000 |
||
Outstanding Liabilities |
2,000 |
Prepaid Insurance |
1,000 |
||
Capital A/cs: |
|
Sundry Debtors |
28,800 |
|
|
Deepika |
60,900 |
|
Less: reserve for D. Debts |
4,000 |
24,800 |
Rajshree |
49,340 |
|
Plant and Machinery |
60,000 |
|
Anshu |
27,560 |
1,37,800 |
Land and Building |
60,000 |
|
|
|
Furniture |
9,000 |
||
|
2,24,800 |
|
2,24,800 |
||
|
|
|
|
Working Notes
WN1: Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2: Valuation of Goodwill
Capitalised value on the basis of Anshu’s share
Actual Capital of all partners before adjustment of Goodwill = 58,680 + 47,120 + 32,000
= Rs 1,37,800
Goodwill = Capitalised value − Actual Capital of all partners before adjustment of Goodwill
= 1,60,000 − 1,37,800
= Rs 22,200
Anshu’s share of Goodwill
Deepika and Rajshree each will entitle for Goodwill
Page No 4.105:
Question 78:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Reserve for D. Debts |
4,000 |
|
Plant and Machinery |
12,000 |
Less: Old Reserve |
800 |
3,200 |
(60,000 – 48,000) |
|
|
|
|
|
|
Furniture |
10,000 × 10% |
1,000 |
Stock (40,000 – 32,000) |
8,000 |
Outstanding salary |
8,000 |
|
|
|
Profit transferred to |
|
Land and Building |
10,000 |
|
Deepika Capital |
10,680 |
(50,000 × 20%) |
|
|
Rajshree Capital |
7,120 |
|
|
|
|
30,000 |
|
30,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Deepika |
Rajshree |
Anshu |
Particulars |
Deepika |
Rajshree |
Anshu |
Balance c/d |
58,680 |
47,120 |
32,000 |
Balance b/d |
48,000 |
40,000 |
|
(before adjustment of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation |
10,680 |
7,120 |
|
|
|
|
|
Cash |
|
|
32,000 |
|
58,680 |
47,120 |
32,000 |
|
58,680 |
47,120 |
32,000 |
|
|
|
|
|
|
|
|
Deepika |
|
|
2,220 |
Balance b/d |
58,680 |
47,120 |
32,000 |
Rajshree |
|
|
2,220 |
Anshu’s Capital (Goodwill) |
2,220 |
2,220 |
|
Balance c/d |
60,900 |
49,340 |
27,560 |
|
|
|
|
|
60,900 |
49,340 |
32,000 |
|
60,900 |
49,340 |
32,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Anshu’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Outstanding Salaries |
8,000 |
Cash in Hand |
1,200 |
||
Sundry Creditors |
16,000 |
Cash at Bank |
28,800 |
||
Public Deposits |
61,000 |
Stock |
40,000 |
||
Outstanding Liabilities |
2,000 |
Prepaid Insurance |
1,000 |
||
Capital A/cs: |
|
Sundry Debtors |
28,800 |
|
|
Deepika |
60,900 |
|
Less: reserve for D. Debts |
4,000 |
24,800 |
Rajshree |
49,340 |
|
Plant and Machinery |
60,000 |
|
Anshu |
27,560 |
1,37,800 |
Land and Building |
60,000 |
|
|
|
Furniture |
9,000 |
||
|
2,24,800 |
|
2,24,800 |
||
|
|
|
|
Working Notes
WN1: Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2: Valuation of Goodwill
Capitalised value on the basis of Anshu’s share
Actual Capital of all partners before adjustment of Goodwill = 58,680 + 47,120 + 32,000
= Rs 1,37,800
Goodwill = Capitalised value − Actual Capital of all partners before adjustment of Goodwill
= 1,60,000 − 1,37,800
= Rs 22,200
Anshu’s share of Goodwill
Deepika and Rajshree each will entitle for Goodwill
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, 2012 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 4.105:
Question 79:
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, 2012 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 |
|
|
|
|
Furniture |
30,000 |
Land and Building |
60,000 |
Stock |
40,000 |
Creditors |
3,000 |
Sundry Debtors |
5,000 |
Loss on transferred to |
|
|
|
X Capital |
6,000 |
|
|
Y Capital |
4,000 |
|
|
Z Capital |
2,000 |
|
75,000 |
|
75,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
X |
Y |
Z |
W |
Particulars |
X |
Y |
Z |
W |
Revaluation (Loss) |
6,000 |
4,000 |
2,000 |
|
Balance b/d |
3,00,000 |
2,00,000 |
1,00,000 |
|
Bank (Goodwill) |
30,000 |
20,000 |
10,000 |
|
General Reserve |
1,50,000 |
1,00,000 |
50,000 |
|
Bank (General Reserve) |
75,000 |
50,000 |
25,000 |
|
Bank |
|
|
|
1,50,000 |
|
|
|
|
|
Premium for Goodwill |
60,000 |
40,000 |
20,000 |
|
Balance c/d |
3,99,000 |
2,66,000 |
1,33,000 |
1,50,000 |
|
|
|
|
|
|
5,10,000 |
3,40,000 |
1,70,000 |
1,50,000 |
|
5,10,000 |
3,40,000 |
1,70,000 |
1,50,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after W’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Land and Building (5,00,000 + 60,000) |
5,60,000 |
|
X |
3,99,000 |
|
Furniture (1,50,000 – 30,000) |
1,20,000 |
Y |
2,66,000 |
|
Stock (2,00,000 – 40,000) |
1,60,000 |
Z |
1,33,000 |
|
Bills Receivable |
50,000 |
W |
1,50,000 |
9,48,000 |
Sundry Debtors (75,000 – 5,000) |
70,000 |
Sundry Creditors (60,000 – 23,000) |
37,000 |
Cash at Bank |
65,000 |
|
Bills Payable |
40,000 |
|
|
|
|
10,25,000 |
|
10,25,000 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
25,000 |
Creditors |
20,000 |
W’s Capital |
1,50,000 |
X’s Capital |
1,05,000 |
Premium for Goodwill |
1,20,000 |
Y’s Capital |
70,000 |
|
|
Z’s Capital |
35,000 |
|
|
Balance c/d |
65,000 |
|
2,95,000 |
|
2,95,000 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of General Reserve
WN3
Distribution of Premium for Goodwill
Page No 4.106:
Question 80:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Furniture |
30,000 |
Land and Building |
60,000 |
Stock |
40,000 |
Creditors |
3,000 |
Sundry Debtors |
5,000 |
Loss on transferred to |
|
|
|
X Capital |
6,000 |
|
|
Y Capital |
4,000 |
|
|
Z Capital |
2,000 |
|
75,000 |
|
75,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
X |
Y |
Z |
W |
Particulars |
X |
Y |
Z |
W |
Revaluation (Loss) |
6,000 |
4,000 |
2,000 |
|
Balance b/d |
3,00,000 |
2,00,000 |
1,00,000 |
|
Bank (Goodwill) |
30,000 |
20,000 |
10,000 |
|
General Reserve |
1,50,000 |
1,00,000 |
50,000 |
|
Bank (General Reserve) |
75,000 |
50,000 |
25,000 |
|
Bank |
|
|
|
1,50,000 |
|
|
|
|
|
Premium for Goodwill |
60,000 |
40,000 |
20,000 |
|
Balance c/d |
3,99,000 |
2,66,000 |
1,33,000 |
1,50,000 |
|
|
|
|
|
|
5,10,000 |
3,40,000 |
1,70,000 |
1,50,000 |
|
5,10,000 |
3,40,000 |
1,70,000 |
1,50,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after W’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Land and Building (5,00,000 + 60,000) |
5,60,000 |
|
X |
3,99,000 |
|
Furniture (1,50,000 – 30,000) |
1,20,000 |
Y |
2,66,000 |
|
Stock (2,00,000 – 40,000) |
1,60,000 |
Z |
1,33,000 |
|
Bills Receivable |
50,000 |
W |
1,50,000 |
9,48,000 |
Sundry Debtors (75,000 – 5,000) |
70,000 |
Sundry Creditors (60,000 – 23,000) |
37,000 |
Cash at Bank |
65,000 |
|
Bills Payable |
40,000 |
|
|
|
|
10,25,000 |
|
10,25,000 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
25,000 |
Creditors |
20,000 |
W’s Capital |
1,50,000 |
X’s Capital |
1,05,000 |
Premium for Goodwill |
1,20,000 |
Y’s Capital |
70,000 |
|
|
Z’s Capital |
35,000 |
|
|
Balance c/d |
65,000 |
|
2,95,000 |
|
2,95,000 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of General Reserve
WN3
Distribution of Premium for Goodwill
Answer:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Patents |
10,000 |
Provision for D. Debts |
5,000 |
|
|
|
Less: New Provision |
(2,200) |
2,800 |
|
|
Loss transferred to |
|
|
|
|
X Capital |
4,500 |
|
|
|
Y Capital |
2,700 |
|
|
10,000 |
|
10,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
X’s Capital (General Reserve) |
|
2,750 |
2,000 |
Balance b/d |
40,000 |
50,000 |
|
|
|
|
|
Y’s Capital (General Reserve) |
2,750 |
|
|
X’s Capital (Goodwill) |
|
4,950 |
3,600 |
Z’s Capital (General Reserve) |
2,000 |
|
|
|
|
|
|
Cash |
|
|
25,000 |
Revaluation |
4,500 |
2,700 |
|
Y’s Capital (Goodwill) |
4,950 |
|
|
|
|
|
|
Z’s Capital (Goodwill) |
3,600 |
|
|
Balance c/d |
48,800 |
39,600 |
19,400 |
|
|
|
|
|
53,300 |
50,000 |
25,000 |
|
53,300 |
50,000 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Furniture |
40,000 |
||
X |
48,800 |
|
Sundry Debtors |
44,000 |
|
Y |
39,600 |
|
Less: 5% Provision for D. Debts |
2,200 |
41,800 |
Z |
19,400 |
1,07,800 |
Stock |
20,000 |
|
General Reserve |
14,000 |
Cash at Bank |
22,000 |
||
Sundry Creditors |
30,000 |
Cash in Hand (3,000 + 25,000) |
28,000 |
||
|
1,51,800 |
|
1,51,800 |
||
|
|
|
|
Working Notes
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
3,600 |
|
|
Y’s Capital A/c |
Dr. |
|
4,950 |
|
|
To X’s Capital A/c |
|
|
8,550 |
|
|
(Adjustment of goodwill made) |
|
|
|
|
|
|
|
|
|
WN3
Adjustment for General Reserve
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
2,750 |
|
|
Z’s Capital A/c |
Dr. |
|
2,000 |
|
|
To X’s Capital |
|
|
4,750 |
|
|
(General and Reserve adjusted among partners in sacrificing and gaining ratio) |
|
|
|
|
|
|
|
|
|
Page No 4.106:
Question 81:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Patents |
10,000 |
Provision for D. Debts |
5,000 |
|
|
|
Less: New Provision |
(2,200) |
2,800 |
|
|
Loss transferred to |
|
|
|
|
X Capital |
4,500 |
|
|
|
Y Capital |
2,700 |
|
|
10,000 |
|
10,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
X’s Capital (General Reserve) |
|
2,750 |
2,000 |
Balance b/d |
40,000 |
50,000 |
|
|
|
|
|
Y’s Capital (General Reserve) |
2,750 |
|
|
X’s Capital (Goodwill) |
|
4,950 |
3,600 |
Z’s Capital (General Reserve) |
2,000 |
|
|
|
|
|
|
Cash |
|
|
25,000 |
Revaluation |
4,500 |
2,700 |
|
Y’s Capital (Goodwill) |
4,950 |
|
|
|
|
|
|
Z’s Capital (Goodwill) |
3,600 |
|
|
Balance c/d |
48,800 |
39,600 |
19,400 |
|
|
|
|
|
53,300 |
50,000 |
25,000 |
|
53,300 |
50,000 |
25,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Furniture |
40,000 |
||
X |
48,800 |
|
Sundry Debtors |
44,000 |
|
Y |
39,600 |
|
Less: 5% Provision for D. Debts |
2,200 |
41,800 |
Z |
19,400 |
1,07,800 |
Stock |
20,000 |
|
General Reserve |
14,000 |
Cash at Bank |
22,000 |
||
Sundry Creditors |
30,000 |
Cash in Hand (3,000 + 25,000) |
28,000 |
||
|
1,51,800 |
|
1,51,800 |
||
|
|
|
|
Working Notes
WN1
Calculation of Sacrificing Ratio
Sacrificing Ratio = Old Ratio − New Ratio
WN2
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Z’s Capital A/c |
Dr. |
|
3,600 |
|
|
Y’s Capital A/c |
Dr. |
|
4,950 |
|
|
To X’s Capital A/c |
|
|
8,550 |
|
|
(Adjustment of goodwill made) |
|
|
|
|
|
|
|
|
|
WN3
Adjustment for General Reserve
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Y’s Capital A/c |
Dr. |
|
2,750 |
|
|
Z’s Capital A/c |
Dr. |
|
2,000 |
|
|
To X’s Capital |
|
|
4,750 |
|
|
(General and Reserve adjusted among partners in sacrificing and gaining ratio) |
|
|
|
|
|
|
|
|
|
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 4.107:
Question 82:
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 |
|
|
|
|
|
|
Furniture |
1,000 |
Land and Building |
5,000 |
|
Provision for D. Debts |
300 |
|
|
|
Outstanding Expenses |
200 |
|
|
|
Profit transferred to |
|
|
|
|
Amrit’s Capital |
2,100 |
|
|
|
Baldev Capital |
1,400 |
3,500 |
|
|
|
5,000 |
|
5,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Amrit |
Baldev |
Chetan |
Particulars |
Amrit |
Baldev |
Chetan |
|
|
|
|
Balance b/d |
50,000 |
25,000 |
|
|
|
|
|
Revaluation |
2,100 |
1,400 |
|
|
|
|
|
Bank |
|
|
20,000 |
Balance c/d |
55,100 |
29,400 |
20,000 |
Premium for Goodwill |
3,000 |
3,000 |
|
|
55,100 |
29,400 |
20,000 |
|
55,100 |
29,400 |
20,000 |
Cash |
5,100 |
|
|
Balance c/d |
55,100 |
29,400 |
20,000 |
Balance c/d (adjusted) |
50,000 |
30,000 |
20,000 |
Cash |
|
600 |
|
|
55,100 |
30,000 |
20,000 |
|
55,100 |
30,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after Chetan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital |
|
Land and Building (25,000 + 5,000) |
|
||
Amrit |
50,000 |
|
|
30,000 |
|
Baldev |
30,000 |
|
Furniture (10,000 – 1,000) |
9,000 |
|
Chetan |
20,000 |
1,00,000 |
Stock |
46,000 |
|
Creditors |
16,000 |
Debtors |
20,000 |
|
|
Bills Payable |
14,000 |
Less: Provision for D. Debts |
900 |
19,100 |
|
Outstanding Expenses |
200 |
Cash at Bank |
26,100 |
||
|
1,30,200 |
|
1,30,200 |
||
|
|
|
|
Cash Book |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Bank Rs |
Date |
Particulars |
Bank Rs |
2012 |
|
|
2012 |
|
|
April 01 |
Balance b/d |
4,600 |
April 01 |
Amrit’s Capital |
5,100 |
|
Chetan’s Capital |
20,000 |
|
|
|
|
Premium for Goodwill |
6,000 |
|
|
|
|
Baldev Capital |
600 |
April 01 |
Balance c/d |
26,100 |
|
|
31,200 |
|
|
31,200 |
|
|
|
|
|
|
Working Notes:
WN1
Calculation of Sacrificing Ratio
WN2
Distribution of Premium for Goodwill
WN3
Total Capital of the firm after Chetan’s admission
Proportionate Capital:
Page No 4.107:
Question 83:
Revaluation Account |
||||
Dr. |
|
Cr. |
||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Furniture |
1,000 |
Land and Building |
5,000 |
|
Provision for D. Debts |
300 |
|
|
|
Outstanding Expenses |
200 |
|
|
|
Profit transferred to |
|
|
|
|
Amrit’s Capital |
2,100 |
|
|
|
Baldev Capital |
1,400 |
3,500 |
|
|
|
5,000 |
|
5,000 |
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Amrit |
Baldev |
Chetan |
Particulars |
Amrit |
Baldev |
Chetan |
|
|
|
|
Balance b/d |
50,000 |
25,000 |
|
|
|
|
|
Revaluation |
2,100 |
1,400 |
|
|
|
|
|
Bank |
|
|
20,000 |
Balance c/d |
55,100 |
29,400 |
20,000 |
Premium for Goodwill |
3,000 |
3,000 |
|
|
55,100 |
29,400 |
20,000 |
|
55,100 |
29,400 |
20,000 |
Cash |
5,100 |
|
|
Balance c/d |
55,100 |
29,400 |
20,000 |
Balance c/d (adjusted) |
50,000 |
30,000 |
20,000 |
Cash |
|
600 |
|
|
55,100 |
30,000 |
20,000 |
|
55,100 |
30,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after Chetan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital |
|
Land and Building (25,000 + 5,000) |
|
||
Amrit |
50,000 |
|
|
30,000 |
|
Baldev |
30,000 |
|
Furniture (10,000 – 1,000) |
9,000 |
|
Chetan |
20,000 |
1,00,000 |
Stock |
46,000 |
|
Creditors |
16,000 |
Debtors |
20,000 |
|
|
Bills Payable |
14,000 |
Less: Provision for D. Debts |
900 |
19,100 |
|
Outstanding Expenses |
200 |
Cash at Bank |
26,100 |
||
|
1,30,200 |
|
1,30,200 |
||
|
|
|
|
Cash Book |
|||||
Dr. |
|
Cr. |
|||
Date |
Particulars |
Bank Rs |
Date |
Particulars |
Bank Rs |
2012 |
|
|
2012 |
|
|
April 01 |
Balance b/d |
4,600 |
April 01 |
Amrit’s Capital |
5,100 |
|
Chetan’s Capital |
20,000 |
|
|
|
|
Premium for Goodwill |
6,000 |
|
|
|
|
Baldev Capital |
600 |
April 01 |
Balance c/d |
26,100 |
|
|
31,200 |
|
|
31,200 |
|
|
|
|
|
|
Working Notes:
WN1
Calculation of Sacrificing Ratio
WN2
Distribution of Premium for Goodwill
WN3
Total Capital of the firm after Chetan’s admission
Proportionate Capital:
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 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 |
X’s Capital |
5,800 |
Balance c/d |
31,700 |
|
65,800 |
|
65,800 |
|
|
|
|
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, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
25,000 |
Cash |
31,700 |
|
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 |
|
|
Stationery |
1,000 |
|
|
|
|
|
|
|
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 4.108:
Question 84:
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 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 |
X’s Capital |
5,800 |
Balance c/d |
31,700 |
|
65,800 |
|
65,800 |
|
|
|
|
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, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors |
25,000 |
Cash |
31,700 |
|
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 |
|
|
Stationery |
1,000 |
|
|
|
|
|
|
|
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:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
11,000 |
|
|
To Plant A/c |
|
|
10,000 |
|
|
To Reserve for Doubtful Debts |
|
|
1,000 |
|
|
(Decrease in Plant and Reserve after Doubtful Debt transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Patents A/c |
Dr. |
|
2,000 |
|
|
Sundry Creditors A/c |
Dr. |
|
5,000 |
|
|
To Revaluation A/c |
|
|
7,000 |
|
|
(Increase in Patents and decrease in Creditors transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
B’s Capital A/c |
Dr. |
|
1,000 |
|
|
To Revaluation A/c |
|
|
|
4,000 |
|
(Revaluation loss distributed between A and B in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
66,500 |
|
|
To C’s Capital A/c |
|
|
60,500 |
|
|
To Premium for Goodwill A/c |
|
|
6,000 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,000 |
|
|
To A’s Capital A/c |
|
|
4,500 |
|
|
To B’s Capital A/c |
|
|
1,500 |
|
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
15,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Profit and Loss |
|
|
20,000 |
|
|
(Profit and Loss written-off) |
|
|
|
|
|
|
|
|
|
|
|
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 Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant and Machinery |
10,000 |
Patent |
2,000 |
Reserve for Doubtful Debts (50,000 × 2%) |
1,000 |
Sundry Creditors |
5,000 |
|
|
Loss transferred to |
|
|
|
A Capital |
3,000 |
|
|
B Capital |
1,000 |
|
11,000 |
|
11,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Profit and Loss |
15,000 |
5,000 |
|
Balance b/d |
2,00,000 |
80,000 |
|
Goodwill written-off |
15,000 |
5,000 |
|
Premium for Goodwill |
4,500 |
1,500 |
|
Revaluation |
3,000 |
1,000 |
|
|
|
|
|
Balance c/d |
1,71,500 |
70,500 |
|
|
|
|
|
|
2,04,500 |
81,500 |
|
|
2,04,500 |
81,500 |
|
Balance c/d |
1,71,500 |
70,500 |
60,500 |
Balance b/d |
1,71,500 |
70,500 |
|
|
|
|
|
Bank |
|
|
60,500 |
|
1,71,500 |
70,500 |
60,500 |
|
1,71,500 |
70,500 |
60,500 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors (70,000 – 5,000) |
65,000 |
Plant (1,00,000 – 10,000) |
90,000 |
||
Capital A/cs: |
|
Patents (10,000 + 2,000) |
12,000 |
||
A |
1,71,500 |
|
Stock |
1,42,000 |
|
B |
70,500 |
|
Sundry Debtors |
50,000 |
|
C |
60,500 |
|
Less: Reserve for D. Debts |
(1,000) |
49,000 |
|
3,02,500 |
Cash at Bank |
74,500 |
||
|
3,67,500 |
|
3,67,500 |
||
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Revaluation Loss (in old ratio)
WN3
Profit and Loss written−off (in old ratio)
WN4
Calculation of Goodwill
WN5
Distribution of C’s share of Goodwill
WN6
Writing-off of Goodwill (in old ratio)
WN7
Calculation of C’s share of Capital
Combine Capital of A and B after all adjustment = 1, 71,500 + 70,500
= Rs 2, 42,500
WN8
Calculation of closing balance of Cash at Bank
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
8,000 |
|
|
C’s Capital |
60,500 |
|
|
Premium for Goodwill |
6,000 |
Balance c/d |
74,500 |
|
74,500 |
|
74,500 |
|
|
|
|
Page No 4.108:
Question 85:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
11,000 |
|
|
To Plant A/c |
|
|
10,000 |
|
|
To Reserve for Doubtful Debts |
|
|
1,000 |
|
|
(Decrease in Plant and Reserve after Doubtful Debt transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Patents A/c |
Dr. |
|
2,000 |
|
|
Sundry Creditors A/c |
Dr. |
|
5,000 |
|
|
To Revaluation A/c |
|
|
7,000 |
|
|
(Increase in Patents and decrease in Creditors transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
B’s Capital A/c |
Dr. |
|
1,000 |
|
|
To Revaluation A/c |
|
|
|
4,000 |
|
(Revaluation loss distributed between A and B in their old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
66,500 |
|
|
To C’s Capital A/c |
|
|
60,500 |
|
|
To Premium for Goodwill A/c |
|
|
6,000 |
|
|
(C brought capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,000 |
|
|
To A’s Capital A/c |
|
|
4,500 |
|
|
To B’s Capital A/c |
|
|
1,500 |
|
|
(Premium for Goodwill distributed between A and B in sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
15,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Profit and Loss |
|
|
20,000 |
|
|
(Profit and Loss written-off) |
|
|
|
|
|
|
|
|
|
|
|
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 Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant and Machinery |
10,000 |
Patent |
2,000 |
Reserve for Doubtful Debts (50,000 × 2%) |
1,000 |
Sundry Creditors |
5,000 |
|
|
Loss transferred to |
|
|
|
A Capital |
3,000 |
|
|
B Capital |
1,000 |
|
11,000 |
|
11,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Profit and Loss |
15,000 |
5,000 |
|
Balance b/d |
2,00,000 |
80,000 |
|
Goodwill written-off |
15,000 |
5,000 |
|
Premium for Goodwill |
4,500 |
1,500 |
|
Revaluation |
3,000 |
1,000 |
|
|
|
|
|
Balance c/d |
1,71,500 |
70,500 |
|
|
|
|
|
|
2,04,500 |
81,500 |
|
|
2,04,500 |
81,500 |
|
Balance c/d |
1,71,500 |
70,500 |
60,500 |
Balance b/d |
1,71,500 |
70,500 |
|
|
|
|
|
Bank |
|
|
60,500 |
|
1,71,500 |
70,500 |
60,500 |
|
1,71,500 |
70,500 |
60,500 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors (70,000 – 5,000) |
65,000 |
Plant (1,00,000 – 10,000) |
90,000 |
||
Capital A/cs: |
|
Patents (10,000 + 2,000) |
12,000 |
||
A |
1,71,500 |
|
Stock |
1,42,000 |
|
B |
70,500 |
|
Sundry Debtors |
50,000 |
|
C |
60,500 |
|
Less: Reserve for D. Debts |
(1,000) |
49,000 |
|
3,02,500 |
Cash at Bank |
74,500 |
||
|
3,67,500 |
|
3,67,500 |
||
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Revaluation Loss (in old ratio)
WN3
Profit and Loss written−off (in old ratio)
WN4
Calculation of Goodwill
WN5
Distribution of C’s share of Goodwill
WN6
Writing-off of Goodwill (in old ratio)
WN7
Calculation of C’s share of Capital
Combine Capital of A and B after all adjustment = 1, 71,500 + 70,500
= Rs 2, 42,500
WN8
Calculation of closing balance of Cash at Bank
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
8,000 |
|
|
C’s Capital |
60,500 |
|
|
Premium for Goodwill |
6,000 |
Balance c/d |
74,500 |
|
74,500 |
|
74,500 |
|
|
|
|
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Employee Provident Fund |
1,800 |
Stock (48,000 – 44,000) |
4,000 |
Furniture (28,000 × 15%) |
4,200 |
Prepaid Salaries |
800 |
Machinery (34,000 × 15%) |
5,100 |
Loss transferred to |
|
Investments (32,000 × 15%) |
4,800 |
A Capital |
2,220 |
|
|
B Capital |
3,330 |
|
|
C Capital |
5,550 |
|
15,900 |
|
15,900 |
|
|
|
|
Partners’ Capital Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Goodwill |
4,000 |
6,000 |
10,000 |
|
Balance b/d |
36,000 |
44,000 |
52,000 |
|
Revaluation (Loss) |
2,220 |
3,330 |
5,550 |
|
Profit and Loss |
2,800 |
4,200 |
7,000 |
|
|
|
|
|
|
Bank |
|
|
|
36,000 |
Balance c/d |
33,380 |
40,070 |
45,450 |
36,000 |
D’s Current |
800 |
1,200 |
2,000 |
|
|
39,600 |
49,400 |
61,000 |
36,000 |
|
39,600 |
49,400 |
61,000 |
36,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance b/d |
33,380 |
40,070 |
45,450 |
36,000 |
|
|
|
|
|
Bank |
2,620 |
13,930 |
44,550 |
|
Balance c/d (adjusted) |
36,000 |
54,000 |
90,000 |
36,000 |
|
|
|
|
|
|
36,000 |
54,000 |
90,000 |
36,000 |
|
36,000 |
54,000 |
90,000 |
36,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash at Bank |
1,15,100 |
|
A |
36,000 |
|
Bills Receivables |
24,000 |
B |
54,000 |
|
Furniture (28,000 – 4,200) |
23,800 |
C |
90,000 |
|
Stock |
48,000 |
D |
36,000 |
2,16,000 |
Debtors |
42,000 |
Sundry Creditors |
64,000 |
Investments (32,000 – 4,800) |
27,200 |
|
Employee Provident Fund |
33,800 |
Machinery (34,000 – 5,100) |
28,900 |
|
|
|
D’s Current |
4,000 |
|
|
|
Prepaid Salaries |
800 |
|
|
3,13,800 |
|
3,13,800 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
18,000 |
|
|
D’s Capital |
36,000 |
|
|
A’s Capital |
2,620 |
|
|
B’s Capital |
13,930 |
|
|
C’s Capital |
44,550 |
Balance c/d |
1,15,100 |
|
1,15,100 |
|
1,15,100 |
|
|
|
|
Working Notes:
WN1: Distribution of Revaluation Loss
WN2: Writing-off of Goodwill
Partners’ Capital Account will be debited as
WN3: Distribution of Profit and Loss (Profit)
WN4: Calculation of D's Share of Goodwill
Goodwill of the new firm = 24,000
WN5: Treatment of D’s Goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
D’s Current A/c |
Dr. |
|
4,000 |
|
To A’s Capital A/c |
|
|
800 |
|
To B’s Capital A/c |
|
|
1,200 |
|
To C’s Capital A/c |
|
|
2,000 |
|
(D’s share of goodwill charged form his current account) |
|
|
|
WN6: Adjustment of Capital
Page No 4.109:
Question 86:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Employee Provident Fund |
1,800 |
Stock (48,000 – 44,000) |
4,000 |
Furniture (28,000 × 15%) |
4,200 |
Prepaid Salaries |
800 |
Machinery (34,000 × 15%) |
5,100 |
Loss transferred to |
|
Investments (32,000 × 15%) |
4,800 |
A Capital |
2,220 |
|
|
B Capital |
3,330 |
|
|
C Capital |
5,550 |
|
15,900 |
|
15,900 |
|
|
|
|
Partners’ Capital Account |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Goodwill |
4,000 |
6,000 |
10,000 |
|
Balance b/d |
36,000 |
44,000 |
52,000 |
|
Revaluation (Loss) |
2,220 |
3,330 |
5,550 |
|
Profit and Loss |
2,800 |
4,200 |
7,000 |
|
|
|
|
|
|
Bank |
|
|
|
36,000 |
Balance c/d |
33,380 |
40,070 |
45,450 |
36,000 |
D’s Current |
800 |
1,200 |
2,000 |
|
|
39,600 |
49,400 |
61,000 |
36,000 |
|
39,600 |
49,400 |
61,000 |
36,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance b/d |
33,380 |
40,070 |
45,450 |
36,000 |
|
|
|
|
|
Bank |
2,620 |
13,930 |
44,550 |
|
Balance c/d (adjusted) |
36,000 |
54,000 |
90,000 |
36,000 |
|
|
|
|
|
|
36,000 |
54,000 |
90,000 |
36,000 |
|
36,000 |
54,000 |
90,000 |
36,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash at Bank |
1,15,100 |
|
A |
36,000 |
|
Bills Receivables |
24,000 |
B |
54,000 |
|
Furniture (28,000 – 4,200) |
23,800 |
C |
90,000 |
|
Stock |
48,000 |
D |
36,000 |
2,16,000 |
Debtors |
42,000 |
Sundry Creditors |
64,000 |
Investments (32,000 – 4,800) |
27,200 |
|
Employee Provident Fund |
33,800 |
Machinery (34,000 – 5,100) |
28,900 |
|
|
|
D’s Current |
4,000 |
|
|
|
Prepaid Salaries |
800 |
|
|
3,13,800 |
|
3,13,800 |
|
|
|
|
|
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
18,000 |
|
|
D’s Capital |
36,000 |
|
|
A’s Capital |
2,620 |
|
|
B’s Capital |
13,930 |
|
|
C’s Capital |
44,550 |
Balance c/d |
1,15,100 |
|
1,15,100 |
|
1,15,100 |
|
|
|
|
Working Notes:
WN1: Distribution of Revaluation Loss
WN2: Writing-off of Goodwill
Partners’ Capital Account will be debited as
WN3: Distribution of Profit and Loss (Profit)
WN4: Calculation of D's Share of Goodwill
Goodwill of the new firm = 24,000
WN5: Treatment of D’s Goodwill
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
D’s Current A/c |
Dr. |
|
4,000 |
|
To A’s Capital A/c |
|
|
800 |
|
To B’s Capital A/c |
|
|
1,200 |
|
To C’s Capital A/c |
|
|
2,000 |
|
(D’s share of goodwill charged form his current account) |
|
|
|
WN6: Adjustment of Capital
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 4.109:
Question 87:
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 |
|
|
|
|
Plant and Machinery (4,000 × 10%) |
400 |
Stock (24,940 – 22,000) |
2,940 |
Provision for Bad Debts |
500 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,360 |
|
|
B Capital |
680 |
|
|
|
2,940 |
|
2,940 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
15,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
10,000 |
|
|
|
|
Premium for Goodwill |
2,000 |
1,000 |
|
Balance c/d |
18,360 |
11,680 |
10,000 |
Revaluation |
1,360 |
680 |
|
|
18,360 |
11,680 |
10,000 |
|
18,360 |
11,680 |
10,000 |
Cash |
|
1,680 |
|
Balance c/d |
18,360 |
11,680 |
10,000 |
Balance c/d |
20,000 |
10,000 |
10,000 |
Cash |
1,640 |
|
|
(Adjusted) |
|
|
|
|
|
|
|
|
20,000 |
11,680 |
10,000 |
|
20,000 |
11,680 |
10,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
2,000 |
Cash |
13,960 |
||
Bank Overdraft |
15,000 |
Sundry Debtors |
15,000 |
|
|
Capital A/cs: |
|
Less: Prov. for Bad Debts |
500 |
14,500 |
|
A |
20,000 |
|
Stock |
24,940 |
|
B |
10,000 |
|
Plant and Machinery |
3,600 |
|
C |
10,000 |
40,000 |
|
|
|
|
|
|
|
|
|
|
57,000 |
|
57,000 |
||
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
1,000 |
B’s Capital |
1,680 |
C’s Capital |
10,000 |
|
|
Premium for Goodwill |
3,000 |
|
|
A’s Capital |
1,640 |
Balance c/d |
13,960 |
|
|
|
|
|
15,640 |
|
15,640 |
|
|
|
|
Working Notes
WN1: Sacrificing Ratio
WN2: Distribution of Premium for Goodwill
WN3: Distribution of Revaluation Profit
WN4: Adjustment of Capital’s (in new ratio)
Page No 4.110:
Question 88:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant and Machinery (4,000 × 10%) |
400 |
Stock (24,940 – 22,000) |
2,940 |
Provision for Bad Debts |
500 |
|
|
Profit transferred to |
|
|
|
A Capital |
1,360 |
|
|
B Capital |
680 |
|
|
|
2,940 |
|
2,940 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
15,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
10,000 |
|
|
|
|
Premium for Goodwill |
2,000 |
1,000 |
|
Balance c/d |
18,360 |
11,680 |
10,000 |
Revaluation |
1,360 |
680 |
|
|
18,360 |
11,680 |
10,000 |
|
18,360 |
11,680 |
10,000 |
Cash |
|
1,680 |
|
Balance c/d |
18,360 |
11,680 |
10,000 |
Balance c/d |
20,000 |
10,000 |
10,000 |
Cash |
1,640 |
|
|
(Adjusted) |
|
|
|
|
|
|
|
|
20,000 |
11,680 |
10,000 |
|
20,000 |
11,680 |
10,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Sundry Creditors |
2,000 |
Cash |
13,960 |
||
Bank Overdraft |
15,000 |
Sundry Debtors |
15,000 |
|
|
Capital A/cs: |
|
Less: Prov. for Bad Debts |
500 |
14,500 |
|
A |
20,000 |
|
Stock |
24,940 |
|
B |
10,000 |
|
Plant and Machinery |
3,600 |
|
C |
10,000 |
40,000 |
|
|
|
|
|
|
|
|
|
|
57,000 |
|
57,000 |
||
|
|
|
|
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
1,000 |
B’s Capital |
1,680 |
C’s Capital |
10,000 |
|
|
Premium for Goodwill |
3,000 |
|
|
A’s Capital |
1,640 |
Balance c/d |
13,960 |
|
|
|
|
|
15,640 |
|
15,640 |
|
|
|
|
Working Notes
WN1: Sacrificing Ratio
WN2: Distribution of Premium for Goodwill
WN3: Distribution of Revaluation Profit
WN4: Adjustment of Capital’s (in new ratio)
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant and Machinery (70,000 – 60,000) |
10,000 |
Land and Building (65,000 – 40,000) |
25,000 |
Profit transferred to |
|
Provision for Doubtful Debts |
400 |
A Capital |
12,450 |
Creditors |
1,200 |
B Capital |
4,150 |
|
|
|
|
|
|
|
26,600 |
|
26,600 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
50,000 |
80,000 |
|
|
|
|
|
General Reserve |
7,500 |
2,500 |
|
|
|
|
|
Revaluation (Profit) |
12,450 |
4,150 |
|
|
|
|
|
Cash |
|
|
60,000 |
Balance c/d |
74,450 |
88,150 |
60,000 |
Premium for Goodwill |
4,500 |
1,500 |
|
|
74,450 |
88,150 |
60,000 |
|
74,450 |
88,150 |
60,000 |
|
|
|
|
|
|
|
|
B’s Current |
|
43,150 |
|
Balance b/d |
74,450 |
88,150 |
60,000 |
Balance c/d (Adjusted) |
1,35,000 |
45,000 |
60,000 |
A’s Current |
60,550 |
|
|
|
1,35,000 |
88,150 |
60,000 |
|
1,35,000 |
88,150 |
60,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors (70,000 – 1,200) |
68,800 |
Land and Building |
65,000 |
||
Capital A/cs: |
|
Plant and Machinery |
60,000 |
||
A |
1,35,000 |
|
Stock |
30,000 |
|
B |
45,000 |
|
Debtors |
35,000 |
|
C |
60,000 |
2,40,000 |
Less: Prov. for Doubtful Debts |
600 |
34,400 |
B’s Current A/c |
43,150 |
Investments |
26,000 |
||
|
|
Cash |
76,000 |
||
|
|
A’s Current A/c |
60,550 |
||
|
|
|
|
||
|
3,51,950 |
|
3,51,950 |
||
|
|
|
|
Working Notes:
WN1
WN2
WN3 Distribution of Revaluation Profit
WN4 Adjustment of Capital
Total Capital of the firm after C’s admission |
= |
60,000 × 4 |
= |
2,40,000 |
Less: C’s Capital |
|
|
= |
60,000 |
Combined Capital of A and B |
|
|
= |
1, 80,000 |
WN5
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
10,000 |
|
|
C’s Capital |
60,000 |
Balance c/d |
76,000 |
Premium for Goodwill |
6,000 |
(Balancing Figure) |
|
|
76,000 |
|
76,000 |
|
|
|
|
Page No 4.110:
Question 89:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant and Machinery (70,000 – 60,000) |
10,000 |
Land and Building (65,000 – 40,000) |
25,000 |
Profit transferred to |
|
Provision for Doubtful Debts |
400 |
A Capital |
12,450 |
Creditors |
1,200 |
B Capital |
4,150 |
|
|
|
|
|
|
|
26,600 |
|
26,600 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
|
|
|
|
Balance b/d |
50,000 |
80,000 |
|
|
|
|
|
General Reserve |
7,500 |
2,500 |
|
|
|
|
|
Revaluation (Profit) |
12,450 |
4,150 |
|
|
|
|
|
Cash |
|
|
60,000 |
Balance c/d |
74,450 |
88,150 |
60,000 |
Premium for Goodwill |
4,500 |
1,500 |
|
|
74,450 |
88,150 |
60,000 |
|
74,450 |
88,150 |
60,000 |
|
|
|
|
|
|
|
|
B’s Current |
|
43,150 |
|
Balance b/d |
74,450 |
88,150 |
60,000 |
Balance c/d (Adjusted) |
1,35,000 |
45,000 |
60,000 |
A’s Current |
60,550 |
|
|
|
1,35,000 |
88,150 |
60,000 |
|
1,35,000 |
88,150 |
60,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors (70,000 – 1,200) |
68,800 |
Land and Building |
65,000 |
||
Capital A/cs: |
|
Plant and Machinery |
60,000 |
||
A |
1,35,000 |
|
Stock |
30,000 |
|
B |
45,000 |
|
Debtors |
35,000 |
|
C |
60,000 |
2,40,000 |
Less: Prov. for Doubtful Debts |
600 |
34,400 |
B’s Current A/c |
43,150 |
Investments |
26,000 |
||
|
|
Cash |
76,000 |
||
|
|
A’s Current A/c |
60,550 |
||
|
|
|
|
||
|
3,51,950 |
|
3,51,950 |
||
|
|
|
|
Working Notes:
WN1
WN2
WN3 Distribution of Revaluation Profit
WN4 Adjustment of Capital
Total Capital of the firm after C’s admission |
= |
60,000 × 4 |
= |
2,40,000 |
Less: C’s Capital |
|
|
= |
60,000 |
Combined Capital of A and B |
|
|
= |
1, 80,000 |
WN5
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
10,000 |
|
|
C’s Capital |
60,000 |
Balance c/d |
76,000 |
Premium for Goodwill |
6,000 |
(Balancing Figure) |
|
|
76,000 |
|
76,000 |
|
|
|
|
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, 2012 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 |
|
Typewriter |
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 |
|
|
|
|
Page No 4.110:
Question 90:
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, 2012 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 |
|
Typewriter |
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 |
|
|
|
|
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant (650 – 500) |
150 |
Reserve for Doubtful Debts |
300 |
Profit transferred to |
|
(400 – 100) |
|
Mohan Capital |
390 |
Stock |
500 |
Sohan Capital |
260 |
|
|
|
800 |
|
800 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Mohan |
Sohan |
Rohan |
Particulars |
Mohan |
Sohan |
Rohan |
|
|
|
|
Balance b/d |
2,000 |
1,000 |
|
Balance c/d |
2,990 |
1,660 |
|
Revaluation |
390 |
260 |
|
(after adjustments) |
|
|
|
Premium for Goodwill |
600 |
400 |
|
|
2,990 |
1,660 |
|
|
2,990 |
1,660 |
|
|
|
|
|
Balance b/d |
2,990 |
1,660 |
|
Balance c/d |
2,990 |
1,660 |
2,325 |
Cash |
|
|
2,325 |
|
2,990 |
1,660 |
2,325 |
|
2,990 |
1,660 |
2,325 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Rohan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Cash |
3,975 |
||
Mohan |
2,990 |
|
Debtors |
1,000 |
|
Sohan |
1,660 |
|
Less: Reserve for D. Debts |
100 |
900 |
Rohan |
2,325 |
6,975 |
Stock |
2,000 |
|
Creditors |
400 |
Plant |
500 |
||
|
|
|
|
||
|
7,375 |
|
7,375 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of Revaluation Profit
WN4
Calculation Rohan’s Capital
Combined Capital of Mohan and Sohan after all adjustments = 2,990 + 1,660
= Rs 4,650
Total Capital of the firm on the basis of combined capital of Mohan and Sohan
WN5
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
650 |
|
|
Rohan’s Capital |
2,325 |
|
|
Premium for Goodwill |
1,000 |
Balance c/d |
3,975 |
|
3,975 |
|
3,975 |
|
|
|
|
Page No 4.111:
Question 91:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Plant (650 – 500) |
150 |
Reserve for Doubtful Debts |
300 |
Profit transferred to |
|
(400 – 100) |
|
Mohan Capital |
390 |
Stock |
500 |
Sohan Capital |
260 |
|
|
|
800 |
|
800 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Mohan |
Sohan |
Rohan |
Particulars |
Mohan |
Sohan |
Rohan |
|
|
|
|
Balance b/d |
2,000 |
1,000 |
|
Balance c/d |
2,990 |
1,660 |
|
Revaluation |
390 |
260 |
|
(after adjustments) |
|
|
|
Premium for Goodwill |
600 |
400 |
|
|
2,990 |
1,660 |
|
|
2,990 |
1,660 |
|
|
|
|
|
Balance b/d |
2,990 |
1,660 |
|
Balance c/d |
2,990 |
1,660 |
2,325 |
Cash |
|
|
2,325 |
|
2,990 |
1,660 |
2,325 |
|
2,990 |
1,660 |
2,325 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Rohan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Cash |
3,975 |
||
Mohan |
2,990 |
|
Debtors |
1,000 |
|
Sohan |
1,660 |
|
Less: Reserve for D. Debts |
100 |
900 |
Rohan |
2,325 |
6,975 |
Stock |
2,000 |
|
Creditors |
400 |
Plant |
500 |
||
|
|
|
|
||
|
7,375 |
|
7,375 |
||
|
|
|
|
Working Notes
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of Revaluation Profit
WN4
Calculation Rohan’s Capital
Combined Capital of Mohan and Sohan after all adjustments = 2,990 + 1,660
= Rs 4,650
Total Capital of the firm on the basis of combined capital of Mohan and Sohan
WN5
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
650 |
|
|
Rohan’s Capital |
2,325 |
|
|
Premium for Goodwill |
1,000 |
Balance c/d |
3,975 |
|
3,975 |
|
3,975 |
|
|
|
|
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. |
|
15,000 |
|
Ram’s Capital A/c | Dr. | 7,500 | |||
|
To Revaluation A/c |
|
|
7,500 |
|
|
(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 4.111:
Question 92:
|
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. |
|
15,000 |
|
Ram’s Capital A/c | Dr. | 7,500 | |||
|
To Revaluation A/c |
|
|
7,500 |
|
|
(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:
Revaluation Account | ||||
Dr. | Cr. | |||
Particulars | Amount Rs |
Particulars | Amount Rs |
|
Stock | 10,000 | Plant | 14,000 | |
Profit on Revaluation transferred to: | Creditors | 3,000 | ||
Sarthak’s Capital A/c | 8,000 | Investments | 5,000 | |
Vansh’s Capital A/c | 4,000 | 12,000 | ||
22,000 | 22,000 | |||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Sarthak | Vansh | Mansi | Particulars | Sarthak | Vansh | Mansi |
Investment | 20,000 | Balance b/d | 70,000 | 60,000 | |||
Cash A/c | 1,00,000 | ||||||
Premium for Goodwill A/c | 40,000 | 20,000 | |||||
Balance c/d | 1,10,000 | 90,000 | 1,00,000 | General Reserve | 12,000 | 6,000 | |
Revaluation A/c (Profit) | 8,000 | 4,000 | |||||
1,30,000 | 90,000 | 1,00,000 | 1,30,000 | 90,000 | 1,00,000 | ||
Balance Sheet
after Mansi’ Admission
|
||||
Liabilities | Amount Rs |
Assets | Amount Rs |
|
Capital A/c : | Plant | 80,000 | ||
Sarthak | 1,10,000 | Furniture | 30,000 | |
Vansh | 90,000 | Investments | 25,000 | |
Mansi | 1,00,000 | Stock (46,000 – 10,000) | 36,000 | |
Bank Loan | 18,000 | Debtors | 38,000 | |
Creditors (72,000 – 3,000) | 69,000 | Less: Provision for Doubtful Debts | (4,000) | 34,000 |
Cash (22,000+60,000+1,00,000) | 1,82,000 | |||
3,87,000 | 3,87,000 | |||
Working Notes:
Calculation of Capital brought in by Mansi
Old Ratio = 2 : 1
Mansi is admitted for 1/3rd share
Let Total Profit be 1
Adjusted Old Capital of Sarthak = 1,30,000 – 20,000 = 1,10,000
Adjusted Old Capital of Vansh = 90,000
Total Adjusted Capital of Sarthak and Vansh = 1,10,000 + 90,000 = 2,00,000
The following are the values involved in the scenario depicted in the question.
1. Valuing friendship and helping friends.
2. Sympathy and sensitivity towards differently abled individuals.
Page No 4.112:
Question 93:
Revaluation Account | ||||
Dr. | Cr. | |||
Particulars | Amount Rs |
Particulars | Amount Rs |
|
Stock | 10,000 | Plant | 14,000 | |
Profit on Revaluation transferred to: | Creditors | 3,000 | ||
Sarthak’s Capital A/c | 8,000 | Investments | 5,000 | |
Vansh’s Capital A/c | 4,000 | 12,000 | ||
22,000 | 22,000 | |||
Partners’ Capital Accounts | |||||||
Dr. | Cr. | ||||||
Particulars | Sarthak | Vansh | Mansi | Particulars | Sarthak | Vansh | Mansi |
Investment | 20,000 | Balance b/d | 70,000 | 60,000 | |||
Cash A/c | 1,00,000 | ||||||
Premium for Goodwill A/c | 40,000 | 20,000 | |||||
Balance c/d | 1,10,000 | 90,000 | 1,00,000 | General Reserve | 12,000 | 6,000 | |
Revaluation A/c (Profit) | 8,000 | 4,000 | |||||
1,30,000 | 90,000 | 1,00,000 | 1,30,000 | 90,000 | 1,00,000 | ||
Balance Sheet
after Mansi’ Admission
|
||||
Liabilities | Amount Rs |
Assets | Amount Rs |
|
Capital A/c : | Plant | 80,000 | ||
Sarthak | 1,10,000 | Furniture | 30,000 | |
Vansh | 90,000 | Investments | 25,000 | |
Mansi | 1,00,000 | Stock (46,000 – 10,000) | 36,000 | |
Bank Loan | 18,000 | Debtors | 38,000 | |
Creditors (72,000 – 3,000) | 69,000 | Less: Provision for Doubtful Debts | (4,000) | 34,000 |
Cash (22,000+60,000+1,00,000) | 1,82,000 | |||
3,87,000 | 3,87,000 | |||
Working Notes:
Calculation of Capital brought in by Mansi
Old Ratio = 2 : 1
Mansi is admitted for 1/3rd share
Let Total Profit be 1
Adjusted Old Capital of Sarthak = 1,30,000 – 20,000 = 1,10,000
Adjusted Old Capital of Vansh = 90,000
Total Adjusted Capital of Sarthak and Vansh = 1,10,000 + 90,000 = 2,00,000
The following are the values involved in the scenario depicted in the question.
1. Valuing friendship and helping friends.
2. Sympathy and sensitivity towards differently abled individuals.
Answer:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Building (18,000 – 8,000) |
10,000 |
Profit transferred to |
|
Stock (16,000 – 12,000) |
4,000 |
X Capital |
8,400 |
|
|
Y Capital |
5,600 |
|
|
|
14,000 |
|
14,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
|
|
|
Balance b/d |
10,000 |
8,000 |
|
|
|
|
|
General Reserve |
9,600 |
6,400 |
|
|
|
|
|
Workmen’s Compensation Fund |
1,200 |
800 |
|
Balance c/d |
39,200 |
20,800 |
|
Revaluation (Profit) |
8,400 |
5,600 |
|
|
|
|
|
Premium for Goodwill |
10,000 |
|
|
|
39,200 |
20,800 |
|
|
39,200 |
20,800 |
|
|
|
|
|
Balance b/d |
39,200 |
20,800 |
|
|
|
|
|
Cash |
|
|
12,000 |
Balance c/d |
39,200 |
20,800 |
12,000 |
|
|
|
|
|
39,200 |
20,800 |
12,000 |
|
39,200 |
20,800 |
12,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash in Hand |
31,000 |
|
X |
39,200 |
|
Debtors |
11,000 |
Y |
20,800 |
|
Stock |
16,000 |
Z |
12,000 |
72,000 |
Building |
18,000 |
Creditors |
12,000 |
Machinery |
10,000 |
|
Outstanding Workmen’s Compensation Claim |
2,000 |
|
|
|
|
|
|
|
|
|
86,000 |
|
86,000 |
|
|
|
|
|
Working Notes
WN1: Sacrificing Ratio
Only X is sacrificing 1/5 portion of profit in favour of Z. Therefore, amount of Premium for Goodwill will be taken by X only.
WN2: Treatment of Workmen Compensation Fund
Particulars |
L.F. |
Debit AmountRs |
Credit AmountRs |
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
Dr. |
|
4,000 |
|
To Outstanding Workmen’s Compensation Claim A/c |
|
|
|
2,000 |
To X’s Capital A/c |
Dr. |
|
|
1,200 |
To Y’s Capital A/c |
|
|
800 |
|
(Outstanding Workmen’s Compensation charged from the fund and remaining fund transferred to partner’s capital in their old ratio) |
|
|
|
|
|
|
|
|
WN3: Calculation of Z’s Capital
Combined Capital of X and Y after all adjustments = 39,200 + 20,800 = Rs 60,000
Z’s Capital
WN4: Calculation of Cash Balance
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
9,000 |
|
|
Z’s Capital |
12,000 |
|
|
Premium for Goodwill |
10,000 |
Balance c/d |
31,000 |
|
31,000 |
|
31,000 |
|
|
|
|
Page No 4.112:
Question 94:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
|
|
Building (18,000 – 8,000) |
10,000 |
Profit transferred to |
|
Stock (16,000 – 12,000) |
4,000 |
X Capital |
8,400 |
|
|
Y Capital |
5,600 |
|
|
|
14,000 |
|
14,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
|
|
|
Balance b/d |
10,000 |
8,000 |
|
|
|
|
|
General Reserve |
9,600 |
6,400 |
|
|
|
|
|
Workmen’s Compensation Fund |
1,200 |
800 |
|
Balance c/d |
39,200 |
20,800 |
|
Revaluation (Profit) |
8,400 |
5,600 |
|
|
|
|
|
Premium for Goodwill |
10,000 |
|
|
|
39,200 |
20,800 |
|
|
39,200 |
20,800 |
|
|
|
|
|
Balance b/d |
39,200 |
20,800 |
|
|
|
|
|
Cash |
|
|
12,000 |
Balance c/d |
39,200 |
20,800 |
12,000 |
|
|
|
|
|
39,200 |
20,800 |
12,000 |
|
39,200 |
20,800 |
12,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash in Hand |
31,000 |
|
X |
39,200 |
|
Debtors |
11,000 |
Y |
20,800 |
|
Stock |
16,000 |
Z |
12,000 |
72,000 |
Building |
18,000 |
Creditors |
12,000 |
Machinery |
10,000 |
|
Outstanding Workmen’s Compensation Claim |
2,000 |
|
|
|
|
|
|
|
|
|
86,000 |
|
86,000 |
|
|
|
|
|
Working Notes
WN1: Sacrificing Ratio
Only X is sacrificing 1/5 portion of profit in favour of Z. Therefore, amount of Premium for Goodwill will be taken by X only.
WN2: Treatment of Workmen Compensation Fund
Particulars |
L.F. |
Debit AmountRs |
Credit AmountRs |
|
|
|
|
|
|
Workmen’s Compensation Fund A/c |
Dr. |
|
4,000 |
|
To Outstanding Workmen’s Compensation Claim A/c |
|
|
|
2,000 |
To X’s Capital A/c |
Dr. |
|
|
1,200 |
To Y’s Capital A/c |
|
|
800 |
|
(Outstanding Workmen’s Compensation charged from the fund and remaining fund transferred to partner’s capital in their old ratio) |
|
|
|
|
|
|
|
|
WN3: Calculation of Z’s Capital
Combined Capital of X and Y after all adjustments = 39,200 + 20,800 = Rs 60,000
Z’s Capital
WN4: Calculation of Cash Balance
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
9,000 |
|
|
Z’s Capital |
12,000 |
|
|
Premium for Goodwill |
10,000 |
Balance c/d |
31,000 |
|
31,000 |
|
31,000 |
|
|
|
|
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, 2012 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 4.113:
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, 2012 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 |
|
|
|
|
Machinery |
7,000 |
Furniture |
3,000 |
Stock |
1,000 |
Loss transferred to |
|
|
|
B's Capital A/c |
3,000 |
|
|
C's Capital A/c |
2,000 |
|
8,000 |
|
8,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
B |
C |
A |
Particulars |
B |
C |
A |
Revaluation |
3,000 |
2,000 |
|
Balance b/d |
30,000 |
10,000 |
|
|
|
|
|
Profit and Loss |
4,500 |
3,000 |
|
|
|
|
|
Cash |
|
|
20,000 |
Balance c/d |
33,600 |
12,400 |
20,000 |
Premium for Goodwill |
2,100 |
1,400 |
|
|
36,600 |
14,400 |
20,000 |
|
36,600 |
14,400 |
20,000 |
|
|
|
|
Balance b/d |
33,600 |
12,400 |
20,000 |
Cash |
9,600 |
|
|
Cash |
|
3,600 |
|
Balance c/d (proportionate) |
24,000 |
16,000 |
20,000 |
|
|
|
|
|
33,000 |
16,000 |
20,000 |
|
33,600 |
16,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after A’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Machinery (18,000 – 7,000) |
11,000 |
|
B |
24,000 |
|
Furniture (18,000 + 3,000) |
21,000 |
C |
16,000 |
|
Investments |
9,000 |
A |
20,000 |
60,000 |
Stock (6,000 – 1,000) |
5,000 |
Creditors |
|
7,000 |
Debtors |
4,000 |
Bills Payable |
2,500 |
Cash |
19,500 |
|
|
69,500 |
|
69,500 |
|
|
|
|
|
Working Notes
WN1: Calculation of New Profit Sharing Ratio
Let the Combined share of profit of all partners after A’s admission be = 1
WN2: Calculation of Proportionate Capital
WN3: Calculation of Cash Balance
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
2,000 |
B’s Capital |
9,600 |
A’s Capital |
20,000 |
|
|
Premium for Goodwill |
3,500 |
Balance c/d |
19,500 |
C’s Capital |
3,600 |
|
|
|
29,100 |
|
29,100 |
|
|
|
|
Page No 4.113:
Question 96:
Revaluation Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery |
7,000 |
Furniture |
3,000 |
Stock |
1,000 |
Loss transferred to |
|
|
|
B's Capital A/c |
3,000 |
|
|
C's Capital A/c |
2,000 |
|
8,000 |
|
8,000 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
B |
C |
A |
Particulars |
B |
C |
A |
Revaluation |
3,000 |
2,000 |
|
Balance b/d |
30,000 |
10,000 |
|
|
|
|
|
Profit and Loss |
4,500 |
3,000 |
|
|
|
|
|
Cash |
|
|
20,000 |
Balance c/d |
33,600 |
12,400 |
20,000 |
Premium for Goodwill |
2,100 |
1,400 |
|
|
36,600 |
14,400 |
20,000 |
|
36,600 |
14,400 |
20,000 |
|
|
|
|
Balance b/d |
33,600 |
12,400 |
20,000 |
Cash |
9,600 |
|
|
Cash |
|
3,600 |
|
Balance c/d (proportionate) |
24,000 |
16,000 |
20,000 |
|
|
|
|
|
33,000 |
16,000 |
20,000 |
|
33,600 |
16,000 |
20,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2012 after A’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Machinery (18,000 – 7,000) |
11,000 |
|
B |
24,000 |
|
Furniture (18,000 + 3,000) |
21,000 |
C |
16,000 |
|
Investments |
9,000 |
A |
20,000 |
60,000 |
Stock (6,000 – 1,000) |
5,000 |
Creditors |
|
7,000 |
Debtors |
4,000 |
Bills Payable |
2,500 |
Cash |
19,500 |
|
|
69,500 |
|
69,500 |
|
|
|
|
|
Working Notes
WN1: Calculation of New Profit Sharing Ratio
Let the Combined share of profit of all partners after A’s admission be = 1
WN2: Calculation of Proportionate Capital
WN3: Calculation of Cash Balance
Cash Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
2,000 |
B’s Capital |
9,600 |
A’s Capital |
20,000 |
|
|
Premium for Goodwill |
3,500 |
Balance c/d |
19,500 |
C’s Capital |
3,600 |
|
|
|
29,100 |
|
29,100 |
|
|
|
|
Answer:
Revaluation Account |
|
|||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
||
|
|
|
|
|
||
Machinery (94,000 × 15%) |
14,100 |
Stock (48,000 – 44,000) |
4,000 |
|
||
Outstanding Rent |
1,900 |
Creditors |
12,000 |
|
||
|
16,000 |
|
16,000 |
|
||
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Goodwill |
4,000 |
6,000 |
10,000 |
|
Balance b/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
General Reserve |
2,800 |
4,200 |
7,000 |
|
|
|
|
|
|
Premium for Goodwill |
1,200 |
1,800 |
3,000 |
|
Balance c/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
|
40,000 |
50,000 |
62,000 |
|
|
40,000 |
50,000 |
62,000 |
|
|
|
|
|
|
Balance c/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
Cash |
|
|
|
88,000 |
Balance c/d |
36,000 |
44,000 |
52,000 |
88,000 |
|
|
|
|
|
|
36,000 |
44,000 |
52,000 |
88,000 |
|
36,000 |
44,000 |
52,000 |
88,000 |
|
|
|
|
|
|
|
|
|
|
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
18,000 |
|
|
D’s Capital A/c |
88,000 |
|
|
Premium for Goodwill |
6,000 |
Balance c/d |
1,12,000 |
|
1,12,000 |
|
1,12,000 |
|
|
|
|
Balance Sheet as on March 31, 2012 after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash |
1,12,000 |
|
A |
36,000 |
|
Bills Receivable |
14,000 |
B |
44,000 |
|
Stock |
48,000 |
C |
52,000 |
|
Debtors |
42,000 |
D |
88,000 |
2,20,000 |
Machinery (94,000 – 14,100) |
79,900 |
Creditors (64,000 – 12,000) |
52,000 |
|
|
|
Bills Payable |
22,000 |
|
|
|
Outstanding Rent |
1,900 |
|
|
|
|
2,95,900 |
|
2,95,900 |
|
|
|
|
|
Working Notes
WN1
WN2
Distribution of General Reserve
WN3
Writing-off of Goodwill
WN4
Calculation of C’s share of Goodwill
Let combined share of all partners after D’s admission be = 1
Combined Capital of A, B and C after all adjustments = 36,000 + 44,000 + 52,000 = Rs 1,32,000
The Values involved are:
(i) Responsibility towards society,
(ii) Upliftment of education sector.
Page No 4.114:
Question 97:
Revaluation Account |
|
|||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
||
|
|
|
|
|
||
Machinery (94,000 × 15%) |
14,100 |
Stock (48,000 – 44,000) |
4,000 |
|
||
Outstanding Rent |
1,900 |
Creditors |
12,000 |
|
||
|
16,000 |
|
16,000 |
|
||
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
|
|
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Goodwill |
4,000 |
6,000 |
10,000 |
|
Balance b/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
General Reserve |
2,800 |
4,200 |
7,000 |
|
|
|
|
|
|
Premium for Goodwill |
1,200 |
1,800 |
3,000 |
|
Balance c/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
|
40,000 |
50,000 |
62,000 |
|
|
40,000 |
50,000 |
62,000 |
|
|
|
|
|
|
Balance c/d |
36,000 |
44,000 |
52,000 |
|
|
|
|
|
|
Cash |
|
|
|
88,000 |
Balance c/d |
36,000 |
44,000 |
52,000 |
88,000 |
|
|
|
|
|
|
36,000 |
44,000 |
52,000 |
88,000 |
|
36,000 |
44,000 |
52,000 |
88,000 |
|
|
|
|
|
|
|
|
|
|
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
18,000 |
|
|
D’s Capital A/c |
88,000 |
|
|
Premium for Goodwill |
6,000 |
Balance c/d |
1,12,000 |
|
1,12,000 |
|
1,12,000 |
|
|
|
|
Balance Sheet as on March 31, 2012 after D’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital A/cs: |
|
Cash |
1,12,000 |
|
A |
36,000 |
|
Bills Receivable |
14,000 |
B |
44,000 |
|
Stock |
48,000 |
C |
52,000 |
|
Debtors |
42,000 |
D |
88,000 |
2,20,000 |
Machinery (94,000 – 14,100) |
79,900 |
Creditors (64,000 – 12,000) |
52,000 |
|
|
|
Bills Payable |
22,000 |
|
|
|
Outstanding Rent |
1,900 |
|
|
|
|
2,95,900 |
|
2,95,900 |
|
|
|
|
|
Working Notes
WN1
WN2
Distribution of General Reserve
WN3
Writing-off of Goodwill
WN4
Calculation of C’s share of Goodwill
Let combined share of all partners after D’s admission be = 1
Combined Capital of A, B and C after all adjustments = 36,000 + 44,000 + 52,000 = Rs 1,32,000
The Values involved are:
(i) Responsibility towards society,
(ii) Upliftment of education sector.
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery (30,000 × 10%) |
3,000 |
Building (50,000 × 20%) |
10,000 |
Stock (35,000 × 25/125) |
7,000 |
Loss transferred to Capital A/cs: |
|
Repair for Furniture |
600 |
X |
375 |
|
|
Y |
225 |
|
10,600 |
|
10,600 |
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation |
375 |
225 |
|
Balance b/d |
75,000 |
60,000 |
|
|
|
|
|
General Reserve |
12,500 |
7,500 |
|
|
|
|
|
Bank |
|
|
50,000 |
Balance c/d |
97,125 |
73,275 |
50,000 |
Premium for Goodwill |
10,000 |
6,000 |
|
|
97,500 |
73,500 |
50,000 |
|
97,500 |
73,500 |
50,000 |
|
|
|
|
Balance b/d |
97,125 |
73,275 |
50,000 |
Balance c/d |
1,25,000 |
75,000 |
50,000 |
X’s Current |
27,875 |
1,725 |
|
(Proportionate) |
|
|
|
Y’s Current |
|
|
|
|
1,25,000 |
75,000 |
50,000 |
|
1,25,000 |
75,000 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors |
25,000 |
Cash at Bank |
77,200 |
|
|
|
Bills Receivables |
12,800 |
|
Repair for Furniture |
600 |
Debtors |
20,000 |
|
Capital A/cs: |
|
Stock (35,000 – 7,000) |
28,000 |
|
X |
1,25,000 |
|
Furniture |
21,000 |
Y |
75,000 |
|
Machinery (30,000 – 3,000) |
27,000 |
Z |
50,000 |
2,50,000 |
Buildings (50,000 + 10,000) |
60,000 |
|
|
X’s Current A/c |
27,875 |
|
|
|
Y’s Current A/c |
1,725 |
|
|
2,75,600 |
|
2,75,600 |
|
|
|
|
|
NOTE: As the per the textbook, the total of the Balance Sheet is Rs 2,75,000, which should be Rs 2,75,600 in order to record the liability of Rs 600 for repairs in the books.
Working Notes
WN1: Sacrificing Ratio
WN2: Distribution on Revaluation Profit
WN3: Distribution of General Reserve
WN4: Distribution of Premium for Goodwill
WN5: Calculation of Proportionate Capital
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
11,200 |
|
|
Z’s Capital |
50,000 |
|
|
Premium for Goodwill |
16,000 |
|
|
|
|
Balance c/d |
77,200 |
|
77,200 |
|
77,200 |
|
|
|
|
Page No 4.114:
Question 98:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Machinery (30,000 × 10%) |
3,000 |
Building (50,000 × 20%) |
10,000 |
Stock (35,000 × 25/125) |
7,000 |
Loss transferred to Capital A/cs: |
|
Repair for Furniture |
600 |
X |
375 |
|
|
Y |
225 |
|
10,600 |
|
10,600 |
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
Revaluation |
375 |
225 |
|
Balance b/d |
75,000 |
60,000 |
|
|
|
|
|
General Reserve |
12,500 |
7,500 |
|
|
|
|
|
Bank |
|
|
50,000 |
Balance c/d |
97,125 |
73,275 |
50,000 |
Premium for Goodwill |
10,000 |
6,000 |
|
|
97,500 |
73,500 |
50,000 |
|
97,500 |
73,500 |
50,000 |
|
|
|
|
Balance b/d |
97,125 |
73,275 |
50,000 |
Balance c/d |
1,25,000 |
75,000 |
50,000 |
X’s Current |
27,875 |
1,725 |
|
(Proportionate) |
|
|
|
Y’s Current |
|
|
|
|
1,25,000 |
75,000 |
50,000 |
|
1,25,000 |
75,000 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2012 after Z’s admission |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors |
25,000 |
Cash at Bank |
77,200 |
|
|
|
Bills Receivables |
12,800 |
|
Repair for Furniture |
600 |
Debtors |
20,000 |
|
Capital A/cs: |
|
Stock (35,000 – 7,000) |
28,000 |
|
X |
1,25,000 |
|
Furniture |
21,000 |
Y |
75,000 |
|
Machinery (30,000 – 3,000) |
27,000 |
Z |
50,000 |
2,50,000 |
Buildings (50,000 + 10,000) |
60,000 |
|
|
X’s Current A/c |
27,875 |
|
|
|
Y’s Current A/c |
1,725 |
|
|
2,75,600 |
|
2,75,600 |
|
|
|
|
|
NOTE: As the per the textbook, the total of the Balance Sheet is Rs 2,75,000, which should be Rs 2,75,600 in order to record the liability of Rs 600 for repairs in the books.
Working Notes
WN1: Sacrificing Ratio
WN2: Distribution on Revaluation Profit
WN3: Distribution of General Reserve
WN4: Distribution of Premium for Goodwill
WN5: Calculation of Proportionate Capital
Bank Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
11,200 |
|
|
Z’s Capital |
50,000 |
|
|
Premium for Goodwill |
16,000 |
|
|
|
|
Balance c/d |
77,200 |
|
77,200 |
|
77,200 |
|
|
|
|
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, 2012 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
The Values involved are:
(i) Fulfilling responsibilities towards society
(ii) Environment Protection.
Page No 4.115:
Question 99:
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, 2012 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
The Values involved are:
(i) Fulfilling responsibilities towards society
(ii) Environment Protection.
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (50,000 – 45,000) |
5,000 |
|
|
Furniture (10,000 × 10%) |
1,000 |
Loss transferred to |
|
Machinery (1,20,000 ×5%) |
6,000 |
Ram Capital |
9,000 |
Provision for Doubtful Debts |
3,000 |
Mohan Capital |
6,000 |
|
|
|
|
|
15,000 |
|
15,000 |
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
Ram |
Mohan |
Sohan |
Particulars |
Ram |
Mohan |
Sohan |
|
Revaluation |
9,000 |
6,000 |
|
Balance b/d |
1,35,000 |
1,25,000 |
|
|
|
|
|
|
Reserves |
18,000 |
12,000 |
|
|
|
|
|
|
Premium for Goodwill |
18,000 |
12,000 |
|
|
Balance c/d |
1,62,000 |
1,43,000 |
|
|
|
|
|
|
|
1,71,000 |
1,49,000 |
|
|
1,71,000 |
1,49,000 |
|
|
|
|
|
|
Balance b/d |
1,62,000 |
1,43,000 |
|
|
Balance c/d |
1,62,000 |
1,43,000 |
1,52,500 |
Cash |
|
|
1,52,500 |
|
|
1,62,000 |
1,43,000 |
1,52,500 |
|
1,62,000 |
1,43,000 |
1,52,500 |
|
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2008 after Sohan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
30,000 |
Cash (1,00,000 + 1,52,500 + 30,000) |
2,82,500 |
||
Bills Payable |
10,000 |
Stock |
45,000 |
||
Capital A/cs: |
|
10% Government Bonds |
20,000 |
||
Ram |
1,62,000 |
|
Furniture (10,000 – 1,000) |
9,000 |
|
Mohan |
1,43,000 |
|
Machinery (1,20,000 – 6,000) |
1,14,000 |
|
Sohan |
1,52,500 |
4,57,500 |
Debtors |
30,000 |
|
|
|
Less Provision for D. Debts |
3,000 |
27,000 |
|
|
4,97,500 |
|
4,97,500 |
||
|
|
|
|
Working Notes
WN1
WN2 Distribution Revaluation Loss
WN3 Distribution of Premium for Goodwill
WN4 Distribution of General Reserve
WN5 Calculation of Sohan’s share of Capital
Let the combined share of all partners after Sohan’s admission be = 1
Combined Capital of Ram and Mohan after Sohan’s admission = 1,62,000 + 1,43,000 = Rs 3,05,000
Total capital of the firm after Sohan’s admission
Page No 4.116:
Question 100:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Stock (50,000 – 45,000) |
5,000 |
|
|
Furniture (10,000 × 10%) |
1,000 |
Loss transferred to |
|
Machinery (1,20,000 ×5%) |
6,000 |
Ram Capital |
9,000 |
Provision for Doubtful Debts |
3,000 |
Mohan Capital |
6,000 |
|
|
|
|
|
15,000 |
|
15,000 |
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
Ram |
Mohan |
Sohan |
Particulars |
Ram |
Mohan |
Sohan |
|
Revaluation |
9,000 |
6,000 |
|
Balance b/d |
1,35,000 |
1,25,000 |
|
|
|
|
|
|
Reserves |
18,000 |
12,000 |
|
|
|
|
|
|
Premium for Goodwill |
18,000 |
12,000 |
|
|
Balance c/d |
1,62,000 |
1,43,000 |
|
|
|
|
|
|
|
1,71,000 |
1,49,000 |
|
|
1,71,000 |
1,49,000 |
|
|
|
|
|
|
Balance b/d |
1,62,000 |
1,43,000 |
|
|
Balance c/d |
1,62,000 |
1,43,000 |
1,52,500 |
Cash |
|
|
1,52,500 |
|
|
1,62,000 |
1,43,000 |
1,52,500 |
|
1,62,000 |
1,43,000 |
1,52,500 |
|
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2008 after Sohan’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
30,000 |
Cash (1,00,000 + 1,52,500 + 30,000) |
2,82,500 |
||
Bills Payable |
10,000 |
Stock |
45,000 |
||
Capital A/cs: |
|
10% Government Bonds |
20,000 |
||
Ram |
1,62,000 |
|
Furniture (10,000 – 1,000) |
9,000 |
|
Mohan |
1,43,000 |
|
Machinery (1,20,000 – 6,000) |
1,14,000 |
|
Sohan |
1,52,500 |
4,57,500 |
Debtors |
30,000 |
|
|
|
Less Provision for D. Debts |
3,000 |
27,000 |
|
|
4,97,500 |
|
4,97,500 |
||
|
|
|
|
Working Notes
WN1
WN2 Distribution Revaluation Loss
WN3 Distribution of Premium for Goodwill
WN4 Distribution of General Reserve
WN5 Calculation of Sohan’s share of Capital
Let the combined share of all partners after Sohan’s admission be = 1
Combined Capital of Ram and Mohan after Sohan’s admission = 1,62,000 + 1,43,000 = Rs 3,05,000
Total capital of the firm after Sohan’s admission
Answer:
Revaluation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit on Revaluation transferred to- |
|
Building |
19,600 |
|
Raghu’s Capital A/c |
22,440 |
|
Provision for Doubtful Debts (Old) |
7,000 |
Rishu’s Capital A/c |
14,960 |
37,400 |
Liability for Creditors |
10,800 |
|
37,400 |
|
37,400 |
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Raghu |
Rishu |
Rishabh |
Particulars |
Raghu |
Rishu |
Rishabh |
|
|
|
|
Balance b/d |
1,19,000 |
1,12,000 |
|
Cash A/c (Bal. Fig.) |
48,040 |
84,860 |
|
Cash A/c |
|
|
50,000 |
Balance c/d |
1,00,000 |
50,000 |
50,000 |
Investment Fluctuation Fund |
2,400 |
1,600 |
|
|
|
|
|
Premium for Goodwill |
4,200 |
6,300 |
|
|
|
|
|
Revaluation A/c (Profit) |
22,440 |
14,960 |
|
|
|
|
|
|
|
|
|
|
1,48,040 |
1,34,860 |
50,000 |
|
1,48,040 |
1,34,860 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2009 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
86,000 |
|
Cash (WN4) |
4,600 |
Less: Liability |
(10,800) |
75,200 |
Debtors |
42,000 |
Employees Provident Fund |
10,000 |
Investments |
21,000 |
|
Capital A/cs: |
|
Buildings (98,000 + 19,600) |
1,17,600 |
|
Raghu |
1,00,000 |
|
Plant and Machinery |
1,00,000 |
Rishu |
50,000 |
|
|
|
Rishabh |
50,000 |
2,00,000 |
|
|
|
|
|
|
|
|
2,85,200 |
|
2,85,200 |
|
|
|
|
|
Working Notes:
WN 1Calculation of Sacrificing Ratio
Old Ratio = 3 : 2
New Ratio = 2 : 1 : 1
Sacrificing Ratio = Old ratio – New Ratio
WN 2Share of Rishabh’s Share of Goodwill
Value of Firm’s Goodwill = 42,000
WN 3Adjustment of Capital
Total Capital of New Firm = Rishabh’s Capital × Reciprocal of Rishabh’s Share
Capital of Rishabh = Rs 50,000
WN 4 Cash Account
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
77,000 |
Raghu’s Capital |
48,040 |
Rishabh’s Capital |
50,000 |
Rishu’s Capital |
84,860 |
Premium for Goodwill |
10,500 |
Balance c/d |
4,600 |
|
1,37,500 |
|
1,37,500 |
|
|
|
|
Page No 4.85:
Question 1:
Revaluation Account |
||||
Dr. |
|
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
Profit on Revaluation transferred to- |
|
Building |
19,600 |
|
Raghu’s Capital A/c |
22,440 |
|
Provision for Doubtful Debts (Old) |
7,000 |
Rishu’s Capital A/c |
14,960 |
37,400 |
Liability for Creditors |
10,800 |
|
37,400 |
|
37,400 |
|
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
Raghu |
Rishu |
Rishabh |
Particulars |
Raghu |
Rishu |
Rishabh |
|
|
|
|
Balance b/d |
1,19,000 |
1,12,000 |
|
Cash A/c (Bal. Fig.) |
48,040 |
84,860 |
|
Cash A/c |
|
|
50,000 |
Balance c/d |
1,00,000 |
50,000 |
50,000 |
Investment Fluctuation Fund |
2,400 |
1,600 |
|
|
|
|
|
Premium for Goodwill |
4,200 |
6,300 |
|
|
|
|
|
Revaluation A/c (Profit) |
22,440 |
14,960 |
|
|
|
|
|
|
|
|
|
|
1,48,040 |
1,34,860 |
50,000 |
|
1,48,040 |
1,34,860 |
50,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2009 |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors |
86,000 |
|
Cash (WN4) |
4,600 |
Less: Liability |
(10,800) |
75,200 |
Debtors |
42,000 |
Employees Provident Fund |
10,000 |
Investments |
21,000 |
|
Capital A/cs: |
|
Buildings (98,000 + 19,600) |
1,17,600 |
|
Raghu |
1,00,000 |
|
Plant and Machinery |
1,00,000 |
Rishu |
50,000 |
|
|
|
Rishabh |
50,000 |
2,00,000 |
|
|
|
|
|
|
|
|
2,85,200 |
|
2,85,200 |
|
|
|
|
|
Working Notes:
WN 1Calculation of Sacrificing Ratio
Old Ratio = 3 : 2
New Ratio = 2 : 1 : 1
Sacrificing Ratio = Old ratio – New Ratio
WN 2Share of Rishabh’s Share of Goodwill
Value of Firm’s Goodwill = 42,000
WN 3Adjustment of Capital
Total Capital of New Firm = Rishabh’s Capital × Reciprocal of Rishabh’s Share
Capital of Rishabh = Rs 50,000
WN 4 Cash Account
Cash Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
Balance b/d |
77,000 |
Raghu’s Capital |
48,040 |
Rishabh’s Capital |
50,000 |
Rishu’s Capital |
84,860 |
Premium for Goodwill |
10,500 |
Balance c/d |
4,600 |
|
1,37,500 |
|
1,37,500 |
|
|
|
|
Answer:
A is admitted for 1/5 share of profit
Let the combined share of profit for all partners after A’s admission be = 1
Combined share of X, Y and Z after A’s admission =1 − A’s share
New Ratio = Old Ratio × Combined share of X, Y and Z
Page No 4.86:
Question 2:
A is admitted for 1/5 share of profit
Let the combined share of profit for all partners after A’s admission be = 1
Combined share of X, Y and Z after A’s admission =1 − A’s share
New Ratio = Old Ratio × Combined share of X, Y and Z
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 4.86:
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:
C admits for share
A sacrifices in favour of C
B sacrifices in favour of C
New Ratio = Old Ratio − Sacrificing Ratio
Page No 4.86:
Question 4:
C admits for share
A sacrifices in favour of C
B sacrifices in favour of C
New Ratio = Old Ratio − Sacrificing Ratio
Answer:
C admits for 1/6 share of profit
A sacrifices his share of profit in favour of C
B sacrifices his share of profit in favour of C
New Ratio = Old Ratio − Sacrificing Ratio
Page No 4.86:
Question 5:
C admits for 1/6 share of profit
A sacrifices his share of profit in favour of C
B sacrifices his share of profit in favour of C
New Ratio = Old Ratio − Sacrificing Ratio
Answer:
Old Profit Sharing Ratio amongst Partners (X and Y) is 3 : 2
Z is admitted for 1/4th Share in Profits
Sacrificing Ratio of X and Y is 2 : 1
Page No 4.86:
Question 6:
Old Profit Sharing Ratio amongst Partners (X and Y) is 3 : 2
Z is admitted for 1/4th Share in Profits
Sacrificing Ratio of X and Y is 2 : 1
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 4.86:
Question 7:
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 4.86:
Question 8:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
∴New Profit Sharing Ratio = 75 : 48 : 37
Answer:
L sacrifices in favour of N
M sacrifices in favour of N
Page No 4.86:
Question 9:
L sacrifices in favour of N
M sacrifices in favour of N
Answer:
(i)
S’s Share = R’s Sacrifice + S’s Sacrifice
(ii)
C admits for 1/4th share of profit
Let the combined share of A, B and C be = 1
Combined share of A and B
New Ratio = Combined share of A and B
(iii)
C admits for share of profit
New Ratio = Old Ratio − Sacrificing Ratio
(iv)
W admits for share of profit
Let combined share of all partner after W’s admission be = 1
Combined share X and Y in the new firm
New Ratio = Old Ratio × Combined share of X and Y
(v)
C admits for share
D admits for share
Let combined share of all partner after C and D’s admission be = 1
Combined share of profit of A and B after C and D’s admission
New Ratio = Old Ratio × Combined share of A and B
(vi)
C admits for share of profit
Let the combined share of all partners after C’s admission be = 1
Combined share of A and B after C’s admission
Page No 4.86:
Question 10:
(i)
S’s Share = R’s Sacrifice + S’s Sacrifice
(ii)
C admits for 1/4th share of profit
Let the combined share of A, B and C be = 1
Combined share of A and B
New Ratio = Combined share of A and B
(iii)
C admits for share of profit
New Ratio = Old Ratio − Sacrificing Ratio
(iv)
W admits for share of profit
Let combined share of all partner after W’s admission be = 1
Combined share X and Y in the new firm
New Ratio = Old Ratio × Combined share of X and Y
(v)
C admits for share
D admits for share
Let combined share of all partner after C and D’s admission be = 1
Combined share of profit of A and B after C and D’s admission
New Ratio = Old Ratio × Combined share of A and B
(vi)
C admits for share of profit
Let the combined share of all partners after C’s admission be = 1
Combined share of A and B after C’s admission
Answer:
Sacrificing Ratio = Old Ratio − Sacrificing Ratio
Page No 4.86:
Question 11:
Sacrificing Ratio = Old Ratio − Sacrificing Ratio
Answer:
Sacrificing Share = Old Ratio − New Ratio
Page No 4.87:
Question 12:
Sacrificing Share = Old Ratio − New 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 4.87:
Question 13:
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:
Sacrificing Share = Old Ratio − New Ratio
Page No 4.87:
Question 14:
Sacrificing Share = 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 4.87:
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:
C’s admitted for share of profit
Let the combined share of profit of all partners 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
Profit sharing ratio after C’s admission will become old ratio to determine the ratio after D’s admission
D is admitted for share of profit
Let combined share of all partners after D’s admission = 1
Combined share of A, B and C after D’s admission = 1 − D’s share
New Ratio = Old Ratio × Combined share of A, B, and C
Page No 4.87:
Question 16:
C’s admitted for share of profit
Let the combined share of profit of all partners 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
Profit sharing ratio after C’s admission will become old ratio to determine the ratio after D’s admission
D is admitted for share of profit
Let combined share of all partners after D’s admission = 1
Combined share of A, B and C after D’s admission = 1 − D’s share
New Ratio = Old Ratio × Combined share of A, B, and C
Answer:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
Z’s share = X’s Sacrifice + Y’s Sacrifice
Page No 4.87:
Question 17:
Sacrificing Ratio = Old Ratio × Surrender Ratio
New Ratio = Old Ratio − Sacrificing Ratio
Z’s share = X’s Sacrifice + Y’s Sacrifice
Answer:
Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Capital A/c |
Dr. |
|
10,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Goodwill A/c |
|
|
15,000 |
|
|
(Goodwill written-off between A and B in the old ratio of 2:1) |
|
|
|
Note- Goodwill brought in by C is not recorded in the books of the firm as the amount for goodwill is privately paid to A and B.
Working Note: Goodwill Written-off
Page No 4.87:
Question 18:
Journal Entry |
|||||
Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
|
|
A’s Capital A/c |
Dr. |
|
10,000 |
|
|
B’s Capital A/c |
Dr. |
|
5,000 |
|
|
To Goodwill A/c |
|
|
15,000 |
|
|
(Goodwill written-off between A and B in the old ratio of 2:1) |
|
|
|
Note- Goodwill brought in by C is not recorded in the books of the firm as the amount for goodwill is privately paid to A and B.
Working Note: Goodwill Written-off
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 4.87:
Question 19:
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 4.87:
Question 20:
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 4.88:
Question 21:
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:
(a)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
2,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,000 |
|
(D brought Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,000 |
|
|
To B’s Capital A/c |
|
|
|
1,200 |
|
To C’s Capital A/c |
|
|
|
800 |
|
(Premium for Goodwill distributed between B and C in sacrificing ratio i.e. 3:2) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Distribution of premium for Goodwill-
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
2,100 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,100 |
|
(D brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,100 |
|
|
To B’s Capital A/c |
|
|
|
1,400 |
|
To C’s Capital A/c |
|
|
|
700 |
|
(Premium for Goodwill brought distributed between B and C in sacrificing Ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
WN2
Distribution of Premium for Goodwill-
Page No 4.88:
Question 22:
(a)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
2,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,000 |
|
(D brought Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,000 |
|
|
To B’s Capital A/c |
|
|
|
1,200 |
|
To C’s Capital A/c |
|
|
|
800 |
|
(Premium for Goodwill distributed between B and C in sacrificing ratio i.e. 3:2) |
|
|
|
|
|
|
|
|
|
|
Working Note:
Distribution of premium for Goodwill-
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
2,100 |
|
|
To Premium for Goodwill A/c |
|
|
|
2,100 |
|
(D brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
2,100 |
|
|
To B’s Capital A/c |
|
|
|
1,400 |
|
To C’s Capital A/c |
|
|
|
700 |
|
(Premium for Goodwill brought distributed between B and C in sacrificing Ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
WN2
Distribution of Premium for Goodwill-
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
600 |
|
|
B’s Capital A/c |
Dr. |
|
400 |
|
|
To Goodwill A/c |
|
|
|
1,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
1,000 |
|
(C brought his share of Goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
1,000 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
100 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
Calculating of sacrificing Ratio
WN2
Distribution of Premium for Goodwill-
WN3
Writing-off of Goodwill in the books (in old ratio)
Page No 4.88:
Question 23:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
A’s Capital A/c |
Dr. |
|
600 |
|
|
B’s Capital A/c |
Dr. |
|
400 |
|
|
To Goodwill A/c |
|
|
|
1,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
1,000 |
|
(C brought his share of Goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill |
Dr. |
|
1,000 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
100 |
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
Calculating of sacrificing Ratio
WN2
Distribution of Premium for Goodwill-
WN3
Writing-off of Goodwill in the books (in old ratio)
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
15,000 |
|
(D brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
15,000 |
|
|
To B’s Capital A/c |
|
|
|
15,000 |
|
(Premium for goodwill transferred to B’s Capital) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
3,750 |
|
|
To B’s Capital A/c |
|
|
|
3,750 |
|
(Goodwill charged from C’s Capital Account due to his gain in profit sharing) |
|
|
|
|
|
|
|
|
|
|
WN1
Calculation of Sacrificing Ratio:
Let combined share of all partners after D’s admission be = 1
B and C each share of profit after D’s admission will be
WN2
C is gaining in new the firm. Hence, C’s gain in goodwill will be debited to his capital and given to B (sacrificing partner).
Page No 4.88:
Question 24:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
15,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
15,000 |
|
(D brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
15,000 |
|
|
To B’s Capital A/c |
|
|
|
15,000 |
|
(Premium for goodwill transferred to B’s Capital) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
3,750 |
|
|
To B’s Capital A/c |
|
|
|
3,750 |
|
(Goodwill charged from C’s Capital Account due to his gain in profit sharing) |
|
|
|
|
|
|
|
|
|
|
WN1
Calculation of Sacrificing Ratio:
Let combined share of all partners after D’s admission be = 1
B and C each share of profit after D’s admission will be
WN2
C is gaining in new the firm. Hence, C’s gain in goodwill will be debited to his capital and given to B (sacrificing partner).
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
B’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Goodwill A/c |
|
|
|
6,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
1,000 |
|
(C brought Rs 1,000 in cash of out of his share of goodwill Rs 1,800) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,000 |
|
|
C’s Capital A/c |
Dr. |
|
800 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
900 |
|
(C’s share of goodwill distributed between A and B in their sacrificing ratio i.e.1:1) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Writing-off of Goodwill
A and B each accounts will be debited by =
WN2: Distribution of C’s share of Goodwill
Page No 4.88:
Question 25:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
3,000 |
|
|
B’s Capital A/c |
Dr. |
|
3,000 |
|
|
To Goodwill A/c |
|
|
|
6,000 |
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
1,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
1,000 |
|
(C brought Rs 1,000 in cash of out of his share of goodwill Rs 1,800) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,000 |
|
|
C’s Capital A/c |
Dr. |
|
800 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
900 |
|
(C’s share of goodwill distributed between A and B in their sacrificing ratio i.e.1:1) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Writing-off of Goodwill
A and B each accounts will be debited by =
WN2: Distribution of C’s share of Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
25,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
25,000 |
|
(C brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
25,000 |
|
|
To M’s Capital A/c |
|
|
|
12,500 |
|
To J’s Capital A/c |
|
|
|
12,500 |
|
(C’s share of Goodwill distributed in M and J in their sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
Calculating of Sacrificing Ratio
WN2
Distribution of R’s share of Goodwill-
Page No 4.88:
Question 26:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
25,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
25,000 |
|
(C brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
25,000 |
|
|
To M’s Capital A/c |
|
|
|
12,500 |
|
To J’s Capital A/c |
|
|
|
12,500 |
|
(C’s share of Goodwill distributed in M and J in their sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
Calculating of Sacrificing Ratio
WN2
Distribution of R’s share of Goodwill-
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
52,000 |
|
|
To C’s Capital A/c |
|
|
|
40,000 |
|
To Premium for Goodwill A/c |
|
|
|
12,000 |
|
(C brought Capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
12,000 |
|
|
To A’s Capital A/c |
|
|
|
6,000 |
|
To B’s Capital A/c |
|
|
|
6,000 |
|
(C’s share of Goodwill distributed in A and B) |
|
|
|
|
|
|
|
|
|
|
Working Notes-
WN1
WN2
Calculation of new profit sharing Ratio
WN3
Distribution of C’s share of Goodwill (in Sacrificing Ratio)
Page No 4.88:
Question 27:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
52,000 |
|
|
To C’s Capital A/c |
|
|
|
40,000 |
|
To Premium for Goodwill A/c |
|
|
|
12,000 |
|
(C brought Capital and his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
12,000 |
|
|
To A’s Capital A/c |
|
|
|
6,000 |
|
To B’s Capital A/c |
|
|
|
6,000 |
|
(C’s share of Goodwill distributed in A and B) |
|
|
|
|
|
|
|
|
|
|
Working Notes-
WN1
WN2
Calculation of new profit sharing Ratio
WN3
Distribution of C’s share of Goodwill (in Sacrificing Ratio)
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
13,600 |
|
|
To C’s Capital A/c |
|
|
|
10,000 |
|
To Premium for Goodwill A/c |
|
|
|
3,600 |
|
(C brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,600 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
2,700 |
|
(C’s share of goodwill transferred to A and B in their sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
24,000 |
|
|
To A’s Capital A/c |
|
|
|
13,000 |
|
To B’s Capital A/c |
|
|
|
7,000 |
|
To C’s Capital A/c |
|
|
|
4,000 |
|
(Profit after C’s admission distributed) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
WN2
Distribution of C’s share of Goodwill (in sacrificing ratio)
WN3
Calculation of New Profit Sharing Ratio
WN4
Distribution of Profit earned after C’s admission (in new ratio)
Page No 4.88:
Question 28:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
13,600 |
|
|
To C’s Capital A/c |
|
|
|
10,000 |
|
To Premium for Goodwill A/c |
|
|
|
3,600 |
|
(C brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
3,600 |
|
|
To A’s Capital A/c |
|
|
|
900 |
|
To B’s Capital A/c |
|
|
|
2,700 |
|
(C’s share of goodwill transferred to A and B in their sacrificing ratio i.e. 3:1) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
24,000 |
|
|
To A’s Capital A/c |
|
|
|
13,000 |
|
To B’s Capital A/c |
|
|
|
7,000 |
|
To C’s Capital A/c |
|
|
|
4,000 |
|
(Profit after C’s admission distributed) |
|
|
|
|
|
|
|
|
|
|
Working Note:
WN1
WN2
Distribution of C’s share of Goodwill (in sacrificing ratio)
WN3
Calculation of New Profit Sharing Ratio
WN4
Distribution of Profit earned after C’s admission (in new ratio)
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
30,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
30,000 |
|
(X brought his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
30,000 |
|
|
Y’s Capital A/c |
Dr. |
|
7,500 |
|
|
To X’s Capital A/c |
|
|
|
37,500 |
|
(Y and Z share of gain in goodwill transferred to X’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
Calculation of Sacrificing Ratio
WN2
Goodwill of the firm on the basis of Z’s share
X will get as a goodwill = Z’s share of Goodwill + Y’s gain in Goodwill
= 30,000 + 7,500
= Rs 37,500
Page No 4.89:
Question 29:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
30,000 |
|
|
To Premium for Goodwill A/c |
|
|
|
30,000 |
|
(X brought his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
30,000 |
|
|
Y’s Capital A/c |
Dr. |
|
7,500 |
|
|
To X’s Capital A/c |
|
|
|
37,500 |
|
(Y and Z share of gain in goodwill transferred to X’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
Calculation of Sacrificing Ratio
WN2
Goodwill of the firm on the basis of Z’s share
X will get as a goodwill = Z’s share of Goodwill + Y’s gain in Goodwill
= 30,000 + 7,500
= Rs 37,500
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 4.89:
Question 30:
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:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
14,000 |
|
|
To C’s Capital A/c |
|
|
8,000 |
|
|
To Premium for Goodwill A/c |
|
|
6,000 |
|
|
(C brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,000 |
|
|
To A’s Capital A/c |
|
|
2,000 |
|
|
To B’s Capital A/c |
|
|
4,000 |
|
|
(C’s share of goodwill distributed between A and B in sacrificing ratio i.e. 1:2) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
2,000 |
|
|
B’s Capital A/c |
Dr. |
|
4,000 |
|
|
To Cash A/c |
|
|
6,000 |
|
|
(Amount of goodwill withdrawn by A and B) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Cash |
2,000 |
4,000 |
|
Balance b/d |
8,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
8,000 |
|
|
|
|
Premium for Goodwill |
2,000 |
4,000 |
|
Balance c/d |
8,000 |
10,000 |
8,000 |
|
|
|
|
|
10,000 |
14,000 |
8,000 |
|
10,000 |
14,000 |
8,000 |
|
|
|
|
|
|
|
|
Calculation of New (Future) Ratio
C is admitted for share of profit
Let combined share of all partners after C’s admission be = 1
Combined share of A and B after C’s admission = 1 − C’s share
Distribution of Premium for Goodwill
Page No 4.89:
Question 31:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
14,000 |
|
|
To C’s Capital A/c |
|
|
8,000 |
|
|
To Premium for Goodwill A/c |
|
|
6,000 |
|
|
(C brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,000 |
|
|
To A’s Capital A/c |
|
|
2,000 |
|
|
To B’s Capital A/c |
|
|
4,000 |
|
|
(C’s share of goodwill distributed between A and B in sacrificing ratio i.e. 1:2) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
2,000 |
|
|
B’s Capital A/c |
Dr. |
|
4,000 |
|
|
To Cash A/c |
|
|
6,000 |
|
|
(Amount of goodwill withdrawn by A and B) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Cash |
2,000 |
4,000 |
|
Balance b/d |
8,000 |
10,000 |
|
|
|
|
|
Cash |
|
|
8,000 |
|
|
|
|
Premium for Goodwill |
2,000 |
4,000 |
|
Balance c/d |
8,000 |
10,000 |
8,000 |
|
|
|
|
|
10,000 |
14,000 |
8,000 |
|
10,000 |
14,000 |
8,000 |
|
|
|
|
|
|
|
|
Calculation of New (Future) Ratio
C is admitted for share of profit
Let combined share of all partners after C’s admission be = 1
Combined share of A and B after C’s admission = 1 − C’s share
Distribution of Premium for Goodwill
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 4.89:
Question 32:
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. |
|
3,50,000 |
|
|
To C’s Capital A/c |
|
|
2,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,50,000 |
|
|
(C brought capital and Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,50,000 |
|
|
To A’s Capital A/c |
|
|
1,10,000 |
|
|
To B’s Capital A/c |
|
|
40,000 |
|
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
55,000 |
|
|
B’s Capital A/c |
Dr. |
|
20,000 |
|
|
To Cash A/c |
|
|
75,000 |
|
|
(Half of the goodwill withdrawn by A and B) |
|
|
|
|
|
|
|
|
|
Calculation of Sacrificing Ratio
Working Notes-
WN1
Distribution of Premium for Goodwill
WN2
Amount of Premium for Goodwill withdrawn
Page No 4.89:
Question 33:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
3,50,000 |
|
|
To C’s Capital A/c |
|
|
2,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,50,000 |
|
|
(C brought capital and Premium for Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,50,000 |
|
|
To A’s Capital A/c |
|
|
1,10,000 |
|
|
To B’s Capital A/c |
|
|
40,000 |
|
|
(Premium for Goodwill distributed) |
|
|
|
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
55,000 |
|
|
B’s Capital A/c |
Dr. |
|
20,000 |
|
|
To Cash A/c |
|
|
75,000 |
|
|
(Half of the goodwill withdrawn by A and B) |
|
|
|
|
|
|
|
|
|
Calculation of Sacrificing Ratio
Working Notes-
WN1
Distribution of Premium for Goodwill
WN2
Amount of Premium for Goodwill withdrawn
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
15,000 |
|
|
Y’s Capital A/c |
Dr. |
|
15,000 |
|
|
To Goodwill A/c |
|
|
30,000 |
|
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
5,000 |
|
|
To Premium for Goodwill A/c |
|
|
5,000 |
|
|
(Z brought Rs 5,000 in cash out of his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
5,000 |
|
|
Premium for Goodwill A/c |
Dr. |
|
4,000 |
|
|
To X’s Capital A/c |
|
|
4,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Z’s share of goodwill distributed between X and Y in sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Writing-off of Old Goodwill
X and Y each capital accounts will be debited by =
WN2: Distribution of Z’s share of Goodwill
X and Y will sacrifice in the old ratio (i.e. 1 : 1) as new ratio of the firm is not given.
X and Y will get =
Page No 4.89:
Question 34:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
15,000 |
|
|
Y’s Capital A/c |
Dr. |
|
15,000 |
|
|
To Goodwill A/c |
|
|
30,000 |
|
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
5,000 |
|
|
To Premium for Goodwill A/c |
|
|
5,000 |
|
|
(Z brought Rs 5,000 in cash out of his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Z’s Capital A/c |
Dr. |
|
5,000 |
|
|
Premium for Goodwill A/c |
Dr. |
|
4,000 |
|
|
To X’s Capital A/c |
|
|
4,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Z’s share of goodwill distributed between X and Y in sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Writing-off of Old Goodwill
X and Y each capital accounts will be debited by =
WN2: Distribution of Z’s share of Goodwill
X and Y will sacrifice in the old ratio (i.e. 1 : 1) as new ratio of the firm is not given.
X and Y will get =
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
12,000 |
|
|
B’s Capital A/c |
Dr. |
|
6,000 |
|
|
To Goodwill A/c |
|
|
18,000 |
|
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
38,000 |
|
|
To C’s Capital A/c |
|
|
30,000 |
|
|
To Premium for Goodwill |
|
|
8,000 |
|
|
(C brought Capital and goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
8,000 |
|
|
C’s Capital A/c |
Dr. |
|
2,000 |
|
|
To A’s Capital A/c |
|
|
6,667 |
|
|
To B’s Capital |
|
|
3,333 |
|
|
(C’s share of goodwill distributed between A and B in Sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1 Writing-off of Goodwill
A’s Capital Account will be debited by
B’s Capital Account will be debited by
WN2 Distribution of C’s share of Goodwill
Page No 4.89:
Question 35:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
12,000 |
|
|
B’s Capital A/c |
Dr. |
|
6,000 |
|
|
To Goodwill A/c |
|
|
18,000 |
|
|
(Goodwill written-off) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
38,000 |
|
|
To C’s Capital A/c |
|
|
30,000 |
|
|
To Premium for Goodwill |
|
|
8,000 |
|
|
(C brought Capital and goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
8,000 |
|
|
C’s Capital A/c |
Dr. |
|
2,000 |
|
|
To A’s Capital A/c |
|
|
6,667 |
|
|
To B’s Capital |
|
|
3,333 |
|
|
(C’s share of goodwill distributed between A and B in Sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1 Writing-off of Goodwill
A’s Capital Account will be debited by
B’s Capital Account will be debited by
WN2 Distribution of C’s share of Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
1,200 |
|
|
B’s Capital A/c |
Dr. |
|
800 |
|
|
To Goodwill A/c |
|
|
2,000 |
|
|
(Goodwill written-off at the time of C’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
10,000 |
|
|
To C’s Capital A/c |
|
|
10,000 |
|
|
(Capital brought by C) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
1,800 |
|
|
To B’s Capital A/c |
|
|
1,200 |
|
|
(C’s share of capital charged from his capital distributed between A and B in their sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Writing off of goodwill already in the books (JE 1)
Page No 4.89:
Question 36:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
A’s Capital A/c |
Dr. |
|
1,200 |
|
|
B’s Capital A/c |
Dr. |
|
800 |
|
|
To Goodwill A/c |
|
|
2,000 |
|
|
(Goodwill written-off at the time of C’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
10,000 |
|
|
To C’s Capital A/c |
|
|
10,000 |
|
|
(Capital brought by C) |
|
|
|
|
|
|
|
|
|
|
|
C’s Capital A/c |
Dr. |
|
3,000 |
|
|
To A’s Capital A/c |
|
|
1,800 |
|
|
To B’s Capital A/c |
|
|
1,200 |
|
|
(C’s share of capital charged from his capital distributed between A and B in their sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Writing off of goodwill already in the books (JE 1)
Answer:
WN1: Calculation of Raoâs share of Goodwill
WN2: Adjustment of Raoâs share of Goodwill
(a) Where there is no Goodwill Account
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Raoâs Capital A/c |
Dr. |
|
7,500 |
|
|
To Murtyâs Capital A/c |
|
|
4,500 |
|
|
To Shahâs Capital A/c |
|
|
3,000 |
|
|
(Raoâs 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 |
|
|
|
|
|
|
|
|
Murtyâs Capital A/c |
Dr. |
|
6,000 |
|
|
Shahâs Capital A/c |
Dr. |
|
4,000 |
|
|
To Goodwill A/c |
|
|
10,000 |
|
|
(Goodwill written-off at the time of Raoâs admission in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Raoâs Capital A/c |
Dr. |
|
7,500 |
|
|
To Murtyâs Capital A/c |
|
|
4,500 |
|
|
To Shahâs Capital A/c |
|
|
3,000 |
|
|
(Raoâs share of goodwill charged from his Capital Account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
Page No 4.89:
Question 37:
WN1: Calculation of Raoâs share of Goodwill
WN2: Adjustment of Raoâs share of Goodwill
(a) Where there is no Goodwill Account
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Raoâs Capital A/c |
Dr. |
|
7,500 |
|
|
To Murtyâs Capital A/c |
|
|
4,500 |
|
|
To Shahâs Capital A/c |
|
|
3,000 |
|
|
(Raoâs 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 |
|
|
|
|
|
|
|
|
Murtyâs Capital A/c |
Dr. |
|
6,000 |
|
|
Shahâs Capital A/c |
Dr. |
|
4,000 |
|
|
To Goodwill A/c |
|
|
10,000 |
|
|
(Goodwill written-off at the time of Raoâs admission in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Raoâs Capital A/c |
Dr. |
|
7,500 |
|
|
To Murtyâs Capital A/c |
|
|
4,500 |
|
|
To Shahâs Capital A/c |
|
|
3,000 |
|
|
(Raoâs share of goodwill charged from his Capital Account and distributed between Murty and Shah in sacrificing ratio i.e., 3:2) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
3,20,000 |
|
|
|
To Charu’s Capital A/c |
|
|
|
3,20,000 |
|
|
(Capital brought in by Charu) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charu’s Current A/c |
Dr. |
|
1,00,000 |
|
|
|
To Anil’s Current A/c |
|
|
|
50,000 |
|
|
To Sunil’s Current A/c |
|
|
|
50,000 |
|
|
(Charu’s share of goodwill adjusted through current accounts) |
|
|
|
|
Working Notes: Calculation of Hidden Goodwill
Page No 4.90:
Question 38:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
Bank A/c |
Dr. |
|
3,20,000 |
|
|
|
To Charu’s Capital A/c |
|
|
|
3,20,000 |
|
|
(Capital brought in by Charu) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Charu’s Current A/c |
Dr. |
|
1,00,000 |
|
|
|
To Anil’s Current A/c |
|
|
|
50,000 |
|
|
To Sunil’s Current A/c |
|
|
|
50,000 |
|
|
(Charu’s share of goodwill adjusted through current accounts) |
|
|
|
|
Working Notes: Calculation of Hidden Goodwill
Answer:
Actual Capital of the firm after admission of C = A’s Capital + B’s Capital + C’s Capital
= 60,000 + 1, 20,000 + 70,000 = Rs 2, 50,000
Page No 4.90:
Question 39:
Actual Capital of the firm after admission of C = A’s Capital + B’s Capital + C’s Capital
= 60,000 + 1, 20,000 + 70,000 = Rs 2, 50,000
Answer:
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + undistributed Profit +
Z’s Capital
= 50,000 + 50,000 + 40,000 + 80,000
= Rs 2,20,000
Page No 4.90:
Question 40:
Total Capital of the firm after Z’s admission = X’s Capital + Y’s Capital + undistributed Profit +
Z’s Capital
= 50,000 + 50,000 + 40,000 + 80,000
= Rs 2,20,000
Answer:
(a)
Calculation of New Profit Sharing Ratio
Vijay is admitted for share of profit
Calculation of Goodwill
Actual total Capital of the firm after Vijay’s admission = Ashok’s Capital + Ram’s Capital + Vijay’s Capital
= 80,000 + 60,000 + 50,000
= Rs 1, 90,000
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
50,000 |
|
|
To Vijay’s Capital A/c |
|
|
50,000 |
|
|
(Capital brought in by Vijay) |
|
|
|
|
|
|
|
|
|
|
|
Vijay's Capital A/c |
Dr. |
|
12,000 |
|
|
To Ashok’s Capital A/c |
|
|
6,000 |
|
|
To Ramu’s Capital A/c |
|
|
6,000 |
|
|
(Vijay share of goodwill distributed between Ashok and Ramu in Sacrificing ratio i.e., 1:1) |
|
|
|
|
|
|
|
|
|
Working Notes:
Page No 4.90:
Question 41:
(a)
Calculation of New Profit Sharing Ratio
Vijay is admitted for share of profit
Calculation of Goodwill
Actual total Capital of the firm after Vijay’s admission = Ashok’s Capital + Ram’s Capital + Vijay’s Capital
= 80,000 + 60,000 + 50,000
= Rs 1, 90,000
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
Cash A/c |
Dr. |
|
50,000 |
|
|
To Vijay’s Capital A/c |
|
|
50,000 |
|
|
(Capital brought in by Vijay) |
|
|
|
|
|
|
|
|
|
|
|
Vijay's Capital A/c |
Dr. |
|
12,000 |
|
|
To Ashok’s Capital A/c |
|
|
6,000 |
|
|
To Ramu’s Capital A/c |
|
|
6,000 |
|
|
(Vijay share of goodwill distributed between Ashok and Ramu in Sacrificing ratio i.e., 1:1) |
|
|
|
|
|
|
|
|
|
Working Notes:
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
|
|
|
Ajay’s Capital A/c |
Dr. |
|
2,00,000 |
|
|
|
To Asin’s Capital A/c |
|
|
|
1,00,000 |
|
|
To Shreya’s Capital A/c |
|
|
|
1,00,000 |
|
|
(Ajay’s share of goodwill distributed among the old partners in their sacrificing ratio 1:1.) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
Calculation of Goodwill brought in by Ajay
Value of firm’s goodwill = Capitalised value of the firm – Net worth
Page No 4.90:
Question 42:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
|
|
|
Ajay’s Capital A/c |
Dr. |
|
2,00,000 |
|
|
|
To Asin’s Capital A/c |
|
|
|
1,00,000 |
|
|
To Shreya’s Capital A/c |
|
|
|
1,00,000 |
|
|
(Ajay’s share of goodwill distributed among the old partners in their sacrificing ratio 1:1.) |
|
|
|
|
|
|
|
|
|
|
|
Working Notes:
Calculation of Goodwill brought in by Ajay
Value of firm’s goodwill = Capitalised value of the firm – Net worth
Answer:
(a)
No entry will be recorded for Z’s goodwill because the goodwill of Z has been taken privately by X and Y.
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
18,000 |
|
|
To Premium for Goodwill A/c |
|
|
18,000 |
|
|
(Z brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
13,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill of Z distributed between X and Y in their Sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Distribution of Z’s share of goodwill
(c)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
18,000 |
|
|
To Premium for Goodwill A/c |
|
|
18,000 |
|
|
(Z brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
13,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill brought by Z distributed between X and Y in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
13,500 |
|
|
Y’s Capital A/c |
Dr. |
|
4,500 |
|
|
To Cash A/c |
|
|
18,000 |
|
|
(Amount which had received from Z for as goodwill withdrawn by X and Y) |
|
|
|
|
|
|
|
|
|
Page No 4.90:
Question 43:
(a)
No entry will be recorded for Z’s goodwill because the goodwill of Z has been taken privately by X and Y.
(b)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
18,000 |
|
|
To Premium for Goodwill A/c |
|
|
18,000 |
|
|
(Z brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
13,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill of Z distributed between X and Y in their Sacrificing ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
Distribution of Z’s share of goodwill
(c)
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
18,000 |
|
|
To Premium for Goodwill A/c |
|
|
18,000 |
|
|
(Z brought his share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
18,000 |
|
|
To X’s Capital A/c |
|
|
13,500 |
|
|
To Y’s Capital A/c |
|
|
4,500 |
|
|
(Goodwill brought by Z distributed between X and Y in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
13,500 |
|
|
Y’s Capital A/c |
Dr. |
|
4,500 |
|
|
To Cash A/c |
|
|
18,000 |
|
|
(Amount which had received from Z for as goodwill withdrawn by X and Y) |
|
|
|
|
|
|
|
|
|
Answer:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
|
To Hina’s Capital A/c |
|
|
|
3,00,000 |
|
|
(Capital brought in by Hina) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hina’s Current A/c |
Dr. |
|
84,000 |
|
|
|
To Disha’s Current A/c |
|
|
|
50,400 |
|
|
To Divya’s Current A/c |
|
|
|
33,600 |
|
|
(Hina’s Share of Goodwill adjusted through current accounts) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Calculation of Hidden Goodwill
Page No 4.90:
Question 44:
Journal |
|
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
||
|
|
|
|
|
|
|
|
Bank A/c |
Dr. |
|
3,00,000 |
|
|
|
To Hina’s Capital A/c |
|
|
|
3,00,000 |
|
|
(Capital brought in by Hina) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hina’s Current A/c |
Dr. |
|
84,000 |
|
|
|
To Disha’s Current A/c |
|
|
|
50,400 |
|
|
To Divya’s Current A/c |
|
|
|
33,600 |
|
|
(Hina’s Share of Goodwill adjusted through current accounts) |
|
|
|
|
|
|
|
|
|
|
|
Working Note:
Calculation of Hidden Goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
50,000 |
|
|
Machinery A/c |
Dr. |
|
70,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,20,000 |
|
|
(G brought cash Rs 50,000 and Machinery Rs 70,000 for his share of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,20,000 |
|
|
To E’s Capital A/c |
|
|
1,20,000 |
|
|
(G share of goodwill transferred to E’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
F’s Capital A/c |
Dr. |
|
30,000 |
|
|
To E’s Capital A/c |
|
|
30,000 |
|
|
(F’s share of gain in goodwill charged from his capital and transferred to E’s capital) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
WN2
Calculation of F’s share of gain in goodwill
G’s share of Goodwill = 50,000 + 70,000 = Rs 1, 20,000
Goodwill of the firm on the basis of G’s share
F’s share of gain in goodwill
Page No 4.91:
Question 45:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
50,000 |
|
|
Machinery A/c |
Dr. |
|
70,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,20,000 |
|
|
(G brought cash Rs 50,000 and Machinery Rs 70,000 for his share of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,20,000 |
|
|
To E’s Capital A/c |
|
|
1,20,000 |
|
|
(G share of goodwill transferred to E’s Capital Account) |
|
|
|
|
|
|
|
|
|
|
|
F’s Capital A/c |
Dr. |
|
30,000 |
|
|
To E’s Capital A/c |
|
|
30,000 |
|
|
(F’s share of gain in goodwill charged from his capital and transferred to E’s capital) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1
WN2
Calculation of F’s share of gain in goodwill
G’s share of Goodwill = 50,000 + 70,000 = Rs 1, 20,000
Goodwill of the firm on the basis of G’s share
F’s share of gain in goodwill
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
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 at the time of Z’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
41,200 |
|
|
To Z’s Capital A/c |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,200 |
|
|
(Z brought capital and 60% of the share of his goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,200 |
|
|
Z’s Capital A/c |
Dr. |
|
800 |
|
|
To X’s Capital A/c |
|
|
1,200 |
|
|
To Y’s Capital A/c |
|
|
800 |
|
|
(Z’s share of goodwill adjusted in X and Y is capital account in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
|
216 |
|
|
|
Y’s Capital A/c |
|
144 |
|
|
|
To Cash A/c |
|
|
360 |
|
|
(30% of the amount of goodwill which was brought in cash withdrawn) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
20,000 |
|
|
To X’s Capital A/c |
|
|
9,600 |
|
|
To Y’s Capital A/c |
|
|
6,400 |
|
|
To Z’s Capital A/c |
|
|
4,000 |
|
|
(Profit after admission of Z distributed in the new ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of New Profit Sharing Ratio
Z is admitted for share
Let the total profit of the firm be Re 1
So, the remaining profit after Z' admission = 1 − Z’s share
New Ratio = Old Ratio × Combined capital of X and Y after admission of Z
WN2: Written-off of goodwill already appearing in the books
WN3: Calculation of Z's share of Goodwill
Amount of goodwill brought in cash by Z
Distribution of Z’s share of Goodwill
Amount of goodwill charged from Z’s Capital Account
WN4: Amount of goodwill withdrawn by X and Y
Goodwill withdrawn in Cash = Amount of goodwill brought in Cash × Partner's Share × 30%
WN5: Distribution of Profit earned after Z’s admission (in New Ratio)
Page No 4.91:
Question 46:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
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 at the time of Z’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
41,200 |
|
|
To Z’s Capital A/c |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,200 |
|
|
(Z brought capital and 60% of the share of his goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,200 |
|
|
Z’s Capital A/c |
Dr. |
|
800 |
|
|
To X’s Capital A/c |
|
|
1,200 |
|
|
To Y’s Capital A/c |
|
|
800 |
|
|
(Z’s share of goodwill adjusted in X and Y is capital account in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
|
216 |
|
|
|
Y’s Capital A/c |
|
144 |
|
|
|
To Cash A/c |
|
|
360 |
|
|
(30% of the amount of goodwill which was brought in cash withdrawn) |
|
|
|
|
|
|
|
|
|
|
|
Profit and Loss Appropriation A/c |
Dr. |
|
20,000 |
|
|
To X’s Capital A/c |
|
|
9,600 |
|
|
To Y’s Capital A/c |
|
|
6,400 |
|
|
To Z’s Capital A/c |
|
|
4,000 |
|
|
(Profit after admission of Z distributed in the new ratio) |
|
|
|
|
|
|
|
|
|
Working Notes:
WN1: Calculation of New Profit Sharing Ratio
Z is admitted for share
Let the total profit of the firm be Re 1
So, the remaining profit after Z' admission = 1 − Z’s share
New Ratio = Old Ratio × Combined capital of X and Y after admission of Z
WN2: Written-off of goodwill already appearing in the books
WN3: Calculation of Z's share of Goodwill
Amount of goodwill brought in cash by Z
Distribution of Z’s share of Goodwill
Amount of goodwill charged from Z’s Capital Account
WN4: Amount of goodwill withdrawn by X and Y
Goodwill withdrawn in Cash = Amount of goodwill brought in Cash × Partner's Share × 30%
WN5: Distribution of Profit earned after Z’s admission (in New Ratio)
Answer:
Capital as on April 01, 2005 |
2, 50,000 |
Less: Loss in 2005-06 |
(5,000) |
Add: Profit in 2006-07 |
13,000 |
Add: Profit in 2007-08 |
17,000 |
Add: Profit in 2008-09 |
20,000 |
Add: Profit in 2009-10 |
25,000 |
|
3,20,000 |
Less: Drawings |
(40,000) |
A’ Capital as on March 31, 2010 |
2, 80,000 |
|
|
Calculation of Goodwill
B’s Capital = A’s Capital as on March 31, 2010 =Rs 2,80,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
3,01,000 |
|
|
To B’s Capital A/c |
|
|
2,80,000 |
|
|
To Premium for Goodwill A/c |
|
|
21,000 |
|
|
(B brought capital and goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
21,000 |
|
|
To A’s Capital A/c |
|
|
21,000 |
|
|
(B’s share of goodwill transferred to A’s Capital Account) |
|
|
|
|
|
|
|
|
|
Page No 4.91:
Question 47:
Capital as on April 01, 2005 |
2, 50,000 |
Less: Loss in 2005-06 |
(5,000) |
Add: Profit in 2006-07 |
13,000 |
Add: Profit in 2007-08 |
17,000 |
Add: Profit in 2008-09 |
20,000 |
Add: Profit in 2009-10 |
25,000 |
|
3,20,000 |
Less: Drawings |
(40,000) |
A’ Capital as on March 31, 2010 |
2, 80,000 |
|
|
Calculation of Goodwill
B’s Capital = A’s Capital as on March 31, 2010 =Rs 2,80,000
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
3,01,000 |
|
|
To B’s Capital A/c |
|
|
2,80,000 |
|
|
To Premium for Goodwill A/c |
|
|
21,000 |
|
|
(B brought capital and goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
21,000 |
|
|
To A’s Capital A/c |
|
|
21,000 |
|
|
(B’s share of goodwill transferred to A’s Capital Account) |
|
|
|
|
|
|
|
|
|
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 4.91:
Question 48:
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 Partners’ Capital A/c |
|
|
50,000 |
|
|
(Profit on Revaluation transferred to Partners’ Capital) |
|
|
|
|
|
|
|
|
|
Page No 4.91:
Question 49:
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 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 |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,200 |
|
|
To Provision for Doubtful Debts A/c |
|
|
2,500 |
|
|
To Furniture A/c |
|
|
500 |
|
|
To Outstanding Employees Compensation A/c |
|
|
1,200 |
|
|
(Decrease in asset, increase in liabilities and provision transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
8,000 |
|
|
To Revaluation A/c |
|
|
8,000 |
|
|
(Increase in value of building transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,800 |
|
|
To A’s Capital A/c |
|
|
1,900 |
|
|
To B’s Capital A/c |
|
|
1,900 |
|
|
(Profit from Revaluation Account, transferred to A and B’s Capital Account in their old ratio i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
|
Investment A/c |
Dr. |
|
4,300 |
|
|
To A’s Capital A/c |
|
|
4,300 |
|
|
(A introduced capital in the form of personal investment) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
Cr. |
|||
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
|
|
|
Balance b/d |
50,000 |
45,000 |
|
|
|
Revaluation (Profit) |
1,900 |
1,900 |
|
|
|
Investments |
4,300 |
|
Balance c/d |
56,200 |
46,900 |
|
|
|
|
56,200 |
46,900 |
|
56,200 |
46,900 |
|
|
|
|
|
|
Balance Sheet after revaluation |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Creditors |
40,000 |
Cash in Hand |
2,000 |
|||
Salaries Outstanding |
14,000 |
Cash at Bank |
10,000 |
|||
Outstanding Employee’s |
|
Sundry Debtors |
42,000 |
|
||
Compensation |
1,200 |
Less: Provision for D. Debts |
6,500 |
35,500 |
||
|
|
Bills Receivable |
17,000 |
|||
Capital: |
|
Stock |
20,000 |
|||
A |
56,200 |
|
Investments |
20,000 |
|
|
B |
46,900 |
1,03,100 |
Add: A’s Personal Investment |
4,300 |
24,300 |
|
|
|
|
|
|
|
|
|
|
|
Furniture (5,000 – 500) |
4,500 |
||
|
|
Building (37,000 + 8,000) |
45,000 |
|||
|
1,58,300 |
|
1,58,300 |
|||
|
|
|
|
Page No 4.92:
Question 50:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
4,200 |
|
|
To Provision for Doubtful Debts A/c |
|
|
2,500 |
|
|
To Furniture A/c |
|
|
500 |
|
|
To Outstanding Employees Compensation A/c |
|
|
1,200 |
|
|
(Decrease in asset, increase in liabilities and provision transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
8,000 |
|
|
To Revaluation A/c |
|
|
8,000 |
|
|
(Increase in value of building transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
3,800 |
|
|
To A’s Capital A/c |
|
|
1,900 |
|
|
To B’s Capital A/c |
|
|
1,900 |
|
|
(Profit from Revaluation Account, transferred to A and B’s Capital Account in their old ratio i.e. 1:1) |
|
|
|
|
|
|
|
|
|
|
|
Investment A/c |
Dr. |
|
4,300 |
|
|
To A’s Capital A/c |
|
|
4,300 |
|
|
(A introduced capital in the form of personal investment) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||
Dr. |
|
Cr. |
|||
Particulars |
A Rs |
B Rs |
Particulars |
A Rs |
B Rs |
|
|
|
Balance b/d |
50,000 |
45,000 |
|
|
|
Revaluation (Profit) |
1,900 |
1,900 |
|
|
|
Investments |
4,300 |
|
Balance c/d |
56,200 |
46,900 |
|
|
|
|
56,200 |
46,900 |
|
56,200 |
46,900 |
|
|
|
|
|
|
Balance Sheet after revaluation |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Creditors |
40,000 |
Cash in Hand |
2,000 |
|||
Salaries Outstanding |
14,000 |
Cash at Bank |
10,000 |
|||
Outstanding Employee’s |
|
Sundry Debtors |
42,000 |
|
||
Compensation |
1,200 |
Less: Provision for D. Debts |
6,500 |
35,500 |
||
|
|
Bills Receivable |
17,000 |
|||
Capital: |
|
Stock |
20,000 |
|||
A |
56,200 |
|
Investments |
20,000 |
|
|
B |
46,900 |
1,03,100 |
Add: A’s Personal Investment |
4,300 |
24,300 |
|
|
|
|
|
|
|
|
|
|
|
Furniture (5,000 – 500) |
4,500 |
||
|
|
Building (37,000 + 8,000) |
45,000 |
|||
|
1,58,300 |
|
1,58,300 |
|||
|
|
|
|
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
16,000 |
|
|
To Ram’s Capital A/c |
|
|
12,000 |
|
|
To Shyam’s Capital A/c |
|
|
4,000 |
|
|
(General Reserve distributed at the time of Mohan’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,000 |
|
|
To Provision for Outstanding Repair Bill A/c |
|
|
1,000 |
|
|
(Provision for outstanding Repair Bill Made) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
20,000 |
|
|
Provision for Doubtful Debts A/c |
Dr. |
|
1,000 |
|
|
To Revaluation A/c |
|
|
21,000 |
|
|
(Building appreciated and Provision for Doubtful Debt reduced) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
20,000 |
|
|
To Ram’s Capital A/c |
|
|
15,000 |
|
|
To Shyam’s Capital A/c |
|
|
5,000 |
|
|
(Profit on revaluation distributed between Ram and Mohan in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
52,000 |
|
|
To Mohan’s Capital |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
12,000 |
|
|
(Mohan brought Capital and Premium for goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
12,000 |
|
|
To Ram’s Capital A/c |
|
|
8,000 |
|
|
To Shyam’s Capital A/c |
|
|
4,000 |
|
|
(Premium of Mohan distributed between Ram and Mohan in sacrificing ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
Calculation of Future (New) Ratio
Mohan admitted for share
Working Notes: Distribution of General Revenue (in Old Ratio)
Page No 4.92:
Question 51:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
General Reserve A/c |
Dr. |
|
16,000 |
|
|
To Ram’s Capital A/c |
|
|
12,000 |
|
|
To Shyam’s Capital A/c |
|
|
4,000 |
|
|
(General Reserve distributed at the time of Mohan’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
1,000 |
|
|
To Provision for Outstanding Repair Bill A/c |
|
|
1,000 |
|
|
(Provision for outstanding Repair Bill Made) |
|
|
|
|
|
|
|
|
|
|
|
Building A/c |
Dr. |
|
20,000 |
|
|
Provision for Doubtful Debts A/c |
Dr. |
|
1,000 |
|
|
To Revaluation A/c |
|
|
21,000 |
|
|
(Building appreciated and Provision for Doubtful Debt reduced) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
20,000 |
|
|
To Ram’s Capital A/c |
|
|
15,000 |
|
|
To Shyam’s Capital A/c |
|
|
5,000 |
|
|
(Profit on revaluation distributed between Ram and Mohan in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
52,000 |
|
|
To Mohan’s Capital |
|
|
40,000 |
|
|
To Premium for Goodwill A/c |
|
|
12,000 |
|
|
(Mohan brought Capital and Premium for goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
12,000 |
|
|
To Ram’s Capital A/c |
|
|
8,000 |
|
|
To Shyam’s Capital A/c |
|
|
4,000 |
|
|
(Premium of Mohan distributed between Ram and Mohan in sacrificing ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
Calculation of Future (New) Ratio
Mohan admitted for share
Working Notes: Distribution of General Revenue (in Old Ratio)
Answer:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
5,000 |
|
|
To Somesh Capital A/c |
|
|
4,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,000 |
|
|
(Somesh brought capital and share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,000 |
|
|
To Mukesh’s Capital A/c |
|
|
667 |
|
|
To Rajesh’s Capital A/c |
|
|
333 |
|
|
(Somesh’s goodwill transferred to Mukesh and Ramesh’s capital accounts in their sacrificing ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
Balance Sheet after admission of Somesh |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Sundry Assets |
14,000 |
|
Mukesh |
(5,000 + 667) |
5,667 |
(Balancing Figure) |
|
Rajesh |
(4,000 + 333) |
4,333 |
|
|
Somesh |
|
4,000 |
|
|
|
|
14,000 |
|
14,000 |
|
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
Page No 4.92:
Question 52:
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
5,000 |
|
|
To Somesh Capital A/c |
|
|
4,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,000 |
|
|
(Somesh brought capital and share of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,000 |
|
|
To Mukesh’s Capital A/c |
|
|
667 |
|
|
To Rajesh’s Capital A/c |
|
|
333 |
|
|
(Somesh’s goodwill transferred to Mukesh and Ramesh’s capital accounts in their sacrificing ratio i.e. 2:1) |
|
|
|
|
|
|
|
|
|
Balance Sheet after admission of Somesh |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Sundry Assets |
14,000 |
|
Mukesh |
(5,000 + 667) |
5,667 |
(Balancing Figure) |
|
Rajesh |
(4,000 + 333) |
4,333 |
|
|
Somesh |
|
4,000 |
|
|
|
|
14,000 |
|
14,000 |
|
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
Answer:
Balance Sheet before admission of W |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Motors |
1,200 |
|
X |
1,500 |
|
Furniture |
400 |
Y |
1,750 |
|
Stock |
2,650 |
Z |
2,000 |
5,250 |
Debtors |
3,780 |
Other Liabilities |
3,000 |
Cash (Balancing Figure) |
220 |
|
|
|
8,250 |
|
8,250 |
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
3,300 |
|
|
To W’s Capital A/c |
|
|
1,800 |
|
|
To Premium for Goodwill A/c |
|
|
1,500 |
|
|
(W brought his share of goodwill and capital in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,500 |
|
|
To X’s Capital A/c |
|
|
500 |
|
|
To Y’s Capital A/c |
|
|
500 |
|
|
To Z’s Capital A/c |
|
|
500 |
|
|
(Premium for goodwill distributed between X, Y and Z in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
270 |
|
|
To Motors A/c |
|
|
250 |
|
|
To Furniture A/c |
|
|
20 |
|
|
(Decrease in value of Motors and Furniture transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
90 |
|
|
Y’s Capital A/c |
Dr. |
|
90 |
|
|
Z’s Capital A/c |
Dr. |
|
90 |
|
|
To Revaluation A/c |
|
|
270 |
|
|
(Loss on revaluation transferred to Capital Account) |
|
|
|
|
|
|
|
|
|
Balance Sheet after admission of W |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
Capital: |
|
Motors (1,200 – 250) |
950 |
X (1,500 – 90 + 500) |
1,910 |
Furniture (400 – 20) |
380 |
Y (1,750 – 90 + 500) |
2,160 |
Stock |
2,650 |
Z (2,000 – 90 + 500) |
2,410 |
Debtors |
3,780 |
W |
1,800 |
Cash (220 + 3,300) |
3,520 |
Other Liabilities |
3,000 |
|
|
|
11,280 |
|
11,280 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of loss Revaluation
Page No 4.92:
Question 53:
Balance Sheet before admission of W |
||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Capital: |
|
Motors |
1,200 |
|
X |
1,500 |
|
Furniture |
400 |
Y |
1,750 |
|
Stock |
2,650 |
Z |
2,000 |
5,250 |
Debtors |
3,780 |
Other Liabilities |
3,000 |
Cash (Balancing Figure) |
220 |
|
|
|
8,250 |
|
8,250 |
|
|
|
|
|
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
3,300 |
|
|
To W’s Capital A/c |
|
|
1,800 |
|
|
To Premium for Goodwill A/c |
|
|
1,500 |
|
|
(W brought his share of goodwill and capital in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,500 |
|
|
To X’s Capital A/c |
|
|
500 |
|
|
To Y’s Capital A/c |
|
|
500 |
|
|
To Z’s Capital A/c |
|
|
500 |
|
|
(Premium for goodwill distributed between X, Y and Z in sacrificing ratio) |
|
|
|
|
|
|
|
|
|
|
|
Revaluation A/c |
Dr. |
|
270 |
|
|
To Motors A/c |
|
|
250 |
|
|
To Furniture A/c |
|
|
20 |
|
|
(Decrease in value of Motors and Furniture transferred to Revaluation Account) |
|
|
|
|
|
|
|
|
|
|
|
X’s Capital A/c |
Dr. |
|
90 |
|
|
Y’s Capital A/c |
Dr. |
|
90 |
|
|
Z’s Capital A/c |
Dr. |
|
90 |
|
|
To Revaluation A/c |
|
|
270 |
|
|
(Loss on revaluation transferred to Capital Account) |
|
|
|
|
|
|
|
|
|
Balance Sheet after admission of W |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
Capital: |
|
Motors (1,200 – 250) |
950 |
X (1,500 – 90 + 500) |
1,910 |
Furniture (400 – 20) |
380 |
Y (1,750 – 90 + 500) |
2,160 |
Stock |
2,650 |
Z (2,000 – 90 + 500) |
2,410 |
Debtors |
3,780 |
W |
1,800 |
Cash (220 + 3,300) |
3,520 |
Other Liabilities |
3,000 |
|
|
|
11,280 |
|
11,280 |
|
|
|
|
Working Notes:
WN1
WN2
Distribution of Premium for Goodwill
WN3
Distribution of loss Revaluation
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 4.93:
Question 54:
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:
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, 2012 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 4.93:
Question 55:
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, 2012 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:
(a) If M acquires his share of profit from the firm in the original ratios of the partners.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought capital and his of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Premium for Goodwill distributed between J and K in their Sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Reserve distribution between M and J in their old ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
69,000 |
40,000 |
|
Balance c/d |
2,20,000 |
2,30,000 |
3,00,000 |
Reserve |
60,000 |
40,000 |
|
|
2,20,000 |
2,30,000 |
3,00,000 |
|
2,20,000 |
2,30,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Cash (2,00,000 + 4,00,000) |
6,00,000 |
J’s Capital |
2,20,000 |
Other Assets |
1,50,000 |
K’s Capital |
2,30,000 |
|
|
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
M is admitted for share of profit
Let the combined share of all partners after admission of M be = 1
Combined share of J and K after M’s admission = 1 − M’s share
Working Notes-
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of General Reserve (in old ratio)
J will get
K will get
(b) If M acquires his share of profit from the firm in equal proportions from the original partners.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Reserve distributed between J and K in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To J’s Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
50,000 |
|
|
To K’s Capital A/c |
|
|
50,000 |
|
|
(Premium for Goodwill distributed between J and K in sacrificing Raito i.e 1:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
50,000 |
50,000 |
|
Balance c/d |
2,10,000 |
2,40,000 |
3,00,000 |
Reserve |
60,000 |
40,000 |
|
|
2,10,000 |
2,40,000 |
3,00,000 |
|
2,10,000 |
2,40,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
J’s Capital |
2,10,000 |
Cash (2,00,000 + 4,00,000) |
6,00,000 |
K’s Capital |
2,40,000 |
Others Assets |
1,50,000 |
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of future (new) profit sharing ratio
M is admitted for share of profit
J and K each will sacrifice in favour of
Working Notes:
WN1
Distribution of Premium for Goodwill (in Sacrificing ratio)
J and K each will get
WN2
Distribution of General Reserve (in old ratio)
J will get
K will get
(c) If M acquires his share of profit in the ratio of 3:1 from the original partners
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
(Reserve distributed between J and K at the time of M’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought Capital his share of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
75,000 |
|
|
To K’s Capital A/c |
|
|
25,000 |
|
|
(Premium for Goodwill distributed between J and K in their sacrificing ratio i.e 3:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
75,000 |
25,000 |
|
|
|
|
|
Reserve |
60,000 |
40,000 |
|
Balance c/d |
2,35,000 |
2,15,000 |
3,00,000 |
|
|
|
|
|
2,35,000 |
2,15,000 |
3,00,000 |
|
2,35,000 |
2,15,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
J’s Capital |
2,35,000 |
Cash (2,00,000 + 4,00,000) |
6,00,000 |
K’s Capital |
2,15,000 |
Other Assets |
1,50,000 |
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
M is admitted for share of profit
New Ratio = Old Ratio − Sacrificing Ratio
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of Reserve (in old ratio)
Page No 4.93:
Question 56:
(a) If M acquires his share of profit from the firm in the original ratios of the partners.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought capital and his of goodwill in cash) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Premium for Goodwill distributed between J and K in their Sacrificing Ratio) |
|
|
|
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Reserve distribution between M and J in their old ratio) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
69,000 |
40,000 |
|
Balance c/d |
2,20,000 |
2,30,000 |
3,00,000 |
Reserve |
60,000 |
40,000 |
|
|
2,20,000 |
2,30,000 |
3,00,000 |
|
2,20,000 |
2,30,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Cash (2,00,000 + 4,00,000) |
6,00,000 |
J’s Capital |
2,20,000 |
Other Assets |
1,50,000 |
K’s Capital |
2,30,000 |
|
|
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
M is admitted for share of profit
Let the combined share of all partners after admission of M be = 1
Combined share of J and K after M’s admission = 1 − M’s share
Working Notes-
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of General Reserve (in old ratio)
J will get
K will get
(b) If M acquires his share of profit from the firm in equal proportions from the original partners.
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
To K’s Capital A/c |
|
|
40,000 |
|
|
(Reserve distributed between J and K in old ratio) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To J’s Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought capital and his share of goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
50,000 |
|
|
To K’s Capital A/c |
|
|
50,000 |
|
|
(Premium for Goodwill distributed between J and K in sacrificing Raito i.e 1:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
50,000 |
50,000 |
|
Balance c/d |
2,10,000 |
2,40,000 |
3,00,000 |
Reserve |
60,000 |
40,000 |
|
|
2,10,000 |
2,40,000 |
3,00,000 |
|
2,10,000 |
2,40,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
J’s Capital |
2,10,000 |
Cash (2,00,000 + 4,00,000) |
6,00,000 |
K’s Capital |
2,40,000 |
Others Assets |
1,50,000 |
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of future (new) profit sharing ratio
M is admitted for share of profit
J and K each will sacrifice in favour of
Working Notes:
WN1
Distribution of Premium for Goodwill (in Sacrificing ratio)
J and K each will get
WN2
Distribution of General Reserve (in old ratio)
J will get
K will get
(c) If M acquires his share of profit in the ratio of 3:1 from the original partners
Journal |
|||||
Date |
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
|
|
Reserve A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
60,000 |
|
|
(Reserve distributed between J and K at the time of M’s admission) |
|
|
|
|
|
|
|
|
|
|
|
Cash A/c |
Dr. |
|
4,00,000 |
|
|
To M’s Capital A/c |
|
|
3,00,000 |
|
|
To Premium for Goodwill A/c |
|
|
1,00,000 |
|
|
(M brought Capital his share of Goodwill) |
|
|
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
1,00,000 |
|
|
To J’s Capital A/c |
|
|
75,000 |
|
|
To K’s Capital A/c |
|
|
25,000 |
|
|
(Premium for Goodwill distributed between J and K in their sacrificing ratio i.e 3:1) |
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
J |
K |
M |
Particulars |
J |
K |
M |
|
|
|
|
Balance b/d |
1,00,000 |
1,50,000 |
|
|
|
|
|
Cash |
|
|
3,00,000 |
|
|
|
|
Premium for Goodwill |
75,000 |
25,000 |
|
|
|
|
|
Reserve |
60,000 |
40,000 |
|
Balance c/d |
2,35,000 |
2,15,000 |
3,00,000 |
|
|
|
|
|
2,35,000 |
2,15,000 |
3,00,000 |
|
2,35,000 |
2,15,000 |
3,00,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2014 after M’s admission |
|||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
J’s Capital |
2,35,000 |
Cash (2,00,000 + 4,00,000) |
6,00,000 |
K’s Capital |
2,15,000 |
Other Assets |
1,50,000 |
M’s Capital |
3,00,000 |
|
|
|
7,50,000 |
|
7,50,000 |
|
|
|
|
Calculation of Future (New) Profit Sharing Ratio
M is admitted for share of profit
New Ratio = Old Ratio − Sacrificing Ratio
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2
Distribution of Reserve (in old ratio)
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 April 01, 2014 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 4.94:
Question 57:
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 April 01, 2014 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 |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Provision for doubtful Debts |
1,700 |
Prepaid Advt. Expense |
1,200 |
||
A’s Capital (Rev. Exp.) |
2,100 |
B’s Capital (Personal Exp.) |
2,000 |
||
|
|
|
|
||
|
|
Loss transferred to |
|
||
|
|
A Capital |
300 |
|
|
|
|
B Capital |
200 |
|
|
|
|
C Capital |
100 |
600 |
|
|
3,800 |
|
|
3,800 |
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr. |
||||||||
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Revaluation |
|
2,000 |
|
|
Balance b/d |
60,000 |
60,000 |
40,000 |
|
(Personal Exp.) |
|
|
|
|
Creditors |
|
|
|
10,000 |
Revaluation (Loss) |
300 |
200 |
100 |
|
Cash |
|
|
|
40,000 |
Balance c/d |
61,800 |
57,800 |
39,900 |
50,000 |
Revaluation (Exp.) |
2,100 |
|
|
|
|
62,100 |
60,000 |
40,000 |
50,000 |
|
62,100 |
60,000 |
40,000 |
50,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01,2014 after D’s admission |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Capital Accounts: |
|
Land and Building |
50,000 |
|||
A |
61,800 |
|
Plant and Machinery |
40,000 |
||
B |
57,800 |
|
Furniture |
30,000 |
||
C |
39,900 |
|
Prepaid Advt. Expenses |
1,200 |
||
D |
50,000 |
2,09,500 |
Stock |
20,000 |
||
|
|
|
Debtors |
30,000 |
|
|
Creditors |
30,000 |
|
Add: B/R dishonor |
4,000 |
|
|
Less: D’s Capital |
10,000 |
20,000 |
Less: 5% Provision for D Debts |
(1,700) |
32,300 |
|
Bill Payable |
10,000 |
|
|
|
||
|
|
Bills Receivable |
|
20,000 |
||
|
|
Bank (10,000 + 40,000 - 4,000) |
46,000 |
|||
|
2,39,500 |
|
2,39,500 |
|||
|
|
|
|
Working Note:
Distribution of Loss on Revaluation
Page No 4.95:
Question 58:
Revaluation Account |
|||||
Dr. |
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
||
|
|
|
|
||
Provision for doubtful Debts |
1,700 |
Prepaid Advt. Expense |
1,200 |
||
A’s Capital (Rev. Exp.) |
2,100 |
B’s Capital (Personal Exp.) |
2,000 |
||
|
|
|
|
||
|
|
Loss transferred to |
|
||
|
|
A Capital |
300 |
|
|
|
|
B Capital |
200 |
|
|
|
|
C Capital |
100 |
600 |
|
|
3,800 |
|
|
3,800 |
|
|
|
|
|
|
Partners’ Capital Accounts |
|||||||||
Dr. |
Cr. |
||||||||
Particulars |
A |
B |
C |
D |
Particulars |
A |
B |
C |
D |
Revaluation |
|
2,000 |
|
|
Balance b/d |
60,000 |
60,000 |
40,000 |
|
(Personal Exp.) |
|
|
|
|
Creditors |
|
|
|
10,000 |
Revaluation (Loss) |
300 |
200 |
100 |
|
Cash |
|
|
|
40,000 |
Balance c/d |
61,800 |
57,800 |
39,900 |
50,000 |
Revaluation (Exp.) |
2,100 |
|
|
|
|
62,100 |
60,000 |
40,000 |
50,000 |
|
62,100 |
60,000 |
40,000 |
50,000 |
|
|
|
|
|
|
|
|
|
|
Balance Sheet as on April 01,2014 after D’s admission |
||||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|||
|
|
|
|
|||
Capital Accounts: |
|
Land and Building |
50,000 |
|||
A |
61,800 |
|
Plant and Machinery |
40,000 |
||
B |
57,800 |
|
Furniture |
30,000 |
||
C |
39,900 |
|
Prepaid Advt. Expenses |
1,200 |
||
D |
50,000 |
2,09,500 |
Stock |
20,000 |
||
|
|
|
Debtors |
30,000 |
|
|
Creditors |
30,000 |
|
Add: B/R dishonor |
4,000 |
|
|
Less: D’s Capital |
10,000 |
20,000 |
Less: 5% Provision for D Debts |
(1,700) |
32,300 |
|
Bill Payable |
10,000 |
|
|
|
||
|
|
Bills Receivable |
|
20,000 |
||
|
|
Bank (10,000 + 40,000 - 4,000) |
46,000 |
|||
|
2,39,500 |
|
2,39,500 |
|||
|
|
|
|
Working Note:
Distribution of Loss on Revaluation
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, 2014 after M’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)
Values involved in the above scenario are as follows:
- Equality
- Opportunity to earn
- Fulfilling Social responsibility
Page No 4.95:
Question 59:
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, 2014 after M’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)
Values involved in the above scenario are as follows:
- Equality
- Opportunity to earn
- Fulfilling Social responsibility
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 |
|
6,150 |
|
6,150 |
|
|
|
|
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, 2014 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
Page No 4.96:
Question 60:
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 |
|
6,150 |
|
6,150 |
|
|
|
|
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, 2014 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
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 April 01, 2012 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 4.96:
Question 61:
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 April 01, 2012 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 |
|
|
|
|
Provision for Doubtful Debts |
9,000 |
|
|
Furniture (24,000 × 5%) |
1,200 |
Loss transferred to |
|
Stock |
6,000 |
A Capital |
10,800 |
|
|
B Capital |
5,400 |
|
16,200 |
|
16,200 |
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
10,800 |
5,400 |
|
Balance b/d |
1,60,000 |
1,20,000 |
|
|
|
|
|
General Reserve (2 : 1) |
64,000 |
32,000 |
|
|
|
|
|
Bank (84,000 – 36,000) |
|
|
48,000 |
Balance c/d |
2,37,200 |
1,58,600 |
48,000 |
Premium for Goodwill |
24,000 |
12,000 |
|
|
2,48,000 |
1,64,000 |
48,000 |
|
2,48,000 |
1,64,000 |
48,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Buildings |
80,000 |
||
A |
2,37,200 |
|
Furniture (24,000 – 1,200) |
22,800 |
|
B |
1,58,600 |
|
|
|
|
C |
48,000 |
4,43,800 |
Stock (48,000 – 6,000) |
42,000 |
|
Creditors |
64,000 |
Debtors |
2,40,000 |
|
|
|
|
Less: Prov. For D. Debts |
9,000 |
2,31,000 |
|
|
|
Cash at Bank (48,000 + 84,000) |
1,32,000 |
||
|
5,07,800 |
|
5,07,800 |
||
|
|
|
|
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2 Distribution of Revaluation loss
Page No 4.97:
Question 62:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Provision for Doubtful Debts |
9,000 |
|
|
Furniture (24,000 × 5%) |
1,200 |
Loss transferred to |
|
Stock |
6,000 |
A Capital |
10,800 |
|
|
B Capital |
5,400 |
|
16,200 |
|
16,200 |
|
|
|
|
Partners’ Capital Account |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Revaluation |
10,800 |
5,400 |
|
Balance b/d |
1,60,000 |
1,20,000 |
|
|
|
|
|
General Reserve (2 : 1) |
64,000 |
32,000 |
|
|
|
|
|
Bank (84,000 – 36,000) |
|
|
48,000 |
Balance c/d |
2,37,200 |
1,58,600 |
48,000 |
Premium for Goodwill |
24,000 |
12,000 |
|
|
2,48,000 |
1,64,000 |
48,000 |
|
2,48,000 |
1,64,000 |
48,000 |
|
|
|
|
|
|
|
|
Balance Sheet as on April 01, 2013 after C’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
Capital A/cs: |
|
Buildings |
80,000 |
||
A |
2,37,200 |
|
Furniture (24,000 – 1,200) |
22,800 |
|
B |
1,58,600 |
|
|
|
|
C |
48,000 |
4,43,800 |
Stock (48,000 – 6,000) |
42,000 |
|
Creditors |
64,000 |
Debtors |
2,40,000 |
|
|
|
|
Less: Prov. For D. Debts |
9,000 |
2,31,000 |
|
|
|
Cash at Bank (48,000 + 84,000) |
1,32,000 |
||
|
5,07,800 |
|
5,07,800 |
||
|
|
|
|
Working Notes:
WN1
Distribution of Premium for Goodwill (in sacrificing ratio)
WN2 Distribution of Revaluation loss
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, 2013 after Z’s admission |
||||
Particulars |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (15,000 + 1,000) |
16,000 |
Land and Building |
5,000 |
|
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 |
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 4.97:
Question 63:
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, 2013 after Z’s admission |
||||
Particulars |
Amount Rs |
Assets |
Amount Rs |
|
|
|
|
|
|
Creditors (15,000 + 1,000) |
16,000 |
Land and Building |
5,000 |
|
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 |
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, 2013 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 4.98:
Question 64:
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, 2013 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 |
|
|
|
|
Partnersâ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Aâs Capital |
|
|
4,000 |
Balance b/d |
86,000 |
64,000 |
|
Bâs Capital |
|
|
4,000 |
General Reserve |
12,000 |
8,000 |
|
Revaluation |
13,800 |
9,200 |
|
Cash |
|
|
50,000 |
Goodwill |
6,000 |
4,000 |
|
Câs 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, 2014 (after Câs admission) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (60,000 â 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 â 3,200) |
|
32,800 |
Sundry Creditors (31,200 â 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 Câs share of Goodwill
Particulars |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
Câs Capital A/c |
Dr. |
8,000 |
|
To Aâs Capital A/c |
|
4,000 |
|
To Bâs Capital A/c |
|
4,000 |
|
(Câs share of goodwill charge from his capital) |
|
|
|
|
|
|
WN2: Distribution of General Reserve (in old ratio)
WN3: Writing-off of Goodwill
Page No 4.98:
Question 65:
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 |
|
|
|
|
Partnersâ Capital Accounts |
|||||||
Dr. |
|
|
|
|
|
|
Cr. |
Particulars |
A |
B |
C |
Particulars |
A |
B |
C |
Aâs Capital |
|
|
4,000 |
Balance b/d |
86,000 |
64,000 |
|
Bâs Capital |
|
|
4,000 |
General Reserve |
12,000 |
8,000 |
|
Revaluation |
13,800 |
9,200 |
|
Cash |
|
|
50,000 |
Goodwill |
6,000 |
4,000 |
|
Câs 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, 2014 (after Câs admission) |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building (60,000 â 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 â 3,200) |
|
32,800 |
Sundry Creditors (31,200 â 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 Câs share of Goodwill
Particulars |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
Câs Capital A/c |
Dr. |
8,000 |
|
To Aâs Capital A/c |
|
4,000 |
|
To Bâs Capital A/c |
|
4,000 |
|
(Câs share of goodwill charge from his capital) |
|
|
|
|
|
|
WN2: Distribution of General Reserve (in old ratio)
WN3: Writing-off of Goodwill
Answer:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Reserve for D. Debts (27,500 × 2%) |
550 |
Free hold Premises (22,400 – 20,000) |
2,400 |
Stock |
705 |
Loss transferred to |
|
Plant and Machinery (13,500 – 11,800) |
1,700 |
Ram’s Current A/c |
717 |
Fixture and Fittings |
210 |
Shyam’s Current A/c |
598 |
Motor lorries |
550 |
|
|
|
3,715 |
|
3,715 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Ram |
Shyam |
Arjun |
Particulars |
Ram |
Shyam |
Arjun |
|
|
|
|
Balance b/d |
30,000 |
25,000 |
|
Balance c/d |
30,000 |
25,000 |
20,000 |
Cash |
|
|
20,000 |
|
30,000 |
25,000 |
20,000 |
|
30,000 |
25,000 |
20,000 |
|
|
|
|
|
|
|
|
Partners’ Current Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
Ram |
Shyam |
Arjun |
Particulars |
Ram |
Shyam |
Arjun |
||
Revaluation |
717 |
598 |
|
Balance b/d |
2,000 |
1,800 |
|
||
|
|
|
|
Premium for Goodwill |
3,600 |
3,000 |
|
||
Balance c/d |
4,883 |
4,202 |
|
|
|
|
|
||
|
5,600 |
4,800 |
|
|
5,600 |
4,800 |
|
||
|
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
19,000 |
Freehold Premises |
22,400 |
||
Bills Payable |
16,000 |
Plant and Machinery |
11,800 |
||
Capital A/cs: |
|
Fixture and Fittings |
1,540 |
||
Ram |
30,000 |
|
Motor lorries |
800 |
|
Shyam |
25,000 |
|
Stock (14,100 – 705) |
13,395 |
|
Arjun |
20,000 |
75,000 |
Bills Receivables |
13,060 |
|
|
|
Debtors |
27,500 |
|
|
Current A/cs: |
|
Less: 2% Reserve for D. Debts |
550 |
26,950 |
|
Ram |
4,883 |
|
Bank |
1,590 |
|
Shyam |
4,202 |
9,085 |
Cash (950 + 20,000 + 6,600) |
27,550 |
|
|
|
|
|
|
|
|
1,19,085 |
|
1,19,085 |
||
|
|
|
|
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Cash A/c |
Dr. |
|
26,600 |
|
To Arjun’s Capital |
|
|
20,000 |
|
To Premium for Goodwill |
|
|
6,600 |
|
(Arjun brought Capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,600 |
|
To Ram’s Current A/c |
|
|
3,600 |
|
To Shyam’s Current A?C |
|
|
3,000 |
|
(Premium for Goodwill transferred to partners current account in sacrificing ratio i.e. 6:5) |
|
|
|
|
|
|
|
|
Arjun admitted for share of profit
Let the combined share of all partner after Arjun’s admission be = 1
Combined share of Ram and Shyam after Arjun’s admission
New Ratio = Old Ratio − Combined share of Ram and Shyam
Working Notes
WN1 Distribution of Premium for Goodwill
WN2 Distribution of Loss on Revaluation
Page No 4.99:
Question 66:
Revaluation Account |
|||
Dr. |
|
Cr. |
|
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Reserve for D. Debts (27,500 × 2%) |
550 |
Free hold Premises (22,400 – 20,000) |
2,400 |
Stock |
705 |
Loss transferred to |
|
Plant and Machinery (13,500 – 11,800) |
1,700 |
Ram’s Current A/c |
717 |
Fixture and Fittings |
210 |
Shyam’s Current A/c |
598 |
Motor lorries |
550 |
|
|
|
3,715 |
|
3,715 |
|
|
|
|
Partners’ Capital Accounts |
|||||||
Dr. |
|
Cr. |
|||||
Particulars |
Ram |
Shyam |
Arjun |
Particulars |
Ram |
Shyam |
Arjun |
|
|
|
|
Balance b/d |
30,000 |
25,000 |
|
Balance c/d |
30,000 |
25,000 |
20,000 |
Cash |
|
|
20,000 |
|
30,000 |
25,000 |
20,000 |
|
30,000 |
25,000 |
20,000 |
|
|
|
|
|
|
|
|
Partners’ Current Accounts |
|||||||||
Dr. |
|
Cr. |
|||||||
Particulars |
Ram |
Shyam |
Arjun |
Particulars |
Ram |
Shyam |
Arjun |
||
Revaluation |
717 |
598 |
|
Balance b/d |
2,000 |
1,800 |
|
||
|
|
|
|
Premium for Goodwill |
3,600 |
3,000 |
|
||
Balance c/d |
4,883 |
4,202 |
|
|
|
|
|
||
|
5,600 |
4,800 |
|
|
5,600 |
4,800 |
|
||
|
|
|
|
|
|
|
|
Balance Sheet |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Creditors |
19,000 |
Freehold Premises |
22,400 |
||
Bills Payable |
16,000 |
Plant and Machinery |
11,800 |
||
Capital A/cs: |
|
Fixture and Fittings |
1,540 |
||
Ram |
30,000 |
|
Motor lorries |
800 |
|
Shyam |
25,000 |
|
Stock (14,100 – 705) |
13,395 |
|
Arjun |
20,000 |
75,000 |
Bills Receivables |
13,060 |
|
|
|
Debtors |
27,500 |
|
|
Current A/cs: |
|
Less: 2% Reserve for D. Debts |
550 |
26,950 |
|
Ram |
4,883 |
|
Bank |
1,590 |
|
Shyam |
4,202 |
9,085 |
Cash (950 + 20,000 + 6,600) |
27,550 |
|
|
|
|
|
|
|
|
1,19,085 |
|
1,19,085 |
||
|
|
|
|
Journal |
||||
Particulars |
L.F. |
Debit Amount Rs |
Credit Amount Rs |
|
|
|
|
|
|
Cash A/c |
Dr. |
|
26,600 |
|
To Arjun’s Capital |
|
|
20,000 |
|
To Premium for Goodwill |
|
|
6,600 |
|
(Arjun brought Capital and share of goodwill) |
|
|
|
|
|
|
|
|
|
Premium for Goodwill A/c |
Dr. |
|
6,600 |
|
To Ram’s Current A/c |
|
|
3,600 |
|
To Shyam’s Current A?C |
|
|
3,000 |
|
(Premium for Goodwill transferred to partners current account in sacrificing ratio i.e. 6:5) |
|
|
|
|
|
|
|
|
Arjun admitted for share of profit
Let the combined share of all partner after Arjun’s admission be = 1
Combined share of Ram and Shyam after Arjun’s admission
New Ratio = Old Ratio − Combined share of Ram and Shyam
Working Notes
WN1 Distribution of Premium for Goodwill
WN2 Distribution of Loss on Revaluation
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 March 31, 2014 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 4.99:
Question 67:
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 March 31, 2014 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 Accounts |
||||||
Dr. |
|
Cr. |
||||
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|||
|
|
|
|
|||
Outstanding workmen’s Compensation Claim |
2,000 |
Creditors |
1,500 |
|||
Provision for D. Debts |
1,500 |
|
Loss transferred to |
|
||
Less: Old Provision |
1,000 |
500 |
X Capital |
500 |
||
|
|
Y Capital |
500 |
|||
|
2,500 |
|
2,500 |
|||
|
|
|
|
Partners’ Capital Accounts |
||||||||
Dr. |
Cr. |
|||||||
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
Bank (withdrawn of Goodwill) |
5,000 |
5,000 |
|
Balance b/d |
30,000 |
20,000 |
|
|
Revaluation Loss |
500 |
500 |
|
X’s Current |
8,000 |
|
|
|
|
|
|
|
Y’s Current |
|
6,000 |
|
|
|
|
|
|
Bank |
|
|
25,000 |
|
Balance c/d |
37,500 |
25,500 |
25,000 |
Premium for Goodwill |
5,000 |
5,000 |
|
|
|
43,000 |
31,000 |
25,000 |
|
43,000 |
31,000 |
25,000 |
|
|
|
|
|
|
|
|
|
Balance Sheet as on March 31, 2014 after Z’s admission |
|||||
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
|
|
|
||
Capital A/cs: |
|
Land and Building |
30,000 |
||
X |
37,500 |
|
Plant and Machinery |
20,000 |
|
Y |
25,500 |
|
Furniture and Fittings |
5,000 |
|
Z |
25,000 |
88,000 |
Stock |
15,000 |
|
|
|
|
Bills Receivable |
6,000 |
|
Creditors |
26,000 |
|
Debtors |
15,000 |
|
Less: Bills Payable |
4,000 |
|
Less: 10% Prov. for D. Debts |
1,500 |
13,500 |
Less: Revaluation |
1,500 |
20,500 |
Bank |
45,000 |
|
|
|
|
|
|
|
Bills Payable |
10,000 |
|
|
|
|
Add: Creditor |
4,000 |
14,000 |
|
|
|
X’s Loan |
10,000 |
|
|
||
Outstanding Workmen Compensation Claim |
2,000 |
|
|
||
|
1,34,500 |
|
1,34,500 |
||
|
|
|
|
Bank Account |
|||
Dr. |
|
|
Cr. |
Particulars |
Amount Rs |
Particulars |
Amount Rs |
|
|
|
|
Balance b/d |
10,000 |
X’s Capital |
5,000 |
Z’s Capital |
25,000 |
Y’s Capital |
5,000 |
Premium for Goodwill |
10,000 |
|
|
X’s Loan |
10,000 |
Balance c/d |
45,000 |
|
|
|
|
|
55,000 |
|
55,000 |
|
|
|
|
Working Notes:
WN1: Sacrificing Ratio
WN2: Distribution of Revaluation Loss
WN3: Distribution of Premium for Goodwill
View NCERT Solutions for all chapters of Class 15