Question 76:
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:
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BALANCE SHEET OF RAMAN AND ROHIT as at 31st March, 2018 |
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Liabilities
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₹ |
Assets |
₹ |
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Capitals: Raman Rohit |
1,40,000 1,00,000 |
240,000 40,000 1,60,000
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Plant and Machinery Furniture and Fixtures Stock |
1,75,000 65,000 47,000
1,03,000 50,000 |
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Workmen Compensation Fund Creditors
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Debtors Less: Provision for Doubtful Debts |
1,10,000 7,000
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Bank Balance |
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4,40,000 |
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4,40,000 |
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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;
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Revaluation Account |
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Dr. |
Cr. |
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Particulars |
₹ |
Particulars |
₹ |
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To Plant and Machinery |
35,000 |
By Creditors |
2,500 |
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To Furniture and fixtures |
6,500 |
By Loss transferred to; |
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To Provision of doubtful debts |
3,000 |
Raman’s Capital A/c(42,000×2/3) |
28,000 |
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Rohit’s Capital A/c(42,000×1/3) |
14,000 |
42,000 |
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44,500 |
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44,500 |
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Dr. |
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Cr. |
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Particulars |
Abha |
Binay |
Chitra |
Particulars |
Abha |
Binay |
Chitra |
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To Revaluation |
28,000 |
14,000 |
- |
By Balance b/d |
140,000 |
1,00,000 |
- |
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To Balance c/d |
1,61,600 |
1,02,400 |
- |
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By Premium |
33,600 |
8,400 |
- |
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By W.C.F. |
16,000 |
8,000 |
- |
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1,89,600 |
1,16,400 |
- |
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1,89,600 |
1,16,400 |
- |
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To Balance c/d |
1,61,600 |
1,02,400 |
1,32,000 |
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Bank A/c |
- |
- |
1,32,000 |
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1,61,600 |
1,02,400 |
1,32,000 |
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1,61,600 |
1,02,400 |
1,32,000 |
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Balance Sheet as on April 31, 2018 |
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Liabilities |
₹ |
Assets |
₹ |
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Creditors |
1,57,500 |
Plant and Machinery Furniture and fixture |
1,40,000 58,500 |
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Stock |
47,000 |
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worker compensation liabilities |
16,000 |
Debtors 1,10,000 Less; Prov. For D.D. 10,000 |
1,00,000 |
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Capital A/cs: |
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Cash at Bank |
2,24,000 |
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Raman |
1,61,600 |
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(50,000+1,32,000+42,000) |
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Rohit |
1,02,400 |
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Saloni |
1,32,000 |
3,96,000 |
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5,69,500 |
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5,69,500 |
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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
Question 77:
On 31st March, 2026 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3:2 was as follows:
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BALANCE SHEET OF RAM AND SHYAM as at 31st March, 2026 |
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Liabilities |
₹ |
Assets |
₹ |
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Creditors General Reserve Employees' Provident Fund |
70,000 25,000 55,000 |
Cash at Bank |
25,000
1,50,000
82,500 142,500 |
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Debtors Less: Provision for Doubtful debts |
1,62,500 12,500 |
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Stock Machinery |
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Capitals: Ram Shyam |
1,50,000 1,00,000 |
2,50,000 |
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4,00,000 |
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4,00,000 |
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They decided to admit Mahesh on 1st April, 2026 for 1/5th share which Mahesh acquired wholly from Shyam on the following terms:
(i) Mahesh shall bring ₹25,000 as his share of premium for Goodwill.
(ii) A debtor whose dues of ₹7,500 were written off as bad debt paid ₹5,000 in settlement.
(iii) A claim of ₹12,500 on account of workmen's compensation was to be provided for.
(iv) Machinery were undervalued by ₹5,000. Stock was valued 10% more than its market value.
(v) Mahesh was to bring in capital equal to 20% of the combined capitals of Ram and Shyam after all adjustments.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm.
Answer:
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Revaluation Account |
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Dr. |
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Particulars |
₹ |
Particulars |
₹ |
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To Worker compensation liabilities |
12,500 |
By Bad debts Recovered |
5,000 |
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To Stock (82,500×10/110) |
7,500 |
By Machinery |
5,000 |
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By Loss transferred to- |
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Ram=10,000×3/5=6,000 |
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Shyam=10,000×2/5=4,000 (In old Ratio: 3:2) |
10,000 |
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20,000 |
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20,000 |
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Partners’ Capital Accounts |
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Dr. |
Cr. |
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Particulars |
Ram |
Shyam |
Mahesh |
Particulars |
Ram |
Shyam |
Mahesh |
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To Revaluation A/c |
6,000 |
4,000 |
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By Balance b/d |
1,50,000 |
1,00,000 |
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By Premium A/c |
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25,000 |
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To Balance c/d |
1,59,000 |
1,31,000 |
By General Reserve |
15,000 |
10,000 |
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1,65,000 |
1,35,000 |
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1,65,000 |
1,35,000 |
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To Balance c/d |
1,59,000 |
1,31,000 |
58,000 |
Balance b/d |
1,59,000 |
1,31,000 |
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Bank A/c |
58,000 |
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1,59,000 |
1,31,000 |
58,000 |
1,59,000 |
1,31,000 |
58,000 |
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Balance Sheet as on 1st April, 2026 |
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Liabilities |
₹ |
Assets |
₹ |
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Workmen Compensation Reserve |
12,500 |
Bank A/c |
1,13,000 |
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Employees Provident Fund |
5,500 |
(25,000+25,000+58,000+5,000) |
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Creditors |
70,000 |
machinery |
1,47,500 |
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Capital |
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Stock |
75,000 |
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Ram |
1,59,000 |
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Shyam |
1,31,000 |
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Debtors |
1,62,500 |
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Mahesh |
58,000 |
3,48,000 |
Less : Provision for Doubtful Debts |
12,500 |
1,50,000 |
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4,85,500 |
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4,85,500 |
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Working notes;
WN-1
Calculation of Old and sacrificing ratio
Old ratio of Ram and shyam= 3:2
New ratio of ;
Ram=3/5
Shyam=2/5-1/5=2-1/5=1/5
Mahesh= 1/5
New ratio of Ram, shyam and Mahesh=3:1:1
Sacrificing ratio of –
Ram =3/5-3/5=3-3/5=0/5
Shyam=2/5-1/5=2-1/5=1/5
Sacrificing ratio of Ram and Shyam = 0:1
WN-2
Adjusted Capital of Ram and shyam= 1,59,000+1,31,000=2,90,000
Mahesh’s capital= 2,90,000×20/100=58,000
Question 78:
Aan and Shaan were partners sharing profits in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2026 was as under:
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Liabilities |
₹ |
Assets |
₹ |
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Creditors |
2,00,000 |
Cash |
148,000 |
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Employees' Provident Fund |
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30,000 |
Debtors |
2,05,000 |
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Bank Overdraft |
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1,70,000 |
Less: Provision for Doubtful Debts |
3,000 |
2,02,000 |
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Reserve |
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1,50,000 |
Stock |
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2,00,000 |
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Capital A/cs: |
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Plant and Machinery |
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6,00,000 |
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Aan's |
7,00,000 |
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Building |
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7,00,000 |
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Shaan's |
6,00,000 |
13,00,000 |
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18,50,000 |
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18,50,000 |
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They agreed to admit Mohan for 1/4th share on the above date subject to the following terms:
(i) Mohan to bring in capital equal to 1/4th of the total capital of Aan and Shaan after all adjustments including premium for goodwill.
(ii) Building to be appreciated by 20% and stock to be depreciated to 70%.
(iii) Provision for Doubtful Debts on Debtors to be raised to ₹ 10,000.
(iv) A provision be made for ₹ 18,000 for outstanding legal charges.
(v) Mohan's share of goodwill premium was calculated as ₹ 1,00,000.
Prepare the Revaluation Account, Partners Capital Accounts and the Balance Sheet of the new firm.
Answer:
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Revaluation Account |
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Particulars |
₹ |
Particulars |
₹ |
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Stock |
60,000 |
Building |
1,40,000 |
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Provision for Doubtful Debts |
7,000 |
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Legal Charges |
18,000 |
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Gain |
55,000 |
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1,40,000 |
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1,40,000 |
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Capital account |
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Particulars |
Amit |
Anil |
Ankit |
Particulars |
Amit |
Anil |
Ankit |
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To Balance c/d |
8,83,000 |
7,22,000 |
4,01,250 |
By Balance B/d |
7,00,000 |
6,00,000 |
- |
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By Cash A/c |
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4,01,250 |
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By Premium A/c |
60,000 |
40,000 |
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By Revaluation A/c |
33,000 |
22,000 |
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By Reserve A/c |
90,000 |
60,000 |
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8,83,000 |
7,22,000 |
4,01,250 |
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8,83,000 |
7,22,000 |
4,01,250 |
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BALANCE SHEET as at 31st March, 2026 |
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Liabilities |
₹ |
Assets |
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₹ |
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Creditors |
2,00,000 |
Cash |
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6,49,250 |
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Bank Overdraft |
1,70,000 |
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Employees' Provident Fund |
30,000 |
Debtors |
2,05,000 |
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O/s Legal charges |
18,000 |
Less: Provision for Doubtful Debts |
10,000 |
1,95,000 |
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Capital A/cs: |
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Stock |
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1,40,000 |
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Aan - 8,83,000 |
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Plant and Machinery |
6,00,000 |
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Shaan - 7,22,000 |
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Building |
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8,40,000 |
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Mohan - 4,01,250 |
20,06,250 |
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24,24,250 |
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24,24,250 |
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I