Advertisements
Advertisements
प्रश्न
Roohi, Mona, Meena were partners in a business sharing profits and losses in the ratio of 2 : 1 : 1 respectively. Their balance sheet as on 31st March, 2019.
| Balance sheet as on 31st March, 2019 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/c: | Plant & Machinery | 60,000 | ||
| Roohi | 60,000 | 1,64,000 | Debtors | 50,000 |
| Mona | 70,000 | Furniture stock | 30,000 | |
| Meena | 34,000 | Bank | 60,000 | |
| Creditors | 18,000 | |||
| Bills Payable | 2,000 | |||
| General Reserve | 16,000 | |||
| 2,00,000 | 2,00,000 | |||
Meena died on 1st July, 2019:
- Plant & machinery was to be revalued at ₹ 70,000 and RDD is to be created of ₹ 2,000.
- The drawings of Meena up to the date of her death amounted to ₹ 10,000.
- Charge interest on drawings ₹ 1,000.
- Her share of goodwill should be calculated at three year purchase of the profits for the last four years which were: I year ₹ 1,50,000, II year ₹ 1,30,000, III year ₹ 70,000. IV ₹ 50,000.
- The deceased partners' share of profit up to the date is to be calculated on the basis of average profit of last two years. (Ill & IV year)
Prepare Profit and Loss Adjustment account, Partners Capital Accounts and Balance Sheet of the continuing firm, give working note on share of profit and goodwill.
उत्तर
| Dr. | Revaluation Account | Cr. | ||
| Particulars | Amount (₹) | Particulars | Amount (₹) | |
| To RDD A/c | 2,000 | By Plant & Machinery A/c |
10,000 | |
| To Profit (Transfer to Partners Capital A/c) |
||||
| Roohi | 4,000 | 8,000 | ||
| Mona | 2,000 | |||
| Meena | 2,000 | |||
| 10,000 | 10,000 | |||
| Dr. | Partner's Capital Accounts | Cr. | |||||
| Particulars | Roohi (₹) | Mona (₹) | Meena (₹) | Particulars | Roohi (₹) | Mona (₹) | Meena (₹) |
| To Drawing A/c | 10,000 | By Balance b/d | 60,000 | 70,000 | 34,000 | ||
| To Interest on Drawing A/c | 1,000 | By General Reserve A/c | 8,000 | 4,000 | 4,000 | ||
| To Meena's Executors Loan A/c | 1,07,750 | By Revaluation A/c (Profit) | 4,000 | 2,000 | 2,000 | ||
| To Balance c/d | 72,000 | 76,000 | By Goodwill A/c | 75,000 | |||
| By Profit & Loss Suspense A/c | 3,750 | ||||||
| 72,000 | 76,000 | 1,18,750 | 72,000 | 76,000 | 1,18,750 | ||
| Balance Sheet as on 1st April, 2019 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Creditors | 18,000 | Plant & Machinery | 60,000 | 70,000 |
| Bills Payable | 2,000 | Add: Appreciation | 10,000 | |
| Capital A/c: | Debtors | 50,000 | 48,000 | |
| Roohi | 72,000 | Less: R.D.D. | 2,000 | |
| Mona | 76,000 | Furniture | 30,000 | |
| Meena's Representative's Loan A/c | 1,07,750 | Bank | 50,000 | |
| Profit and Loss Suspense A/c (₹ 3,750 - 1,000 Int.) | 2,750 | |||
| Goodwill | 75,000 | |||
| 2,75,750 | 2,75,750 | |||
Working Notes:
1. Calculation of Share of Profit:
Profit of Current Year = Average of the profit of Last 2 years
= `(70,000 + 50,000)/2`
= `(1,20,000)/2`
= ₹ 60,000
Profit for proportionate period from 1st April, 2019 to 1st July, 2019
= `60,000 xx 3/12` = ₹ 15,000
Meena's share in proportionate profit = `15,000 xx 1/4` = ₹ 3,750
2. Valuation of Goodwill:
Total profit of 4 year = 1,50,000 + 1,30,000 + 70,000 + 50,000
Average Profit = `(4,00,000)/4` = ₹ 1,00,000
Goodwill = Average Profit × No. of Year Purchases
= 1,00,000 × 3
= ₹ 3,00,000
Meena's share in goodwill = `3,00,000 xx 1/4`
= ₹ 75,000
APPEARS IN
संबंधित प्रश्न
What is Gain Ratio?
Give a word/term/phrase which can substitute the following statements :
The partner who died.
Give a word/term/phrase which can substitute the following statement:
A person who represents the deceased partner.
Answer in one sentence only.
What is gain ratio or benefit ratio ?
Benefit Ratio is the Ratio in which ______.
The balance on the capital account of partners, on his death, is transferred to __________ account.
Write a word, term, phrase, which can substitute the following statement.
A Person who represents the deceased partner on the death of the Partner.
Write a word, term, phrase, which can substitute the following statement.
The Partner who died.
State whether the following statement is True or False with reason.
A deceased partner is entitled to his share of General Reserve.
State whether the following statement is True or False with reason.
After the death of a partner, the entire amount due to the deceased partner is paid to the legal representative of the deceased partner.
Deceased partner’s executor's account is shown on the ___________ side of the Balance Sheet.
On the death of a partner, a ratio in which the continuing partners get more share of profits in future is called as _________ ratio.
Deceased partners share of profit up to the death is shown on ____________ side of Balance Sheet.
Benefit ratio = New Ratio __________.
Answer in one sentence only.
To whom you distribute General Reserve on the death of a partner?
Answer in one sentence only.
How the death of a partner is a compulsory retirement?
Ram, Madhav, and Keshav are partners sharing Profit and Losses in the ratio 5:3:2 respectively. Their Balance Sheet as on 31st March 2018 was as follows.
| Balance Sheet as on 31st March 2018 | |||
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| General Reserve | 25,000 | Goodwill | 50,000 |
| Creditors | 1,00,000 | Loose Tools | 50,000 |
| Unpaid Rent | 25,000 | Debtor | 1,50,000 |
| Capital Accounts | - | Live Stock | 1,00,000 |
| Ram | 100000 | Cash | 25,000 |
| Madhav | 75000 | ||
| Keshav | 50000 | ||
| 3,75,000 | 3,75,000 | ||
Keshav died on 31st July 2018 and the following Adjustment were agreed by as per partnership deed.
1. Creditors have increased by 10,000
2. Goodwill is to be calculated at 2 years purchase of average profits of 5 years.
3. The Profits of the preceding 5 years was
| 2013-14 | ₹ 90,000 |
| 2014-15 | ₹ 1,00,000 |
| 2015-16 | ₹ 60,000 |
| 2016-17 | ₹ 50,000 |
| 2017-18 | ₹ 50,000 (Loss) |
Keshav's share in it was to be given to him.
4. Loose Tools and livestock were valued at ₹ 80,000 and ₹ 1,20,000 respectively
5. R.D.D. was maintained at ₹ 10,000
6. Commission's ₹ 2000 p.m. was payable to Keshav Profit for 2018 -19 was estimated at ₹ 45000 and Keshav's share in it up to the date of his death was given to him.
Prepare
Revaluation A/c, Keshav’s capital A/c showing the amount payable to his executors.
Deceased partner share of profit up to the death is shown on ______ side of Balance Sheet.
Prem, Verma, Sharma, were partners sharing profits and losses in the ratio 2: 1: 1 Their Balance Sheet as on 31st March 2019 is as follows.
| Balance Sheet as on 31st March, 2019 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | 20,000 | Premises | 2,40,000 |
| Bank Loan | 90,000 | Debtors | 2,00,000 |
| Bill Payable | 10,000 | Furniture | 60,000 |
| General Reserve | 64,000 | Stock | 1,00,000 |
| Capital Accounts: | Cash | 2,00,000 | |
| Prem | 2,40,000 | ||
| Verma | 2,00,000 | ||
| Sharma | 1,76,000 | ||
| 8,00,000 | 8,00,000 | ||
- Prem died on 30th June 2019 and the following adjustments were made Prem’s share of profit is to be calculated on the average profit of the last two years.
- Prem’s share in the Goodwill of the firm be given him. Goodwill will be valued at three times of the average profits of the last four years. The profits were.
2015-16 ₹ 1,60,000 2016-17 ₹ 1,20,000 2017-18 ₹ 80,000 2018-19 ₹ 40,000 - Premises be valued at ₹ 2,80,000 and R.D.D. of ₹ 8,000 be created on debtors.
- Drawing of Prem up to the date of his death were ₹ 15000 per month.
- Interest on capital is allowed at 10% p.a. and to be charged on drawing at ₹ 4000.
- The amount due to Prem be transferred to his executors loan account.
Prepare: Prem’s Capital Account, Give working of Prem’s share in Goodwill, and Interest on capital.
Arun, Varun and Karun were partners in a business sharing profits and losses in the ratio of 2 : 2: 1 respectively. Their Balance sheet as on 31st March, 2019 was as under :
| Balance Sheet as on 31st March,2019 | ||||
| Liabilities | Amount ₹ | Assets | Amount ₹ | |
| Capital Account: | Land and Building | 27,900 | ||
| Arun | 20,000 | Investment | 15,000 | |
| Varun | 20,000 | Furniture | 8,000 | |
| Karun | 10,000 | Debtors | 10,400 | 10,000 |
| Creditors | 16,000 | Less: R.D.D | 400 | |
| Bank Loan | 4,000 | Bank | 4,100 | |
| Goodwill | 5,000 | |||
| 70,000 | 70,000 | |||
On 1st July, 2019 Karun died and the following adjustments were made:
- All the debtors were considered as good.
- Bank Loan were paid off.
- Furniture was depreciated by ₹ 550.
- Investments were sold out in the Market at 10% profit.
- Goodwill of the firm was valued at ₹ 7,500. It was to be raised in the books.
- Karun was entitled to get his share in the profit up to the date of his death. Profit for 2019-2020 was estimated at ₹ 5,000.
- The amount due to Karun’s Executor was paid by NEFT.
Prepare:
- Profit and Loss Adjustment A/c.
- Partners’ Capital Account.
- Balance sheet of New Firm.
Shah, Patel, Bhide were partners in a business sharing profits and losses in the ratio of 2 : 1 : I respectively. Their Balance sheet as on 31st March 2022 was as follows:
| Balance Sheet as on 31-03-2022 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capital A/c: | Plant & Machinery | 84,000 | |
| Shah | 84,000 | Debtors | 70,000 |
| Patel | 98,000 | Furniture | 42,000 |
| Bhide | 47,600 | Bank | 84,000 |
| Creditors | 25,200 | ||
| Bills Payable | 2,800 | ||
| General Reserve | 22,400 | ||
| 2,80,000 | 2,80,000 | ||
Bhide died on 1st July, 2022:
(1) Plant and Machinery was to be revalued to ₹ 98,000 and R.D.D. is to be created of ₹ 2,800.
(2) The drawings of Bhide up to the date of his death amounted to ₹ 14,000.
(3) Charge interest on drawings ₹ 1,400.
(4) His share of goodwill should be calculated at three year purchase of the profits for the last four years which were I year ₹ 2,30,000, II year ₹ 1,82,000, III year ₹ 98,000, IV ₹ 70,000.
(5) The deceased partner's share of profit up to the date of death to be calculated on the basis of average profit of last two years (III & IV year).
Prepare: Profit and Loss Adjustment Account, Partner's Capital Accounts, Balance Sheet of the continuing firm. Give working note of profit up to the date of death of Bhide and Goodwill.
A person who died is known as ______.
A, B and C were partners in a business sharing Profits and Losses in the ratio of 2 : 2 : 1 respectively. Their Balance Sheet as on 31st March, 2022 is as under.
| Balance Sheet as on 31st March, 2022 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital A/c: | Land and Building | 89,280 | |||
| A | 64,000 | Investment | 48,000 | ||
| B | 64,000 | Furniture | 25,600 | ||
| C | 32,000 | Debtors | 33,280 | 32,000 | |
| Creditors | 48,000 | Less : R.D.D. | 1,280 | ||
| Bills Payable | 3,200 | Bank | 13,120 | ||
| Bank Loan | 12,800 | Goodwill | 16,000 | ||
| 2,24,000 | 2,24,000 | ||||
On 1st July 2022, C died and the following adjustments were made:
(1) All the debtors were considered as good debtors.
(2) A contingent liability for a compensation of ₹ 1,440 was provided.
(3) Investment were sold out in the market at 10% profit.
(4) Loan were paid off.
5) Land and Building were depreciated by ₹ 1,280 and Furniture by ₹ 1,760.
(6) Goodwill of the firm was valued at ₹ 24,000. It was to be raised in the Books.
(7) C was entitled to get his share in the profit up to the date of his death. Profit for 2022-23 was estimated at ₹ 16,000.
(8) The amount due to C's executors was paid by NEFT.
Prepare Revaluation Account, Partners' Capital Account and Balance Sheet of new firm.
Answer in one sentence only:
What is New Profit Sharing Ratio?
Het, Heet and Hari are partners sharing profits and losses in the ratio 5 : 3 : 2 respectively. Their Balance Sheet as on 31st March, 2023 was as follows:
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| General Reserve | 35,000 | Goodwill | 70,000 |
| Creditors | 1,40,000 | Loose Tools | 70,000 |
| Unpaid Rent | 35,000 | Debtors | 2,10,000 |
| Capital Accounts: | Livestock | 1,40,000 | |
| Het | 1,40,000 | Cash | 35,000 |
| Heet | 1,05,000 | ||
| Hari | 70,000 | ||
| 5,25,000 | 5,25,000 | ||
Hari died on 3lst July, 2023 and the following adjustments were agreed by as per partnership deed:
(1) Creditors have increased by ₹ 14,000.
(2) Goodwill is to be calculated at 2 years purchase of average profits of 5 years.
(3) The profits of the preceding 5 years was
| 2018-19 | ₹ 1,26,000 |
| 2019-20 | ₹ 1,40,000 |
| 2020-21 | ₹ 84,000 |
| 2021-22 | ₹ 70,000 |
| 2022-23 | ₹ 70,000 (Loss) |
Hari's share in it was to be given to him.
(4) Loose Tools and Livestock were valued at ₹ 1,12,000 and ₹ 1,68,000 respectively.
(5) R.D.D. was maintained at ₹ 14,000.
( 6) Commission ₹ 2,800 p.m. was payable to Hari. Profit for 2023-24 was estimated at ₹ 63,000 and Bari's share in it up to the date of his death was given to him.
Prepare Revaluation Ale, Bari's Capital Ale showing the amount payable to his executors.
