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12th | Admission of a Partner | Question No.  81 To 83 | Ts Grewal Solution 2022-2023

Question 81:


The Balance Sheet of X, Y and Z who share profits and losses in the ratio of 3 : 2 : 1, as on 1st April, 2022 is as follows:                      

 

Liabilities

   `

Assets

   `

Capital A/cs:

 

 

Y's Current Account

7,000

  X

 1,75,000

 

Land and Building

1,75,000

  Y

1,50,000

 

Plant and Machinery

67,500

  Z

1,25,000

4,50,000

Furniture

80,000

Current A/cs:

 

 

Investments

36,500

X

4,000

 

Bills Receivable

17,000

Z

6,000

10,000

Sundry Debtors

43,500

 

 

 

 

General Reserve

15,000

Stock

1,37,000

Profit and Loss A/c

7,000

Bank

43,500

Creditors

80,000

 

 

Bills Payable

45,000

 

 

 

 

 

 

 

6,07,000

 

6,07,000

 

 

 

 


On the above date, W is admitted as a partner on the following terms:

(a) W will bring    ` 50,000 as his capital and get 1/6th share in the profits.
(b) He will bring necessary amount for his share of goodwill premium. Goodwill of the firm is valued at 
` 90,000.
(c) New profit-sharing ratio will be 2 : 2 : 1 : 1.
(d) A liability of  
 ` 7,004 will be created against bills receivable discounted earlier but now dishonored.
(e) The value of stock, furniture and investments is reduced by 20%, whereas the value of Land and Building and Plant and Machinery will be appreciated by 20% and 10% respectively.
(f) Capital Accounts of the partners will be adjusted on the basis of W's Capital through their Current Accounts.
Prepare Revaluation Account, Partners' Current Accounts and Capital Accounts.

Answer:


 

Revaluation Account

Dr.

 

Cr.

Particulars

`

Particulars

`

Stock

27,400

Land and Building

35,000

Furniture

16,000

Plant and Machinery

6,750

Investments

7,300

Loss transferred to:

 

 

 

X

4,475

 

 

 

Y

2,983

 

 

 

Z

1,492

8,950

 

50,700

 

50,700

 

 

 

 

 

Partners’ Current Account

Dr.

Cr.

Particulars

X

Y

Z

Particulars

X

Y

Z

Balance b/d

 

7,000

 

Balance b/d

4,000

 

6,000

Revaluation (Loss)

4,475

2,983

1,492

General Reserve

7,500

5,000

2,500

 

 

 

 

Profit and Loss A/c

3,500

2,333

1,167

Balance c/d

100,525

47,350

83,175

Premium for Goodwill

15,000

 

 

 

 

 

 

Capital A/c

75,000

50,000

75,000

 

1,05,000

57,333

84,667

 

1,05,000

57,333

84,667

 

 

 

 

 

 

 

 

 

Partners’ Capital Account

Dr.

Cr.

Particulars

X

Y

Z

W

Particulars

X

Y

Z

W

Current A/c

75,000

50,000

75,000

 

Balance b/d

1,75,000

1,50,000

1,25,000

 

 

 

 

 

 

Cash A/c

 

 

 

50,000

Balance c/d

1,00,000

1,00,000

50,000

50,000

 

 

 

 

 

 

1,75,000

1,50,000

1,25,000

50,000

 

1,75,000

1,50,000

1,25,000

50,000

 

 

 

 

 

 

 

 

 

 

 

Working Notes:

WN1Calculation of Sacrificing Ratio

Old Ratio=3 : 2 : 1

New Ratio=2 : 2 : 1 : 1

Sacrificing Ratio=Old Ratio-New Ratio

X=3/6-2/6=1/6

Y=2/6-2/6=Nil

Z=1/6-1/6=Nil

Here, only X has sacrificed.
 

WN2 Distribution of Goodwill

W's Share of Goodwill=90,000×16= 
 ` 15,000

As only X has sacrificed his share, therefore, he will get    ` 15,000
 

WN3 Adjustment of Capital

Total Capital of the firm=W's Capital×Reciprocal of his share        

=50,000×6/1=   ` 3,00,000

New Profit Sharing Ratio=2 : 2 : 1 : 1

X's New Capital=3,00,000×2/6=   ` 1,00,000

Y's New Capital=3,00,000×2/6=   ` 1,00,000

Z's New Capital=3,00,000×1/6=   ` 50,000

W's New Capital=3,00,000×1/6=   ` 50,000

 

Question 82:  A and B were partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as at 31st March, 2018, was as follows:


BALANCE SHEET OF A AND B as at 31st March, 2018

Liabilities

`

Assets

`

Capitals:

 

Cash

8,000

 

 

36,000

60,000

6,000

76,000

1,40,000

20,000

A

B

1,04,000

52,000

 

1,56,000

Sundry Debtors

Less: Provision for Doubtful Debts

37,600

1,600

Creditors

Employees' Provident Fund

Workmen Compensation Fund

Contingency Reserve

1,54,000

16,000

10,000

10,000

Stock

Prepaid Insurance

Plant and Machinery

Building

Furniture

 

3,46,000

 

3,46,000

C was admitted as a new partner and brought 64,000 as capital and 15,000 for his share of goodwill premium.

The new profit-sharing ratio was 5 : 3 :2. On C's admission the following was agreed upon:

(i) Stock was to be depreciated by 5%.

(ii) Provision for doubtful debts was to be made at `2,000.

(iii) Furniture was to be depreciated by 10%.

(iv) Building was valued at `1,60,000.

(v) Capitals of A and B were to be adjusted on the basis of C's capital by bringing or paying of cash as the case may be.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of reconstituted firm. (CBSE 2019)

 

Answer:


Revaluation Account

 

Dr.

 

 

Cr.

 

Particulars

   `

Particulars

   `

 

To Stock

To Provision for D.D.

To Furniture

To Profit transferred to

3,000

400 

2,000

By Building

20,000

 

A=14,600×3/5=

8,760

 

 

B=14,600×2/5=

5,840

14,600

 

 

20,000

 

20,000

 

 

 

 

 

 

           
Partners’ Capital Account

 

Dr.

 

 

 

 

 

 

Cr.

Particulars

A

B

C

Particulars

A

B

C

 Balance c/d

1,32,260

73,340

64,000

Balance b/d

1,04,000

52,000

Cash A/c

64,000

 

Premium for Goodwill

7,500

7,500

 

Revaluation A/c (Profit)

8,760

5,840

 

Workers’ compensation reserve

Contingency reserve

6000

6000

4000

4000

 

1,32,260

73,340

64,000

1,32,260

73,340

64,000

  Balance c/d

 1,60,000

96,000 

64,000 

 Balance b/d

Cash A/c

1,32,260

27,740

73,340

22,660

64,000

 1,60,000

96,000 

64,000 

 1,60,000

96,000 

64,000 

Balance Sheet

as on March 31, 2019

 

Liabilities

   `

Assets

   `

 

Creditors

1,54,000 

Cash (8,000+64,000+15,000+50,000)

1,87,400

 

Debtors                       37,600

Less; Prov. For D.D.     2,000

 

35,000

 

Employees Provident Fund   

16,000

Stock

Prepaid Insurance

Plant and Machinery

Building

57,000

6,000

76,000

1,60,000

 

Capital A/cs:

 

Furniture

18,000

 

Raghu

1,60,000

 

 

Rishu

96,000

 

 

 

 

Rishabh

64,000

3,20,000

 

 

 

 

 

 

 

 

 

4,90,000

 

4,90,000

 

 

 

 

 

 

 

Working notes;

 

WN-1 Calculation of old and sacrificing ratio;

Old ratio of A and B =3:2

New ratio of A:B:C =5:3:2

A=3/5-5/10=6-5/10=1/10

B=2/5-3/10=4-3/10=1/10

Sacrificing ratio of A and B is 1:1

 

WN-2 Calculation of new firm’s capital;

Total capital of new firm on the basis of C’s Capital

C’s capital =64,000

New firm’s total capital=64,000×10/2=`3,20,000

New capital of A,B and C

A= 3,20,000×5/10 = `1,60,000

B= 3,20,000×3/10 =`96,000

C= 3,20,000×2/10 = `64,000

 

Question 83: Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2: 1. On 31st March, 2018, their Balance Sheet was as follows:


 

BALANCE SHEET OF RAMAN AND ROHIT as at 31st March, 2018

Liabilities

 

`

Assets

`

Capitals:

Raman

Rohit

 

1,40,000

1,00,000

 

 

240,000

40,000

1,60,000

 

 

Plant and Machinery

Furniture and Fixtures

Stock

1,75,000

65,000

47,000

 

 

1,03,000

50,000

 Workmen Compensation Fund

Creditors

 

Debtors

Less: Provision for Doubtful Debts

1,10,000

7,000

 

Bank Balance

 

4,40,000

 

4,40,000

On the above date, Saloni was admitted in the partnership firm. Raman surrendered 2/5th of his share

and Rohit surrendered 1/5th of his share in favour of Saloni. It was agreed that:

(i) Plant and machinery will be reduced by `35,000 and furniture and fixtures will be reduced to `58,500.

(ii) Provision for bad and doubtful debts will be increased by `3,000.

(iii) A claim for `16,000 for workmen's compensation was admitted.

(iv) A liability of `2,500 included in creditors is not likely to arise.

(v) Saloni will bring  `42,000 as her share of goodwill premium and proportionate capital.

Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the reconstituted firm. (CBSE 2019)

 

Answer;

 

Revaluation Account

 

 

Dr.

Cr.

 

 

Particulars

   `

Particulars

   `

 

 

Plant and Machinery

35,000

Creditors

2,500

 

 

Furniture and fixtures

6,500

Loss transferred to;

 

 

 

Provision of doubtful debts

3,000 

Raman’s Capital A/c(42,000×2/3)

28,000

 

 

 

 

 

Rohit’s Capital A/c(42,000×1/3)

14,000

42,000

 

 

 

 

 

 

 

 

 

44,500

 

44,500

 

 

 

 

 

 

 

 


Partners’ Capital Accounts

 

 

Dr.

 

Cr.

 

Particulars

Abha

Binay

Chitra

Particulars

Abha

Binay

Chitra

 

To Revaluation

28,000

14,000

-

By Balance b/d

140,000

1,00,000

-

 

To Balance c/d

1,61,600

1,02,400

-

 

By Premium

33,600

8,400

-

 

By W.C.F.

16,000

8,000

-

 

 

 

 

 

 

1,89,600

1,16,400

-

 

1,89,600

1,16,400

-

 

To Balance c/d

1,61,600

1,02,400

1,32,000

 

 

 

 

Bank A/c

-

-

1,32,000 

 

 

1,61,600

1,02,400

1,32,000

 

1,61,600

1,02,400

1,32,000

 

 

 

 

 

 

 

 

 

Balance Sheet

as on April 31, 2018

 

Liabilities

   `

Assets

   `

 

Creditors

1,57,500 

Plant and Machinery

Furniture and fixture

1,40,000

58,500

 

Stock

47,000

 

worker compensation liabilities   

16,000

Debtors                      1,10,000

Less; Prov. For D.D.     10,000

 

1,00,000

 

Capital A/cs:

 

Cash at Bank

2,24,000

 

Raman

1,61,600

 

(50,000+1,32,000+42,000)

 

Rohit

1,02,400

 

 

 

 

Saloni

1,32,000

3,96,000

 

 

 

 

 

 

 

 

 

5,69,500

 

5,69,500

 

 

 

 

 

 

Working note;

WN-1

Calculation of old and sacrificing ratio

Old ratio Raman: Rohit=2:1

Raman surrenders to Saloni=2/3×2/5=4/15

Rohit surrenders to Saloni=1/3×1/5=1/15

New share of -

Raman=2/3-4/15=10-4/15=6/15

Rohit=1/3-1/15=5-1/15=4/15

Saloni=4/15+1/15+5/15

 

Therefore new ratio of Raman, Rohit and Saloni =6:4:5

Sacrificing ratio= old – new

Raman=2/3-6/15=10-6/15=4/15

Rahit=1/3-4/15=5-4/15=1/15

WN-1

Calculation of Capital of Raman and Rohit=1,61,600+1,02,400=2,64,000

Share of Raman and Rohit=6/15+4/15=6+4/15=10/15

Therefore, Capital of Raman , Rohit and Saloni=2,64,000×15/10=3,96,000

Saloni’s capital=3,96,000×5/15=1,32,000

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
Question No. 36 To 40
Question No. 41 To 45
Question No. 46 To 50
Question No. 51 To 55

Question No. 56 To 60

Question No. 61 To 65
Question No. 66 To 70
Question No. 71 To 75

Question No. 76 To 80
Question No. 81 To 83
Question No. 84 To 86

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12th TS Grewal’s Accountancy Solutions

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