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प्रश्न
Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5 : 3 : 2. As from 1st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4 : 3 : 2 : 1. The following adjustments are to be made.
- Increase the value of premises by ₹ 60,000.
- Depreciate stock by ₹ 5,000, furniture by ₹ 2,000 and machinery by ₹ 2,500.
- Provide for an outstanding liability of ₹ 500.
Pass journal entries and prepare a revaluation account.
उत्तर
Journal Entries
Date | Particulars | L.F. | Debit ₹ | Credit ₹ |
Revaluation A/c ................Dr. To Stock A/c To Furniture A/c To Machinery A/c To Outstanding liability (Loss items entered is debited) |
10,000 - - - - |
- 5,000 2,000 2,500 500 |
||
Premises A/c ......................Dr. To Revaluation A/c (Profit items entered is credited) |
60,000 - |
- 60,000 |
||
Revaluation A/c .............Dr. To Hari's Capital A/c To Madhavan's Capital A/c To Kesavan's Capital A/c (Profit on revaluation A/c transferred to old partners old ratio) |
50,000 - - - |
- 25,000 15,000 10,000 |
||
Dr. | Revaluation Account | Cr. | ||
Particulars | ₹ | Particulars | ₹ | |
To Stock A/c | 5,000 | By Premises A/c | 60,000 | |
To Furniture A/c | 2,000 | |||
To Machinery A/c | 2,500 | |||
To Outstanding liability | 500 | |||
To Hari's Cap A/c | 25,000 | |||
To Madhavan's Cap A/c | 15,000 | |||
To Kesavan's Cap A/c | 10,000 | 50,000 | ||
60,000 | 60,000 |
APPEARS IN
संबंधित प्रश्न
Mrs Shehal and Mrs Meenal are equal partners in a business. Their balance sheet is as follows.
Balance Sheet as on 31st March 2013 | |||
Liabilities | Amount Rs. | Assets | Amount Rs. |
Capital A/c's Snehal 80,000 Meenal 45,000 Creditors General reserve
|
1,25,000 46,000 20,000
|
Premises Investments Equipments Bills Receivable Debtors 1,10,000 ( - ) R.D.D. 11,000 Bank Balance |
20,500 10,500 5,000 18,000
99,000 38,000 |
1,91,000 | 1,91,000 |
They agreed to admit Mr Komal on 1st April 2013 on the following terms:
(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4th) Share in future profit.
(2) Goodwill to be raised in the books of the firm for Rs. 40,000.
(3) R.D.D. to be maintained at 5% on debtors.
(4) Premises to be valued at Rs. 30,000 and equipment to be written off fully.
(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.
Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.
Answer in one sentence only.
What is revaluation account?
Anika and Radhika are partners sharing profits in the ratio of 5:1. They decide to admit Sanika in the firm for `1/5`th share. calculate the sacrifice ratio of Anika and Radhika
What does the excess of debit over credits in the Profit and Loss Adjustment Account indicate?
Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively.
Balance Sheet as on 31 March 2018 | |||||
Liabilities | Amt (₹) |
Amt (₹) |
Assets | Amt (₹) |
Amt (₹) |
Creditors | 1,20,000 | Land and Building | 75,000 | ||
General Reserve | 12,000 | Furniture | 6,000 | ||
Capital A/c: | Stock | 60,000 | |||
Kishor | 90,000 | Debtors | 60,000 | ||
Lal | 48,000 | 1,38,000 | Bills Receivable | 39,000 | |
Cash at Bank | 30,000 | ||||
2,70,000 | 2,70,000 |
They decided to admit Ram on 1 April 2018 on following terms:
1. He should be given 1/5th share in profit and for that he brought in ₹ 60,000 as capital through RTGS.
2. Goodwill should be raised at ₹ 60,000
3. Appreciate Land and Building by 20%
4. Furniture and Stock are to be depreciated by 10%
5. The Capitals of all partners should be adjusted in their new profit sharing ratio through Bank A/c.
Pass necessary Journal Entries in the books of the Partnership firm and a Balance sheet of the new firm.
The following is the Balance Sheet of Om and Jay on 31st March 2018, they share profits and losses in the ratio 3:2
Balance Sheet As On 31st March 2018 |
|||
Liabilities | Amount (₹) | Assets | Amount (₹) |
Creditors | 30,000 | Cash | 3,000 |
Capital A/c | Building | 15,000 | |
Om | 21,000 | Machinery | 21,000 |
Jay | 21,000 | Furniture | 900 |
Current A/c | Stock | 12,300 | |
Om | 3,750 | Debtors | 27,000 |
Jay | 3,450 | ||
79,200 | 79,200 |
They take Jagdish into partnership on 1st April 2018 the terms being
1. Jagdish should pay 3,000 as his share of Goodwill. 50% of goodwill withdrawn by partners in cash.
2. He should bring 9,000 as capital for 1/4th share in future profits.
3. Building to be valued at 18,000, Machinery and Furniture to be reduced by 10%
4. A Provision of 5% on debtors to be made for doubtful debts.
5. Stock is to be taken at a value of 15,000.
Prepare profit and loss A/c, Partner’s Current A/c, Balance Sheet of the new firm
Revaluation A/c is a _________.
Karan and Saran are partners in a partnership. They admitted Mohit as a new partner for `1/4`th share in profits.
Balance Sheet [Extract] | |||
Liabilities | Amount (₹) |
Assets | Amount (₹) |
Creditors | 25,000 |
If 5% of creditors are not likely to claim their dues, what amount of creditors will be shown in the Balance Sheet on Mohit's admission?
Indu, Vijay and Pawan were partners in a firm sharing profits in the ratio of 4 : 3 : 3. They admitted Subhash into partnership with effect from 1st April, 2022. New profit sharing ratio among Indu, Vijay, Pawan and Subhash will be 3: 3: 2: 2. An extract of their Balance Sheet as at 31st March, 2022 is given below:
Liabilities | Amount (₹) | Assets | Amount (₹) |
Investment Fluctuation Reserve |
80,000 | Investment (Market Value ₹ 80,000) |
90,000 |
Which of the following is the correct accounting treatment of 'investment fluctuation reserve' at the time of Subhash's admission?