Kartik and Aroha are partners in a firm sharing profits in the ratio of 2:3 The balance sheet of the firm as at  31st March ,2015 is given below
                                                     Balance Sheet
                                                    as at 31st March, 2015

The partners decided to share profits in equal ratio with effect from 1st April,2015 The following adjustments were agreed upon.
(i)Land and building was valued at Rs 16,000 and machinery at Rs16,400 and were to appear at revalued amounts in the balance sheet.
(ii)The goodwill of the firm was valued at Rs 800 but it was not to appear in books.
Pass the necessary journal entries to give effect to the above and also prepare revaluation account.

X Ltd invited applications for 10,000 shares of Rs10 each. Applications were received for 15,000 shares. Name the kind of subscription. Give three alternatives for allotting shares.

A, B and C are partners in a firm sharing profits in the ratio of 6:5:4. C retired and his share is taken up equally by A and B. Find the new profit sharing ratio.

Vinod and Mohan was partners in a firm.  The partnership agreement provided that interest on drawings was to be charged @ 12% p.a.  Vinod had withdrawn the following amounts during the year ended 31.12.2005.

Calculate interest on Vinod's drawings.

The capital of the firm of Sharma and Verma is Rs. 2,00,000 and the rate of Interest is 15%. Annual salary of partners is Rs. 12,000 each. The profit for the last three years were Rs. 60,000 , Rs. 72,000 and  Rs.84,000. Goodwill is to be valued at 2 years' purchase of last 3 years average super profits. Calculate the goodwill of the firm.

K and P were partners in a firm sharing profits in 4 : 3 ratio.  Their capitals on 1.4.2009 were : K Rs. 80,000 and P Rs. 60,000.  The partnership deed provided as follows :
(i) Interest on capital and drawing will be allowed and charged @ 12% p.a. and 10% p.a. respectively.
(ii) K and P will be entitled to get monthly salary of Rs. 2,00 and Rs 3,000 respectively.
The profits for the year ended 31.3.2010 were Rs.  1,00,300.  The drawings of K and P were Rs. 40,000 and Rs. 50,000 respectively. Interest on K's drawings was Rs. 2,000 and on P's drawings Rs. 2,500.
Prepare Profit and Loss Appropriation Account of K and P for the year ended 31.3.2010 assuming that the capitals of the partners were fluctuating.

G and M were partners in a firm sharing profits in the ratio of 5:3 their fixed capitals were Rs.3,00,000 and Rs.2,00,000 respectively. the partnership deed provided that
(i) Interest on capital should be allowed @12% per annum.
(ii)G should be allowed a salary of Rs.40,000 per annum for extra time he devotes to business.
(iii) A commission of 5% of the net profit should be allowed to M for his extra efforts in marketing for the firm.
the net profit for the year ended on 31st March, 2015 was rs.2,00,000. prepare profit and loss appropriation account.Also, identify the values shown by the firm

Digamber Ltd invited applications for 20,000 shares of Rs 10 each, issued at a premium of 25%, payable as follows Rs 4 on application, Rs 5 on allotment (including premium of Rs1.5) and the balance on first and final call (including the remaining premium). All the shares were applied for and allotted. Amount due was duly received. Journalise, When it is the company's policy to maintain cash book.

A,B and C are partners in a firm sharing profits and losses in the ratio of 3:3:2 Their balance sheet as 31st March,2015 was as under 
                                                Balance Sheet 
                                            as at 31st March,2015

Partners decided that with effect from 1st April,2015 they would share profits and loses in the ratio of 4:3:2.It was agreed that
(i) Stock is to be valued at Rs 2,20,000 
(ii) Machinery is to be depreciated by 10%.
(iii) A provision for doubtful debts is to be made on debtors @ 5%.
(iv) Building to be appreciated by 20%
(v) A liability for Rs 6,000 included in sundry creditors is not likely  toarise.
Partners agreed that revised values of assets and liabilities are to be recorded in the books.Give the necessary accounting entries to be made in the books of the firm on account of change in profit sharing ratio.Also prepare the revaluation account

Samiksha and Sameer are partners sharing profits in the ratio of 2:1. On 1st April, 2015, they admitted Saurabh as a partner for 1/6th share which he acquired in the ratio of 2:3 from them. On 1st April, 2016, they admitted Vishal as a partner for 1/4th share which he acquired equally from all the partners.
Calculate
(i) New profit sharing ratio after Saurabh's admission.
(ii) New profit sharing ratio after Vishal's admission.

Prakash, Kiran and Rishab are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1.  Their Balance Sheet as on 31st March 2014 Stood as follows :

                                  Balance sheet

                            as on 31st March, 2014

On the above date, the firm was dissolved and the following transactions took place :

(i) The assets were sold off for the following amounts :

(ii) Kiran took over the Bills Receivable at Rs. 7,000 and the Bills Payable at book value.

(iii) There was an unrecorded asset of Rs. 4,000 which was sold for Rs. 1,800.

(iv) Prakash agreed to pay to his wife's loan.

(v) A contingent liability for a bill discounted at Rs. 8,000 was settled by Prakash.

(vi) Creditors were settled at a discount of 10% and goodwill realised Rs. 5,000.

(Vii) Realisation expenses were Rs. 2,100 which were met by Kiran.

You are required to :

  (a) Pass the necessary Journal Entries.

  (b) Prepare the Realisation Account on the dissolution of the firm.

  (c) Prepare the Capital Accounts of the Partners.

P,Q and R were partners in a firm sharing profits in the ratio of 7:2:1. On 1st April, 2013 their Balance Sheet was as follows:               

On the above date Q retired.
The following were agreed:
(i) Goodwill of the firm was valued at Rs.12,00,000.
(ii) Land was to be appreciated by 30% and Building was to be depreciated by Rs.3,00,000.
(iii) Value of furniture was to be reduced by Rs.60,000.
(iv) The liabilities for Workmen's Compensation Fund was determined at Rs.1,40,000.
(v) Amount payable to Q was transferred to his loan account.
(vi) Capitals of p and R were to be adjusted in their new profit sharing ratio and for this purpose current accounts of the partners will be opened.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm. 

A, Band C were partners in a firm sharing profits equally: Their Balance Sheet on.31.12.2007 stood as:

It was mutually agreed that C will retire from partnership and for this purpose following terms were agreed upon) Goodwill to be valued on 3 years’ purchase of average profit of last 4 years which were 2004 : Rs.50,000 (loss); 2005 : Rs. 21,000; 2006: Rs.52,000; 2007 : Rs.22,000.
ii) The Provision for Doubtful Debt was raised to Rs. 4,000.
iii) To appreciate Land by 15%.
iv) To decrease Plant and Machinery by 10%.
v) Create provision of Rs;600 on Creditors.
vi) A sum of Rs.5,000 of Bills Payable was not likely to be claimed.
vii) The continuing partners decided to show the firm’s capital at 1,00,000 which would be in their new profit sharing ratio which is 2:3. Adjustments to be made in cash
Make necessary accounts and prepare the Balance Sheet of the new partners.

Rashmi and Pooja are partners in a firm. They share profits and losses in the ratio of 2 : 1. They admit Santosh into partnership firm on the condition that she will bring Rs. 30,000 for Goodwill and will bring such an amount that her capital will be 1/3 of the total capital of the new firm. Santosh will be given 1/3 share in future profits. At the time of admission of Santosh, the Balance Sheet of Rashmi and Pooja was as under:

It was decided to:
a. revalue stock at Rs. 45,000.
b. depreciated furniture by 10% and machinery by 5%.
c. made provision of Rs. 3,000 on sundry debtors for doubtful debts. Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new firm. Give full workings.

X and Y are partners as they share profits in the proportion of 3 : 1 their balance sheet as at 31.03.07 as follows.

On the ame date, Z is admittedf into partnership for 1/5^th share on the following terms
a. Goodwill is to be valued at 31/2 years purchase of average profits of last for year which were Rs.20,000 Rs.17,000 Rs.9,000 (Loss) respectively.
b. Stock is fund to be overvalue by Rs.2,000 Furniture is reduced and Land to be appreciated by 10% each, a provision for Bad Debts @ 12% is to be created on Debtors and a Provision of Discount of Creditors @ 4% is to be created.
c. A liability to the extent of Rs.1,500 should be created for a claim against the firm for damages.
d. An items of Rs.1,000 included in Creditors is not likely to be claimed, and hence it should be written off.
Prepare Revaluation Account, Partners: Capital Accounts and Balance Sheet of the new firm if Z is to contribute proportionate capital and goodwill. The capital partners are to be in profit sharing ratio by opening current Accounts.

Dinesh, Yasmine and Faria are partners in a firm, sharing profits and losses in 11 : 7 : 2 respectively. The Balance Sheet of the firm as on 31st Dec. 2001 was as follows:

On the same date, Annie is admitted as a partner for on-sixth share in the profits with Capital of Rs.4,500 and necessary amount for his share of goodwill on the following items:-
a. Furniture of Rs.2,400 were to be taken over by Dinesh, Yashmine and Faria equally.
b. A Liability of Rs.1,670 be created against Bills discounted.
c. Goodwill of the firm is to be valued at 2.5 years purchase of average profits of 2 years. The profits are as under.
2000 - Rs.2,000 and 2001 - Rs.6,000
d. Drawings of Dinesh, Yasmine, and Faria were Rs.2,750; Rs.1,750; and Rs.500 Respectively.
e. Machinery and Public Deposits are revalued to Rs.2,000 and Rs.1,000 respectively
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of the new firm.

On the reconstitution of a firm change in the value of assets is called ________

Old profit sharing ratio minus new profit sharing ration is equal to:

If a partner takes over an asset of the firm, his capital account:

Amount due to out going partner is shown in the balance sheet as his:

In case of retirement of a partner full good will is credited to the accounts of:

Good will is valued as two years purchase of the average profits of three previous years are Rs. 15000, the value of good-will be:

At the time of admission of a new partner the firm is:

Other name for registered capital is:

Interest on calls in advance is:

Capital employed by a partnership firm is Rs10,00,000.Its average profit is Rs 1,20,000. The normal rate of return in similar type of business is 10%. What is the amount of super profits?

A partnership deed is silent for the payment of interest on partners’s loan but there was a loss instead of profits during the year 2013-14. At what rate will the interest on partner’s loan be allowed?