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12th | Admission Of A Partner | Question No. 41 To 45 | Ts Grewal Solution 2023-2024

Double Entry Book Keeping Ts Grewal Vol. 1 2019 Solutions for Class 12 Commerce ACCOUNTANCY Chapter 5 - Admission Of A Partner

Question 41: Chintan and Ayush are partners in a firm sharing profits and losses in the ratio of 3:2. They admitted Sudha as a new partner for 1/10th share in profits. Sudha brings ` 40,000 as premium for goodwill out of his share of `70,000. Goodwill already appears in the books at ` 40,000.


Pass the necessary Journal entries to record this arrangement in the follow will two cases:

Case 1. When the unpaid share of goodwill is adjusted through New Partner's Current A/c.

Case 2. When goodwill is raised for the amount not brought by the new partner and is also written off.

 

Answer:


 

Case 1. When the unpaid share of goodwill is adjusted through New Partner's Current A/c

Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 

 

 

 

 

 

Chintan's Capital A/c

Dr.

 

24,000

 

 

Ayush's Capital A/c

 Dr.

 

16,000

 

 

To  Goodwill A/c

 

 

 

40,000

 

(Being old value of Goodwill written off)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

40,000

 

 

To Premium for goodwill A/c

 

 

 

40,000

 

(Being Premium for Goodwill brought.)

 

 

 

 

Sudha's Current A/c

 Dr.

 

30,000

 

 

Premium for goodwill A/c A/c

Dr.

 

40,000

 

 

To Chintan's Capital A/c

 

 

 

42,000

 

To Ayush's Capital A/c

(Being Goodwill Raised)

 

 

28,000

 

 

 

 

 

 

 

Note: Unless otherwise stated, sacrificing ratio is the same as old profit-sharing ratio.

 

Case 2. When goodwill is raised for the amount not brought by the new partner and is also written off.

Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 

 

 

 

 

 

Chintan's Capital A/c

Dr.

 

24,000

 

 

Ayush's Capital A/c

 Dr.

 

16,000

 

 

To  Goodwill A/c

 

 

 

40,000

 

(Being old value of Goodwill written off)

 

 

 

 

 

 

 

 

 

 

 

Bank A/c

Dr.

 

40,000

 

 

To Premium for goodwill A/c

 

 

 

40,000

 

(Being Premium for Goodwill brought.)

 

 

 

 

 

 

 

 

 

 

Premium for goodwill A/c A/c

Dr.

 

40,000

 

 

To Chintan's Capital A/c

 

 

 

24,000

 

To Ayush's Capital A/c

(Being Premium for Goodwill transferred to sacrificing partners)

 

 

16,000

 

Goodwill A/c

Dr.

 

3,00,000

 

 

To Chintan's Capital A/c

 

 

 

1,80,000

 

To Ayush's Capital A/c

(Being Goodwill Raised for remaining share of goodwill not brought by Sudha)

 

 

 

1,20,000

 

Chintan's Capital A/c

Dr.

 

1,62,000

 

 

Ayush's Capital A/c

 Dr.

 

1,08,000

 

 

Sudha’s Capital A/c

 Dr.

 

30,000

 

 

To  Goodwill A/c

 

 

 

 

 

(Being old value of Goodwill written off)

 

 

 

3,00,000

 

 

 

 

 

 

 

Note: Unless otherwise stated, sacrificing ratio is the same as old profit-sharing ratio.

 

Question 42:


Arun and Vijay are partners in a firm sharing profit & loss in the ratio of 3: 2.

BALANCE SHEET (Extract)

Liabilities

`

Assets

`

 

 

Machinery

2,00,000

If the value of machinery in the Balance Sheet is excess by 33 1/3, find the value of machinery to be shown in the New Balance Sheet.

Answer:


 

If the value of machinery in the Balance Sheet is excess by 33 1/3

Then the book value is 100+33 1/3= 133 1/3

Excess Value of Machinery is 2,00,000×33 1/3 ÷ 133 1/3

 

Or

 

= 2,00,000×100/3 ×3/400 = 50,000

Value of machinery to be shown in the New Balance Sheet = 2,00,000-50,000= 1,50,000

 

Question 43: Pass entries in the firm's Journal for the following on admission of a partner:


(i) Machinery be reduced by 16,000 and Building be appreciated by 40,000.

(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to 80,000.

(iii) Provision for warranty claims be increased by 12,000.

(iv) Furniture (Book Value 50,000) is to be reduced by 40%.

(v) Furniture (Book Value 50,000) is to be reduced to 40%.

 

Answer:


 

Journal

Date

Particulars

L.F.

Debit

   `

Credit

   `

 (i

 

 

 

 

a.

Revaluation A/c

Dr.

 

16,000

 

 To Machinery A/c

 

 

 

16,000

 

(Being Machinery be reduced)

 

 

 

 

 

 

 

 

 

b.

Building A/c

Dr.

 

40,000

 

 

 To Revaluation A/c

 

 

 

40,000

 

(Being Building be appreciated)

 

 

 

 (ii)

 

 

 

 

 

 

Revaluation A/c

Dr.

 

4,000

 

 

 To Provision for Doubtful Debts A/c

 

 

 

4,000

 

(Being provision be created for Doubtful Debts @ 5% of Debtors amounting to 80,000)

 

 

 

(iii)

Revaluation A/c

Dr.

 

12,000

 

 

 To Provision for Warranty Claims A/c

 

 

 

12,000

 

(Being Provision for warranty claims be increased)

 

 

 

 

(iv)

Revaluation A/c

Dr.

 

20,000

 

 

 To Furniture A/c

 

 

 

20,000

 

(Being Furniture (Book Value 50,000) is to be reduced by 40%)

 

 

 

 

(v)

Revaluation A/c

Dr.

 

30,000

 

 

 To Furniture A/c

 

 

 

30,000

 

(Being Furniture (Book Value 50,000) is to be reduced to 40%)

 

 

 

 

 

 

Question 44:


Pass entries in firm's Journal for the following on admission of a partner:
(i) Unrecorded Investments worth `20,000 are to be accounted.
(ii) Unrecorded liability towards suppliers for ` 5,000 is to be accounted.
(iii) An item of  ` 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

 

 

 

 

 

 

(i)

Investment A/c

Dr.

 

20,000

 

 

    To Revaluation A/c 

 

 

 

20,000

 

(Investments recorded)

 

 

 

 

 

 

 

 

 

 

(ii)

Revaluation A/c 

Dr.  

 

5,000

 

 

     To Creditors A/c

 

 

 

5,000

 

(Liability  recorded)

 

 

 

 

 

 

 

 

 

 

(iii)

Creditors  A/c

 

 

 

 

 

    To Revaluation A/c 

Dr

 

1,600

 

 

(Liability decreased)

 

 

 

1,600

 

 

 

 

 

 

 

Question 45:


X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner and fixed the new profit-sharing ratio as 3 : 2 : 1. At the time of admission of Z, Debtors and Provision for Doubtful Debts appeared at `50,000 and `5,000 respectively all debtors are good. Pass the necessary Journal entries.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

 

 

 

 

 

 

(i)

Provision for Doubtful Debts A/c

Dr.

 

5,000

 

 

     To Revaluation A/c 

 

 

 

5,000

 

(Provision on Debtors reduced)

 

 

 

 

­

 

 

 

 

 

(ii)

Revaluation A/c 

Dr.  

 

5,000

 

 

   To X’s Capital A/c

 

 

 

3,000

 

   To Y’s Capital A/c

 

 

 

2,000

 

(Profit on Revaluation transferred to Partners’ Capital A/c)

 

 

 

 

 

 

 

 

 

 

 

Ts Grewal Solution 2023-2024

Click below for more Questions

Class 12 / Volume – I

Chapter 4 – Admission Of A Parnter

 

Question No. 1 To 5
Question No. 6 To 10
Question No. 11 To 15
Question No. 16 To 20
Question No. 21 To 25
Question No. 26 To 30
Question No. 31 To 35