A and B were partners in a firm. They were trading in artificial limbs. On 1st April,2015, they admitted C, a good friend of B into the partnership. C lost his one hand in an accident and A and B decided to give one artificial hand free of cost to C. The balance sheet of A and B as at 31st March, 2015 was as follows
                                             Balance Sheet
                                      as at 31st March, 2015

C was admitted in the firm on the following terms
(i) C will bring RS.4,00,000 as his share capital, but he was unable to bring any amount for goodwill.
(ii) The profit sharing ratio between A, B and C will be 3:2:1.
(iii) Claim on account of workmen compensation was RS.30,000.
(iv) To write-off bad debts amounted to RS.40,000.
(v) Creditors were to be paid RS.20,000 more.
(vi) Outstanding expenses be brought down to RS.12,000.
(vii) RS.20,000 be provided for an unforeseen liability.
(viii) Goodwill of the firm was valued at RS.1,80,000.
Prepare revaluation account, capital accounts of partners and the balance sheet of new firm. Also identify any two values which partners wanted to communicate to the society.

The balance sheet of Block, white and red sharing profits and losses in the ratio 5:3:2 on 31st December 2014 is given below
                                                 Balance Sheet
                                            as at 31st December 2014

Red retire from 1st May 2015 and Black and White decide to share future profits and losses in the ratio of 3:5.Red has withdrawn Rs.20.000 during 2015.It was agreed that
(i) Goodwill be valued at 2 1/2 years' purchase of average of four completed years' profits which were:2011 Rs.4,04,000; 2012 Rs.56,000; 2013 Rs.64,000
(ii) Red's share of profits from the closure of last accounting year till date of retirement be calculated on the basis of the average of three completed years' profits before retirement.
(iii) Patents undervalued by Rs.28000, machinery overvalued by Rs.27,200, all debtors are good.Rs.2,000 provided in sundry creditors is not likely to arise.Unaccounted accrued income of Rs.4,400 to be provided for.A debtor whose dues of Rs.800 were written-off as bad debts, paid 50% in full settlement.A Claim of Rs.2,000 on account of workmen's compensation to be provided for.
(iv) Investments be sold for Rs.16,400.Red was to be paid through cash brought in by Black and White in such a way as to make their capitals proportionate to their new profit sharing ratio of 3:5 assuming that a minimum cash and bank balance of Rs.18,000 was to be maintained.
Prepare revaluation account, capital accounts of partners and the balance sheet of new firm.

Ram, Laxman and Bharat are partners sharing profits in the ratio of 3:2:1. Goodwill is appearing in the books at a value of Rs.1,80,000. Laxman retires and at the time of his retirement, goodwill is valued at Rs.2,52,000. Ram and Bharat decided to share future profits in the ratio of 2:1. The profits for the first year after Laxman's retirement amount to Rs.1,20,000. Give the necessary Journal Entries to record goodwill and to distribute the profits. Show your calculations clearly.

An extract of the balance sheet of Rashmi and Suman, who share profits in the ratio of 2:3 is given below

Give the accounting treatment at the time of Deepa's admission,
(i) When no other information is given.
(ii) When claim on account of workmen compensation is estimated at RS.65,000.
(iii) When claim on account of workmen compensation is estimated at RS.1,00,000.
The new profit sharing ratio is 1:1:1.
Also specify the amount at which workmen compensation reserve will appear in the books of the new firm.

R and S are partners in a firm sharing profits in the ratio of 3:2. They admit as a new partner. The new profit sharing ratio of R, S and T will be 5:5:3. T contributed the following assets towards his capital and for his share of goodwill.
Stock RS.1,67,000, debtors RS.1,40,000 (less provision for doubtful debts of 5%), land RS.1,00,000, plant and machinery RS.1,80,000. On the date of admission of T, the goodwill of the firm was valued at RS.13,00,000. Record the necessary journal entries in the books of the firm on T's admission.

X,Y and Z were sharing profits and losses in the ratio of 5:3:2 They decided  to share future profits in the ratio of 2:3:5 with effect from1st  April,2015, They decided to record the effect of the following , without affecting their book values .
(i) Profit and loss account                    Rs 24,000
(ii) Advertisement suspense account     Rs 12,000
Pass necessary adjusting entry