XXX
12 Marks questions
L. New Partner brings his /her goodwill in cash which is retained (not withdrawn) in the
business. share of
(Goodwill brought in cash and retained in business)
H0. **A' and B' are partners sharing profits and losses in the ratio of 2 : 1. Their balance sheei as on
31.3.2023 was as follows:
Balance sheet as on 31.3.2023
Amount Amount
Liabilities Assets
Creditors 20,000 Cash in Hand 5,000
Bills Payable 10.000 Stock 15,000
Reserve Fund 12,000 Debtors 20,000
Capitals: Machinery 30,000
A 60,000 Buildings 60,000
B 40.000 Investments 12,000
1,42,000 1,42,000
HPUAccOuntancy
58
Reconstitution of Partnership Firm - Admission of a Partner
On 01.04.2023, C' is admitted into partnership on the following conditions:
(a) C should bring in cash Rs. 25,000 as his capital and Rs. 15,000 as Goodwill for his 1/8th share in futur
profits.
(b) Appreciate buildings at 20% and stock is revalued at Rs. 12,000.
(c) Provision for doubtful debts (PDD) is maintained at 5% on debtors.
(d) Outstanding salary Rs. 2,000.
Prepare: i) Revaluation Account,
i) Partners? Capital Account, and
ii) Balance sheet of the firm.
will be tn tio)
hen goodwill amount is rauo Seeparately, because in this case old ratio itself debit side of old
capital accounts withdrawn, A/c (or Cash A/c) on the partnerS
45. *Raja and (because goodwill amountwrite *To Bank withdrawn by old partners)
Rani are partners in a i.e., cash, is
as on
31.03.2023 was as firm sharing profits and losses in the ratio of 3:2. Their balance sheet
follows.
203 Balance Sheet as on 31.03.2023
Amount
Liabilities Amount
Assets
Creditors 40,000 Cash 5,000
Bills Payable 60,000
20,000| Machinery
General Reserve 25,000 Stock 25,000
Capitals: Debtors 23,000
Raja 60,000 Less: PDD 3,000 20,000
Rani 40,000 1,00,000 50,000
Buildings
Investments 20,000
P& L Account 5,000
1,85,000 1,85,000
On 01.04.2023 they admitted Mantri as a partner and offer him 1/sth share in the future profits on the
following terms.
(a) MMantri has to bring in . 30,000 as his capital and ?. 10,000 towards goodwill. Goodwill is to be
withdrawn by theold partners.
b) Depreciate Machinery by 5%.
)Appreciate buildings by 10%.
Jdent's iluminator
H PU Accountancy
Less: Deprec
of
1,30,000 half or
some
portion
Goodi
cash and
IIA. New Partner brings his / her share of good in
good will
W Their
balance
sheet as on
amount is withdrawn ratio of
2:1.
in the
47. *Anil and Sunil are partners in a firm sharing profits
31.03.2023 was as follows.
aplhd Balance Sheet as on
31.03.2023
Amount
Amount Assets
Liabilities
2 1 3
4.000
Bills Payable 16,000 Cash 30,000
5,000 Sundry debtors
Sundry Creditors 32,000
Reserved Fund 9,000 Stock
8,000
Capitals: Furniture
56,000
Anil 60,000 Buildings
10,000
Sunil 50,000 Motor Car
1,40,000
1,40,000
On 01.04.2023 they admitted Vimal for V4'h share in future profits under the following terms.
(a) He should bring cash for capital &.40,000 and . 30,000 for goodwill.
(b) Half of the goodwill amountwithdrawn by the old partners.
(c) Buildings are revalued at &. 66,000 and make a provision for legal charges . 700.
(d) Stock and Motor Car be depreciated by 10% each.
(e) Provide for doubtful debts at 5% on debtors.
Prepare: i. Revaluation Account,
ii. Partners Capital Account, and
ii. Balance sheet of the new firm.
Openng balance of cash, then add New partners capital. After that, add goodwill amoUn
partner. Finally deduct the goodwill
Pujari and Purohit are
amount withdrawn by old partners) was as follows.
on 31.03 .2023
4S. equal partners. Their balance sheet as
Balance Sheet as on 31.03.2023
Amount
Amount
Liabilities Assets
1,800
Bills Payable 6,600 Cash
23,600
Sundry Creditors 12,800 Stock
Sundry debtors 25,000
Capitals Accounts: 20.000
Less: PDD 5,000
Pujari 40,000
4,000
Purohit 30,000 70,000 Furniture
40,000
Buildings
89,400
89,400 on th
and offered him 1/4" share in the profit
OnOn 01.04.2023, they admitted Pandit as a new partner
following terms.
towards goodwill.
(a) He should bring in .30,000 as capital and18,000
old partners.
(b) Half of the goodwill should be withdrawn by the
each
(c) Stock and Furniture to be depreciated by 10%
d) PDD is reduced by . 3,000.
Prepare: i) Revaluation Account,
ii) PartnersCapital Account, and
ii) New Balance sheet of the firm.
ns:
Cr.
ller goodwill adjustment, Chaya's capital is brought down to and to
th
added
(i.e., ? 40,000 3,000 is
5000).
only ? 2,000 is added Further, to the capital A/c of Vani only
V. Questions
with capital adjustment in cash sheet as o
52. () Capital Balance
2¬
Adjustment when cash
goodwill
in towards equally. is their
*Gouri and is brought Following
31.3.2017. Ganesh are partners in a firm Sharing profit
31.3.2023
Balance sheet as on Amount
Amount
Liabilities Assets
7,000
Creditors 20,000 Cash in Hand
Bills Payable 25,000
4,000 Stock
General Reserve 40,000
6,000| Buildings
Capitals: Debtors 17,000
Gouri 80,000 Less: PDD 1,500 15,500
Ganesh 40,000 Furniture 14,500
Patents 30,000
Plant & Machinery 18,000
1,50,000
1,50,000
On 01.04.2023, Shiva is admitted into partnership on the following terms:
(a) Shiva should bring . 25,000 as capital.
(b)Shiva brings &. 2,000 towards his share of goodwill.
(c) Stock is to be increased by 8%o.
(d) Provision for doubtful debts is increased to . 2.600.
minotor
appearing in Balance sheet. Therefore, thereis R. A/c as aniterm of
required. Hence, it.is shown on the credit side of Revaluation 18,000. Their bal-
In the Balance sheet, from Debtors
of.
ratio of
3:2.
43. *Sachin PDD of. 900 is deducted
losses in
the
and Dravid are profits and
sheet is given below. partners in a firm sharing
o n31.03.2023
Balance Sheet as Amount
Amount
Liabilities Assets
2,000
Creditors 18,000 Cash in Hand
18,000
Bills Payable 12,000 Cash at Bank
Reserve Fund Sundry debtors 25,000
3,000
2,000 23,000
Capitals: Less: PDD
10,000
Sachin 50,000 Stock
Dravid 50,000 1,00,000 Furniture 25,000
Buildings 50,000
P&LAccount 5,000
1,33,000 1,33,000
On 01.04.2023, they admitted Ashwin as new partner into partnership on
the following terms:
Goodwill for /4" share in future profits.
(a)He brings in . 40,000 as capital and Rs. 18,000 towards
Buildings are revalued at. 45,000.
(b) Depreciate Furniture by 10% and
(c) PDD increased to .3,500.
(d) Prepaid insurance . 2,000. ii) Partners Capital Account.
Prepare: î) Revaluation Account.
on 01.04.2023.
iü)) New Balance sheet as
