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प्रश्न
Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3:2:1. On March 31, 2017, Naman retires.
The various assets and liabilities of the firm on the date were as follows:
Cash Rs 10,000, Building Rs 1,00,000, Plant and Machinery Rs 40,000, Stock Rs 20,000, Debtors Rs 20,000 and Investments Rs 30,000.
The following was agreed upon between the partners on Naman’s retirement:
(i) Building to be appreciated by 20%.
(ii) Plant and Machinery to be depreciated by 10%.
(iii) A provision of 5% on debtors to be created for bad and doubtful debts.
(iv) Stock was to be valued at Rs 18,000 and Investment at Rs 35,000.
Record the necessary journal entries to the above effect and prepare the Revaluation Account.
उत्तर
Books of Himanshu and Gagan
Journal Entries
|
Date |
Particulars |
L.F. |
Amt (Rs.) |
Amt (Rs.) |
|
|
|
Building A/c Dr. |
|
20,000 |
25,000 |
|
|
|
Revaluation A/c Dr. |
|
7,000 |
4,000
|
|
|
|
Revaluation A/c Dr (Profit on revaluation transferred to all Partners’ Capital Accounts in their old profit sharing ratio) |
|
18,000
|
9,000
|
|
Revaluation Account
Dr. Cr.
| Particular | Amt (Rs.) | Amt (Rs.) | Particular | Amt (Rs.) |
| Plant and Machinery | 4,000 | Building | 20,000 | |
| Stock | 2,000 | Investment | 5,000 | |
| Provision for Bad and Doubtful debts | 1,000 | |||
| Profit transferred to Capital Account: | 18,000 | |||
| Himanshu | 9,000 | |||
| Gagan | 6,000 | |||
| Naman | 3,000 | |||
| 25,000 | 25,000 |
APPEARS IN
संबंधित प्रश्न
Pass the necessary Journal entries for the following transaction on the dissolution of the firm of P and Q after the various assets (Other than cash) and outside liabilities have been transferred to Realisation Account.
(i) Bank Loan Rs 12,000 was paid.
(ii) Stock worth Rs 16,000 was taken over by Partner Q.
(iii) Partner P paid a creditor Rs 4,000
(iv) An assets not appearing in the books of accounts realized Rs 1,200.
(v) Expenses of realisation Rs 2,000 were paid by partner Q.
(vi) Profit on realization Rs 36,000 was distributed between P and Q in 5 : 4 ratio.
On 31-3-2010 the Balance Sheet of W and R who shared profits in 3 : 2 ratio was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
Creditors |
20,000 |
Cash |
5,000 |
||
|
Profit and Loss Account |
15,000 |
Sundry Debtors |
20,000 |
|
|
|
Capital Accounts: |
|
Less: Provision |
(700) |
19,300 |
|
|
W |
40,000 |
|
Stock |
25,000 |
|
|
R |
30,000 |
70,000 |
Plant and Machinery |
35,000 |
|
|
|
|
Plants |
20,700 |
||
|
|
1,05,000 |
|
1,05,000 |
||
|
|
|
|
|
||
On this date B was admitted as a partner on the following conditions:
(a) ‘B’ will get 4/15th share profits.
(b) ‘B’ had to bring Rs 30,000 as his capital to which amount other Partners capital shall have to be adjusted.
(c) He would pay cash for his share of goodwill which would be based on 2½ years purchase of average profits of past 4 years.
(d) The assets would be revalued as under:
Sundry debtors at the book value less 5% provision for bad debts. Stock at Rs 20,000, Plant and Machinery at Rs 40,000.
(e) The profits of the firm for the years 2007, 2008 and 2009 were Rs 20,000; Rs 14,000 and Rs 17,000 respectively.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.
Following is the balance sheet at Sharmila, Urmila and Pramila, who shared profits and losses in the ratio of 5 : 3 : 2 respectively:
Balance Sheet as on 31st March, 2013
| Liabilities | Amount | Assets | Amount |
| Capital accounts: | Land and buildings | 250000 | |
| Sharmila | 2,00,000 | Plant and Machinery | 70000 |
| Urmila | 1,50,000 | Furniture | 20000 |
| Pramila | 1,00,000 | Sundry debtors | 90000 |
| Reserve fund | 50,000 | Stock | 56500 |
| Sundry creditors | 42,800 | Bills receivable | 7400 |
| Bills payable | 6,000 | Cash in hand | 3700 |
| Cash at bank | 51200 | ||
| 5,48,800 | 5,48,800 |
Pramila retired on 31st March, 2013 on the following terms:
(1) Goodwill of the firm was valued at Rs 60,000. It was decided that ‘goodwill’ should be raised to the extent of Pramila’s share only, and to be written off immediately.
(2) Land and building to be appreciated by Rs 20,000. Stock is revalued at Rs 58,500. Furniture is to be depreciated by 10%.
(3) Amount payable to Pramila is to be transferred to her loan account.
Give Journal Entries in the books of the firm.
Write the term / word / phrase which can substitute the following statement :
The account which shows revaluation of assets and liabilities.
Write the term / word / phrase which can substitute the following statement :
Debit balance of revaluation account.
State whether the following statements is true or false :
Revaluation account is also called Realisation account.
Give a word / term / phrase which can substitute the following statements :
The account which shows revaluation of assets and liabilities.
Why do firm revaluate assets and reassess their liabilities on retirement or on the event of death of a partner?
Digvijay, Brijesh and Parakaram were partners in a firm sharing profits in the ratio of 2:2:1. Their Balance Sheet as on March 31, 2020 was as follows:
| Liabilities | Amt (Rs.) |
Assets | Amt (Rs.) |
| Creditors | 49,000 | Cash | 8,000 |
| Reserves | 18,500 | Debtors | 19,000 |
| Digvijay’s Capital | 82,000 |
Stock |
42,000 |
| Brijesh’s Capital | 60,000 | Buildings | 207,000 |
| Parakaram’s Capital | 75,500 | Patents | 9,000 |
| 2,85,000 | 2,85,000 |
Brijesh retired on March 31, 2020 on the following terms:
- Goodwill of the firm was valued at Rs 70,000 and was not to appear in the books.
- Bad debts amounting to Rs 2,000 were to be written off.
- Patents were considered as valueless.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of Digvijay and Parakaram after Brijesh’s retirement.
Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3:2:1. On March 31, 2019, Naman retires.
The various assets and liabilities of the firm on the date were as follows:
Cash Rs 10,000, Building Rs 1,00,000, Plant and Machinery Rs 40,000, Stock Rs 20,000, Debtors Rs 20,000 and Investments Rs 30,000.
The following was agreed upon between the partners on Naman’s retirement:
|
(i) |
Building to be appreciated by 20%. |
|
(ii) |
Plant and Machinery to be depreciated by 10%. |
|
(iii) |
A provision of 5% on debtors to be created for bad and doubtful debts. |
|
(iv) |
Stock was to be valued at Rs 18,000 and Investment at Rs 35,000. |
Record the necessary journal entries to the above effect and prepare the Revaluation Account.
Select the most appropriate alternative from given below and rewrite the statement :
Assets and Liabilities are transferred to Realisation Account at their __________ values.
Complete the sentence?
______ is an asset is an asset that is not physical in nature. Brand recognition, Goodwill and intellectual property such as patent etc. are examples of it.
At the time of retirement of a partner 'Loss on Revaluation' is debited ______.
X, Y and Z were partners. On 30th June 2019 Y retired. The extract of their balance sheet is given below:
| Balance Sheet [An Extract] | |||
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
| Investment Fluctuation Fund | 10,000 | Investments [Market value ₹ 80,000] |
1,00,000 |
What Journal Entry will be passed for the above item on Y's retirement?
When the Balance Sheet is prepared after the retirement of a partner (subsequent to the preparation of the Revaluation Account), ______ values are shown in it.
An account operated to ascertain the loss or gain at the time of death of a partner is called ______.
P, Q and R were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 31.3.2020 R retired from the firm. On R's retirement the balance sheet of the firm showed sundry debtors at t 3,75,000. It was decided to write off ₹ 5,000 as bad debts and create a provision of 20% on debtors for bad and doubtful debts. Pass necessary journal entries for the above transactions in the books of the firm on R's retirement.
D, E and F were partners in a firm sharing profits in the ratio of 5 : 2 : 3. On 31.3.2022 their balance sheet was as follows:
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) |
| Creditors | 53,000 | Cash | 16,000 | |
| Bills Payable | 62,000 | Bank | 17,000 | |
| General Reserve | 2,00,000 | Stock | 18,000 | |
| Capitals: | Debtors | 1,99,000 | ||
| D | 7,00,000 | 18,00,000 | Investments | 1,15,000 |
| E | 5,00,000 | Machinery | 7,50,000 | |
| F | 6,00,000 | Land and Building |
10,00,000 | |
| 21,15,000 | 21,15,000 |
On the above date D retired from the firm and the following was agreed upon:
- Goodwill of the firm was valued at ₹ 1,00,000, D's share of goodwill was adjusted through the capital accounts of remaining partners.
- Investments were to be brought to their market value which was ₹ 85,000.
- Machinery was to be depreciated to ₹ 7,00,000.
- Land and Building was to be appreciated to ₹ 12,00,000.
- The balance in D's capital account was transferred to his loan account.
Prepare Revaluation Account and D's Capital Account on his retirement.
X, Y and Z were partners in a firm sharing profit and losses in the ratio of 5 : 3 : 2. On 31.3.2022 X retired from the firm. On X's retirement the firm had a balance of ₹ 90,000 in the General Reserve Account. The revaluation of assets and reassessment of liabilities resulted in a loss of ₹ 70,000. Pass necessary journal entries for the above transactions on X's retirement.
Radhika, Ridhima and Rupanshi were partners in a firm sharing profits and losses in the ratio of 3:5:2. On 31st March, 2022, their balance sheet was as follows :
| Balance Sheet of Radhika, Ridhlma and Rupanshi as on 31.3.2022 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Sundry Creditors | 60,000 | Cash | 50,000 | ||
| General Reserve | 40,000 | Stock | 80,000 | ||
| Capitals: | Debtors | 40,000 | |||
| Radhika | 3,00,000 | 6,00,000 | Investments | 30,000 | |
| Ridhima | 2,00,000 | Buildings | 5,00,000 | ||
| Rupanshi | 1,00,000 | ||||
| 7,00,000 | 7,00,000 | ||||
Ridhima retired on the above date and it was agreed that:
- Goodwill of the firm be valued at ₹ 3,00,000.
- Building was valued at ₹ 6,20,000.
- 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 and Partners' Capital Accounts on Ridhima's retirement.
Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3 : 2 : 1. On March 31, 2017, Naman retires. The various assets and liabilities of the firm on the date were as follows: Cash Rs. 10,000, Building Rs. 1,00,000, Plant and Machinery Rs. 40,000, Stock Rs. 20,000, Debtors Rs. 20,000 and Investments Rs. 30,000.
The following was agreed upon between the partners on Naman’s retirement:
- Building to be appreciated by 20%.
- Plant and Machinery to be depreciated by 10%.
- A provision of 5% on debtors to be created for bad and doubtful debts.
- Stock was to be valued at Rs. 18,000 and Investment at Rs. 35,000.
Record the necessary journal entries to the above effect and prepare the revaluation account.
