Advertisements
Advertisements
प्रश्न
Sanjana and Alok were partners in firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 their Balance Sheet was as follows:
Balance Sheet of Sanjana and Alok as on 31.3.2018
| Liabilities |
Amount (₹) |
Assets | Amount (₹) |
| Creditors | 60,000 | Cash | 1,66,000 |
| Work men's Compensation Fund | 60,000 | Debtors - 1,46,000 | |
| Less: Provision for doubtful debts - 2,000 | 1,44,000 | ||
| Capitals: | Stock | 1,50,000 | |
| Sanjana - 5,00,000 | Investments | 2,60,000 | |
| Alok - 4,00,000 | 9,00,000 | Furniture | 3,00,000 |
| 10,20,000 | 10,20,000 |
On 1st April 2018, they admitted Nidhi as a new partner for 1/4th share in the profits on the following terms:
(a) Goodwill of the firm was valued at ₹ 4,00,000 and Nidhi brought the necessary amount in cash for her share of goodwill premium, half of which was withdrawn by the old partners.
(b) Stock was to be increased by 20% and furniture was to be reduced to 90%.
(c) Investments were to be valued at ₹ 3,00,000. Alok took over investments at this value.
(d) Nidhi brought ₹ 3,00,000 as her capital and the capitals of Sanjana and Alok were adjusted in the new profit sharing ratio.
Prepare Revaluation Account, Partners Capital Accounts, and the Balance Sheet of the reconstituted firm on Nidhi's admission.
उत्तर
| Dr. | Revaluation Account | Cr. | |
| Particulars |
Amount(₹) |
Particulars | Amount(₹) |
| To Furniture (10% of 3,00,000) |
30,000 |
By Stock | 30,000 |
| To Profit on revaluation transferred to Old Partners’ | By Investments | 40,000 | |
| Capital Accounts | |||
| Sanjana - 24,000 | |||
| Alok - 16,000 |
40,000 |
||
|
70,000 |
70,000 | ||
| Dr. | Partners’ Capital Accounts | Cr. | |||||||
| Particulars | L.F. |
Sanjana (₹) |
Alok |
Nidhi |
Particulars | L.F. |
Sanjana (₹) |
Alok |
Nidhi |
| To Cash A/c |
30,000 |
20,000 |
|
By Balance b/d |
5,00,000 |
4,00,000 |
|
||
| To Investments A/c |
|
3,00,000 |
|
By Cash A/c |
|
|
3,00,000 |
||
| To Cash A/c |
1,40,000 |
- |
|
By WCF |
36,000 |
24,000 |
|
||
|
|
|
|
By Premium for Goodwill A/c |
60,000 |
40,000 |
|
|||
| To Balance c/d |
4,50,000 |
3,00,000 |
3,00,000 |
By Revaluation A/c |
24,000 |
16,000 |
|
||
|
|
|
|
By Cash A/c |
- |
1,40,000 |
|
|||
|
6,20,000 |
6,20,000 |
3,00,000 |
|
6,20,000 |
6,20,000 |
3,00,000 | |||
Balance Sheet as on 31st March 2018
| Liabilities |
Amount(₹) |
Assets | Amount(₹) |
| Creditors | 60,000 | Cash at Bank (1,66,000 + 3,00,000 + 1,00,000 – 50,000 + 1,40,000 – 1,40,000) | 5,16,000 |
| Partners’ Capital Accounts | Debtors - 1,46,000 | ||
| Sanjana - 4,50,000 | Less: Provision - (2000) | 1,44,000 | |
| Alok - 3,00,000 | Stock (1,50,000 + 30,000) | 1,80,000 | |
| Nidhi - 3,00,000 | 10,50,000 | Furniture (90% of 3,00,000) | 2,70,0000 |
| 11,10,000 | 11,10,000 |
Working Note:
Computation of the amount of goodwill to be brought in by Nidhi and adjusted to sacrificing partners
Revalued Goodwill of the firm = ₹ 4,00,000
Nidhi’s Share in Goodwill = `4,00,000 xx (1)/(4) = 1,00,000`
Sacrificing Ratio of old partners = Old Profit Sharing Ratio of old partners
Sanjan’s share in premium for goodwill = `1,00,000 xx (3)/(5) = 60,000`
Alok’s share premium for goodwill = `1,00,000 xx (2)/(5) = 40,000`
2) Computation of Partners’ adjusted Capital after Nidhi’ admission in the New Profit Sharing Ratio
New Profit Sharing Ratio of Sanjana = Remaining Profit Share after Nidhi’s Admission × Old Profit Sharing Ratio
New Profit Sharing Ratio of Sanjana = `(1-1/4) xx (3)/(5) = (3)/(4) xx (3)/(5) = (9)/(20);`
New Profit Sharing Ratio of Alok = `(1-1/4) xx (2)/(5) = (3)/(4) xx (2)/(5) = (6)/(20);`
Profit Sharing Ratio of Nidhi = `(1)/(4) = (5)/(20)`
So, New Profit Sharing Ratio among Sanjana, Alok and Nidhi = 9 : 6: 5
Total Adjusted Capital of Sanjana and Alok = 5,90,000 + 1,60,000 = 7,50,000
New Capital of Sanjana = `7,50,000 xx (9)/(15) = 4,50,000;`
New Capital of Alok = `7,50,000 xx (6)/(15) = 3,00,000`
APPEARS IN
संबंधित प्रश्न
Why is 'Realisation Account' prepared?
Why is there need for the revaluation of assets and liabilities on the admission of a partner?
At what figures the value of assets and liabilities appear in the books of the firm after revaluation has been done? Show with the help of an imaginary balance sheet.
At the time of admission of a partner C, assets and liabilities of A and B were revalued as follows:
(a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors ₹ 50,000).
(b) Creditors were written back by ₹ 5,000.
(c) Building was appreciated by 20% (Book Value of Building ₹ 2,00,000).
(d) Unrecorded Investments were valued at ₹ 15,000.
(e) A Provision of ₹ 2,000 was made for an Outstanding Bill for repairs.
(f) Unrecorded Liability towards suppliers was ₹ 3,000.
Pass necessary Journal entries.
X, Y and Z are partners sharing profits and losses in the ratio of 6 : 3 : 1. They admitted W into partnership with effect from 1st April, 2019. New profit-sharing ratio between X, Y, Z and W was agreed to be 3 : 3 : 3 : 1. They also decide to record the effect of the following revaluations without affecting the book values of the assets and liabilities by passing an adjustment entry:
| Book Values (₹) | Revised Values (₹) | |
| Plant and Machinery | 3,50,000 | 3,40,000 |
| Land and Building | 5,00,000 | 5,50,000 |
| Trade Creditors | 1,00,000 | 90,000 |
| Outstanding Expenses | 85,000 | 1,00,000 |
Pass necessary adjustment entry.
A decrease in the value of liability will be recorded on the ____________ side of the revaluation account.
Assets and Liabilities are shown at their revalued values in:
Assertion (A): Revaluation A/c is prepared at the time of Admission of a partner.
Reason (R): It is required to adjust the values of assets and liabilities at the time of admission of a partner, so that the true financial position of the firm is reflected.
Vedesh Ltd. purchased a running business of Vibhu Enterprises for a sum of ₹ 12,00,000. Vedesh Ltd. paid ₹ 60,000 by drawing a promissory note in favour of Vibhu Enterprises., ₹1,90,000 through bank draft and balance by issue of 8% debentures of ₹ 100 each at a discount of 5%. The assets and liabilities of Vibhu Enterprises consisted of Fixed Assets valued at ₹ 17,30,000 and Trade Payables at ₹ 3,20,000. You are required to pass necessary journal entries in the books of Vedesh Ltd.
What would be the journal entry for revaluation of an unrecorded liability?
The sum due to the retiring partner (in case of retirement) and to the legal representatives/executors (in case of death) includes which of the following cases?
Arun and Vijay are partners in firm sharing profits and losses in the ratio of 5 : 1.
| Balance Sheet (Extract) | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Machinery | 40,000 | ||
If the value of machinery in the balance sheet is undervalued by 20%, then at what value will machinery be shown in a new balance sheet?
Ajay, Vijay and Sanjay were partners sharing profits and losses in the ratio of 3 : 3 : 2. Their Balance Sheet as on 31st March 2020 is as follows:
| Balance Sheet as on 31st March, 2020 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | 32,700 | Bank | 19,800 |
| Reserve Fund | 12,000 | Stock | 19,800 |
| Capital Accounts: | Debtors | 15,000 | |
| Ajay | 33,000 | Livestock | 30,000 |
| Vijay | 45,000 | Plant and Machinery | 62,100 |
| Sonjay | 24,000 | ||
| 1,46,700 | 1,46,700 | ||
On 1st April 2020 Sanjay retired from the firm on the following terms:
- R.D.D. is to be maintained at 10% on debtors.
- ₹ 300 to be written off from creditors.
- Goodwill of the firm is to be valued at ₹ 12,000. however only Sanjay's share in it is to be raised in the books and written off immediately.
- Assets to be revalued as: Stock ₹ 18,900, Plant and machinery ₹ 60,000, Live Stock ₹ 30,600.
- The amount payable to Sanjay is to be transferred to his Loan account after retirement:
Prepare:
- Revaluation Account
- Partners' Capitol Account
- Balance Sheet of the New firm.
Mita, Geeta and Mohit were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 2. With effect from 1st April 2022, they mutually agreed to share profits and losses in the ratio of 2:2:1. It was agreed that:
- Goodwill of the firm was valued at ₹ 1,40,000.
- Profit on revaluation of assets and re-assessment of liabilities amounted to ₹ 1,20,000.
Pass necessary journal entries for the above transactions in the books of the firm. Show your working notes clearly.
On the reconstitution of a firm, the value of the land was appreciated by ₹ 2,00,000 and plant and machinery reduced to ₹ 7,00,000 from ₹ 10,00,000. Gain or loss on revaluation will be ______.
The Balance Sheet of Snehal, Samir and Shera is as follows and the partners are sharing profits and losses in the proportion of 2 : 2 : 1 respectively.
| Balance Sheet as on 31st March, 2023 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Creditors | 12,000 | Bank | 7,500 | ||
| Bills Payable | 3,000 | Debtors | 30,000 | 28,500 | |
| General Reserve | 7,500 | Less: R.D.D. | 1,500 | ||
| Capital Accounts: | Furniture | 22,500 | |||
| Snehal | 60,000 | Machinery | 6,000 | ||
| Samir | 45,000 | Freehold Property | 40,500 | ||
| Shera | 22,500 | Goodwill | 45,000 | ||
| 1,50,000 | 1,50,000 | ||||
Shera retires from the firms on 1st April, 2023 on the following terms:
(1) The assets are to be revalued as: Freehold Property ₹ 45,000, Machinery ₹ 7,500 Furniture ₹ 18,000, All debtors are good.
(2) Goodwill of the firm be valued at thrice the average profit of given below : Profits of the firm for five years.
| 2018-19 | ₹ 1,500 |
| 2019 - 20 | ₹ 15,750 |
| 2020-21 | ₹ 15,000 |
| 2021-22 | ₹ 24,000 |
| 2022-23 | ₹ 15,000 |
(3) Shera should be paid ₹ 4,500 by cheque.
(4) The Balance of Shera's Capital Ale should be kept in the business as his loan.
Prepare Profit and Loss Adjustment A/c, Capital Accounts of Partners, Balance Sheet of the new firm.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
Decrease in the value of assets should be ______ to Profit and Loss Adjustment Account.
