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Question
X and Y are partners in a firm sharing profits in the ratio of 3: 2. They admitted Z as a partner for 1/4th share. At the time of admission of Z, Stock (Book Value ₹ 1,00,000) is to be reduced by 40% and Furniture (Book Value ₹ 60,000) is to be reduced to 40%. Pass the necessary Journal entries.
Solution
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Journal |
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Date |
Particulars |
L.F. |
Debit Amount (Rs) |
Credit Amount (Rs) |
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Revaluation A/c |
Dr. |
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76,000 |
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To Stock A/c |
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40,000 |
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To Furniture A/c |
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36,000 |
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(Value of assets decreased) |
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X’s Capital A/c |
Dr. |
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45,600 |
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Y’s Capital A/c |
Dr. |
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30,400 |
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To Revaluation A/c |
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76,000 |
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(Loss on Revaluation transferred to Partners’ Capital A/c) |
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RELATED QUESTIONS
Aditya and Balan are partners sharing profits and losses in 3:2 ratio. They admitted Christopher for 1/4 share in the profits. The new profit sharing ratio agreed was 2:1:1. Christopher brought Rs. 50,000 for his capital. His share of goodwill was agreed to at Rs. 15,000. Christopher could bring only Rs. 10,000 out of his share of goodwill. Record necessary journal entries in the books of the firm?
Ashish and Dutta were partners in a firm sharing profits in 3:2 ratio. On Jan. 01, 2015 they admitted Vimal for 1/5 share in the profits. The Balance Sheet of Ashish and Dutta as on Jan. 01, 2016 was as follows
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Balance Sheet of A and B as on 1.1.2016 |
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Liabilites |
Amount Rs |
Assets |
Amount Rs |
|
|
Creditors |
15,000 |
Land & Building |
35,000 |
|
|
Bills Payable |
10,000 |
Plant |
45,000 |
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Ashish Capital |
80,000 |
Debtors |
22,000 |
|
|
Dutta’s Capital |
35,000 |
Less : Provision |
2,000 |
20,000 |
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|
|
Stock |
35,000 |
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|
|
|
Cash |
5,000 |
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|
1,40,000 |
|
1,40,000 |
|
It was agreed that:
i) The value of Land and Buildingbeincreased by Rs 15,000.
ii) The value of plantbeincreased by 10,000.
iii) Goodwill of the firm be valued at Rs 20,000.
iv) Vimal to bring in capital to the extent of 1/5th of the total capital of the new firm.
Record the necessary journal entries and prepare the Balance Sheet of the firm after Vimal’s admission.
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