Accounting for Partnership Firms (CBSE Class-12 Accountancy): Questions 85 - 88 of 135

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Question number: 85

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

Short Answer Question▾

Write in Short

Why is it necessary to distribute Reserves Accumulated, Profits and Losses at the time of retirement or death of a partner?

Question number: 86

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

Essay Question▾

Describe in Detail

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 terms: -

a. Furniture of Rs. 2, 400 were to be taken over by Dinesh, Yasmine 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.

Explanation

REVALUATION ACCOUNT in the Books of Dinesh, Yamine, Farte and Anie

shows re-valuated amount of assets and liabilities

Particulars

amount

Particulars

amount

To Bills Discounted A/c

1670

By Public deposits A/c

190

By Machinery A/c

200

By Loss transferred to

Dinesh’s capital A/c

704

Faria’s Capitla A/c

128

1280

1670… (166 more words) …

Question number: 87

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

One Liner Question▾

Write in Brief

At the time of retirement of a partner give journal entry for writing off the existing goodwill.

Question number: 88

» Accounting for Partnership Firms » Not-for-Profit Organizations

One Liner Question▾

Write in Brief

What are the objectives of accounting for NPO?

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