A assignment of accounts for class 12th on the topic Admission of a partner

1. ADMISSION OF A PARTNER
Kuhu & Jigyasa are partners in a firm. They shareprofits & losses in the ratio of
2:1. Since both of them are especially abled sometimes they find it difficult to run
a business so admitted Sheeba, a common friend decided to help them.
‘Therefore, they admitted her into partnership for 1/3 share. She broughther
shareof goodwill in cash & proportionatecapital. At the time of her admission
Balance Sheet of Kuhu & Jigyasa was as under.
It was decided to:
(a) Reduce the value of stock by Rs. 10,000
(b) Depreciate furniture by 15% and appreciate machinery by 8%.
(c) Rs. 3,000 of the debtors proved bad. A provision of 5% was to be created
on Sundry Debtors for doubtfuldebts.
(d) Goodwill of the firm was valued at Rs. 45,000
PrepareRevaluation Account, Partner’s Capital Accounts and Balance Sheet of
reconstituted firm.
Solution:
LIABILITIES AMOUNT(Rs.) ASSETS AMOUNT (Rs.)
Capital A/c:
Kuhu 2,00,000
Jigyasa 1,00,000
General Reserve
Creditors
Employees Provident Fund
3,00,000
60,000
30,000
40,000
Machinery
Furniture
Stock
Sundry Debtors
Cash
2,20,000
1,00,000
60,000
30,000
20,000
4,30,000 4,30,000

2. REVALUATION ACCOUNT
PARTICULARS AMOUNT (Rs.) PARTICULARS AMOUNT (Rs.)
To Stock A/c
To Furniture
To SundryDebtors
To provisionforbaddebts
(30.000 – 3,000)x5/100
10,000
15,000
3,000
1,350
By Machinery
By Loss transferredto:
Kuhu’sCapital 7,834
Jigyasa’sCapital 3,915
17,600
11,750
29,350 29,350
PARTNER’S CAPITAL ACCOUNT
PARTICULARS KUHU JIGYASA SHEEBA PARTICULARS KUHU JIGYASA SHEEBA(
To
Revaluation
A/c
To balance
c/d
7,834
2,42,166
3,915
1,21,085
-
1,81,625
By Capital
A/c
By General
Reserve
By Premium
A/c
By Bank A/c
2,00,000
40,000
10,000
1,00,000
20,000
5,000
-
1,81,625
2,50,000 1,25,000 1,81,625 2,50,000 1,25,000 1,81,625

3. BALANCESHEET OF NEW FIRM
LIABILITIES AMOUNT(Rs.) ASSETS AMOUNT(Rs.)
Capital A/c:
Kuhu 2,42,166
Jigyasa 1,21,085
Sheeba 1,81,625
Creditors
Employees
providentFund
5,44,876
30,000
40,000
Machinery
Furniture
Stock
Sundry Debtors 30,000
Less : Bad debts (3,000)
Less : Provision (1,350)
Cash
Bank
2,37,600
85,000
50,000
25,650
20,000
1,96,626
6,14,876 6,14,876