12th Standard Accountancy English Medium - Admission of a Partner 5 Mark Book Back Question Paper and Answer Key 2022 - 2023 | QB365

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12th Standard Accountancy English Medium - Admission of a Partner 5 Mark Book Back Question Paper and Answer Key 2022 - 2023

Published on: 01/09/2022

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Questions:

Generic 5

15 x 5 = 75

Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 3:2. The balance sheet of the partners on 31.03.2018 is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Computer	40,000
Anbu	4,00,000		Motor car	1,60,000
Shankar	3,00,000	7,00,000	Stock	4,00,000
Profit and loss		1,20,000	Debtors	3,60,000
Creditors		1,20,000	Bank	40,000
Workmen compensation fund		60,000
		10,00,000		10,00,000

Rajesh is admitted for 1/5 share on the following terms:
(i) Goodwill of the firm is valued at Rs. 75,000 and Rajesh brought cash for his share of goodwill.
(ii) Rajesh is to bring Rs. 1,50,000 as his capital.
(iii) Motor car is valued at Rs. 2,00,000; stock at Rs. 3,80,000 and debtors at Rs. 3,50,000.
(iv) Anticipated claim on workmen compensation fund is Rs. 10,000
(v) Unrecorded investment of Rs. 5,000 has to be brought into account.
Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission.

The following is the balance sheet of James and Justina as on 1.1.2017. They share the profits and losses equally.

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Buildings	70,000
James	40,000		Stock	30,000
Justina	50,000	90,000	Debtors	20,000
Creditors		30,000	Bank	15,000
Reserve fund		15,000	Prepaid insurance	5,000
		1,40,000		1,40,000

On the above date, Balan is admitted as a partner with 1/5 share in future profits. Following are the terms for his admission:
(i) Balan brings Rs. 25,000 as capital.
(ii) His share of goodwill is Rs. 10, 000 and he brings cash for it.
(iii) The assets are to be valued as under:
Building Rs.80, 000; Debtors Rs. 18,000; Stock Rs. 33,000
Prepare necessary ledger accounts and the balance sheet after admission.

Sundar and Suresh are partners sharing profits in the ratio of 3:2. Their balance sheet as on 1st January, 2017 was as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Buildings	40,000
Sundar	30,000		Furniture	13,000
Suresh	20,000	50,000	Stock	25,000
Creditors		50,000	Debtors	15,000
General reserve		10,000	Bills receivable	14,000
Workmen compensation fund		15,000	Bank	18,000
		1,25,000		1,25,000

They decided to admit Sugumar into partnership for 1/4 share in the profits on the following terms:
(a) Sugumar has to bring in Rs. 30,000 as capital. His share of goodwill is valued at Rs. 5,000. He could not bring cash towards goodwill.
(b) That the stock be valued at Rs. 20, 000.
(c) That the furniture be depreciated by Rs. 2,000.
(d) That the value of building be depreciated by 20%.
Prepare necessary ledger accounts and the balance sheet after admission

Rajan and Selva are partners sharing profits and losses in the ratio of 3:1. Their balance sheet as on 31^st March 2017 is as under:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Building	25,000
Rajan	30,000		Furniture	1,000
Selva	16,000	46,000	Stock	20,000
General reserve		4,000	Debtors	16,000
Creditors		37,500	Bills receivable	3,000
			Cash at bank	12,500
			Profit and loss account	10,000
		87,500		87,500

On 1.4.2017, they admit Ganesan as a new partner on the following arrangements:
(i) Ganesan brings Rs. 10,000 as capital for 1/5 share of profit.
(ii) Stock and furniture is to be reduced by 10%, a reserve of 5% on debtors for doubtful debts is to be created.
(iii) Appreciate buildings by 20%.
Prepare revaluation account, partner's capital account and the balance sheet of the firm after admission.

Amal and Vimal are partners in a firm sharing profits and losses in the ratio of 7:5. Their balance sheet as on 31st March, 2019, is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Land	80,000
Amal	70,000		Furniture	20,000
Vimal	50,000	1,20,000	Stock	25,000
Sundry creditors		30,000	Debtors	30,000
Profit and loss A/c		24,000	Bank	19,000
		1,74,000		1,74,000

Nirmal is admitted as a new partner on 1.4.2018 by introducing a capital of Rs.30,000 for 1/3 share in the future profit subject to the following adjustments.
(a) Stock to be depreciated by Rs. 5,000
(b) Provision for doubtful debts to be created for Rs. 3,000
(c) Land to be appreciated by Rs. 20,000
Prepare revaluation account and capital account of partners after admission.

Sai and Shankar are partners, sharing profits and losses in the ratio of 5:3. The firm’s balance sheet as on 31st December, 2017, was as follows:

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts:			Building		34,000
Sai	48,000		Furniture		6,000
Shankar	40,000	88,000	Investment		20,000
Creditors		37,000	Debtors	40,000
Outstanding wages		8,000	Less: Provision for bad debts	3,000	37,000
			Bills receivable		12,000
			Stock		16,000
			Bank		8,000
		1,33,000			1,33,000

On 31st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with Rs. 12,000 as capital subject to the following adjustments.
(a) Furniture is to be revalued at Rs. 5,000 and building is to be revalued at Rs. 50,000.
(c) Provision for doubtful debts is to be increased to Rs. 5,500
(d) An unrecorded investment of Rs. 6,000 is to be brought into account
(e) An unrecorded liability Rs. 2,500 has to be recorded now.
Pass journal entries and prepare Revaluation Account and capital account of partners after admission.

Seenu and Siva are partners sharing profits and losses in the ratio of 5:3. In the view of Kowsalya admission, they decided
(a) To increase the value of building by Rs. 40,000.
(b) To bring into record investments at Rs. 10,000, which have not so far been brought in to account.
(c) To decrease the value of machinery by Rs. 14,000 and furniture by Rs. 12,000.
(d) To write off sundry creditors by Rs. 16,000.
Pass journal entries and prepare revaluation account

Hari, Madhavan and Kesavan are partners, sharing profits and losses in the ratio of 5:3:2. As from 1st April 2017, Vanmathi is admitted into the partnership and the new profit sharing ratio is decided as 4:3:2:1. The following adjustments are to be made.
(a) Increase the value of premises by Rs. 60,000.
(b) Depreciate stock by Rs. 5,000, furniture by Rs. 2,000 and machinery by Rs. 2,500.
(c) Provide for an outstanding liability of Rs. 500.
Pass journal entries and prepare revaluation account.

Veena and Pearl are partners in a firm sharing profits and losses in the ratio of 2:1. Their balance sheet as on 31st March, 2018 is as follows:
Liabilities Rs. Rs. Assets Rs. Capital accounts Buildings 60,000 Veena 60,000 Machinery 30,000 Pearl 40,000 1,00,000 Debtors 20,000 General reserve 30,000 Stock 10,000 Workmen compensation fund 10,000 Cash at bank 30,000 Sundry creditors 10,000 1,50,000 1,50,000 Deri is admitted on 1.4.2018 subject to the following conditions:
(a) The new profit sharing ratio among Veena, Pearl and Deri is 5 : 3 : 2.
(b) Deri has to bring a capital of Rs. 30,000
(c) Stock to be depreciated by 20%
(d) Anticipated claim on workmen compensation fund is Rs. 1,000
(e) Unrecorded investment of Rs. 11,000 has to be brought into books
(f) The goodwill of the firm is valued at Rs. 30,000 and Deri brought cash for his share of goodwill.
The existing partners withdraw the entire amount brought by Deri towards goodwill.
Prepare the necessary ledger accounts and balance sheet after admission.

10.

Ameer and Raja are partners sharing profits in the ratio of 3:2. Their balance sheet is shown as under on 31.12.2018.

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Machinery	60,000
Ameer	80,000		Furniture	40,000
Raja	70,000	1,50,000	Debtors	30,000
Reserve fund		15,000	Stock	10,000
Creditors		35,000	Prepaid insurance	40,000
			Cash at bank	20,000
		2,00,000		2,00,000

Rohit is admitted as a new partner who introduces a capital of Rs. 30,000 for his 1/5 share in future profits. He brings Rs. 10,000 for his share of goodwill.
Following revaluations are made:
(i) Stock is to be appreciated to Rs. 14,000
(ii) Furniture is to be depreciated by 5%
(iii) Machinery is to be revalued at Rs. 80,000
Prepare the necessary ledger accounts and the balance sheet after the admission.

11.

The balance sheet of Rekha and Mary on 31st March 2018 is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts			Buildings	50,000
Rekha	50,000		Stock	8,000
Mary	30,000	80,000	Sundry debtors	60,000
General reserve		40,000	Cash at bank	32,000
Workmen compensation fund		10,000
Sundry creditors		20,000
		1,50,000		1,50,000

They share the profits and losses in the ratio of 3:1. They agreed to admit Kavitha into the partnership firm for 1/4 share of profit which she gets entirely from Rekha.
Following are the conditions:
(i) Kavitha has to bring Rs. 20,000 as capital. Her share of goodwill is valued at 4,000. She could not bring cash towards goodwill.
(ii) Depreciate buildings by 10%
(iii) Stock to be revalued at Rs. 6,000
(iv) Create provision for doubtful debts at 5% on debtors
Prepare necessary ledger accounts and the balance sheet after admission.

12.

Vetri and Ranjit are partners, sharing profits in the ratio of 3:2. Their balance sheet as on 31^st December 2017 is as under:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Furniture	25,000
Vetri	30,000		Stock	20,000
Ranjit	20,000	50,000	Debtors	10,000
Reserve fund		5,000	Cash in hand	35,000
Sundry creditors		45,000	Profit and loss A/c (loss)	10,000
		1,00,000		1,00,000

On 1.1.2018, they admit Suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs. 10,000 as capital for 1/4 share of profit.
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs. 7,500.
(iv) Furniture to be revalued at Rs. 40,000.
(v) There is an outstanding wages of Rs. 4,500 not yet recorded.
Prepare revaluation account, partners’ capital account and the balance sheet of the firm after admission.

13.

Anand and Balu are partners in a firm sharing profits and losses in the ratio of 7:3. Their balance sheet as on 31st March, 2018 is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.
Capital accounts:			Land	60,000
Anand	50,000		Stock	40,000
Balu	30,000	80,000	Debtors	20,000
Sundry creditors		20,000	Cash in hand	10,000
Profit and loss A/c		30,000
		1,30,000		1,30,000

Chandru is admitted as a new partner on 1.4.2018 by introducing a capital of Rs. 20,000 for 1/4 share in the future profit subject to the following adjustments:
(a) Stock to be depreciated by Rs. 3,000
(b) Provision for doubtful debts to be created for Rs. 2,000.
(c) Land was to be appreciated by Rs. 10,000
Prepare revaluation account and capital account of partners after admission.

14.

Raghu and Sam are partners in a firm sharing profits and losses in the ratio of 3:2. Their balance sheet as on 31^st March, 2017 is as follows:

Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts:			Machinery		30,000
Raghu	40,000		Furniture		10,000
Sam	30,000	70,000	Stock		10,000
Sundry creditors		30,000	Debtors	21,000
			Less: Provision for
			doubtful debts	1,000	20,000
			Bank		30,000
		1,00,000			1,00,000

Prakash is admitted on 1.4.2017 subject to the following conditions:
(a) He has to bring a capital of Rs. 10,000
(b) Machinery is valued at Rs. 24,000
(c) Furniture to be depreciated by Rs. 3,000
(d) Provision for doubtful debts should be increased to Rs. 3,000
(e) Unrecorded trade receivables of Rs. 1,000 would be brought into books now
Pass necessary journal entries and prepare revaluation account and capital account of partners after admission.

15.

Sriram and Raj are partners sharing profits and losses in the ratio of 2:1. Nelson joins as a partner on 1st April 2017. The following adjustments are to be made:
(i) Increase the value of stock by Rs. 5,000
(ii) Bring into record investment of Rs. 7,000 which had not been recorded in the books of the firm.
(iii) Reduce the value of office equipment by Rs. 10,000
(iv) A provision would also be made for outstanding wages for Rs. 9,500.
Give journal entries and prepare revaluation account.

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Answers Key:

Generic 5

15 x 5 = 75

Dr Revaluation Account Cr
Particulars	Rs.	Rs.	Particulars	Rs.
To Stock A/c		20,000	By Motor car	40,000
To Debtors A/c		10,000	By Unrecorded Investment A/c	5,000
Anbus capital A/c	8,750
Shankar's capital A/c	6,250	15,000
		45,000		45,000

Dr Capital Account Cr
Particulars	Anbu Rs.	Shankar Rs.	Rajesh Rs.	Particulars	Anbu Rs.	Shankar Rs.	Rajesh Rs.
To Balance C/d	5,11,419	3,79,581	1,50,000	By Balance b/d	4,00,000	3,00,000	-
				By Bank A/c	-	-	1,50,000
				By Profit and loss A/c	70,000	50,000	-
				By.Workmen compensation fund (60,000 - 10,000)	26,169	20,831	-
				By Revaluation A/c	8,750	6,250	-
				By Goodwill A/c	3500	2,500
	5,11,419	3,79,581	1,50,000		5,11,419	3,79,581	1,50,000

Good will of the firm is = Rs. 75,000
Rajesh share of goodwill = 75,000 \(\times\) \(\frac{1}{5}\)
= Rs. 15,000
It is to be distributed to Anbu and Shankar in their old ratio of 3:2

Balance sheet
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Sundry creditors		1,20,000	Computer		40,000
Workmen compensation fund (60,000 - 50,000)		10,000	Motor Car	1,60,000
Capital			Add: Revaluation	40,000	2,00,000
Anbu	5,11,419		Stock	4,00,000
Shankar	3,79,581		Less: Revaluation	20,000	3,80,000
Rajesh	1,50,000	10,41,000	Sundry debtor	3,60,000
			(-) Revaluation	10,000	3,50,000
			Bank	40,000
			(+) Rajesh cap	1,50,000	1,90,000
			Investment		5,000
			Goodwill		6,000
		11,71,000			11,71,000

Dr Revaluation Account Cr
Particulars	Rs	Rs	Particulars	Rs
To Deptors A/c		2000	By Building A/C	10,000
To profit revaluaion			By Stock Ale	3,000
to transferred
Jame's capital A/c	5,500
Justona's capital a/c	5,500	11,000
		13,000		13,000

Dr Capital Account Cr
Particulars	James Rs	Justina Rs	Balan Rs	Particulars Rs	James Rs	Justina Rs	Balan Rs
To Balance c/d	58,000	68,000	25,000	By Balance b/d	40,000	50,000	-
				By Reserve fund A/c	7,500	7,500	-
				By Bank Ale	-	-	25,000
				By Revaluation AI	5,500	5,500	-
				By Bank A/c share of good will	5,000	5,000	-
	58,000	68,000	25,000		58,000	68,000	25,000
				By Balance bid	58,000	68,000	25,000

Dr Cash at Bank Account Cr
Particulars	Rs	Particulars	Rs
To Balance b/d	15,000	By Balance c/d	50,000
To Balan's capital A/c	25,000
To Jame's capital A/c	5,000
To Justina's capital A/c	5,000
	50,000		50,000

Dr Balance sheet as on 1st January 2017 Cr
Liabilities	Rs	Rs	Assets	Rs	Rs
Capital Account			Building	70,000
James's A/c	58,000		Add: Appreciation	10,000	80,000
Justina A/c	68,000		Stock	30,000
Balan A/c	25,000	1,51,000	Less: Appreciation	3,000	33,000
Creditors		35,000	Debtors	20,000
			Less: Undervalued	2,000	18,000
			Bank		50,000
			Prepaid insurance		5,000
		1,86,000			1,86,000

Dr Revaluation Account Cr
Particulars	Rs.	Partiulars		Rs.
To Stock A/c	5,000	By Loss on revaluation transferred to
To Furniture A/c	2,000	Sundar's capital A/c (3/5)	9,000
To Building A/c	8,000	Suresh's capital A/c (2/5)	6,000	15,000

	15,000			15,000

Dr Capital Account Cr
Particulars	sundar Rs.	Suresh Rs.	Sugumar Rs.	Particulars	Sundar Rs.	Suresh Rs.	Sugumar Rs.
Revaluation A/c	9,000	6,000	-	By Balance b/d	30,000	20,000	-
To Sundar's capital A/c (Loss)	-	-	5,000	By General reserve A/c	6,000	4,000	-
To Balance c/d	39,000	26,000	25,000	ByWorkmen Compensation fund A/c	9,000	6,000	-
				By Goodwill	-	-	25,000
	48,000	32,000	25,000		48,000	32,000	25,000

Balance sheet as on 1st January 2017
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital Account:			Building	40,000
Sundar	41,000		Add: Depreciation 20%	8,000	32,000
Suresh	24,000		Furniture	13,000
Sugumar	25,000	90,000	Less: Depreciation	2,000	11,000
Creditors		50,000	Stock	25,000
			Less: Depreciation	5,000	20,000
			Debtors		15,000
			Bills receivable		14,000
			Bank	18,000
			Sugumar's capital	25,000	43,000
			Goodwill		5,000
		1,40,000			1,40,000

Dr Revaluation Account Cr
Particulars	Rs.	Rs.	Partiulars	Rs.
To Stock A/c		2,000	By Buildings A/c	5,000
To Furniture A/c		100
To Debtors A/c		800
To Profit on revaluation transferred capital A/c
Rajan (3/4)	1575
Selva (1/4)	525	2,100
		5,000		5,000

Dr Capital Account Cr
Particulars	Rajan Rs.	Selva Rs.	Ganesan Rs.	Particulars	Rajan Rs.	Selva Rs.	Ganesan Rs.
To Profit and loss A/c	7,500	2,500	-	By Balance b/d	30,000	16,000	-
To Balance c/d	27,075	15,025	10,000	By General reserve A/c	3,000	1,000	-
				By Revaluation A/c	1,575	525	-
				By Bank A/c	-	-	10,000
	34,575	17,525	10,000		34,575	17,525	10,000

Balance sheet as on 1st April 2017
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital Account:			Building	25,000
Rajan	27,075		Add: Appreciation Furniture	5,000	30,000
Selvam	15,025		Furniture	1,000
Ganesan	10,000	52,100	Less: Depreciation	100	900
Creditors		37,500	Stock	20,000
			Less: Depreciation	2,000	18,000
			Debtors	16,000
			Less: Doubtful doubts	800	15,200
			Cash at bank	12,500
			Add: Ganesan's capital	10,000	22,500
			Bills receivable		3,000
		89,600			89,600

Dr Revaluation A/c Dr
Particulars	Rs.	Rs.	Particulars	Rs.
To Stock A/c		5,000	By Land A/c	20,000
To Provision for doubtful debts A/c		3,000
To Profit on revaluation transferred to
Amal's capital A/c	7,000
Vimal's capital A/c	5,000	12,000
		20,000		20,000

Dr Capital A/c Dr
Particulars	Amal Rs.	Vimal Rs.	Nirmal Rs.	Particulars	Amal Rs.	Vimal Rs.	Nirmal Rs.
To Balance c/d	91,000	65,000	30,000	By Balance b/d	70,000	50,000	-
				By Bank A/c	-	-	30,000
				By Revaluation A/c	7,000	5,000	-
	91,000	65,000	30,000		91,000	65,000	30,000
				By Balance b/d	91,000	65,000	30,000

Journal Entry
Date	Particulars		Debit Rs.	Credit Rs.
2017 December 31	Bank A/c	Dr	12,000
	To Shanmugam's capital A/c			12,000
	(Capital brought by Shanmugam)
2017 December 31	Building A/c	Dr	16,000
	Unrecorded investment A/c	Dr	6,000
	To Revaluation A/c			22,000
	(Appreciation on building and unrecorded investments adjusted)
2017 December 31	Revaluation A/c	Dr	6,000
	To Furniture A/c			1,000
	To Unrecorded liability A/c			2,500
	To Provision for doubtful debts A/c			2,500
	(Decreased on furniture, unrecorded Liability and provision made for doubtful debts adjusted)
2017 December 31	Revaluation A/c	Dr	16,000
	To Sai's capital A/c			10,000
	To Shankar's capital A/c			6,000
	(Profit on revaluation transferred to capital accounts)

Dr Revaluation A/c Cr
Particulars	Rs.	Rs.	Particulars	Rs.
To Furniture A/c		1,000	By Buildings A/c	16,000
To Provision for bad debts A/c		2,500	By Unrecorded investment A/c	6,000
To Unrecorded liability A/c		2,500
To Profit on revaluation transferred to
Sai's capital A/c (5/8)	10,000
Shankar's capital A/c (3/8)	6,000	16,000
		22,000		22,000

Dr Capital A/c Dr
Particulars	Sai	Shankar	Shanmugan	Particulars	Sai	Shankar	Shanmugam
To Balance c/d	58,000	46,000	12,000	By Balance b/d	48,000	40,000	-
				By Bank A/c	-	-	12,000
				By Revaluation A/c	10,000	6,000	-
	58,000	46,000	12,000		58,000	46,000	12,000
				By Balance b/d	58,000	46,000	12,000

Journal Entry
Particulars		Debit Rs.	Credit Rs.
Building A/c	Dr	70,000
Investment A/c	Dr	20,000
Sundry creditors A/c	Dr	16,000	1,06,000
To Revaluation A/c
(Profit items enterd in credit side)
Revaluation Alc	Dr	26,000
To Machinery A/c			14,000
To Furniture A/c			12,000
(Loss items enterd in credit side)
Revaluation A/c	Dr	70,000
To Seenu's capital A/c			43,750
To Siva's capital A/c			26,250
(old partner's capital in old ratio)

Dr Revaluation A/c Cr
Particulars	Rs.	Rs.	Particulars	Rs.
To Machinery A/c		14,000	By Building A/c	70,000
To Furniture A/c		12,000	By Investment A/c	20,000
To Profit on revaluation transferred to			By Sundry creditor A/c	16,000
Seenu's capital A/c	43,750
Siva's capital A/c	26,250	70,000
		1,06,000		1,06,000

Journal Entry
Date	Particulars	Debit Rs.	Credit Rs.
April 2017, 1	Premises A/c Dr	60,000
	To Revaluation A/c		60,000
	(Appreciation in value of premises recorded)
April 2017,1	Revaluation A/c Dr	10,000
	To Stock A/c		5,000
	To Furniture A/c		2,000
	To Machinery A/c		2,500
	(Decrease in assets recorded and outstanding liability made)		500
April 2017,1	Revaluation A/c Dr	50,000
	To Haris capital A/c		25,000
	To Madhavans capital A/c		15,000
	To Kesavan's Capital A/c		10,000
	(profit on revaluation transferred)

Dr Revaluation A/c Cr
Particulars	Rs.	Rs.	Particulars	Rs.
To Stock A/c		5,000	By Premises A/c	60,000
To Furniture A/c		2,000
To Machinery A/c		2,500
To Outstanding liability A/c		500
To Profit on revaluation transferred to
Hari's capital Ale (5/10)	25,000
Madhavan's capital Ale (3/10)	15,000
Kesavan's capital Ale (2/10)	10,000	50,000
		60,000		60,000

Dr.                 Revaluation Account                  Cr. Particulars Rs. Rs. Particulars Rs. To Stock A/c 2,000 By Investments A/c 11,000 To Profit on revaluation transferred to Veena’s capital A/c (2/3) 6,000 Pearl’s capital A/c (1/3) 3,000 9,000 11,000 11,000 Old ratio of Veena and Pearl = 2 : 1 that is, \(\frac { 2 }{ 3 } :\frac { 1 }{ 3 } \)
New ratio of Veena, Pearl and Deri = 5 : 3 : 2 i.e. \(\frac { 5 }{ 10 } :\frac { 3 }{ 10 } :\frac { 2 }{ 10 } \)
Share sacrificed = Old share - New share
Veena = \(\frac { 2 }{ 3 } -\frac { 5 }{ 10 } =\frac { 20-15 }{ 30 } =\frac { 5 }{ 30 } \)
Pearl = \(\frac { 1 }{ 3 } -\frac { 3 }{ 10 } =\frac { 10-9 }{ 30 } =\frac { 1 }{ 30 } \)
Sacrificing ratio of Veena and Pearl = 5:1
Dr.                     Capital Account                         Cr. Particulars Veena
Rs. Pearl
Rs. Deri
Rs. Particulars Veena
Rs. Pearl
Rs. Deri
Rs. To Bank A/c 5,000 1,000 - By Balance b/d 60,000 40,000 - To Balance c/d 92,000 56,000 30,000 By Bank A/c - - 30,000 By General reserve A/c 20,000 10,000 - By Workmen compensation fund A/c
(10,000- 1,000) 6,000 3,000 - By Revaluation A/c 6,000 3,000 - By Bank A/c*
(share of goodwill) 5,000 1,000 - 97,000 57,000 30,000 97,000 57,000 30,000 By Balance b/d 92,000 56,000 30,000 Goodwill of the firm is Rs. 30,000
Deri’s share of goodwill = 30,000 × 2/10 = Rs. 6,000
It is to be distributed to Veena and Pearl in their sacrificing ratio of 5 : 1
Dr.            Cash at bank Account           Cr. Particulars Rs. Particulars Rs. To Balance b/d 30,000 By Veena’s capital A/c 5,000 To Deri’s capital A/c 30,000 By Pearl’s capital A/c 1,000 To Veena’s capital A/c 5,000 By Balance c/d 60,000 To Pearl’s capital A/c 1,000 66,000 66,000 Balance Sheet as on 1st April 2018 Liabilities Rs. Rs. Assets Rs. Rs. Capital accounts: Buildings 60,000 Veena 92,000 Machinery 30,000 Pearl 56,000 Investments 11,000 Deri 30,000 1,78,000 Debtors 20,000 Workmen’s compensation Stock 10,000 fund (10,000-9,000) 1,000 Less: Decrease 2,000 8,000 Sundry creditors 10,000 Cash at bank 60,000 1,89,000 1,89,000

10.

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Rs.	Particulars	Rs.
To Furniture A/c		2,000	By Stock A/c	4,000
To Profit on revaluation transferred to			By Machinery A/c	20,000
Ameer’s capital A/c (3/5)	13,200
Raja’s capital A/c (2/5)	8,800	22,000
		24,000		24,000

**Dr. Capital Account Cr.**
Particulars	Ameer Rs.	Raja Rs.	Rohit Rs.	Particulars	Ameer Rs.	Raja Rs.	Rohit Rs.
To Balance c/d	1,08,200	88,800	30,000	By Balance b/d	80,000	70,000	-
				By Bank A/c	-	-	30,000
				By Reserve fund A/c	9,000	6,000	-
				By Revaluation A/c	13,200	8,800	-
				By Bank A/c* (share of goodwill	6,000	4,000	-
	1,08,200	88,800	30,000		1,08,200	88,800	30,000
				By Balance b/d	1,08,200	88,800	30,000

Since the sacrificing ratio is not given and the new partner’s share is given, it is assumed that the old profit sharing ratio (3:2) is the sacrificing ratio and the new partner’s share of goodwill is distributed to the old partners accordingly.

**Dr. Cash at bank Account Cr.**
Particulars	Rs.	Particulars	Rs.
To Balance b/d	20,000	By Balance	60,000
To Rohit’s capital A/c	30,000
To Ameer’s capital A/c	6,000
To Raja’s capital A/c	4,000
	60,000		60,000

Balance Sheet as on 1st January 2019
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts:			Machinery	60,000
Ameer	1,08,200		Add: Appreciation	20,000	80,000
Raja	88,800		Furniture	40,000
Rohit	30,000	2,27,000	Less: Depreciation	2,000	38,000
		35,000	Debtors		30,000
			Stock	10,000
			Add: Appreciation	4,000	14,000
			Prepaid insurance		40,000
			Cash at bank		60,000
		2,62,000			2,62,000

11.

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Particulars	Rs.	Rs.
To Buildings A/c	5,000	By Loss on revaluation transferred to
To Stock A/c	2,000	Rekha’s capital A/c (3/4)	7,500
To Provision for bad debts A/c	3,000	Mary’s capital A/c (1/4)	2,500	10,000
	10,000			10,000

**Dr. Capital Account Cr.**
Particulars	Rekha Rs.	Mary Rs.	Kavitha Rs.	Particulars	Rekha Rs.	Mary Rs.	Kavitha Rs.
To Revaluation A/c	7,500	2,500	-	By Balance b/d	50,000	30,000	-
To Rekha’s				By Bank A/c	-	-	20,000
capital A/c	-	-	4,000	By General reserve A/c	30,000	10,000	-
(share of goodwill)				By Workmen
				compensation fund A/c	7,500	2,500	-
To Balance c/d	84,000	40,000	16,000	By Kavith
				capital A/c	4,000	-	-
				(share of goodwill)
	91,500	42,500	20,000		91,500	42,500	20,000
				By Balance b/d	84,000	40,000	16,000

**Balance Sheet as on 1st April 2018**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts			Buildings	50,000
Rekha	84,000		Less: Depreciation	5,000	45,000
Mary	40,000		Stock	8,000
Kavitha	16,000	1,40,000	Less: Decrease	2,000	6,000
Sundry creditors		20,000	Sundry debtors	60,000
			Less: Provision for doubtful debts	3,000	57,000
			Bank (32,000+20,000		52,000
		1,60,000			1,60,000

12.

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Rs.	Particulars	Rs.
To Stock A/c		2,000	By Furniture A/c	15,000
To Debtors A/c		2,500
To Outstanding wages A/c		4,500
To Profit on revaluation transferred to capital A/c
Vetri (3/5)	3,600
Ranjit (2/5)	2,400	6,000
		15,000		15,000

**Dr. Capital Account Cr.**
Particulars	Vetri Rs.	Ranjit Rs.	Suriya Rs.	Particulars	Vetri Rs.	Ranjit Rs.	Suriya Rs.
To Profit and loss A/c	6,000	4,000	-	By Balance b/d	30,000	20,000	-
To Balance c/d	30,600	20,400	10,000	By Reserve fund A/c	3,000	2,000	-
				By Revaluation A/c	3,600	2,400	-
				By Cash A/c	-	-	10,000
	36,600	24,400	10,000		36,600	24,400	10,000
				By Balance b/d	30,600	20,400	10,000

**Balance Sheet as on 1st January 2018**
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Capital accounts:			Furniture	25,000
Vetri	30,600		Add: Appreciation	15,000	40,000
Ranjit	20,400		Stock	20,000
Suriya	10,000	61,000	Less: Depreciation	2,000	18,000
Sundry creditors		45,000	Debtors	10,000
Outstanding wages		4,500	Less: Decrease	2,500	7,500
			Cash in hand	35,000
			Add: Suriya's capital	10,000	45,000
		1,10,500			1,10,500

13.

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Rs	Particulars	Rs.
To		3,000	By Land A/c	10,000
To Provision for doubtful debts		2,000
To Profit on revaluation transferred to
Anand’s capital A/c (7/10)	3,500
Balu’s capital A/c (3/10)	1,500	5,000
		10,000		10,000

**Dr. Capital Account Cr.**
Particulars	Anand Rs.	Balu Rs.	Chandru Rs.	Particulars	Anand Rs.	Balu Rs.	Chandru Rs.
To Balance c/d	74,500	40,500	20,000	By Balance b/d	50,000	30,000	-
				By Bank A/c	-	-	20,000
				By Revaluation A	3,500	1,500	-
				By Profit and loss A/c	21,000	9,000	-
	74,500	40,500	20,000		74,500	40,500	20,000
				By Balance b/d	74,500	40,500	20,000

14.

**Journal entries**
Date	Particulars		L.F.	Debit Rs.	Credit Rs.
2017	Bank A/c	Dr.		10,000
April 1	To Prakash’s capital A.c (Capital brought by Prakash)				10,000
"	Revaluation A/c	Dr.		11,000
	To Machinery A/c				6,000
	To Furniture A/c				3,000
	To Provision for doubtful debts A/c (Depreciation on machinery and furniture and provision made for doubtful debts adjusted)				2,000
"	Trade receivables A/c		1,000
	To Revaluation A/c (Unrecorded trade receivables recorded)				1,000
"	Raghu’s capital A/c			6,000
	Sam’s capital A/c	Dr.		4,000
	To Revaluation A/c (Loss on revaluation transferred to capital accounts)				10,000

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Particulars	Rs.	Rs.
To Machinery	6,000	By Trade receivables A/c		1,000
To Furniture	3,000	By Loss on revaluation transferred to
To Provision for bad debts	2,000	Raghu’s capital A/c (3/5)	6,000
		Sam’s capital A/c (2/5	4,000	10,000
	11,000			11,000

**Dr. Capital Account Cr.**
Particulars	Ragu Rs.	Sam Rs.	Praksh Rs.	Particulars	Ragu Rs.	Sam Rs.	Prakash Rs.
To Revaluation A	6,000	4,000	-	By Balance b/d	40,000	30,000	-
To Balance c/d	34,000	26,000	10,000	By Bank	-	-	10,000
	40,000	30,000	10,000		40,000	30,000	10,000
				By Balance b/d	34,000	26,000	10,000

15.

**Journal entries**
Date	Particulars		Debit Rs.	Credit Rs.
2017	Stock A/c	Dr.	5,000
April 1	Investment A/c	Dr.	7,000
	To Revaluation A/c (Increase in the value of stock and unrecorded investment accounted)			12,000
"	Revaluation A/c	Dr.	19,500
	To Office equipment A/c			10,000
	To Outstanding wages A/c (Reduction in the value of office equipment and provision of outstanding wages recorded)			9,500
"	Sriram’s capital A/c	Dr.	5,000
	Raj’s capital A/c	Dr.	2,500
	To Revaluation A/c (Loss on revaluation transferred)			7,500

**Dr. Revaluation Account Cr.**
Particulars	Rs.	Particulars	Rs.	Rs.
To Office equipment A/c	10,000	By Stock A/c		5,000
To Outstanding wages A/c	9,500	By Investment A/c		7,000
		By Loss on revaluation transferred to
		Sriram’s capital A/c (2/3)	5,000
		Raj’s capital A/c (1/3)	2,500	7,500
	19,500			19,500