12th Standard English Medium Accountancy Subject Admission of a Partner Creative 5 Mark Questions with Solution Part - II updated Creative Questions | QB365

12th Standard Syllabus & Materials

12th Standard

TN 12th Computer Applications மின்னணு தரவு பரிமாற்றம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிக பாதுகாப்பு அமைப்புகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின்னணு செலுத்தல் முறைகள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications மின் - வணிகம் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications திறந்த மூல கருத்துருக்கள் Sample Question Papers Study Material - QB365 Set A

NEW

12th Standard

TN 12th Computer Applications வலையமைப்பு வடமிடல் Sample Question Papers Study Material - QB365 Set A

12th Standard English Medium Accountancy Subject Admission of a Partner Creative 5 Mark Questions with Solution Part - II updated Creative Questions

Published on: 13/05/2022

QB365 provides detailed and simple solution for every
Creative Questions in class 12 Accountancy Subject. It will helps to get more idea about question pattern in
every Creative questions with solution.

latest Creative Questions

Download Tamil Nadu 12th Standard Accountancy question papers, model tests, one-mark questions, important questions, and public exam papers in PDF format. Free study materials and answer keys for TN State Board students.

Questions + Answers key

Take MCQ Accountancy Test

QB365 Student Learing Managemnet System

Std: 12th Standard - Accountancy

chapter: - Creative Questions

Visit QB365-SLMS - https://www.qb365.in/slms/ Complete Questions and Answers

Questions:

Generic 5

5 x 5 = 25

Lakshmi and Saraswathi are partners of a firm sharing profits and losses in proportion to capital. Trial Balance sheet as on 31^st March 2019 is as under

Liabilities	Rs.	Rs.	Assets	Rs.
Sundry creditors		60,000	Bank	12,000
Bills payable		40,000	Sundry debtors A/c	40,000
Capital Accounts:			Stock	40,000
Lakshmi	60,000		Plant	90,000
Saraswathi	40,000	1,000,000	Furniture	18,000
		2,00,000		2,00,000

They decided to admit Sulochana into the partnership with effect from 1st April, 2005 on the following terms.
(a) Sulochana shall bring in a capital Rs. 50,000 for \(\frac{1}{5}\)^th share of profits.
(b) Goodwill is to be valued at Rs. 40,000.
(c) Plant and furniture was to be depreciated by 5%
(d) Provision for doubtful debts be created at 1\(\frac{1}{2}\%\) on sundry debtors.
Show revaluation account, capital accounts, bank account and Balance sheet of the reconstituted partnership.

Valluvan and Kamban were partners sharing profits and losses as 60% tovalluvan and 40% Kamban. Their balance sheet as at 1^st January, 2019 stood as under:

Liabilities	Rs.	Rs.	Assets	Rs.
Sundry creditors		96,000	Cash in hand	4,000
Bills payable		34,000	Sundry debtors	56,000
Capital Accounts:			Stock	40,000
Valluvan	90,000		Plant and machinery	80,000
Kamban	80,000	1,70,000	Land and Buildings	1,20,000
		3,00,000		3,00,000

The partners agreed to admit Elangovan into the firm subject to revaluation of the following items:
(i) Stock was to be reduced by Rs. 4,000
(ii) Land and Buildings were to be valued at Rs. 1,60,000
(iii) A provision of 2\(\frac{1}{2}\)% was to be created for doubtful debtors.
(iv) A liability of Rs.2,600 for outstanding expenses had been omitted to be recorded in the books
Prepare the Revaluation account, capital accounts and the Balance sheet after the above adjustment

Kavitha and Radha are partners of a firm sharing profits and losses in the ratio of 4:3. They admit Deepa on 1.1.2019. On that date, their balance sheet showed debit balance of profit and loss account being accumulate loss
Rs. 1,40,000 on the asset side of the balance sheet. Give the journal entry to transfer the accumulated loss on admission.

Kokila and Mala were sharing profits in the ratio of 4:3. Chandra was admitted in the business as a partner with \(\frac{3}{7}\)th share in the profits of the firm which she takes \(\frac{2}{7}\) th from Kokila and \(\frac{1}{7}\) th from Mala. Find out New profit Ratio and the sacrificing ratio.

Sridevi and Santhiya were partners sharing profit and loss in the ratio of 3:2. They decided to admit Fathima into the partnership and revalue their assets and liabilities as indicated here under:
(a) To bring into record investment of Rs. 18,000 which had not so far been recorded in the books of the firm.
(b) To depreciate stock, furniture and machinery by, Rs.18,000, Rs.6,000 and Rs.30,000 respectively.
(c) To provide for workmen's compensation of Rs.24,000
Pass the necessary journal entries and show the revaluation account.

Visit QB365-SLMS - https://www.qb365.in/slms/

Answers Key:

Generic 5

5 x 5 = 25

Dr Revaluation Account Cr
Particulars	Rs.	Particulars	Rs.	Rs.
To Plant A/c	4,500	By Loss on revaluation:
To Furniture A/c	900	Lakshmi's capital A/c	3,600
To Provision for doubtful debts	600	Saraswathi's capital A/c	2,400	6,000
	6,000			6,000

Dr Capital Account Cr
Particulars	Lakshmi Rs.	Saraswathi Rs.	Sulochana Rs.	Particulars	Lakshmi Rs.	Saraswathi Rs.	Sulochana Rs
To Revaluation A/c	3,600	2,400		By Balance b/d	60,000	40,000
To Balance c/d	34,000	26,000		By Bank A/c	-	-	50,000
	84,000	56,000	50,000		84,000	56,000	50,000
				By Balance b/d	80,400	53,000	50,000

Dr Bank A/c cr
Particulars	Rs.	Particulars	Rs.
To Balance b/s	12,000	By Balance c/d	62,000
To Sulochana's capital A/c	50,000
	62,000		62,000

Balance sheet of Lakshmi, Saraswathi and Sulochana as on 31.3.2005
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Sundry creditors		60,000	Bank		62,000
Bills payable		40,000	Sundry Debtors	40,000
			Less: Provision for doubtful debts	600	39,400
Capital Accounts:			Stock		40,000
Lakshmi	80,400		Plant	90,000
Saraswathi	53,600		Less: Depreciation	4,500	85,500
Sulochana	50,000	1,84,000	Furniture	18,000
			Less: Depreciation	900	17,100
			Goodwill		40,000
		2,84,000			2,84,000

Dr Revaluation Account Cr
Particulars		Rs.	Particulars	Rs.
To Stock A/c		4,000	By Land and Buildings A/c	40,000
To Provision for doubtful debts A/c		1,400
To Outstanding expenses A/c		2,600
To Profit on revaluation transferred to :
Valluvan's capital A/c	19,200
Kambans capital A/c	12,800	32,000
		40,000		40,000

Dr Capital Account Cr
Particulars	Ragu Rs.	Sam Rs.	Particulars	Ragu Rs.	Sam Rs.
To Balance c/d	1,09,200	92,800	By Balance b/d	90,000	80,000
	34,000	26,000	By Revaluation A/c	19,200	12,800
	1,09,000	92,000		1,09,000	92,000
			By Balance b/d	1,09,000	92,000

Balance sheet ofValluvan and Kamban as on 1st January, 2019
Liabilities	Rs.	Rs.	Assets	Rs.	Rs.
Outstanding expenses		2,600	Cash in hand		4,000
Sundry creditors		96,000	Sundry Debtors	56,000
Bills payable		34,000	Less: Provision for doubtful debts	1,400	54,600
Capital Accounts:			Stock	40,000
Vallauvan	1,09,200		Loss: Reduction	4,000	36,000
Kamban	92,800	2,02,000	Plant & Machinery		80,000
			Land and buildings	1,20,000
			Add: Appreciation	40,000	1,60,000
		3,34,600			3,34,600

Journal entry
Date	Particulars		Debit Rs.	Credit Rs.
2019 January 1	Kavutha's capital A/c	Dr	80,000
	Radha's capital A/c	Dr	60,000
	To Profit and loss A/c			1,40,000
	(Accumulated loss transferred to old partner's capital account in the old profit sharing ratio)

New ratio: Kokila : Mala : Chandra
Old ratio 4 : 3 : -
Old share \(\frac{4}{3}\) : \(\frac{3}{7}\) : -
Sacrifice \(\frac{2}{7}\) :    \(\frac{1}{7}\) : -
New ratio = Old ratio - sacrifice
New share  \(=\frac { 4 }{ 7 } -\frac { 2 }{ 7 } \): \(\frac { 3 }{ 7 } -\frac { 1 }{ 7 } \) :   \(\frac { 3 }{ 7 } \)
= \(\frac { 2 }{ 7 } \) :  \(\frac { 2 }{ 7 } \) : \(\frac { 3 }{ 7 } \)
∴New ratio = 2 : 2 : 3
Sacrifice ratio = 2 : 1

Journal entries
Particulars		Debit Rs.	Credit Rs.
Investment A/c	Dr	18,000
To Revaluation A/c			18,000
(Profit item credited to Revaluation A/c)
Revaluation A/c	Dr	78,000
To Stock A/c			18,000
To Furniture A/c			6,000
To Machinery A/c			30,000
To Workmen's compensation A/c			24,000
(Loss items debited to revaluation A/c)
Sridevi's Capital A/c	Dr	36,000
Santhiya's Capital A/c	Dr	24,000
To Revaluation Alc			60,000
(Loss on revaluation transferred to old partners capital accounts in the old ratio)

Dr Revaluation Account Cr
Particulars	Rs.	Particulars	Rs.	Rs.
To Stock A/c	18,000	By Investments A/c		18,000
To Furniture A/c	6,000	By Loss on revaluation transferred to :
To Machinery A/c	30,000	Sridevi's capital A/c	36,000
To Workmen's compensation A/c	24,000	Santhiya's capital A/c	24,000	60,000
	78,000			78,000