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प्रश्न
A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. On 1.4.2014 their Balance Sheet was as follows :
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Provident Fund General Reserve Capital Accounts A 80,000 B 73,000 C 40,000 |
25,200 3,000 21,000
1,93,000 |
Bank Debtors 60,000 Less: Provision 2,000 Stock Investment Patents Machinery |
8,200
58,000 50,000 20,000 10,000 96,000 |
| 2,42,200 | 2,42,200 |
On the above date, C retired. It was agreed that:
(i) Goodwill of the firm will be valued at Rs 5,400.
(ii) Depreciation of 10% was to be provided on machinery.
(iii) Patents were to be reduced by 20%.
(iv) Liability on account of Provident Fund was estimated at Rs 2,500.
(v) C took over investments for Rs 31,700.
(vi) A and B decided to adjust their capitals in proportion to their profit sharing ratio. For this
purpose, current accounts were opened.
Prepare Revaluation Account and Partners' Capital Accounts on C's retirement
उत्तर
| Revaluation Account | |||
| Dr. | Cr. | ||
| Particulars | Rs | Particulars | Rs |
|
To Machinery A/c To Patents A/c To Profit transferred to A’s Capital A/c 300 B’s Capital A/c 200 C’s Capital A/c 100 |
9,600 2,000
600 |
By Investment A/c By Provident Fund A/c
|
11,700 500
|
| 12,200 | 12,200 | ||
| Partner’s Capital Account | |||||||
| Dr. | Cr. | ||||||
| Particulars | A | B | C | Particulars | A | B | C |
| To Investment A/c | 31,700 | By Balance b/d | 80,000 | 73,000 | 40,000 | ||
| To C’s Capital A/c | 540 | 360 | By General Reserve A/c | 10,500 | 7,000 | 3,500 | |
| To Loan A/c | 12,800 | By Revaluation A/c | 300 | 200 | 100 | ||
| To Current A/c | 11,800 | By A’s Capital A/c | 540 | ||||
| To Balance c/d | 1,02,060 | 68,040 | By B’s Capital A/c | 360 | |||
| By Current A/c | 11,800 | ||||||
| 1,02,600 | 80,200 | 44,500 | 1,02,600 | 80,200 | 44,500 | ||
Working Notes
WN 1 Adjustment of Goodwill
C's Share of Goowill = `5400 xx 1/6 = 900`
A will pay = `900 xx 3/5 = 540`
B will pay = `900 xx 2/5 = 360`
WN 2 Adjustment of Capital
Adjusted Old Capital of A = 90,800 (80,000 + 10,500 + 300) – 540 = 90,260
Adjusted Old Capital of B = 80,200 (73,000 + 7,000 + 200) -360 = 79,840
Total Adjusted Capital = 90,260 + 79,840 = 1, 70,100
New Profit sharing Ratio = 3:2
A's New Capital = `170100 xx 3/5 = 102060`
B's New Capital = `170100 xx 2/5 = 68040`
Note: Since, here no information is given regarding the share acquired by A and B, therefore, their gaining ratio is same as their new profit sharing ratio i.e. 3:2
APPEARS IN
संबंधित प्रश्न
Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows :
Balance Sheet of Ajay,Aman and Anand as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors Bills Payable General Reserve Capitals Ajay 5,00,000 Aman 1,00,000 Anand 1,60,000 |
1,47,000 33,000 2,10,000
7,60,000 |
Land Building Plant Stock Debtors Bank
|
5,40,000 2,70,000 1,90,000 75,000 60,000 15,000
|
| 11,50,000 | 11,50,000 |
From 1-4-2015 Ajay. Aman and Anand decided to share future profits equally. For this it was agreed that:
(i) Goodwill of the firm be valued at Rs1, 80,000.
(ii) Land be revalued at Rs.6,00,000 and building be depreciated by 10%.
(iii) Creditors of Rs.15,000 were not likely to be claimed and hence be written-off.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
A. B and C were partners in a firm sharing profits in the ratio of 5: 3: 2. On 31-3-2015 their Balance Sheet was as follows:
Balance Sheet of A,B and C as on 31-3-2015
| Liabilities | Amount(Rs) | Assets | Amount(Rs.) |
|
Creditors Investment Fluctuation Fund P & L Account Capitals A 1,50,000 B 1,20,000 C 60,000
|
63,000 30,000 1,20,000
3,30,000
|
Land & Building Motor Vans Investments Machinery Stock Debtors 1,20,000 Less : Provision 9,000 Cash
|
1,86,000 60,000 57,000 36,000 45,000
|
| 5,43,000 | 5,43,000 |
On the above date B retired and A and C agreed to continue the business on the following terms:
(1) Goodwill of the firm was valued at Rs.1, 53,000.
(2) Provision for bad debts was to be reduced by Rs.3,000.
(3) There was a claim of Rs.12,000 for workmen compensation.
(4) B will be paid Rs.24,600 in cash and the balance will be transferred to his loan account which will be paid in four equal yearly instalments together with interest 10% p.a.
(5) The new profit sharing ratio between A and C will be 3:2 and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of A and C.
Ashok, Bhim and Chetan were partners in a firm sharing profits in the ratio of 3:2:1.
Their Balance Sheet as on 31-3-2015 was as follows:
Balance Sheet of Ashok, Bhim and Chetan
as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors Bills Payable General Reserve Capitals Ashok 2,00,000 Bhim 1,00,000 Chetan 50,000 |
1,00,000 40,000 60,000
3,50,000 |
Land Building Plant Stock Debtors Bank
|
1,00,000 1,00,000 2,00,000 80,000 60,000 10,000
|
| 5,50,000 | 5,50,000 |
Ashok, Bhim and Chetan decided to share the future profits equally, w.e.f. April 1, 2015. For this it was agreed that:
(i) Goodwill of the firm be valued at 3,00,000
(ii) Land be revalued at 1, 60,000 and building be depreciated by 6%.
(iii) Creditors of 12,000 were not likely to be claimed and hence be written off
Prepare Revaluation Account Partners’ Capital Accounts and Balance Sheet of the reconstituted firm
Kushal Kumar and Kavita were partners in a firm sharing profit in the ratio 3:1:1. On 1st April 2012 their Balance Sheet was as follows:
Balance Sheet of Kushal, Kumar and Kavita as on 1st April 2012
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|
Creditors Bill payable General Reserve Capital: Kushi 3,00,000 Kumar 2,80,000 Kavita 3,00,000 |
1,20,000 1,80,000 1,20,000
8,80,000 |
Cash Debtors 2,00,000 Less: Provision 10,000 Stock Furniture Building Land |
70,000
1,90,000 2,20,000 1,20,000 3,00,000 4,00,000 |
| 13,00,000 | 13,00,000 |
On the above date, Kavita retired and the following was agreed:
i. Goodwill of the firm was valued at Rs.40,000.
ii. The land was to be appreciated by 30% and the building was to be depreciated by Rs.1,00,000.
iii. Value of furniture was to be reduced by Rs.20,000.
iv. Bad debts reserve is to be increased to Rs.15,000.
v. 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
vi. Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their Capital Accounts will be adjusted through Current Accounts.
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of Kushal and Kumar after Kavita's retirement.
X, Y and Z were partners in a firm sharing profit in the ratio of 1:2:3. On 31-3-2015 their Balance sheet was as follows :
Balance Sheet of X,Y and Z as on 31-3-2015
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable General Reserve Capitals X 50,000 Y 25,000 Z 12,500 |
25,000 10,000 10,000
87,500 |
Land Building Plant Stock Debtors Bank
|
25,000 25,000 50,000 20,000 15,000 2,500
|
| 1,37,500 | 1,37,500 |
X, Y and Z decided to Share the profits equally with effect from 1-4-2015. For this It was agreed that
(i) Goodwill of the firm will be valued at 75,000
(ii) Land will be revalued at 40,000 and building be depreciated by 6%.
(iii) Creditors of 3,000 were not likely to be claimed and hence should be written off
Prepare Revaluations Account, Partner’s Capital Accounts and Balance Sheet of the reconstitute firm.
Kapil, Mohit, Roshan and Rakesh were partners in firm sharing profits in the ratio of 5:2:2:1. On 1.4.2016 their Balance Sheet was as follows :
| Balance Sheet of Kapil, Mohit, Roshan and Rakesh as on 1.4.2016 |
|||
| Liabilities | Rs | Assets | Rs |
|
Capitals : Kapil 3,50,000 Mohit 3,00,000 Roshan 2,50,000 Rakesh 2,00,000 Sundry Creditors Workmen Compensation Reserve |
11,00,000 50,000 50,000 |
Fixed Assets Current Assets
|
8,00,000 4,00,000
|
| 12,00,000 | 12,00,000 | ||
From the above date, the partners decided to share the future profits equally. For this purpose, the goodwill of the firm was valued at Rs 72,000. It was also agreed that:
1) Fixed assets will be depreciated by 10% and the claim against Workmen Compensation Reserve will be estimated at Rs 70,000.
2) The Capitals of the partners will be adjusted according to their new profit sharing ratio. For this, Partners' Current Accounts will be opened
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the reconstituted firm.
Om, Ram and Shanti were partners in a firm sharing profits in the ratio of 3:2:1. On 1st April 2014 their Balance Sheet was as follows:
| Balance Sheet | |||
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Capital Accounts Om 3,58,000 Ram 3,00,000 Shanti 2,62,000 General Reserve Creditors Bills payable |
9,20,000 48,000 1,60,000 90,000 |
Land and Building Plant and Machinery Furniture Bills Receivables Sundry Debtors Stock Bank |
3,64,000 2,95,000 2,33,000 38,000 90,000 1,11,000 87,000 |
| 12,18,000 | 12,18,000 | ||
On the above date Hanuman was admitted on the following terms:
1) He will bring Rs 1,00,000 for his capital and will get the 1/10th share in the profits.
2) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at Rs 3,00,000
3) A liability of Rs 18,000 will be created against bills receivables discount
4) The value of stock and furniture will be reduced by 20%.
]5) The value of land and building will be increased by 10%.
6) Capital accounts of the partners will be adjusted on the basis of Hanuman's capital in their profit sharing ratio by opening current accounts.
Prepare Revaluation Account and Partner's Capital Accounts.
Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4:3: 2. On 1.4.2014 their Balance sheet was as follows:
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors Capital Accounts Xavier 1,20,000 Yusuf 90,000 Zaman 60,000
|
41,400
2,70,000
|
Cash at Bank Sundry Debtors 30,450 Less: Prov. For Bad debts 1,050 Stock Plant and Machinery Land and Building |
33,000
29,400 48,000 51,000 1,50,000 |
| 3,11,400 | 3,11,400 |
Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows:
1) That land and building be appreciated by 10%
2) The provision for bad debts is no longer necessary
3) That stock be appreciated by 20%
4) That goodwill of the firm be fixed at Rs 54,000. Yusuf share of the same be adjusted into Xavier's and Zamna's Capital Accounts, who are going to share future profits in the ratio of 2:1
5) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.
Prepare Revaluation Account and Partner's Capital Account
O, R and S were partners in a firm sharing profit in the ratio of 3:2:1 On 1.4.2014 their Balance Sheet was as follows:
| Liabilities |
Amount RS |
Assets |
Amount Rs |
|
Capital Accounts O 1,75,000 R 1,50,000 S 1,25,000 Current Accounts O 4,000 S 6,000 General Reserve Profit and Loss Accounts Creditors Bills Payable |
4,50,000
10,000 15,000 7,000 80,000 45,000 |
R’s Current Accounts Land and Building Plant and Machinery Furniture Investment Bills Receivables Sundry Debtors Stock Bank
|
7,000 1,75,000 67,500 80,000 36,500 17,000 43,500 1,37,000 43,500
|
| 6,07,000 | 6,07,000 |
On the above date, H was admitted on the following terms:
(i) H will bring Rs 50,000 as his capital and will get 116 th share in the profits.
(ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was
valued at Rs 90,000.
(iii) The new profits sharing ratio will be 2:2:1:1.
(iv) A liability of Rs 7,004 will be created against bills receivables discounted.
(v) The value of stock, furniture and investments is reduced by 20% whereas the value of land and building and plant and machinery will be appreciated by 20% and 10% respectively.
(vi) The Capital accounts of the partners will be adjusted on the basis of H's Capital through their
current accounts.
Prepare Revaluation Account and Partner's Current Accounts and Capital Accounts.
Sahaj and Nimish are partners in a firm. They share profits and losses in the ratio of 2: 1. Since both of them are specially abled, sometimes they find it difficult to run the business on their own. Gauri, a common friend decides to help them. Therefore, they admitted her into a partnership for a 1/3rd share. She brought her share of goodwill in cash and proportionate capital. At the time of Gauri's admission, the Balance sheet of Sahaj and Nimish was as under:
| Liabilities | Rs | Assets | Rs |
|
Capital Accounts: Sahaj 1,20,000 Nimish 80,000 General Reserve Creditors Employee's Provident Fund |
2,00,000 30,000 30,000 40,000 |
Machinery Furniture Stock Sundry Debtors Cash
|
1,20,000 80,000 50,000 30,000 20,000
|
| 3,00,000 | 3,00,000 |
It was decided to:
a. Reduce the value of a stock by `5,000.
b. Depreciate furniture by 10% and appreciate machinery by 5%.
c. Rs 3,000 of the debtors proved bad. A provision of 5% was to be created on Sundry Debtors for doubtful debts.
d. Goodwill of the firm was valued at Rs 45,000.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm. Identify the value being conveyed in the question.
X, Y and Z were partners in a firm sharing profits in the ratio of 5 : 3 : 2. The firm closes its books on 31st March every year. On 30.9.2016, Z died. The partnership deed provided that on the death of a partner his executors will be entitled to the following :
(i) Balance in his capital account and interest @ 12% per annum. On 1.4.2016 balance in Z's Capital account was Rs 80,000.
(ii) His share in the profits of the firm in the year of his death, which will be calculated on the basis of rate of net profit on sales of the previous year which was 25%. The sales of the firm till 30.9.2016 were Rs 4,00,000.
(iii) His share on the goodwill of the firm. The goodwill of the firm on Z's death was valued at Rs 3,00,000.
The partnership deed also provided that the following deductions will be made from the amount payable to the executor of the deceased partner:
(i) His drawing in the year of his death. Z has withdrawn Rs 30,000 till 30.9.2016.
(ii) Interest on drawing @ 12% per annum which was calculated as Rs 2,000.
The accountant of the firm prepared Z's Capital Account to be presented to his executor but in a hurry did not complete it. Z's Capital Account as prepared by the firm's accountant is presented below :
|
Dr. |
Z’s Capital Account |
Cr. |
|||
|
Date |
Particulars |
Amount (Rs) |
Date |
Particulars |
Amount (Rs) |
|
2016 |
|
|
2016 |
|
|
|
Sep. 30 |
…………… |
30,000 |
April 1 |
…………… |
80,000 |
|
Sep. 30 |
…………… |
2,000 |
Sep. 30 |
…………… |
4,800 |
|
Sep. 30 |
…………… |
……... |
Sep. 30 |
…………… |
20,000 |
|
|
|
|
Sep. 30 |
…………… |
……... |
|
|
|
|
Sep. 30 |
…………… |
……... |
|
|
|
1,64,800 |
|
|
1,64,800 |
|
|
|
|
|
|
|
You are required to complete Z's Capital Account.
X, Y and Z were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. On 31.3.2010 their Balance Sheet was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
|
Capital Accounts: |
|
Building |
50,000 |
|
|
X |
75,000 |
|
Patents |
15,000 |
|
Y |
62,000 |
|
Machinery |
75,000 |
|
Z |
37,500 |
1,75,000 |
Stock |
37,500 |
|
Sundry Creditors |
42,500 |
Debtors |
20,000 |
|
|
|
|
Cash at Bank |
20,000 |
|
|
|
2,17,500 |
|
2,17,500 |
|
|
|
|
|
|
|
Z died on 31.7.2010. It was agreed that:
(a) Goodwill be valued at 2½ year’s purchased of the average profits of the last four year which were as follows:
|
Years |
Profit Rs |
|
2006 – 2007 |
32,500 |
|
2007 – 2008 |
30,000 |
|
2008 – 2009 |
40,000 |
|
2009 – 2010 |
37,500 |
(b) Machinery be valued at Rs 70,000; Patents at Rs 20,000 and Building at Rs 62,500.
(c) For the purpose of calculating Z’s share of profits on the year of his death the profit in 2010 − 2011 should be taken to have been accrued on the same scale as in 2009 − 2010.
(d) A sum of Rs 17,500 was paid immediately to the executors of Z the balance was paid in four half yearly installments together with interest at 12% p.a. starting from 31.1.2011.
Given necessary journal entries to record the above transaction and Z’s executor’s account till the payment of installments due on
31.1.2011
From the following Receipts and Payments Account of Kolkata Sports Club for the year ended
31.3.2011, prepare Income and Expenditure Account.
|
Receipts and Payments Account of Kolkat Sports Club for the year ended 31.3.2011 |
|||
|
Dr. |
|
|
Cr. |
|
Receipts |
Amount Rs |
Payments |
Amount Rs |
|
To Balance b/d |
3,200 |
By Salary |
1,800 |
|
To Subscription |
22,500 |
By Rent (paid on 30.9.2010 for 12 months) |
2,300 |
|
To Entrance Fees (including Rs 1,000 as capital income) |
3,000 |
By Electricity |
1,000 |
|
To Donations |
750 |
By Taxes |
2,200 |
|
To Rent of hall |
1,750 |
By Printing and Stationery |
400 |
|
To Accrued interest for the year 2009 – 2010 |
2,000 |
By Sundry Expenses |
900 |
|
|
|
By Books |
7,500 |
|
|
|
By 9% Fixed Deposit (on 1.4.2010) |
15,200 |
|
|
|
By Balance c/d |
1,900 |
|
|
33,200 |
|
33,200 |
|
|
|
|
|
Annie and Bonnie are partners in a firm, sharing profits and losses equally. Their Balance Sheet as at 31st March,
2017, was as follows:
Balance Sheet of Annie and Bonnie
As at 31st March, 2017
| Liabilities | Amount Rs. | Assets | AmountRs. |
| Sundry Creditors | 21,000 | Cash at Bank | 20,000 |
| General Reserve | 15,000 |
Sundry Debtors 22,000 Less Provision for Doubtful Debts (1,000) |
21,000 |
|
Capital A/c Annie 45,000 Bonnie40,000 |
85,000 |
Stock | 10,000 |
| Plant & Machinery | 60,000 | ||
| Goodwill | 10,000 | ||
| 1,21,000 | 1,21,000 |
Carl was to be taken as a partner for 1/4 share in the profits of the firm, with effect from 1st April, 2017, on the
following terms:
(a) Bad debts amounting to Rs. 1,500 to be written off.
(b) Stock to be taken over by Annie at Rs.12,000.
(c) Plant and Machinery to be valued at Rs. 50,000.
(d) Goodwill of the firm to be valued at Rs. 20,000.
(e) Carl to bring in Rs. 50,000 as his capital. He was unable to bring his share of goodwill in cash.
(f) General Reserve not to be distributed. For this, it was decided that Carl would compensate the old partners
through his current account.
You are required to:
(i) Pass journal entries on the date of Carl's admission.
(ii) Prepare the Balance Sheet of the reconstituted firm
Gita, Radha, and Garv were partners in firm sharing profits and losses in the ratio of 3: 5: 2. On 31st March 2019, their balance sheet was as follows:
Balance Sheet of Gita, Radha & Garv as on 31st March 2019
| Liabilities |
Amount (₹) |
Assets | Amount (₹) |
| Sundry Creditors |
60,000 |
Cash | 50,000 |
| General Reserve |
40,000 |
Stock | 80,000 |
| Capitals : |
|
Debtors | 40,000 |
| Gita - 3,00,000 |
|
Investments | 30,000 |
| Radha - 2,00,000 |
|
Buildings | 5,00,000 |
| Garv - 1,00,000 |
6,00,000 |
||
| 7,00,000 | 7,00,000 |
Radha retired on the above date and it was agreed that:
(a) Goodwill of the firm be valued at ₹ 3,00,000 and Radha's share be adjusted through the capital accounts of Gita and Gary.
(b) Stock was to be appreciated by 20%.
(c) Buildings were found undervalued by ₹ 1,00,000.
(d) Investments were sold for ₹ 34,000.
(e) Capital of the new firm was fixed at ₹ 5,00,000 which will be in the new profit sharing ratio of the partners; the necessary adjustments for this purpose were to be made by opening current accounts of the partners.
Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Radha's retirement.
Which of the following transactions is debited to Revaluation Account?
X and Y were partners in the profit-sharing ratio of 3 : 2. Their balance sheet as at March 31, 2022 was as follows:
| Balance Sheet as at March 31, 2022 | |||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
| Creditors | 56,000 | Plant and Machinery | 70,000 | ||
| General Reserve | 14,000 | Buildings | 98,000 | ||
| Capital Accounts: | Stock | 21,000 | |||
| X | 1,19,000 | 2,31,000 | Debtors | 42,000 | 35,000 |
| Y | 1,12,000 | (-) Provision | 7,000 | ||
| Cash in Hand | 77,000 | ||||
| 3,01,000 | 3,01,000 | ||||
Z was admitted for 1/6th share on the following terms:
- Z will bring ₹ 56,000 as his share of capital but was not able to bring any amount to compensate the sacrificing partners.
- Goodwill of the firm is valued at ₹. 84,000.
- Plant and Machinery were found to be undervalued by ₹ 14,000 Building was to be brought up to ₹ 1,09,000.
- All debtors are good.
- Capitals of X and Y will be adjusted on the basis of Z’s share and adjustments will be done by opening necessary current accounts.
You are required to prepare revaluation account and partners’ capital account.
