Class 12 Very important Sums.

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ADMISSION-TERM-1(with MCQ)
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I-Revaluation Of Assets &Liabilities
FORMAT
Dr Revaluation Account Cr
Decrease in asset Increase in asset
Increase in liability Decrease in liability
New liability New asset
Increase in provision Decrease in provision
Profit old partners in old ratio
X’S Capital xxx
Y’S capital xx xxxx
xxxx xxxx
46/5.91/TSG/2020
Dr Revaluation Account Cr
To Machinery 16,000 By building 40,000
To provision for Debtors 4000 loss
To provision for warranty 12,000 X’ capital 6000
To Furniture 20,000 Y’s capital 6000 12000
(1) 52,000 52,000
Building a/c Dr 40,000 (2)
To revaluation a/c 40,000 Revaluation a/c Dr 52,000
( profit ot on rev) To Machinery 16,000
X’s capial a/c Dr 6000 To provision for Debtors 4000
Y’s capital a/c Dr 6000 To provision for warranty 12,000
To Revaluation a/c 12,000 To Furniture 20,000
(Result of rev) (Loss on rev)
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49/5.92/TSG/2020
Dr Revaluation Account Cr
To stock 40,000 loss
To furniture 36000 X’ capital 76000x3/5 45,600
Y’s capital76000x2/5 30,400 76000
(1) 76,000 (2) 76,000
Revaluation a/c Dr 76,000 X’s capital a/c Dr 45600
To stock 40000 Y’s capital a/c Dr 30,400
To Furniture 36000 To Revaluation a/c 76000
(loss on revaluation) (Result of revaluation)
50// 5.92/TSG/2020
Dr Revaluation Account Cr
X’s capital a/c Dr 6000 By investment 10,000
Y’s capital a/c Dr 4,000 10,000
10,000 10,000
Investment a/c Dr 10,000 Revaluation a/c Dr 10,000
To revaluation 10,000 X’s capital a/c Dr 6000
(increase in investment Y’s capital a/c Dr 4000
(result of revaluation
52// 5.92/TSG/2020
Dr Revaluation Account Cr
To provision for debtors 5000 By creditors 5000
To provision for O/S bill 2000 By building 40,000
To creditors 3000 By investment 15,000
Ramesh capital 25,000
Naresh capital 25,000
60,000 60,000
(1)creditors 5000 (2)Revaluation a/c Dr 10,000
building 40,000 To provision for debtors 5000
investment 15,000 To provision for O/S bill 2000
To revaluation 60,000 To creditors 3000
(3)Revaluation a/c Dr 50,000
To Ramesh capital 25,000
To Naresh capital 25,000
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ACCUMULATED RESERVES & UNDISTRIBUTED PROFIT/LOSS
ACCUMULATED RESERVES & UNDISTRIBUTED PROFIT/LOSS
- divide among old partner in old ratio
X;Y 3;2
53/5.92/TSG/2021 54/5.92/TSG/2021
General reserve 2,50,000 General reserve 1,50,000
P&L a/c Dr 50,000 To X’s capital 150000x3/5 90,000
To Ram’s capital 2/3 2,00,000 To Y’s capital150000x2/5 60,000
To shyam’s capital 1/3 1,00,000
(300000 divided in 2:1) X’s capital20,000x3/5 12000
Y’s capital 20,000x2/5 8000
To P&L a/c Dr balance 20,000
55/5.92/TSG/2021 X’s capital 24000x5/10 12000
General reserve 36,000 Y’s capital 24000x3/10 7200
Contingency reserve 6000 Z’s capital 24000x2/10 4800
P&La/c 18,000 To Advertisement suspense 24,000
To X’s capital 60000x5/10 30,000
To Y’s capital 60000x3/10 18,000
To Z’s capital 60000x2/10 12,000
b 55/b/5.93/tsg/2021 c W.C. Rreserve 72,000
W.C. Rreserve 72,000 to WC claims 48000
To X's capital 36,000 To X's capital 12000
To Y's capital 36000 To Y's capital 12,000
( WCF distributed) ( WCF distributed)
d invest fluc reserve 24000 e General reserve Dr 4800
To investment 10,000 To inv flu fund 960
To X's capital 7000 To X's capital 1920
To Y's capital 7000 To Y's capital 1920
f A=6/10-3/10=3/10
B=3/10-3/10=0
C= 1/10-3/10=(2/10)GR
General reserve 1,50,000
contigencyreserve 60,000
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P&Lcr 90,000
3,00,000
Advt susp 1,20,000
1,80,000
180,000x3/10=54000
c's capital dr 54,000
To a's capital 54,000
Memorandum Balance sheet of X,Y & Z
56/5.93/TSG/2021
Liability Assets
X’S Capital 15,000 Motor 12,000
Y’s capital 17,500 Furniture 4,000
Z’s capital 20,000 52,500 stock 26,500
liabilities 30,000 Debtors 37,800
Cash 82500-80300 bal fig. 2200
82,500 82,500
56/5.93/TSG/2021 56/5.93/TSG/2021
Dr Revaluation Account Cr
Motor 2500 loss
furniture 200 X’s capital a/c 900
Y’s capital a/c 900
Z’s capital a/c 900 2700
2700 2700
CAPITALA/C
X Y Z W X Y Z W
4Revaluation 900 900 900 1-By balance b/d 15,000 17,500 20,000
ToBal c/d 19100 21600 24100 18000 2-By Reserve
3-By P&L
5.By premium 5000 5,000 5,000
6- by cash 18,000
20,000 22,500 25,000 18,0.00 20,000 22,500 25,000 18,0.00
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Cash account
Bal b/d 2200 By balance c/d 35,200
W’s capital 18,000
Premium Gw 15,000
35200 35,200
Balance sheet of X,Y Z& W
56/5.93/TSG/2021
Liability Assets
X capital 19100 Cash 35,200
Y capital 21600 stock 26500
Z capital 24100 Debtors 37800
W capital 18000 82800 Motor 9500
liabilities 30,000 Furniture 3800
1,12,800 1,12,800
ills-46/5.49/TSG/2021
Dr Revaluation Account Cr
Provision for bad dr.825-500 325 By investment 2,500
To stock 20,0000x 10% 2000 Loss
To furniture 500 W’s capital 5625x 3/5 3375
To plant 40000x8% 3200 R’s capital 5625 x 2/5 2250 5625
To creditor 2,100
8125 8125
Capital a/c
w R C w R C
Revaluationa/c 3375 2250 Balance b/d 60,000 40,000
To cash 3,000 2,000 By General reserve 3000 2000
Balance c/d 62,625 41750 30,000 By premium for Gwill 6000 4000
By cash 30,000
69,000 46,000 30,000 69,000 46,000 30,000
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Cash account
Bal b/d 12000 By o/s salary 3000
C’s capital 30,000 W’s capital 3000
Premium Gw 10,000 R’s capital 2000
By balance c/d 44,000
52,000 52,000
Balance sheet of X,Y Z& W
Liability Assets
W’s capital 62,625 cash 44,000
R’s capital 41,750 Debtor 18,000
C’s capital 30,000 1,34,375 Bad debt (1500)
Creditors 20,000+2100 22,100 16,500
Less provision 5% of 16,500 825 15,675
Stock20000-2000 18000
Furniture40,000-500 39500
P& Machinery 40,000-3200 36800
investment 2500
1,56,475 1,56,475
47/5.51/TSG/2021
Dr Revaluation Account Cr
building 25,000 stock 1,00,000
Machinery 10,000 Delivery van 1,20,000
Outstanding salary 30,000
A’s capital 1,55,000X3/5 93,000
B’s capital 1,55,000X2/5 62,000 1,55,000
2,20,000 2,20,000
Capital a/c
A B C A B C
To Goodwill w/off 30,000 20,000 Balance b/d 8,00,000 4,00,000
Balance c/d 11,73,000 5,82,000 5,00,000 By General reserve 90,000 60,000
Revaluationa/c 93,000 62,000
C’s current account-80000 48,000 32,000
By premium for Gwill 72,000 48,000
By cash 5,00,000
11,03,000 6,02,000 5,00,000
Bank account
Bal b/d 5,75,000 By balance c/d 11,95,000
C’s capital 5,00,000
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Premium Gw 1,20,000
1195,000 11,95,000
Balance sheet of X,Y Z& W
Liability Assets
A’s capital 11,73,000 cash 25,000
B’s capital 5,82,000 Bank 11,95,000
C’s capital 5,00,000 21,55,000 stock 4,00,000
creditors 2,50,000 Debtors 50,000
Bills payable 1,00,000 Delivery van 1,20,000
Outstandingsalary 30,000 building 4,75,000
Machinery 1,90,000
C’s current account 80,000
25,35,000 25,35,000
Asha & Aditi were partners sharing y 15,000. profit in 3:2. They admitted Raghav for 1/4th
share with the capital of 6,00,000 and his share of goodwill in cash. Goodwill is to be valued
at two years purchase of average profit of last four years.. The profits were 2014-₹3,50,000,
2015- ₹4,75,000, 2016- ₹6,70,000, 2017- ₹7,45,000. The following additional information’s
were also given.
1. To cover the cost oof management cost 56,250 should be made.
2. Closing stock of 2017 was over valued
Give the necessary journals on Rahul’s admission. (ills 38/5.34/TSG/2021)
year profit adjustment adjusted profit
2014 3,50,000 -56,250 2,93,750
2015 4,75,000 -56,250 4,18,750
2016 6,70,000 -56,250 6,13,750
2017 7,,45,000 -56,250 -15,000 6,73,750
Goodwill= 293750+418750+613750+673750=20.00.000/4=500,000x2=10,00,000
Raghav goodwill=10,00,000x1/4=2,50,000
cash a/c Dr 8,50,000
ToRaghav capital 6,00,000
To premium for Goodwill 2,50,000
premium for Goodwill 2,50,000
To asha's capital 250,000x3/5 1,50,000
To Aditi capital2,50,000x2/5 1,00,000
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39/5.35/TSG/2021
Revaluation account
Provision for Dr 500 stock 3000
Machinery 2000 Land & Building 14700
furniture 1250 investment 2000
outstanding Ebill 5,000 prepaid insurance 5000
swdesh capital 7975
swaraj capital 7975
24,700 24,700
Bank account
To balance b/d 15,000 swdesh capital 2500
sambav capital 20,000 swaraj capital 2500
premium for Gwill 5000 balance c/d 35,000
40,000 40,000
Capital account
swdesh swaraj sambav swdesh swaraj sambav
to cash 2,500 2,500 balance b/d 60,000 40,000
67975 47,975 20,000 revaluation na/c 7975 7,975
By premium for G.will 2500 2,500
By cash 20,000
70475 50,475 20,000 70475 50,475 20,000
Balance sheet
cash 12,000
swdesh 67975 bank 35,000
swaraj 47,975 Debtors20000-1000 19,000
sambav 20,000 stock 23,000
creditors 50,000 furniture 8750
bills payable 15000 machinery 16000
outstanding exps 8,000 Land & building 88,200
investment 2,000
prepaid insurance 5,000
2,08,950 2,08,950
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ills-40/5.35/TSG/2021
Revaluation account
Furniture 11,000 debtors 5000
provision for Dr 4000 Land & building 62,000
provision for B/R 2,250
claims damages 8000
chander capital 20875
Damini capital 20875
670001-26650=41750 67,000
Bank account
To balance b/d 30,000 chander capital 12500
Elins capital 3,00,000 damini capital 12500
premium for Gwill 50,000 balance c/d 3,55,000
3,80,000 40,000
Capital account
chander Damini Elina chander Damini Elina
to cash 12,500 12,500 balance b/d 2,50,000 2,16,000
balance c/d 2,83,375 2,49,375 3,00,000 revaluation na/c 20,875 20,875
By premium for G.will 25,000 25,000
By cash 3,00,000
295875 2,61,875 3,00,000 295875 2,61,875 3,00,000
Balance sheet
LIABILITY ASSETS
chander 283375 bank 3,55,000
Damini capital 249375 Bills receivable 42,750
Elina's capital 3,00,000 Debtors 76,000
creditors 1,04,000 Furniture 99,000
claims outstanding 8000 Land & building 3,72,000
9,44,750 9,44,750
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Treatment of workmen compensation fund
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1lls43/5.43/TSG/2021
1 workmen com fund 90,000 2 workmen com fund 90,000
To Ram's capital 40,000 To wc claims 45,000
ToMohan's capital 30,000 To Ram's capital 20,000
To sohan's capital 20,000 ToMohan's capital 15,000
To sohan's capital 10,000
3 workmen com fund 90,000
Revaluation 9000
To wc claims 99,000
Ram's capital 4000
Mohan'scapital 3000
sohan's capital 2000
To revaluation 9,000
Treatment of investment fluctuation fund
1lls44/5.46/TSG/2021
1 inv fluc fund 18,000 2 same as case-1
To somus capital 8,000
Tosumit's s capital 6,000 4 inv fluc fund 18,000
To sahil's s capital 4,000 revaluation 9000
To wc claims 27,000
3 inv fluc fund 18,000
To investment 9,000 somus capital 4000
To somus capital 4,000 sumit's s capital 3000
Tosumit's s capital 3,000 sahil's s capital 2000
To sahil's s capital 2,000 To Revaluation 9000
5 inv fluc fund 18,000 investment 18000
To somus capital 8,000 To Revaluation 18,000
Tosumit's s capital 6,000
To sahil's s capital 4,000 RevaluationDr 18000
To somus capital 8,000
Tosumit's s capital 6,000
To sahil's s capital 4,000
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57/5.94/TSG/2020
Dr Revaluation Account Cr
Decrease in asset Increase in asset
Increase in liability Decrease in liability
New liability New Liability
Increase in provision Decrease in provision
Profit old partners in old ratio
X’S Capital xxx
Y’S capital xx xxxx
xxxx xxxx
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Admission of partners-full problem
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57/5.94/TSG/2020
Dr Revaluation Account Cr
To stock 500 By Building 2,500
To Plant & Machinery 875
To Provision for Debtors 375
To Profit
A capital 750x2/3 500
B's capital 750x1/3 250 750
2,500 2,500
57/5.94/TSG/2021
BALANCE SHEET of ABC
liability Asset
A capital 17,500 Cash 11,100
B's capital 11,250 Building 27,500
C's capital 7,500 36,250 Plant & Machinery 16,625
creditors 32,950 stock 9,500
Debtors4850-375 4,475
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69,200 69,200
57/5.94/TSG/2021
CASH ACCOUNT
To Balance b/d 600 By Balance c/d 11,100
To C's capital 7,500
To premium for Goodwill 3,000
11,100 11,100
Capital Account
C A B C
To Balance c/d
57/5.94/TSG/2021
A B
17,500 11,250 7,500 By Balance b/d 15,000 10,000
By Revaluation 500 250
By Premium for G.will 2,000 1,000
By Cash 7,500
17,500 11,250 7,500 17,500 11,250 7,500
59/5.94/TSG/2021
Revaluation Account
To Stock 4,000 Plant 20,000
To Provi for Debtors 3,000 building 15,000
To creditors 1,000
To Profit
A capital 18,000
B's capital 9,000 27,000
35,000 35,000
59/5.94/TSG/2021
BALANCE SHEET of ABC
liability Asset
A capital 2,38,000 Bank 2,00,000
B's capital 1,79,000 Debtors60000-3000 57,000
C's capital 1,00,000 5,17,000 Stock40000-4000 36,000
creditors 59,000 Plant 1,20,000
Bills payable 10,000 Building 1,65,000
outstandingExpenses 2,000 Cash 10,000
5,88,000 5,88,000
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61/5.95/TSG/2020
Revaluation Account
To provi for debtor 5,000 By Land & Building 26,000
To work men compen 6,000
To Profit
M capital 15000x2/5 6,000
V's capital 15000x3/5 9,000 15,000
26,000 26,000
61/5.95/TSG/2020
BALANCE SHEET-MVG
M capital 5,98,000 Cash/bank 6,00,000
V's capital 4,17,000 Land & Building 3,26,000
G's capital 4,00,000 14,15,000 Machinery 2,80,000
Bills payable 1,50,000 Stock 80,000
Workmen claims 6,000 Debtors 3,00,000
Provi for Debtors 15,000 2,85,000
15,71,000 15,71,000
BANK ACCOUNT
To Balance b/d 40,000 By Balance c/d 2,00,000
To C's capital 1,00,000
To premium for Goodwill 60,000
2,00,000 2,00,000
59/5.94/TSG/2021
Capital Account
A B C A B C
To Balance c/d 2,38,000 1,79,000 1,00,000 By Balance b/d 1,80,000 1,50,000
By Revaluation 18,000 9,000
By Premium for G/will 40,000 20,000
By Cash 1,00,000
2,38,000 1,79,000 1,00,000 2,38,000 1,79,000 1,00,000
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Capital Account
61/5.95/TSG/2020
M V G M V G
To Balance c/d 5,98,000 4,17,000 4,00,000 By Balance b/d 5,20,000 3,00,000
By General reserve 12,000 18,000
By Revaluation 6,000 9,000
By Premium for Goodwill 60,000 90,000
By Cash 4,00,000
5,98,000 4,17,000 4,00,000 5,98,000 4,17,000 4,00,000
old ratio M=2/5-2/10=2/10, V=3/5-3/10= 3/10 SR=2:3
Total goodwill=3,00,000, Gayathri goodwill 3,00,000x5/10=1,50,000 divided in 2:3= 60,000:90,000
62/5.96/TSG/2021
Revaluation Account
To stock 1,800 building 15,000
To furniture 440 O/Commission 2,400
To o/s rent 4,800 Bank 2,400
To Provision for Debtors 275
Shym capital 12485 x 2/5 4,994
Sanjay capital 12485 x3/5 7,491 12,485
19,800- 7315=12485 19,800 19,800
62/5.96/TSG/2021
BALANCESHEET
cash 710
Shyam’s capital 47044 Bank 64325
sanjay’s capital 53541 Debtors 5,500
shanker’s capital 30,000 1,30585 Less provision 275 5,225
creditor 12435 stock 16,200
Outstanding rent 4,800 Furniture 3,960
Building 55,000
Accrued commission 2,400
1,47,820 1,47,820
61/5.95/TSG/2020
Bank account
To bal b/d 50,000 bal c/d 6,00,000
Gayathri’s capital 4,00,000
premium for Gwill 1,50,000
6,00,000 6,00,000
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Capital Account
62/5.96/TSG/2021 Shyam Sanjay Shankar Shyam Sanjay Shankar
To Balance c/d 47,044 53,541 30,000 By Balance b/d 34,050 34,050
By Revaluation 4,994 7,491
By Premium for Goodwill 8,000 12,000
By Cash 30,000
47,044 53,541 30,000 47,044 53,541 30,000
62/5.96/TSG/2021 bank account
bal b/d710+11925) 11925 balance c/d 64325
premium 20,000
Revaluation 2400
shanker capital 30,000
64325 64325
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63*/5.95/TSG/2021important
model
Revaluation Account
Provision for debtors 34000x5% 1,700 Prepaid expenses 1,200
(Debtor30000+B/R4000) B, capital( drawings) 2,000
A’s capital-(expenses) 2100 A’s capital 300
B's capital 200
C's capital 100 600
3,800 3,800
63*/5.95/TSG/2021
BALANCESHEET
A capital 61,800 Land and Building 50,000
B's capital 57,800 Plant & Machinery 40,000
C's capital 39,900 Furniture 30,000
D's capital 50,000 2,09,500 pre paid expenses 1,200
creditors 30,000 stock 20,000
Less: D’s capital -10,000 20,000 Debtors 30,000
Bills payable 10,000 BR dishonoured +4,000
34,000
Less provision 1,700 32,300
Bills receivable 20,000
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Bank 46,000
2,39,500 2,39,500
CAPITALACCOUNT
63*/5.95/TSG/2021 A B C D A B C D
Revaluationexps 2,000 By Balance b/d 60,000 60,000 40,000
Revaluation 300 200 100 creditor 10,000
To Balance c/d 61,800 57,800 39,900 40,000 cash 40,000
Revaluation 2,100
62,100 60,000 40,000 50,000 62,100 60,000 40,000 50,000
1 prepaid expenses 1,200 3 A's capital Dr 300
B, capital( drawings) 2,000 B's capital Dr 200
To Revaluation A/c 3,200 C'c capital Dr 100
(profit on Revaluation) To Revaluation a/c 600
(resultof Revaluation)
2 Revaluation A/c DR 3,800
Provision for debtors 1,700 4 Creditor a/c Dr 10,000
A’scapital 2100 Bank a/c Dr 40,000
(Loss on Revaluation) To D's capital 50,000
( D's capital recorded)
5 Revaluation a/c dr 2,100
To A's capital 2,100 6 B's capital Dr 2,000
(A's drawings) To Revaluation 2,000
(Revaluation exps )
Debtors a/c Dr 4,000
To Bank 4,000
DiscountedBill dishonoured
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Bank account
Balance b/d 10,000 B/R(bank) 4000
D’s capital 40,000 balance c/d 46,000
50,000 50,000
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64/5.97/TSG/2020
Revaluation Account
stock 20,000 Bank (bad debt recovered) 4,000
o/s salary 12,000 Loss
A’s capital 19,500
D’s capital 65,00 26,000
32,000 32,000
64/5.97/TSG/2021
BALANCESHEET
Liability Asset
A capital 7,59,000 Bank 5,27,000
D's capital 4,53,000 Debtors 6,00,000
V s capital 3,03,000 15,15,000 stock 2,80,000
creditors 2,20,000 Investment 4,40,000
EPF 1,00,000
o/s exps 12,000
18,47,000 18,47,000
64/5.97/TSG/2021
BANK
To Balance b/d 1,40,000 balance c/d 5,27,000
Premium for goodwill 80,000
v capital 3,03,000
Revaluation 4000
5,27,000 5,27,000
64/5.97/TSG/2021
Capital Account
A D V A D V
Revaluation 21,000 7,000 By Balance b/d 6,00,000 4,00,000
To balance c/d 7,59,000 4,53,000 3,03,000 By G. Reserve 90,000 30,000
Inv Fluct fund 30,000 10,000
By premium 60,000 20,000
By cash 3,03,000
7,80,000 4,60,000 3,03,000 7,80,000 4,60,000 3,03,000
X capital 7,59,000
Y's capital 4,53,000
For 4/5 total capital 12,12,000
V’s capital =12,12000X5/4X1/5=3,03,000
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65/5.97/TSG/2021 Old ratio5:3 SR=5:3
Revaluation Account
stock 3,000 provision for Debtors 600
Employee provident fund 5,000 Loss transferred
creditors 1,000 X capital 11,500
Fixed Assets 10,000 Y's capital 6,900 18,400
19,000 19,000
65/5.97/TSG/2021
Capital Account
X Y Z X Y Z
profit& Loss 1,500 900 Balance b/d 70,000 31,000
Revaluation 11,500 6,900 cash 20,000
balance c/d 72,625 25,375 20,000 Premium for Gwill 12,000
W.C.Fund in 5:3 3625 2175
85,625 33,175 20,000 85,625 33,175 20,000
65/5.97/TSG/2021
Balance sheet
Liability Assets
Xcapital 72,625 cash ,37,000
Y's capital 25,375 Frixed Assets 70,000
Z's capital 20,000 1,18,000 Sundry Debtors 20,000
creditors 16,000 stock 22,000
Employee provident fund 15,000
1,49,000 1,49,000
65/5.97/TSG/2021
Bank & Cash Account
Balance b/d 5,000 balance c/d 37,000
premium 12,000
Z's capital 20,000
37,000 37,000
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CAPITALADJUSTMENT
ILLS 59/5.71/TSG/2021
X&Y is 3;2, New ratio of Z=1/5, balance =1-1/5=4/5
For 4/5 capitals of X&Y is 80,000+60,000=1,40,000
For 1/5 capital= 1,40,000x5/4x1/5=35000
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86/5.105/TSG/2020
Revaluation Account
Plant & Machinery 28,000 Stock 500
Bad Debts 500 Loss
Abha's capital 14,000
Binya's capital 14,000 28,000
28,500 28,500
Balance sheet
Liablities Assets
Abhy's capital 39,500 Bank 38,000
Binay's capital 14,500 Debtors 22,000
Chitra's capital 18,000 72,000 LESS Bad debts 1,500 20,500
Employee's provident fund 8,000 stock 2,500
creditors 13,000 Plant & Machinery 32,000
93,000 93,000
86/5.102/TSG/2020
Capital Account
Abhay Binay Chitra Abhay Binay Chitra
Revaluation 14,000 14,000 Balance b/d 55,000 30,000
86/5.102/TSG/2020cash/Bank account
Balance b/d 15,000 Balance c/d 38,000
C's capital 18,000
premium 5000
38,000 38,000
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Goodwill
w/off 5,000 5,000 Bank 18,000
P& La/c 2,500 2,500 premium for Gwill 20000x1/4 2,500 2,500
stock 4,000 4,000 workmen compensation 7,500 7,500
Balance c/d 39,500 14,500 18,000
65,000 40,000 18,000 65,000 40,000 18,000
Chitra ‘s capital =39,500+14500=54,000 x 4/3x1/4=18,000
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ADJUSTING OLD PARTNER’S CAPITAL BASED ON
NEW PARTNER’S CAPITAL
77/5.104/TSG/2021
Revaluation Account
Building 15,000 Badal’s capital 12,000
stock 3000 Bijili’s capital 8,000 20,000
Provision for doubtful debt 2000
20,000 20,000
Capital account
77/5.101/TSG/2020 badal Bijili Raina badal Bijili Raina
Current account 30,000 10,00
0
Balance b/d 1,50,000 90,000
Balance c/d 1,20,000 80,000 40,000 cash 40,000
1,50,000 90,000 40,000
CAPITALADJUSTMENT
1/6 capital=40,000 so 1=40000x6/1=2,40,000 divide in new ratio 3:2:1=
120,000:80,000:40,000
Capital Adjustment
Abhay's capital= 39,500 old ratio=Abhay:Binay=1:1
Binay's capital= 14500 Abhay new ratio=3/4x1/2= 3/8
For 3/4th capital 54,000 Binay=3/4x1/2=3/8
¾==54,000 ¼= 54000X4/3x1/4=18000
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77/5.101/TSG/2020
Current account
badal Bijili Raina badal Bijili Raina
Balance
b/d 2000 Balance b/d 12,000
Revaluation 12,000 8000 Premium for Goodwill 3:2 7200 4800
Balance
c/d 51,600 14400 Investment flct fund 3;2 14,400 9600
Capital account 30,00
0
10,00
0
63,600 24,400 63,600 24,400
Balance sheet
Liablities Assets
Badal’s capital 120,000 Cash a/c 74,000
Bijili’s capital 80,000 building 1,35,000
Raina’s capital 40,000 2,40,000 stock 40,000
Badal’s current a/c 51,600 debtors 20,000
Bijili’s current a/c 14,400 66,000 Less provision 2000 18,000
creditors 26000 investment 73,000
Bills payable 8000
3,40,000 3,40,000
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78/5.102/TSG/2020
Revaluation Account
provision for Debtors 8,000 Stock 70,000
Machinery 21,000
Furniture 5,000
Gautam capital 3/4 27,000
Yashica capital 1/4 9,000 36,000
70,000 70,000
Balance sheet
Liabilities Assets
Gautam capital 2,10,000 Cash a/c 3,50,000
Yashika capital 1,40,000 Furniture 55,000
Asma capital 2,10,000 5,60,000 stock 2,10,000
77/5.104/TSG/2021--Bank Account
Bal b/d 22,000 Balance c/d 74000
Raina’s capital 40,000
premium /G.will 12,000
74,000 74,000
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creditors 50,000 Debtors 80,000
Bills payable 30,000 Less provision 8000 72,000
Gautham’s current a/c 2,67,000 machinery 1,89,000
Yashika’s current a/c 31,000
9,07,000 9,07,000
78/5.104/TSG/2021 Capital account
Gautam Yashika Asma Gautam Yashika Asma
Current account 2,67,000 Balance b/d 4,00,000 1,00,000
Balance c/d 2,10,000 1,40,000 2,10,000 Revaluation 27,000 9,000
Bank 2,10,000
premium for Gwill 50,000 Nil
Current account 31,000
4,77,000 140000 2,10,000 4,77,000 109000 2,10,000
3/8 =2,10,000 TOTAL CAPITAL =210000X8/3=5,60,000 DIVIDE IN3:2:3ie. 210,000:140000:210000
Gautam3/4-3/8=3/8 SR, Yashika 1/4-2/8=0
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Admission- Objective type questions with answers
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i. TRUE/FALSE
1. At the time of admission of partners accumulated profit/loss are transferred to revaluation
account.
2. Unrecorded assets & liabilities are transferred to partner’s capital account
3. Undistributed profit and General reserves are transferred to partner’s current account if the
capital accounts are maintained under fixed capital method TRUE
4. Ram & shyam are partners sharing profit in the ratio of 7:5. They admitted Mohan for 1/5th
share the new profit-sharing ratio is 2:2:1
5. Old profit-sharing ratio plus new profit sharing ratio is sacrificing ratio.
6. At the time of admission if the profit-sharing ratio among old partners does not change then
sacrificing ratio will be their old profit sharing ratio. TRUE
7. At the time of admission general reserve will be transferred to old partners capital account in
old ratio.
8. Raj is admitted for 1/4th
share for which he has to bring in 30,000 as goodwill. It will be taken
by old partners in gaining ratio. TRUE
9. Revaluation account will be debited to transfer gain on revaluation to old partners capital
account in their old profit-sharing ratio. TRUE
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10. Newly admitted partner does not have the right on the assets of the firm.
11. Admission of the partners means reconstitution of a firm as existing agreement comes to an
end and new agreement comes into effect. TRUE
12. Partners capital account will be credited with his share of gain on revaluation. TRUE
13. Partners’ capital account will be Debited with his share of loss on revaluation.
14. Increase in the value of assets is credited to Revaluation account. TRUE
15. At the time of admission of partner Revaluation account. Is credited to record the increase in
the value of plant & machinery. TRUE
16. At the time of admission of partner Revaluation account. Is debited to record increase in
provision for doubtful debts TRUE
17. The ratio in which all partners including incoming partner share future profit & losses is
known as old profit-sharing ratio.
18. The ratio in which old partners agreed to forego their share in profit in favor of new partner is
known as sacrificing ratio. TRUE
19. A&B were partners sharing profit in the ratio of 3:2. They admitted C for 1/3rd
share. The new
ratio is 6;4;5 TRUE
20. At the time of admission of partner, unrecorded assets and liabilities transferred to p&L
account
ii- Fill in the blanks
1. Gaining partners the sacrificing partners fot the sacrifice in share of profit.
2. In the absence of agreement as to who will contribute to new partners share of profit , it is
assumed that old partners will contribute in their
3. When a new partner brings in his share of goodwill in cash the amoun id debited to
4. Profit &loss on the revaluation of assets & liabilities on admission of partner is transferred to
old partners capital account in their
5. Ram and Mohan are sharing profit in the ratio of 3;2. They admitted shyam for 1/3rd
share .He
gets 3/5 from Ram and 2/5 from Mohan. New profit sharing ratio will be.
6. X&Y were sharing profit in the ratio of 3:2 with the capitals of 1,00,000 and 50,000
respectively. Z is admitted for 1/5th
share .The amount z brings in as capital will be
7. Alpha and beta are sharing profit in the ratio of 2:3. They admitted Gama for 1/4th
share. The
sacrificing ratio of Alpha and beta are
8. On admission the share sacrificed by a partner is the excess of his profit share
over profit share
9. Decrease in the value of assets at the time of admission will be debited to
10. increase in the value of liabilities assets at the time of admission will be to
revaluation account
11. Decrease in the value of liabilities assets at the time of admission will be debited to
12. A,B,C are partners sharing profit in the ratio of 3;2;1 D is admitted as a partner for 1/7th
share
which he gets from A . new profit sharing ratio is
13. X is admitted for 1/4th
share . total capital of the firm is 36,000. If cpitals are to be
proportionate to profit sharing ratio X should bring in Rs.
14. On admission the General reserve is transferred to capital account of partners in
their
15. On admission balance in the investment fluctuation fund after meeting oss onrevaluation
investment is transferred to of in their
16. A,B, are partners sharing profit in the ratio of 7;3 C is admitted as a partner for 1/5th
share, If
the new ratio is 14;6;5 Sacrificing ratio is
17. At the time of admissuion of partner the blance in p&L account transferred to capital account
of in their ratio.
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18. Raj is admitted for 1/4th
share for which he brings in 30,000 as goodwill it will be credited to
old partners capital account in their
19. P&q were partners having czapitals of 15,000 each .R is admitted for 1/3rd
share for which he
has to bring in 20,000 as capital. The amount of goodwill will be
20. The amount written off as bad now received is in revaluation account.
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Answers;-1). Compensate, 2). Old profit sharing ratio, 3). Cash account, 4). Old profit sharing
ratio,5). 6;4;5, 6). 37500, 7). 2;3, 8). Old, New 9). Revaluation account, 10). Debited, 11). Credited,
12) 15;14;7;6, (13) 12,000, (14). Old profit sharing ratio, (15)capital accounts, old partners, old profit
sharing ratio, (16) 7;3, (17)old partners, old ratio (18). Sacrificing ratio, (19)10,000,(20). credited
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MCQ
1. X& Y sharing profit in the ratio of 3;2. They admitted Z for 2/10th
share. The new profit
sharing ratio will be
a. 12;8;5
b. 3:2;2
c. 3:2:5
d. 2;1:2
2. Siva & mohan sharing profit in the ratio of 5;3. They admitted jea for 3/10th
share which
he gets 1/5th
from shiv and 1/10from mohan. The new profit sharing ratio will be
a. 5;6;3
b. 2;4:6
c. 17:11;12
d. 18;24;38
3. Profit or loss on revaluation of assets & liabilities is transferred to partner’s capital
account in their
a. Capital ratio
b. B. Equal ratio
c. Old profit sharing ratio
d. Gaining ratio
4. Adithya and shiv were partners with the capitals of 3,00,000 and 2,00,000.
Naina was admitted for 1/4th
share with a goodwill of 1,20,000 and capital of 2,40,000.
The premium for goodwill will be credited to Adithya will be
a. 40,000
b. 30,000
c. 72,000
d. 60,000
5. Un recorded assets & liability are transferred to
a. Partner’s capital account
b. Revaluation account
c. Profit &bloss account
d. Partner’s current account
6. X&y sharing profit in the ratio of 3:2 and capitals 1,00,000 50,000 respectively. Z is
admitted for 1/5th
share the amount z will contribute as capital is
a. 50,000
b. 35,000
c. 37500
d. 60,000
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7. X&Y sharing profit in the ratio of 3:2 and capitals 1,00,000 50,000 respectively. Z is
admitted for 1/5th
share he brings in 150,000 as capital if the capitals are proportionate to
profit sharing ratio the respective. capitals are
a. 3,00,000, 3,00,000,1,50,000
b. 3,60,000,, 2,40,000, 1,50,000
c. 1,50,000,1,50,000,1,50,000
d. 1,50,000, 2,00,000, 4,00,000
8. Goodwill brought in by incoming partner will be distributed among old partners in their
a. Old profit-sharing ratio
b. new profit-sharing ratio
c. sacrificing ratio
d. gaining ratio
9. At the time of admission Goodwill existed in the books is written off in
a. Old profit-sharing ratio
b. new profit-sharing ratio
c. sacrificing ratio
d. gaining ratio
10. A&B sharing profit in the ratio of 2;3. They admitted C for 1/4 share the sacrificing ratio
of A&B will be
a. 2:3
b. 1;1
c. 3;2
d. 2;1
11. At the time of admission General reserve appearing in the balance sheet is credited to
a. P&L appropriation account
b. Capital account of all partners
c. Capital account of old partners
d. Revaluation account
12. Anita and babita were partners shsring profit in the ratio of 3;1 avitha was admitted for
1/5th
share . she was unable to bring goodwill in cash. The journal entry to record
goodwill is given below;-
Savitha current a/s Dr …………..24,000
To Anita current account………………….8,000
To babita’s current a/c……………………16,000
The new profit-sharing ratio of Anita and babita were
a. 41;7;12,
b. 13;12;10
c. 3;1;1
d. 5;3:2
13. Increase in the value of liabilities at the time of admission of a partner is
a. Debited to revaluation account
b. Credited to revaluation account
c. Credited to partner’s capital account.
d. Debited to partner’s capital account.
14. For which of the following situations old profit sharing ratio of partners is used at the
time of admission of new partner.
a. When a partner brings only a part of his share of Goodwill.
b. When a new partner not able to bring his share of Goodwill.
c. When at the time of admission goodwill already exist in the balance sheet
d. When a new partner brings his share of goodwill in cash
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15. A& B were partners havin a capital of 54,000 and 36,000 respectively . They admitted C
for 1/3rd
share he brought proportionate amount of capital . The capital brought in by C
would be
a. 90,000
b. 45,000
c. 5400
d. 3600
16. P&Q were partners having a capital of 15,000 each. R is admitted for 1/3rd
share for
which he has to bring in 20,000 for his share of Goodwill. The amount og goodwill will
be
a. 8,000
b. 10,000
c. 9,000
d. 11,000
17. When new partner brings cash for goodwill the amount is credited to
a. Revaluation account
b. Cash account
c. Premium for goodwill account
d. Realization account
18. New partner can be admitted in to partnership
a. With the consent of any one partner
b. With the consent of majority of partners
c. With the consent of all partners
d. With the consent of 2/3rd
of partners.
19. X &Y are partners sharing profits in the ratio of 2;1they admitted z for 1/4th sharefor
which he brings 20,000 as his share of hence the adjusted capitals of X &Y will be
a. 40,000 and 20,000 respectively
b. 32,000 and 16,000 respectively
c. 60,000 and 30,000 respectively.
d. 20,000 and 40,000 respectively
20. At the time of admission if the profit sharing ratio among old partners does not change
then the sacrificiung ratio will be
a. Equal
b. According to capital contribution
c. Their old profit sharing ratio
d. According to new partner.
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