Question 71:
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 72:
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/dBy CashBy Premium A/cBy Revaluation A/c |
4,00,00050,00027,000 |
1,00,0009,000 |
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 |
2,67,000 |
|
|
By Balance b/d |
4,77,000 |
1,09,000 |
2,10,000 |
To Balance C/d |
2,10,000 |
1,40,000 |
2,10,000 |
By Y’s Current A/c |
|
31,000 |
|
|
|
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 creditorsbills payableCapital A/cGautam =2,10,000Yashika =1,40,000Ashma=2,10,000Gautam’s current A/c |
50,00030,0005,60,0002,67,000 |
FurnitureStockDebtors 80,000Less: Prov. For D.D. 8,000CashMachineryYashika’s Current A/c |
55,0002,10,00072,0003,50,0001,89,00031,000 |
|
|
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 73:
Ishu and Vishu are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2026 was as follows:
Liabilities |
₹ |
Assets |
|
₹ |
Creditors |
66,000 |
Cash at Bank |
|
87,000 |
General Reserve |
10,000 |
Debtors |
42,000 |
|
Investment Fluctuation Reserve |
4,000 |
Less:Provision for Doubtful Debts |
7,000 |
35,000 |
Ishu's Capital |
1,19,000 |
Investments (Market Value 19,000) |
|
21,000 |
Vishu's Capital |
1,12,000 |
Building |
|
98,000 |
|
|
|
Plant and Machinery |
|
70,000 |
|
|
3,11,000 |
|
|
3,11,000 |
Nishu was admitted on that date for 1/6 share in the profits on the following terms:
(a) Nishu will bring 56,000, as his share of capital.
(b) Goodwill of the firm is valued at 84,000 and Nishu will bring his share of Goodwill in Cash.
(c) Plant and Machinery be appreciated by 20%.
(d) All debtors are good.
(e) There is a liability of 9,800 included in Sundry Creditors that is not likely to arise.
(f) Capitals of Ishu and Vishu will be adjusted on the basis of Nishu's Capital and any excess or deficiency will be made by withdrawing or bringing in Cash by the concerned partner.
Prepare the Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.
Answer:
Revaluation Account |
|||
Particulars |
₹ |
Particulars |
₹ |
To Gain |
|
By Plant and Machinery A/c |
14,000 |
Isha’s capital A/c - 18,480 |
|
By Provision for Doubtful Debts A/c |
7,000 |
Vishnu’s capital A/c - 12,320 |
30,800 |
By Creditors A/c |
9,800 |
|
|
|
|
|
|
|
30,800 |
|
30,800 |
|
Dr. |
Capital A/c |
Cr. |
|||||||||
|
Particulars |
Isha |
Vishnu |
Nishu |
Particulars |
Isha |
Vishnu |
Nishu |
||||
|
To Cash A/c |
|
22,720 |
|
By Balance B/d |
1,19,000 |
1,12,000 |
- |
||||
|
To Balance C/d |
1,68,000 |
1,12,000 |
56,000 |
By Cash A/c |
- |
- |
56,000 |
||||
|
|
|
|
|
By Premium of Goodwill A/c |
8,400 |
5,600 |
- |
||||
|
|
|
|
|
By Revaluation A/c (Gain) |
18,480 |
12,320 |
- |
||||
|
|
|
|
|
By Investment Fluctuation Reserve A/c |
1,200 |
800 |
|
||||
|
|
|
|
|
By General Reserve |
6,000 |
4,000 |
|
||||
|
|
|
|
|
By Cash A/c |
14,920 |
|
|
||||
|
|
1,68,000 |
1,34,720 |
56,000 |
|
1,68,000 |
1,34,720 |
56,000 |
||||
|
Balance sheet |
|
|||||||||||
Liabilities |
₹ |
Assets |
₹ |
|
||||||||
Creditors (66,000-9,800) |
56,200 |
Cash at Bank |
1,49,200 |
|
||||||||
|
|
|
Debtors |
42,000 |
|
||||||||
Ishu's Capital |
1,68,000 |
|
|
|
||||||||
Vishu's Capital |
1,12,000 |
Investments |
19,000 |
|
||||||||
Nishu’s Capital |
56,000 |
Building |
98,000 |
|
||||||||
|
|
|
Plant and Machinery |
84,000 |
|
||||||||
|
|
3,92,200 |
|
3,92,200 |
|
||||||||
Working notes:
WN 1:
Nishu’s Share of goodwill = 84,000×1/6= 14,000
14,000 Will be share by Isha and Vishnu in 3:2
Isha = 14,000×3/5= 8,400
Vishnu = 14,000×2/5= 5,600
WN 2: Calculation of Capital
Nishus’s share of Capital ₹56,000
Total Capital of Firm on the basis of Nishu’s Capital
Total Capital of Firm= 56,000×6/1=3,36,000
New Capital of Isha = 3,36,000-56,000×3/5=1,68,000
New Capital of Vishnu = 3,36,000-56,000×2/5=1,12,000
WN 3: Cash Balance
Cash Account |
|||
Particulars |
₹ |
Particulars |
₹ |
|
To Balance B/d |
87,000 |
By Vishnu’s Capital A/c |
22,720 |
|
To Nishus’s Capital A/c |
56,000 |
By Balance C/d |
1,49,200 |
|
To Premium of Goodwill A/c |
14,000 |
|
|
|
To Isha’s Capital A/c |
14,920 |
|
|
|
|
|
|
|
|
|
1,79,120 |
|
1,79,120 |
Question 74:
Anshu and Vihu were partners in a firm sharing profits and losses in the ratio of 3 : 2. Their Balance Sheat as at 31st March, 2023 was as follows:
|
Liabilities |
|
₹ |
Assets |
|
₹ |
|
Creditors |
|
80,000 |
Cash |
|
40,000 |
|
General Reserve |
|
50,000 |
Debtors |
36,000 |
|
|
Investment Fluctuation Fund |
|
10,000 |
Less: Provision for Doubtful Debts |
2,000 |
34,000 |
|
Capitals: |
|
|
Stock |
|
30,000 |
|
Anshu |
1,44,000 |
|
Investments |
|
40,000 |
|
Vihu |
80,000 |
2,24,000 |
Plant and Machinery |
|
2,20,000
|
|
|
|
|
|
|
|
|
|
|
3,64,000 |
|
|
3,64,000 |
On 1st April, 2023, Mani was admitted into partnership for 1/5th share in the profits of the firm on the following terms:
(i) Mani brought ₹20,000 as her share of goodwill and proportionate capital.
(ii) Provision for Doubtful Debts was to be maintained at 10% on debtors.
(ii) Market Value of investments was ₹35,000.
(iv) The value of Plant and Machinery be increased by ₹6,600.
Prepare Revaluation. Account and Partners' Capital Accounts.
(CBSE 2024 )
Answer:
|
Revaluation Account |
||||
|
Particulars |
|
₹ |
Particulars |
₹ |
|
To Provision for Doubtful Debts |
|
1,600 |
By Plant and Machinery |
6,600 |
|
To Gain transferred to capital; |
|
5,000 |
|
|
|
Anshu |
3,000 |
|
|
|
|
Vihu |
2,000 |
|
|
|
|
|
|
6,600 |
|
6,600 |
|
Capital Account |
|
|||||||
|
Particulars |
Anshu |
Vihu |
Mani |
Particulars |
Anshu |
Vihu |
Mani |
|
|
To Balance c/d |
1,92,000 |
1,12,000 |
76,000 |
By Balance b/d |
1,44,000 |
80,000 |
- |
|
|
|
|
|
|
By Cash A/c (wn) |
|
|
76,000 |
|
|
|
|
|
|
By Premium A/c |
12,000 |
8,000 |
|
|
|
|
|
|
|
By General Reserve A/c |
30,000 |
20,000 |
|
|
|
|
|
|
|
By I. F. R. A/c |
3,000 |
2,000 |
|
|
|
|
|
|
|
By Revaluation A/c |
3,000 |
2,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,92,000 |
1,12,000 |
76,000 |
|
1,92,000 |
1,12,000 |
76,000 |
|
Working note:
WN-
Total Adjusted Capital of Anshu and Vihu = 1,92,000 + 1,12,000 = 3,04,000
Profit share of Anshu and Vihu except Mani = 1-1/5=4/5
New Capital of firm after admission of Mani = 3,04,000 ×5/4= 3,80,000
Proportionate capital will brought by Mani in cash = 3,80,000 ×1/5=76,000
Question 75:
Aryan and Adiya were partners in a firm sharing proits and losses in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2024 was as follows:
|
Liabilities |
|
₹ |
Assets |
|
₹ |
|
Capitals: |
|
|
Machinery |
|
3,90,000 |
|
Aryan |
3,20,000 |
|
Furniture |
|
80,000 |
|
Adiya |
2,40,000 |
5,60,000 |
Debtors |
90,000 |
|
|
Workmen's Compensation Reserve |
|
20,000 |
Less: Provision for Doubtful Debts |
(1,000) |
89,000 |
|
Bank Loan |
|
60,000 |
Stock |
|
77,000 |
|
Creditors |
|
48,000 |
Cash |
|
32,000 |
|
|
|
|
Profit & Loss Account |
|
20,000 |
|
|
|
6,88,000 |
|
|
6,88,000 |
Dev was admitted into the firm on 1st April, 2024 for I/5th share in the profits of the firm on the
following terms:
(i) Dev will bring capital proportionate to his share in the profits of the firm.
(ii) Goodwill of the firm was valued at ₹ 2,00,000 and Dev will bring his share of goodwill premium in cash.
(ii) Machinery was revalued at ₹ 4,50,000.
(iv) A Provision for Doubtful Debts was to be created at 5% on debtors.
(v) A liability of ₹ 3,500 included in creditors was not likely to arise.
Prepare Revaluation Account and Partners' Capital Accounts.
Answer:
|
Revaluation Account |
||||
|
Particulars |
|
₹ |
Particulars |
₹ |
|
To Provision for Doubtful Debts |
|
3,500 |
By Machinery |
60,000 |
|
To Gain transferred; |
|
60.000 |
By Creditors |
3,500 |
|
Aryan’s Capital |
45,000 |
|
|
|
|
Adiya’s Capital |
15,000 |
|
|
|
|
|
|
27,000 |
|
27,000 |
|
Capital Account |
|
|||||||
|
Particulars |
Aryan |
Adiya |
Dev |
Particulars |
Aryan |
Adiya |
Dev |
|
|
To Profit and loss A/c |
15,000 |
5,000 |
- |
By Balance b/d |
3,20,000 |
2,40,000 |
- |
|
|
|
|
|
|
By Cash A/c (WN) |
- |
- |
1,65,000 |
|
|
To Balance c/d |
3,95,000 |
2,65,000 |
1,65,000 |
To Premium for Goodwill A/c |
30,000 |
10,000 |
- |
|
|
|
|
|
|
By W. C. R. A/c |
|
5,000 |
- |
|
|
|
|
|
|
By Revaluation A/c |
18,000 |
15,000 |
- |
|
|
|
4,10,000 |
2,70,000 |
1,65,000 |
|
4,10,000 |
2,70,000 |
1,65,000 |
|
Working note:
WN-
Total Adjusted Capital of Aryan and Adiya = 3,95,000+2,65,000=6,60,000
Profit share of Aryan and Adiya except Dev = 1-1/5=4/5
New Capital of firm after admission of Dev = 6,60,000 ×5/4= 8,25,000
Proportionate capital will brought by Dev in cash = 8,25,000×1/5=1,65,000
Ts Grewal Solution 2026-2027
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Class 12 / Volume – I