Accounting for Partnership Firms-Reconstitution and Dissolution (CBSE Class-12 Accountancy): Questions 45 - 48 of 60

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Question number: 45

» Accounting for Partnership Firms » Reconstitution and Dissolution » Change in the Profit Sharing Ratio

One Liner Question▾

Write in Brief

Where will you record ‘increase in machinery’ in case of change in profit sharing ratio among the existing partners?

Question number: 46

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

One Liner Question▾

Write in Brief

What do you understand by ‘Gaining Partner’?

Question number: 47

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

One Liner Question▾

Write in Brief

Give journal entry for distribution of ‘Accumulated Profits * in case of admission of a partner.

Question number: 48

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

Essay Question▾

Describe in Detail

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 same date, Z is admitted into partnership for 1/5th share on the following terms

a. Goodwill is to be valued at 3 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 item 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 of partners are to be in profit sharing ratio by opening current Accounts.

Explanation

REVALUATION ACCOUNT in the Books of X, Y AND Z

shows re-valuated amount of assets and liabilities

Dr.

Cr.

Particulars

Amount

Particulars

Amount Particulars

To Stock A/c

2000

By land A/c

16500

To furniture A/c

2420

By creditors A/c

1000

To Provision for bad debts A/c

4224

By provision of… (215 more words) …

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