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12th | Admission Of A Partner | Question No. 81 To 86 | 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 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, 2023 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

 

 

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

-

Balance c/d

1,00,000

1,00,000

50,000

50,000

Cash A/c

-

-

-

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:


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

   `

 

 

To Plant and Machinery

35,000

By Creditors

2,500

 

 

To Furniture and fixtures

6,500

By Loss transferred to;

 

 

 

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

 

Question 83:


L, M and N were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet on 31st March, 2015 was as follows:

 

Liabilities

   `

Assets

   `

Creditors

1,68,000

Bank

34,000

General Reserve

42,000

Debtors

46,000

Capital's A/cs: L

1,20,000

 

Stock

2,20,000

  M

80,000

 

Investments     

60,000

  N

40,000

2,40,000

Furniture

20,000

 

 

 

Machinery

70,000

 

 

 

 

 

 

 

4,50,000

 

4,50,000

 

 

 

 

 


On the above date, O was admitted as a new partner and it was decided that:
(i) The new profit-sharing ratio between L, M, N and O will be 2 : 2 : 1 : 1.
(ii) Goodwill of the firm was valued at  
 ` 1,80,000 and O brought his share of goodwill premium in cash.
(iii) The market value of investments was  
 ` 36,000.
(iv) Machinery will be reduced to  
 ` 58,000.
(v) A creditor of  
 ` 6,000 was not likely to claim the amount and hence was to be written off.
(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

Answer:


Revaluation Account

Dr.

 

Cr.

Particulars

   `

Particulars

   `

Investments

24,000

Creditors

6,000

Machinery

12,000

Loss on Revaluation

 

 

 

  L’s Capital A/c

15,000

 

 

 

  M’s Capital A/c

10,000

 

 

 

  N’s Capital A/c

5,000

30,000

 

 

 

 

 

36,000

 

36,000

 

 

 

 

 

 

 

 

 

 

 

 

Partners’ Capital Account

Dr.

Cr.

Particulars

L

M

N

O

Particulars

L

M

N

O

Reval. A/c

15,000

10,000

5,000

 

Balance b/d

1,20,000

80,000

40,000

 

Balance c/d

1,56,000

84,000

42,000

56,400

Gen. Reserve

21,000

14,000

7,000

 

 

 

 

 

 

Premium for G/w

30,000

 

 

 

 

 

 

 

 

Cash A/c

 

 

 

56,400

 

 

 

 

 

 

 

 

 

 

 

1,71,000

94,000

47,000

56,400

 

1,71,000

94,000

47,000

56,400

 

 

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2016 after admission of new parnter

Liabilities

`

Assets

`

Creditors

1,62,000

Bank (34,000+56,400+30,000)

1,20,400

Capitals:

 

Debtors

46,000

     L

1,56,000

 

Stock

2,20,000

     M

84,000

 

Investments

36,000

     N

42,000

 

Furniture

20,000

     O

56,400

3,38,400

Machinery

58,000

 

5,00,400

 

5,00,400

 

Working Notes:
 

WN1: Calculation of Sacrificing Ratio
Sacrificing Ratio =Old ratio- new ratio

L= 3/6-2/6=1/6

M=2/6-2/6=Nil

N=1/6-1/6=- Nil

 

WN2: Adjustment of Goodwill
O‘s of goodwill=1,80,000×1/6=30,000

30,000 will be credited to L’s capital because he is only sacrifice.


WN3 Calculation of O’s Proportionate Capital

Adjusted old capital of L =

Adjusted old capital of M =

Adjusted old capital of N =

O’s proportion capital=Total adjusted capital×O’s profit share × reciprocal combined new share of old partners

=2,82,000×1/6×6/5=56,400

 

Question 84:


Leena and Rohit are partners in a firm sharing profits in the ratio of 3: 2. On 31st March, 2018, their Balance Sheet was as follows:

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

 

Liabilities

`

Assets

`

 

Sundry Creditors

Bills Payable

General Reserve

Capitals:

80,000

38,000

50,000

Cash

42,000

 

Debtors

Less: Provision for Doubtful Debts

1,32,000

2,000

 

1,30,000

 

Stock

Plant and Machinery

1,46,000

1,50,000

Leena

Rohit

1,60,000

1,40,000

 

3,00,000

 

 

4,68,000

 

4,68,000

 

 

On the above date Manoj was admitted as a new partner for 1/5th share in the profits of the firm on the following terms:

(i) Manoj brought proportionate capital. He also brought his share of goodwill premium of ` 80,000 in cash.

(ii) 10% of the general reserve was to be transferred to provision for doubtful debts.

(iii) Claim on account of workmen's compensation amounted to `40,000.

(iv) Stock was overvalued by `16,000.

(v)Leena, Rohit and Manoj will share future profits in the ratio of 5:3:2.

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

 

Answer:


Revaluation Account

Dr.

 

 

Cr.

Particulars

`

Particulars

`

To workers’ compensation Liabilities

To Stock

40,000

16,000

By loss transferred to ;

Rohit×3/5=33,600

Leena×2/5=22,400

56,000

 

 

 

 

56,000

56,000

 

 

 

 

 

Partners’ Capital Accounts

Dr.

 

Cr.

Particulars

Leena

Rohit

Manoj

Particulars

Leena

Rohit

Manoj

To Revaluation A/c

32,600

22,400

By Balance b/d

160,000

140,000

To Balance c/d

1,93,400

1,75,600

92,250

By Premium A/c

40,000

40,000

By General reserve A/c

By Cash A/c

27,000

18,000

 

 

92,250

2,27,000

1,98,000

92,250

2,27,000

1,98,000

92,250

 

 

 

 

 

 

 

 

 

Balance Sheet

as on March 31, 2018 after Leander’s admission

Liabilities

`

Assets

`

Creditors

Bills payables

Workers’ compensation liabilities

80,000

38,000

40,000

Cash (42,000+80,000+92,250)

Debtors

Less; prov. For doubtful debts

 

 

1,32,000

7,000

2,14,250

 

 

1,25,000

Capital A/c;

Leena  1,93,400

Rohit   1,75,600

Manoj     92,250

 

 

 

4,61,250

Stock

Plant and machinery

1,30,000

1,50,000

6,19,250

6,19,250


Working Notes;

WN 1:                                     
Calculation of old ratio and sacrificing ratio

 

Leena

Rohit

Manoj

OLD RATION

3  :

2

 

NEW RATIO

5 :

3  :

2

Sacrificing ratio= Old ratio – New Ratio

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

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

Sacrificing ratio of Leena : Rohit=1:1

WN 2:

Calculation of Manoj’s capital

Capital of Leena and Rohit = 1,93,400+1,75,600=3,69,000

Share of Leena and Rohit = 8/10

Hence Capital of Leena ,Rohit and Manoj=3,69,000×10/8=4,61,250

Accordingly capital of Manoj=4,61,250-3,69,000=92,250

 

Question 85:


On 31st March, 2023 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3:2 was as follows:

BALANCE SHEET OF RAM AND SHYAM as at 31st March, 2023

 

Liabilities

`

Assets

`

 

Creditors

General Reserve

Employees' Provident Fund

70,000

25,000

55,000

Cash at Bank

25,000

 

1,50,000

 

82,500

142,500

 

Debtors

Less: Provision for Doubtful debts

1,62,500

12,500

 

Stock

Machinery

Capitals:

Ram

Shyam

 

1,50,000

1,00,000

 

 

2,50,000

 

 

4,00,000

 

4,00,000

 

 

They decided to admit Mahesh on 1st April, 2023 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:


Revaluation Account

 

Dr.

 

Particulars

`

Particulars

`

 

 

 

 

 

 

To Worker compensation liabilities

12,500

By Bad debts Recovered

5,000

 

To Stock (82,500×10/110)

7,500 

By Machinery

5,000

 

By Loss transferred to-

 

 

 Ram=10,000×3/5=6,000

 

 

 Shyam=10,000×2/5=4,000

(In old Ratio: 3:2)

10,000 

 

20,000

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                    

Partners’ Capital Accounts

Dr.

Cr.

Particulars

Ram

Shyam

Mahesh

Particulars

Ram

Shyam

Mahesh

To Revaluation A/c

6,000

4,000

 

By Balance b/d

1,50,000

1,00,000

 

By Premium A/c

 

25,000 

To Balance c/d

1,59,000

1,31,000

By General Reserve

15,000

10,000

 

 

1,65,000

1,35,000

 

1,65,000

1,35,000

To Balance c/d

1,59,000

1,31,000

58,000

Balance b/d

1,59,000

1,31,000

 

Bank A/c

58,000

1,59,000

1,31,000

58,000

1,59,000

1,31,000

58,000

 

 

 

 

 

 

 

 

 

 

 

  

Balance Sheet

as on 1st April, 2023

Liabilities

`

Assets

`

Workmen Compensation Reserve

12,500

Bank A/c

1,13,000

Employees Provident Fund

5,500

(25,000+25,000+58,000+5,000)

Creditors

70,000

machinery

1,47,500

Capital

 

Stock

75,000

Ram

1,59,000

 

Shyam

1,31,000

 

Debtors

1,62,500

 

Mahesh

58,000

3,48,000

Less : Provision for Doubtful Debts

12,500

1,50,000

 

 

 

 

 

4,85,500

 

4,85,500

 

 

 

 

 

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 86:


Aan and Shaan were partners sharing profits in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2023 was as under:

Liabilities

`

Assets

`

Creditors

2,00,000

Cash

148,000

Employees' Provident Fund

30,000

Debtors  2,05,000

 

Bank Overdraft

1,70,000

Less: Provision for Doubtful Debts 3,000

2,02,000

Reserve

1,50,000

Stock

2,00,000

Capital A/cs:

 

Plant and Machinery

6,00,000

Aan's 7,00,000

 

Building

7,00,000

Shaan's 6,00,000

13,00,000

 

 

 

18,50,000

 

18,50,000

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:


 

Revaluation Account

Particulars

`

Particulars

`

Stock

60,000

Building

1,40,000

Provision for Doubtful Debts

7,000

 

 

Legal Charges

18,000

 

 

Gain

55,000

 

 

 

 

 

 

 

1,40,000

 

1,40,000

 

Capital account

Particulars

Amit

Anil

Ankit

Particulars

Amit

Anil

Ankit

To Balance c/d

8,83,000

7,22,000

4,01,250

By Balance B/d

7,00,000

6,00,000

-

 

 

 

 

By Cash A/c

 

 

4,01,250

 

 

 

 

By Premium A/c

60,000

40,000

 

 

 

 

 

By Revaluation A/c

33,000

22,000

 

 

 

 

 

By Reserve A/c

90,000

60,000

 

 

8,83,000

7,22,000

4,01,250

 

8,83,000

7,22,000

4,01,250

 

 

 

 

 

 

 

 

 

 

                BALANCE SHEET as at 31st March, 2023               

Liabilities

`

Assets

 

`

Creditors

2,00,000

Cash

 

6,49,250

Bank Overdraft

1,70,000

 

 

 

Employees' Provident Fund

30,000

Debtors        

2,05,000

 

O/s Legal charges

18,000

Less: Provision for Doubtful Debts

10,000

1,95,000

Capital A/cs:

 

Stock

 

1,40,000

Aan - 8,83,000

 

Plant and Machinery

 

6,00,000

Shaan - 7,22,000

 

Building

 

8,40,000

Mohan - 4,01,250

20,06,250

 

 

 

 

 

 

 

 

 

24,24,250

 

 

24,24,250


 

Ts Grewal Solution 2023-2024

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Class 12 / Volume – I

Chapter 4 – Admission Of A Parnter

 

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