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12th | Admission of a Partner | Question No.  76 To 80 | Ts Grewal Solution 2022-2023

Question 76:


Shiv and Mohan are partners sharing profits equally. Their Balance Sheet as on 31st March, 2022 is given below:  

 

Liabilities

     `

Assets

     `

Capital A/cs:

 

Land and Building

1,50,000

 Shiv

1,50,000

 

Plant and Machinery

1,00,000

 Mohan

1,00,000

2,50,000

Furniture and Fittings

25,000

Current A/cs:                                     

 

Stock

 

75,000

 Shiv

40,000

 

Debtors

75,000

 

 Mohan

30,000

70,000

Less: Provision for Doubtful Debts

5,000

70,000

Creditors

 

1,30,000

Bills Receivable

30,000

Bills Payable

 

50,000

Bank

50,000

 

 

 

 

 

 

5,00,000

 

5,00,000

 

 

 

 


Jea is admitted as a new partner for 1/4th  share under the following terms:
(a) Z is to introduce  
 ` 1,25,000  as capital.
(b) Goodwill of the firm was valued at nil.
(c) It is found that the creditors included a sum of  
 ` 7,500 which was not to be paid. But it was also found that there was a liability for Compensation to Workmen amounting to    `  10,000
(d) Provision for doubtful debts is to be created @ 10% on debtors.
(e) In regard to the Partners' Capital Accounts, present Fixed Capital Account Method is to be converted into Fluctuating Capital Account Method.
(f) Bills of  
 ` 20,000 accepted from creditors were not recorded in the books.
(g) Shiv provides  
 ` 50,000 loan to the business carrying interest @ 10% p.a.  
You are required to prepare Revaluation Account, Partners' Capital Accounts, Bank Account and the Balance Sheet of the new firm.

Answer:


Revaluation Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Reserve for D. Debts

2,500

Creditors

7,500

Liability for WCF

10,000

Loss transferred to

 

 

 

 Shiv’s Current A/c

2,500

 

 

 Mohan’s Current A/c

2,500

 

 

 

 

 

12,500

 

12,500

 

 

 

 

 

Partners’ Current Accounts

Dr.

                                                                                            Cr.

Particulars

Shiv

Mohan

Particulars

Shiv

Mohan

Revaluation A/c

2,500

2,500

Balance b/d

40,000

30,000

Balance c/d

37,500

27,500

 

 

 

 

40,000

30,000

 

40,000

30,000

 

 

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Shiv

Mohan

Jea

Particulars

Shiv

Mohan

Jea

 

 

 

 

Balance b/d

1,50,000

1,00,000

-

 

 

 

 

Current A/c

37,500

27,500

-

Balance c/d

1,87,500

1,27,500

1,25,000

Bank

 

 

1,25,000

 

1,87,500

1,27,500

1,25,000

 

1,87,500

1,27,500

1,25,000

 

 

 

 

 

 

 

 

 

Balance Sheet
as on 1st April, 2022

Liabilities

`

Assets

`

Creditors

(1,30,000 – 7,500 – 20,000)

1,02,500

Land and Building

1,50,000

Bills Payable (50,000 + 20,000)

70,000

Plant and Machinery

1,00,000

Capital A/cs:

 

Fixture and Fittings

25,000

Shiv

1,87,500

 

Stock

75,000

Mohan

1,27,500

 

Bills Receivables

30,000

Jea

1,25,000

4,40,000

Bank (50,000 + 1,25,000 + 50,000)

2,25,000

Shiv's Loan

50,000

Debtors

75,000

 

Liability for WCF

10,000

Less: 10% Reserve for D. Debts

7,500

67,500

 

 

 

 

 

 

 

 

 

 

 

6,72,500

 

6,72,500

 

 

 

 

 

Question 77: Badal and Bijli were partners in a firm sharing profits in the ratio of 3 2. Their Balance Sheet as at 31st March, 2019 was as follows:


BALANCE SHEET OF BADAL AND BIJLI as at 31st March, 2019

Liabilities

 

`

Assets

`

Capital A/cs:

 

 

Building

1,50,000

Badal

Bijli

1,50,000

90,000

 

2,40,000

Investments

Stock

73,000

43,000

Badal's Current A/c Investment Fluctuation Reserve

Bills Payable

Creditors

 

12,000

24,000

8,000

26,000

Debtors

Cash

Bijli's Current A/c

 

20,000

22,000

2,000

 

 

3,10,000

 

3,10,000

Raina was admitted on the above date as a new partner for 1/6th share in the profits of the firm. The terms of agreement were as follows:

(i) Raina will bring `40,000 as her capital and capitals of Badal and Bijli will be adjusted on the basis of Raina's capital by opening Current Accounts.

(ii) Raina will bring her share of goodwill premium for `12,000 in cash.

(iii) The building was overvalued by 15,000 and stock by `3,000.

(iv) A provision of 10% was to be created on debtors for bad debts.

Prepare the Revaluation Account and Current and Capital Accounts of Badal, Bijli and Raina. (CBSE 2020)

Answer:


Revaluation a/c

Particulars

`

Particulars

`

To Building a/c

To Stock

To Prevision for doubtful Debts

15,000

3,000

2,000

By Loss Transferred to:

Badal’s Capital a/c   -  12,000

Bijli’s Capital a/c   -  8,000

20,000

 

20,000

 

20,000

 

Partners’ Capital a/c

Particulars

Badal

Bijli

Raina

Particulars

Badal

Bijli

Raina

To  Badal’s Current a/c

To  Bijli’s Current a/c

To Balance c/d

30,000

-

1,20,000

-

10,000

80,000

-

-

40,000

By Balance B/d

By Cash a/c

1,50,000

-

90,000

-

 

-

40,000

 

1,50,000

90,000

40,000

 

1,50,000

90,000

40,000

 

Partners’ Current a/c

Particulars

Badal

Bijli

Raina

Particulars

Badal

Bijli

Raina

To Balance B/d

To Revaluation a/c

To Balance c/d

 

-

12,000

51,600

2,000

8,000

14,400

-

-

-

 

By Balance B/d

By I. F . R

By Premium

By Badal’s Capital a/c

By Bijli’s Capital a/c

12,000

14,400

7,200

3,000

-

-

9,600

4,800

-

10,000

-

-

-

-

-

 

1,05,600

62,400

-

 

1,05,600

62,400

-

 

Working Notes:

 

1. Calculation of Sacrificing Ratio

Sacrifice = Old Profit Share - New Profit Share

Old Ratio of Badal and Bijli = 3 :2

Share of Raina is 1/6

 

Calculation of new profit sharing ratio

Assuming whole profit sharing ratio is 1/1

Remaining profit sharing ratio is 1/1-1/6=5/6

Share share of Badal and Bijli in Remaining share

Badal= 5/6×3/5=15/30

Bijali= 5/6×2/5=10/30

 

Badal

:

Bijli

:

Raina

 

15/30

:

10/30

:

1/6

 

15/30

:

10/30

:

5/30

New ratio =

3

:

2

:

1

 

Badal’s Sacrifice = 3

Bijli’s Sacrifice = 2;

Raina’s gaining  = 1/6

 

2.  Goodwill for 1/6th share of Raina = `12,000

 

Goodwill payable to Badal and Bijli

Badal=12,000×3/5=7,200

Bijli=12,000×2/5=4,800

 

3. Capital of the Partners in the New firm on the basis of Raina's Capital:

Raina's Capital `40,0000

Raina 's Share of Profit 1/6 for that he brings 40,000

Total Capital of the New Firm = 40,000×6/1=2,40,000

Thus,

Badal's Capital = 2,40,000 × 3/6 = `1,20,000;

Bijli's Capital = 2,40,000 × 2/6 = `80,000;

Raina's Capital = 2,40,000 × 1/6 = `40,000;

 

Question 78: Gautam and Yashica are partners in a firm, sharing profits and losses in 3: 1 respectively. The Balance Sheet of the firm as on 31st March, 2018 was as follows:


BALANCE SHEET as at 31st March, 2018

Liabilities

`

Assets

`

Sundry Creditors

Bills Payable

50,000

30,000

 

 

5,00,000

Furniture

Stock

Debtors

Cash in Hand

Machinery

60,000

1,40,000

80,000

90,000

2,10,000

Capitals:

Gautamn

Yashica

 

4,00,000

1,00,000

 

5,80,000

 

5,80,000

Asma is admitted as a partner for 3/8th share in the profits with a capital of  `2,10,000 and `50,000 for

her share of goodwill. It was decided that:

(i) New profit-sharing ratio will be 3:2:3.

(ii) Machinery will depreciated by 10% and Furniture by `5,000.

(iii) Stock was revalued at `2,10,000.

(iv) Provision for doubtful debts is to be created at 10% of debtors.

(v) The capitals of all the partners were to be in the new profit-sharing ratio on basis of capital of new partner. Any adjustment to be done through Current Accounts.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

(CBSE Sample Paper 2019)

 

Answer:


Revaluation Account

 

 

 

Cr.

Particulars

`

Particulars

`

 To  plant and machinery a/c

 To Furniture a/c

 To Provision for doubtful debts

21,000

By Stock a/c

70,000

5,000

 8,000

 To profit

Gautam’s capital a/c

36,000×3/4=27,000

Yashika’s Capital a/c 36,000×1/4=9,000

 

 

 36,000

 

 

 

 

 

 

70,000

 

70,000

 

 

 

hjhjh

Partners’ Capital A/c

Particulars

Gautam

Yashika

Asma

Particulars

Gautam

Yashika

Asma

To Balance C/d

4,77,000

1,09,000

2,10,000

By Balance b/d

By Cash

By Premium a/c

By Revaluation a/c

4,00,000

 

50,000

27,000

1,00,000

 

 

9,000

 

2,10,000

 

4,77,000

1,09,000

2,10,000

 

4,77,000

1,09,000

2,10,000

To G’s Current a/c

To Balance C/d

2,67,000

2,10,000

 

1,40,000

 

2,10,000

By Balance b/d

By Y’s Current a/c

4,77,000

1,09,000

31,000

2,10,000

 

4,77,000

1,40,000

2,10,000

 

4,77,000

1,40,000

2,10,000

hjhjh

Balance sheet as at 1sh April 2018

Liabilities

`

Assets

`

Sundry creditors

bills payable

Capital a/c

Gautam =2,10,000

Yashika =1,40,000

Ashma=2,10,000

Gautam’s current a/c

50,000

30,000

 

 

 

5,60,000

2,67,000

Furniture

Stock

Debtors                        80,000

Less: Prov. For D.D.      8,000

Cash

Machinery

Yashika’s Current a/c

55,000

2,10,000

 

72,000

3,50,000

1,89,000

31,000

 

9,07,000

 

9,07,000

 

 Working notes;

WN-1

Calculation of old ratio and sacrificing ratio

Old ratio Gautam : Yashika = 3:1

New ratio Gautam : Yashika : Asma= 3:2:3

Sacrificing ratio= Old ratio – New Ratio

Gautam =3/4-3/8=6-3/8=3/8

 Yashika=1/4-2/8=2-2/8=0/8

Therefore sacrificing ratio of Gautam : Yashika = 3:0

WN-2

Calculation of Capital

Total Capital of the new firm on the basis of new partner

Total capital new firm = 2,10,000×8/3=5,60,000

New capital of all partners

Gautam=5,60,000×3/8=2,10,000

Yashika=5,60,000×2/8=1,40,000

Asma=5,60,000×3/8=2,10,000

 

Question 79:


X and Y are partners sharing profits in the ratio of 2 : 1. Their Balance Sheet as at 31st March, 2022 was:

 

Liabilities

   `

Assets

   `

Sundry Creditors

25,000

Cash/Bank

5,000

General Reserve

18,000

Sundry Debtors

15,000

Capital A/cs:

 

Stock

10,000

X

75,000

 

Investments

8,000

Y

62,000

1,37,000

Printer

5,000

 

 

 

Fixed Assets

1,37,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,80,000

 

1,80,000

 

 

 

 

 


They admit Z into partnership on the same date on the following terms:
(a) Z brings in  
 ` 40,000 as his capital and he is given 1/4th share in profits.
(b) Z brings in  
 ` 15,000 for goodwill, half of which is withdrawn by old partners.
(c) Investments are valued at  
 ` 10,000. X takes over Investments at this value.
(d) Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%.
(e) An unrecorded stock of Stationery on 31st March, 2022 is  
 ` 1,000.
(f) By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis.
Pass Journal entries, prepare Revaluation Account, Capital Accounts and new Balance Sheet of the firm.

Answer:


Journal

Date

Particulars

L.F.

Debit

`

Credit

`

2022

 

 

 

 

April 1

Revaluation A/c

Dr.

 

14,700

 

 

To Typewriter A/c

 

 

1,000

 

To Fixed Assets A/c

 

 

13,700

 

(Decrease in value of typewriter and fixed assets transferred to Revaluation Account)

 

 

 

 

 

 

 

 

April 1

Stationery A/c

Dr.

 

1,000

 

 

Investment A/c

Dr.

 

2,000

 

 

To Revaluation A/c

 

 

3,000

 

(Increase in stationery and investment transferred to Revaluation Account)

 

 

 

 

 

 

 

 

April 1

X’s Capital A/c

Dr.

 

7,800

 

 

Y’s Capital A/c

Dr.

 

3,900

 

 

To Revaluation A/c

 

 

11,700

 

(Revaluation loss transferred to X and Y’s
Capital Account in their old ratio)

 

 

 

 

 

 

 

 

April 1

Reserve Fund A/c

Dr.

 

18,000

 

 

To X’s Capital A/c

 

 

12,000

 

To Y’s Capital A/c

 

 

6,000

 

(Reserve Fund distributed)

 

 

 

 

 

 

 

 

April 1

Cash A/c

Dr.

 

55,000

 

 

To Z’s Capital A/c

 

 

40,000

 

To Premium for Goodwill A/c

 

 

15,000

 

(Z brought capital and share of goodwill)

 

 

 

 

 

 

 

 

April 1

Premium for Goodwill A/c

Dr.

 

15,000

 

 

To X’s Capital A/c

 

 

10,000

 

To Y’s Capital A/c

 

 

5,000

 

(Premium for Goodwill distributed between X and Y in their sacrificing ratio i.e 2:1)

 

 

 

 

 

 

 

 

April 1

X’s Capital A/c

Dr.

 

5,000

 

 

Y’s Capital A/c

Dr.

 

2,500

 

 

To Cash

 

 

7,500

 

(Half of the Premium for Goodwill withdrawn by X and Y)

 

 

 

 

 

 

 

 

April 1

X’s Capital A/c

Dr.

 

10,000

 

 

To Investments A/c

 

 

10,000

 

(X took over the Investment)

 

 

 

 

 

 

 

 

April 1

Cash A/c

Dr.

 

4,800

 

 

To X’s Capital A/c

 

 

4,800

 

(X’ brought cash to make up deficiency in capital)

 

 

 

 

 

 

 

 

April 1

Y’s Capital A/c

Dr.

 

26,600

 

 

To Cash A/c

 

 

26,600

 

(Y withdrew excess capital after all adjustments)

 

 

 

 

 

 

 

 

 

Cash/Bank Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Balance b/d

5,000

X’s Capital (Goodwill)

5,000

Z’s Capital

40,000

Y’s Capital (Goodwill)

2,500

Premium for Goodwill

15,000

Y’s Capital

26,600

X’s Capital

5,800

Balance c/d

31,700

 

65,800

 

65,800

 

 

 

 

 

Revaluation Account

Dr.

 

Cr.

Particulars

`

Particulars

`

 

 

 

 

Typewriter (5,000 × 20%)

1,000

Investment

2,000

Fixed Assets

(1,37,000 × 10%)

13,700

Stationery

1,000

 

 

Loss transferred to

 

 

 

   X Capital

7,800

 

 

   Y Capital

3,900

 

14,700

 

14,700

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Revaluation

7,800

3,900

 

Balance b/d

75,000

62,000

 

Investment

10,000

 

 

Reserve Fund

12,000

6,000

 

Cash (withdraw of goodwill)

5,000

2,500

 

Cash

 

 

40,000

Balance c/d

74,200

66,600

40,000

Premium for Goodwill

10,000

5,000

 

 

97,000

73,000

40,000

 

97,000

73,000

40,000

Cash

 

26,600

 

Balance b/d

74,200

66,600

40,000

Balance c/d adjusted

80,000

40,000

40,000

Cash

5,800

 

 

 

80,000

66,600

40,000

 

80,000

66,600

40,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2022 after Z’s admission

Liabilities

`

Assets

`

Sundry Creditors

25,000

Cash

31,700

Capital A/cs:

 

Sundry Debtors

15,000

X

80,000

 

Stock

10,000

Y

40,000

 

Typewriter (5,000 – 1,000)

4,000

Z

40,000

1,60,000

Fixed Assets (1,37,000 – 13,700)

1,23,300

 

 

Stationery

1,000

 

 

 

 

 

1,85,000

 

1,85,000

 

 

 

 


Working Notes:

WN1: Sacrificing Ratio

 

X

Y

Old ratio

2  :

1 

Sacrificing Ratio

2  :

1 

WN2: Distribution of Revaluation Loss
revaluation loss transferred to X’s capital =11,700×2/3=7,800

revaluation loss transferred to X’s capital =11,700×1/3=3,900


WN3: Distribution of Premium for Goodwill
A will get =15,000×2/3=10,000

B will get =15,000×1/3=5,000

WN4: Adjustment of Capital
Total Capital of the firm on the basis of Z’s share =40,000×4/1=1,60,000

Total Capital of the firm

=

1,60,000

Less: Z’s Capital

=

  40,000

Combined Capital of X and Y

=

1,20,000

 

 

 

Question 80:


 Kalpana and Kanika were partners in a firm sharing profits in 3 : 1 ratio. They admitted Karuna as a partner for 1/4th share in the future profits. Karuna was to bring    ` 60,000 for his capital. The Balance Sheet of Kalpana and Kanika as at 1st April, 2022, the date on which Karuna was admitted, was:

 

Liabilities

   `

Assets

   `

Capital A/cs:

 

Land and Building

40,000

 Kalpana

50,000

 

Plant ad Machinery

70,000

 Kanika

 80,000

 1,30,000

Stock

   30,000

General Reserve

 

10,000

Debtors

35,000

 

Creditors

 

70,000

Less: Provision for Doubtful Debts

1,000

34,000

 

 

Investments

26,000

 

 

Cash

10,000

 

2,10,000

 

2,10,000

 

 

 

 


The other terms agreed upon were:
(a) Goodwill of the firm was valued at  
 ` 24,000.
(b) Land and Building were valued at  
 ` 65,000 and Plant and Machinery at    ` 60,000.
(c) Provision for Doubtful Debts was found in excess by  
 ` 400.
(d) A liability of  
 ` 1,200 included in Sundry Creditors was not likely to arise.
(e) The capitals of the partners be adjusted on the basis of C's contribution of capital to the firm.
(f) Excess of shortfall, if any, be transferred to Current Accounts.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm.

Answer:


Revaluation Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Plant and Machinery
(70,000 – 60,000)

10,000

Land and Building
(65,000 – 40,000)

25,000

Profit transferred to

 

Provision for Doubtful Debts

400

Kalpana’s Capital

12,450

Creditors

1,200

Kanika’s Capital

4,150

 

 

 

 

 

 

 

26,600

 

26,600

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Kalpana

Kanika

Karuna

Particulars

Kalpana

Kanika

Karuna

 

 

 

 

Balance b/d

50,000

80,000

 

 

 

 

 

General Reserve

7,500

2,500

 

 

 

 

 

Revaluation (Profit)

12,450

4,150

 

 

 

 

 

Cash

 

 

60,000

Balance c/d

74,450

88,150

60,000

Karuna 's Current A/c

4,500

1,500

 

 

74,450

88,150

60,000

 

74,450

88,150

60,000

 

 

 

 

 

 

 

 

Kanika’s Current A/c

 

43,150

 

Balance b/d

74,450

88,150

60,000

Balance c/d (Adjusted)

1,35,000

45,000

60,000

Kalpna’s Current A/c

60,550

 

 

 

1,35,000

88,150

60,000

 

1,35,000

88,150

60,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on April 01, 2022 after Karuna’s admission

Liabilities

`

Assets

`

Creditors (70,000 – 1,200)

68,800

Land and Building

65,000

Capital A/cs:

 

Plant and Machinery

60,000

Kalpana

1,35,000

 

Stock

30,000

Kanika

45,000

 

Debtors

35,000

 

Karuna

60,000

2,40,000

Less: Prov. for Doubtful Debts

600

34,400

Kanika’s Current A/c

43,150

Investments

26,000

 

 

Cash

70,000

 

 

Kalpana’s Current A/c

60,550

 

 

Karuna 's Current A/c

6,000

 

3,51,950

 

3,51,950

 

 

 

 


Working Notes:

WN1

 

Kalpana

Kanika

OLD RATION

3  :

1 

SACRIFICING RATIO

3  : 

1 



WN2 
Karuna ‘s of goodwill=24,000×1/4=6,000

Kalpana will get =6,000×3/4=4,500

Kanika will get =6,000×1/4=1,500

As Karuna has not brought his share of goodwill in cash, hence, his share shall be debited to his current account.

WN3 Distribution of Revaluation Profit
Kalpana will get =16,600×3/4=12,450

Kanika will get =16,600×1/4=4,150



WN4 Adjustment of Capital
 

Total Capital of the firm after Karuna’s admission

=

60,000 × 4

=

2,40,000

Less: Karuna’s Capital

 

 

=

60,000

Combined Capital of Kalpana and Kanika

 

 

=

1, 80,000

Kalpana’s proportion of capital=1,80,000×3/4=1,35,000

Kanika’s proportion of capital =1,80,000×1/4=45,000


WN5

Cash Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Balance b/d

10,000

Balance c/d

70,000

Karuna’s Capital

60,000

(Balancing Figure)

 

 

70,000

 

70,000

 

 

 

 

 

Ts Grewal Solution 2022-2023

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Class 12 / Volume – I

Chapter 1 – Admission of a Partner

 

Question No. 1 To 5
Question No. 5 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
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Question No. 51 To 55

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Question No. 84 To 86

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