Question 51:
Balance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2, as on 31st March, 2026 was as follows:
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Liabilities |
₹ |
Assets |
₹ |
|
|
Sundry Creditors |
39,750 |
Bank (Minimum Balance) |
15,000 |
|
|
Employees' Provident Fund |
5,250 |
Debtors |
97,500 |
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|
Workmen Compensation Reserve |
22,500 |
Stock |
82,500 |
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|
Capital A/cs: |
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Fixed Assets |
1,87,500 |
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|
X |
1,65,000 |
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|
Y |
84,000 |
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Z |
66,000 |
3,15,000 |
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|
3,82,500 |
|
3,82,500 |
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Y
retired on 1st April, 2026 and it was agreed that:
(i) Goodwill of the firm is valued at ₹ 1,12,500 and Y's
share of it be adjusted into the accounts of X and Z who
are going to share future profits in the ratio of 3 : 2.
(ii) Fixed Assets be appreciated by 20%.
(iii) Stock be reduced to ₹ 75,000.
(iv) Y be paid amount brought in by X and Z so as
to make their capitals proportionate to their new profit-sharing ratio.
Prepare Revaluation Account, Capital Accounts of all partners and the Balance
Sheet of the New Firm.
Answer:
|
Revaluation Account |
|||||
|
Dr. |
|
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
||
|
Stock |
7,500 |
Fixed Assets |
37,500 |
||
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Revaluation Profit |
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X’s Capital A/c |
15,000 |
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Y’s Capital A/c |
9,000 |
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Z’s Capital A/c |
6,000 |
30,000 |
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|
|
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||
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|
37,500 |
|
37,500 |
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Partners’ Capital Accounts |
||||||||
|
Dr. |
Cr. |
|||||||
|
Particulars |
X |
Y |
Z |
Particulars |
X |
Y |
Z |
|
|
Y’s Capital A/c |
11,250 |
- |
22,500 |
Balance b/d |
1,65,000 |
84,000 |
66,000 |
|
|
Bank |
- |
1,33,500 |
- |
General Reserve |
11,250 |
6,750 |
4500 |
|
|
Balance c/d |
2,20,500 |
- |
1,47,000 |
Revaluation (Profit) |
15,000 |
9,000 |
6,000 |
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|
X’s Capital A/c |
- |
11,250 |
- |
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|
|
|
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|
Z’s Capital A/c |
- |
22,500 |
- |
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Bank A/c |
40,500 |
- |
93,000 |
|
|
|
2,31,750 |
1,33,500 |
1,69,500 |
|
2,31,750 |
1,33,500 |
1,69,500 |
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Balance Sheet as on March 31, 2026 |
||||
|
Liabilities |
(₹) |
Assets |
(₹) |
|
|
Sundry Creditors |
39,750 |
Bank |
15,000 |
|
|
Employees Provident Fund |
5,250 |
Debtors |
97,500 |
|
|
Capitals: |
|
Stock |
75,000 |
|
|
X |
2,20,500 |
|
Fixed Assets |
2,25,000 |
|
Z |
1,47,000 |
72,000 |
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|
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|
4,12,500 |
|
4,12,500 |
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Working Notes:
New Capital = 1,80,000 + 54,000 + 1,33,500 = ₹ 3,67,500
X's New Capital=3,67,500×3/5=2,20,500
Z's New Capital=3,67,500×2/5=1,47,500
X brings in ₹ 40,500 (2,20,500 – 1,80,000)
Z brings in ₹₹ 93,000 (1,47,500 – 54,000)
Question 52:
Sushil, Satish and Samir are partners sharing profits in the ratio of 5 : 3 : 2. Satish retires on 1st April, 2026 from the firm, on which date capitals of Sushil, Satish and Samir after all adjustments are ₹ 1,03,680, ₹ 87,840 and ₹ 26,880 respectively. The Cash and Bank Balance on that date was ₹ 9,600.Satish is to be paid through amount brought in by Sushiland Samir in such a way as to make their capitals proportionate to their new profit-sharing ratio which will be Sushil 3/5 and Samir 2/5. Calculate the amount to be paid or to be brought in by the continuing partners assuming that a minimum Cash and Bank balance of ₹ 7,200 was to be maintained and pass the necessary Journal entries.
Answer:
Total capital of firm before retirement = 1,03,680+87,840+26,880 = ₹ 2,18,400
Availability of cash = 9,600-7,200 (Minimum Balance) = ₹ 2,400
Combined new capital of Sushiland Samir = ₹ 2,16,000
Sushil's new capital = 2,16,000×3/5=₹ 1,29,600
Existing capital of Sushil= ₹ 1,03,680
So, Sushil has to bring = 1,29,600−1,03,680= ₹ 25,920
Samir's new capital = 2,16,000×2/5=₹ 86,400
Existing capital of Samir = ₹ 26,880
So, Samir has to bring = 86,400−26,880=₹ 59,520
Question 53:
Meghna, Mehak and Mandeep were partners in a firm whose Balance Sheet as on 31st March, 2023 was as under:
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BALANCE SHEET |
||||
|
Liabilities |
₹ |
Assets |
₹ |
|
|
Creditors |
|
28,000 |
Cash |
27,000 |
|
General Reserve |
|
7,500 |
Debtors |
20,000 |
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Capitals: |
|
|
Stock |
28,000 |
|
Meghna |
20,000 |
|
Furniture |
5,000 |
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Mehak |
14,500 |
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Mandeep |
10,000 |
44,500 |
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|
80,000 |
|
80,000 |
Mehak retired on this date under following terms:
(i) To reduce stock and furniture by 5% and 10% respectively.
(ii) To provide for doubtful debts at 10% on debtors.
(ii) Goodwill was valued at ₹12,000.
(iv) Creditors of ₹8,000 were settled at ₹7,100.
(V) Mehak should be paid off and the entire sum payable to Mehak shall be brought in by Meghna and Mandeep in such a way that their capitals should be in their new profit sharing ratio and a balance of ₹25,000 is maintained in the Cash Account.
Prepare Revaluation Account and Partners' Capital Accounts of the new firm.
(CBSE Sample Question Paper 2025)
Answer:
|
|
Revaluation Account |
|
||||
Particulars |
₹ |
Particulars |
|
₹ |
||
To Stock A/c |
1,400 |
By Creditors |
|
900 |
||
To Funiture A/c |
500 |
Loss transferred to |
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To Prov. For doubtful debts |
2,000 |
Meghna’s Capital A/c |
1,000 |
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Mehak’s Capital A/c |
1,000 |
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Mandeep’s Capital A/c |
1,000 |
3,000 |
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3,900 |
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|
3,900 |
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Partners’ Capital Accounts |
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|
Particulars |
Meghna (₹) |
Mehak (₹) |
Mandeep (₹) |
Particulars |
Meghna (₹) |
Mehak (₹) |
Mandeep (₹) |
|
To Revaluation A/c (Loss) |
1,000 |
1,000 |
1,000 |
By Balance b/d |
20,000 |
14,500 |
10,000 |
|
To Mehak’s Capital A/c (Goodwill) |
2,000 |
- |
2,000 |
By General Reserve |
2,500 |
2,500 |
2,500 |
|
To Cash A/c (Bal. fig. for Mehak) |
- |
20,000 |
- |
By Meghna (Goodwill to Mehak) |
- |
2,000 |
- |
|
To Balance c/d |
27,050 |
- |
27,050 |
By Mandeep (Goodwill to Mehak) |
- |
2,000 |
- |
|
|
|
|
|
By Cash A/c (Balancing figure) |
7,550 |
- |
17,550 |
|
|
33,350 |
26,250 |
33,350 |
|
33,350 |
26,250 |
33,350 |
Working notes:
WN 1: Calculation of Mehak’s share of Goodwill
Sacrificing ratio of Mahak 1/3
Mahak’s Share of Goodwill = 12,000×1/3 = 4,000
Mahak’s Share of Goodwill will be shared by Meghna and Mandeep in 1:1
Meghna and Mandeep will compensate = 4,000×1/2=2,000
Following Entry be passed:
|
Date |
Particulars |
|
L.F. |
(Dr.) ₹ |
(Cr.) ₹ |
|
|
Meghna’s Capital A/c |
Dr. |
|
2,000 |
|
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|
Mandeep’s Capital A/c |
Dr. |
|
2,000 |
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|
To Mehak’s Capital A/c |
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|
4,000 |
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|
(Being sacrificing partner compensated) |
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WN 2: Calculation of total capital of the firm after Mehak’s Retirement
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Balance of capital after all adjustment |
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|
Meghna’s capital |
19,500 |
|
Mandeep’s Capital |
9,500 |
|
|
29,000 |
|
Shortage of cash to be brought in by Meghna and Mandeep in order to make payment to Mehak |
25,100 |
|
Capital of a new firm |
54,100 |
Capital of Each partner after retirement= 54,100×1/2 =27,050
Shortage of Cash = Amount payable to Mehak – Existing Cash and Bank Balance + Minimum cash and bank balance required
Shortage of Cash = 20,000 – (27,000-7,100) + 25,000
Shortage of Cash = 25,100
|
|
Meghna |
Mandeed |
|
New Capital (54,100 in the ratio 1:1) |
27,050 |
27,050 |
|
Existing Capital |
19,500 |
9,500 |
|
Amount shall be brought in by Meghna and Mandeep |
7,550 |
17,550 |
Question 54:
The Balance Sheet of Asha, Deepa and Leta who were sharing profits in the ratio of 5 : 3 : 2 as at 31st March, 2026 is as follows:
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Liabilities |
₹ |
Assets |
₹ |
|
|
Creditors |
50,000 |
Cash at Bank |
40,000 |
|
|
Employees' Provident Fund |
10,000 |
Sundry Debtors |
1,00,000 |
|
|
Profit and Loss A/c |
85,000 |
Stock |
80,000 |
|
|
Capital A/cs: |
|
Fixed Assets |
60,000 |
|
|
Asha |
40,000 |
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Deepa |
62,000 |
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Leta |
33,000 |
1,35,000 |
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|
2,80,000 |
|
2,80,000 |
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Asharetired
on 1st April, 2026 and Deepa and Leta decided
to share profits in future in the ratio of 3 : 2 respectively.
The other terms on retirement were:
(a) Goodwill of the firm is to be valued at ₹ 80,000.
(b) Fixed Assets are to be depreciated to ₹ 57,500.
(c) Make a Provision for Doubtful Debts at 5% on Debtors.
(d) A liability for claim, included in Creditors for ₹ 10,000, is
settled at ₹ 8,000.
The amount to be paid to Asha by Deepa and Letain
such a way that their Capitals are proportionate to their profit-sharing ratio
and leave a balance of ₹ 15,000 in the Bank Account.
Prepare Profit and Loss Adjustment Account and Partners' Capital Accounts.
Answer:
|
Revaluation Account |
||||
|
Dr. |
Cr. |
|||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
|
Fixed Assets A/c (60,000 – 57,500) |
2,500 |
Creditors (10,000 – 8,000) |
2,000 |
|
|
Provision for Doubtful Debts |
5,000 |
Loss on Revaluation transferred to: |
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Asha’s Capital a/c |
2,750 |
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|
|
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Deepa’s Capital a/c |
1,650 |
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Leta’s Capital a/c |
1,100 |
5,500 |
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|
7,500 |
|
7,500 |
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Partners’ Capital Accounts |
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|
Dr. |
Cr. |
||||||||
|
Particulars |
Asha |
Deepa |
Leta |
Particulars |
Asha |
Deepa |
Leta |
|
|
|
Revaluation A/c (Loss) |
2,750 |
1,650 |
1,100 |
Balance b/d |
40,000 |
62,000 |
33,000 |
|
|
|
Asha’s Capital A/c |
– |
24,000 |
16,000 |
Profit & Loss A/c |
42,500 |
25,500 |
17,000 |
|
|
|
Balance c/d |
1,19,750 |
61,850 |
32,900 |
Deepa’s Capital A/c |
24,000 |
– |
– |
|
|
|
|
|
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Leta’s Capital A/c |
16,000 |
– |
– |
|
|
|
|
1,22,500 |
87,500 |
50,000 |
|
1,22,500 |
87,500 |
50,000 |
|
|
|
Bank A/c |
1,19,750 |
– |
– |
Balance b/d |
1,19,750 |
61,850 |
32,900 |
|
|
|
Balance c/d |
– |
1,18,500 |
79,000 |
Bank A/c |
– |
56,650 |
46,100 |
|
|
|
|
1,19,750 |
1,18,500 |
79,000 |
|
1,19,750 |
1,18,500 |
79,000 |
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Working Notes
WN 1Calculation of Gaining Ratio
Old Ratio (Asha, Deepa and Leta) = 5:3:2
New Ratio (Deepa and Leta) = 3:2
Gaining Ratio = New Ratio – Old Ratio
|
Deepa’s |
=3/5-3/10 |
|
|
=3/10 |
|
Leta’s |
=2/5-2/10 |
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|
=2/10 |
Hence, gaining ratio is 3: 2.
WN2 Adjustment of Goodwill
Total Goodwill of the Firm = 80,000
Asha’s Share of Goodwill = 80,000×5/10=40,000
To be borne by Gaining partners in their
Gaining Ratio i.e. 3:2
Deepa’s
Share = 40,000×3/5=24,000
Leta’s
Share = 40,000×2/5=16,000
WN3 Adjustment of Capital
Asha’s Capital before adjustment = 1,19,750
Deepa’s Capital before adjustment = 61,850
Leta’s Capital before adjustment = 32,900
Total Capital of New Firm=
Asha's Capital+Deepa's Capital+Leta's Capital+Closing balance of Bank Account-Available Bank Balance=1,19,750+61,850+32,900+15,000-32,000=₹1,97,500
New profit sharing ratio=3:2
Deepa’s Share of Goodwill =1,97,500×3/5=1,18,500
Leta’s Share of Goodwill =1,97,500×2/5=79,000
|
Particulars |
Deepa |
Leta |
|
New Capital Balance |
1,18,500 |
79,000 |
|
Adjusted Old Capital Balance |
61,850 |
32,900 |
|
Cash brought in by the Partner |
56,650 |
46,100 |
|
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|
|
WN4
|
Cash at Bank A/c |
|||
|
Dr. |
Cr. |
||
|
Particulars |
(₹) |
Particulars |
(₹) |
|
Balance b/d |
40,000 |
Creditors |
8,000 |
|
Deepa’s Capital A/c |
56,650 |
Asha’s Capital A/c |
1,19,750 |
|
Leta’s Capital A/c |
46,100 |
Balance c/d |
15,000 |
|
|
1,42,750 |
|
1,42,750 |
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Question 55:
Suraj, Pawan and Kamal are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance
Sheet as at 31st March, 2026 is:
|
Liabilities |
₹ |
Assets |
₹ |
|
Creditors |
46,000 |
Cash in Hand |
18,000 |
|
General Reserve |
12,000 |
Debtors 25,000 |
|
|
Capital A/cs: |
|
Less: Provision for Doubtful Debts 3,000 |
22,000 |
|
Suraj 40,000 |
|
Stock |
18,000 |
|
Pawan 40,000 |
|
Furniture |
30,000 |
|
Kamal 30,000 |
1,10,000 |
Machinery |
70,000 |
|
|
|
Goodwill |
10,000 |
|
|
|
|
|
|
|
1,68,000 |
|
1,68,000 |
Pawan retired on 1st April, 2026 on the following terms:
(a) Provision for Doubtful Debts be raised by 1,000.
(b) Stock to be reduced by 10% and Furniture by 5%.
(c) There is an outstanding claim of damages of 1,100 and it is to be provided for.
(d) Creditors will be written back by 6,000.
(e) Goodwill of the firm is valued at ₹ 22,000.
(f) Pawan is paid in full with the cash brought in by Suraj and Kamal in such a manner that their capitals are in proportion to their profit-sharing ratio and Cash in Hand remains at 10,000.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of Suraj and Kamal.
Answer:
|
Revaluation A/c |
|||
|
Particulars |
₹ |
Particulars |
₹ |
|
Provision for Doubtful Debts |
1,000 |
Creditors |
6,000 |
|
Stock |
1,800 |
|
|
|
Furniture |
1,500 |
|
|
|
outstanding claim of damages |
1,100 |
|
|
|
Capital A/cs: |
|
|
|
|
Suraj - 300 |
|
|
|
|
Pawan- 200 |
|
|
|
|
Kamal- 100 |
600 |
|
|
|
|
6,000 |
|
6,000 |
|
Capital A/c |
|||||||
|
Particulars |
Suraj |
Pawan |
Kamal |
Particulars |
Suraj |
Pawan |
Kamal |
|
To Goodwill A/c |
5,000 |
3,333 |
1,667 |
By Balance B/d |
3,00,000 |
2,00,000 |
2,00,000 |
|
To Pawan 's Capital A/c |
5,500 |
- |
1,833 |
By Revaluation A/c |
300 |
200 |
100 |
|
|
|
|
|
By General Reserve |
6,000 |
4,000 |
2,000 |
|
To Balance C/d |
35,800 |
48,200 |
28,600 |
By Suraj 's Capital A/c |
- |
5,500 |
- |
|
|
|
|
|
By Kamal 's Capital A/c |
- |
1,833 |
- |
|
|
46,300 |
51,533 |
32,100 |
|
46,300 |
51,533 |
32,100 |
|
To Cash A/c |
- |
48,200 |
2,450 |
By Balance B/d |
35,800 |
48,200 |
28,600 |
|
To Balance C/d |
78,450 |
- |
26,150 |
By Cash A/c |
42,650 |
- |
- |
|
|
|
|
|
|
|
|
|
|
|
78,450 |
48,200 |
28,600 |
|
78,450 |
48,200 |
28,600 |
|
Balance sheet of new firm |
|||
|
Liabilities |
₹ |
Assets |
₹ |
|
Creditors |
40,000 |
Cash in Hand |
10,000 |
|
outstanding claim of damages |
1,100 |
Debtors 25,000 |
|
|
Capital A/cs: |
|
Less: Provision for Doubtful Debts 4,000 |
21,000 |
|
Suraj 78,450 |
|
Stock (18,000-1,800) |
16,200 |
|
Kamal 26,150 |
1,04,600 |
Furniture (30,000-1,500) |
28,500 |
|
|
|
Machinery |
70,000 |
|
|
|
|
|
|
|
1,45,700 |
|
1,45,700 |
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I
Chapter 5 – Retirement of a Partner