Accounting for Partnership Firms (CBSE Class-12 Accountancy): Questions 81 - 84 of 135

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Question number: 81

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

Write in Brief

What is meant by the new profit - sharing Ratio in case of admission of a Partner?

Question number: 82

» Accounting for Partnership Firms » Reconstitution and Dissolution » Retirement and Death of a Partner

Short Answer Question▾

Write in Short

Why is it necessary to revalue assets and reassess liabilities at the time of retirement of a partner?

Question number: 83

» Accounting for Partnership Firms » Reconstitution and Dissolution » Admission of a Partner

One Liner Question▾

Write in Brief

Why a new Partners brings capital into the firm?

Question number: 84

» Accounting for Partnership Firms » Partnership

Essay Question▾

Describe in Detail

A, B and C are equal partners in a firm, their Balance Sheet as on 31st March 2002 was as follows:

Balance sheet as on 31st march, 2002.

shows assets and liabilities of the firm at the end of the year.

Liabilities

Rs.

Assets

Rs.

Sundry Creditors

27, 000

Goodwill

1, 17, 000

Employees Provident Fund

6, 000

Building

1, 25, 000

Bills Payable

45, 000

Machinery

72, 000

General Reserve

18, 000

Furniture

24, 000

Capitals:

A

B

C

2, 17, 000

1, 66, 000

90, 000

Stock

1, 14, 000

Bad Debts

1, 02, 000

Cash

12, 000

Advertisement Suspense A/c

3, 000

5, 69, 000

5, 69, 000

On that date they agree to take D as equal partner on the following terms:

  1. D should bring in Rs. 1, 60, 000 as his capital and goodwill. His share of goodwill is valued at Rs. 60, 000.
  2. Goodwill appearing in the books must be written off.
  3. Provision for loss on stock and provision for doubtful debts is to be made at 10 % and 5 % respectively.
  4. The value of building is to taken Rs. 2, 00, 000.
  5. The total capital of the new firm has been fixed has been fixed at Rs. 4, 00, 000 and the partners capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash.

Required: Prepare the Revaluation Account, Partners Capital Accounts, and the Balance Sheet of the new firm.

Explanation

revaluation account of the firm

shows re-valuate amount of assets and liabilities

(Dr. ) Particulars

Rs.

(Cr. ) Particulars

Rs.

To Stock

11400

By land & building

75000

To provision for doubtful debtors

5100

A’s Capital A/c (1/3)

19500

B’s Capital A/c (1/3)

19500

C’s Capital A/c (1/3)

19500

75000… (186 more words) …

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