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12th | Admission of a Partner | Question No.  84 To 86 | Ts Grewal Solution 2022-2023

Question 84:


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 85:


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 86: On 31st March, 2022 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, 2022

 

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, 2022 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, 2022

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

Ts Grewal Solution 2022-2023

Click below for more Questions

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

Ts Grewal Solution 2022-2023

Ts Grewal Solution 2021-2022

Ts Grewal Solution 2020-2021