Expert Classes
th
Class: - 12 Marks: - 20
Subject: - Account PAPER 1 Time: - 60 minutes
Q1) Multiple Choice Questions: (3M)
1. Revaluation account is………..type of account.
(a) Personal (b) Real (c) Nominal (d) Temporary
2. As per accounting standard-26 goodwill can not be shown in the books.
(a) Goodwill for which some amount is paid for consideration (b) Internally generated
(c) (a) and (b) both (d) Neither of (a) and (b)
3. Profit or loss of revaluation account is transferred to….account in…… Ratio.
(a) old partners, equal (b) all partners, new profit-loss sharing ratio
(c) old partners, sacrificing ratio (d) old partners, old ratio
Q2) Answer in one sentences: (1M)
4. State the rights of new partner.
Q3) Answer the following in short. (16M)
5. P and Q are partners sharing profit and loss in the ratio of 3:2. Balance sheet of their firm
as on 31-3-2016 was as under:
Balance Sheet
Liability Amt.(₹) Assets Amt.(₹)
Capital: Land-Building 80,000
P 70,000 Debtors 22,000
Q 50,000 1,20,000 - BDR 2000 20,000
Provident fund 18,000 Stock 36,000
Creditors 22,000 Cash 4000
Goodwill 20,000
1,60,000 1,60,000
On above date they admitted R as a new partner on the following terms:
(1) R will bring ₹60,000 as capital in cash.
(2) Goodwill is valued at ₹30,000.
(3) R can not bring his share of goodwill in cash.
(4) Value of land and building is ₹90,000.
(5) Bad debt reserve is to be provided at 5% on debtors.
(6) Value of stock is to be reduced by ₹ 400.
(7) Creditors of ₹ 500 are not to be paid.
(8) New profit and loss sharing ratio of all partners is decided at 5:2:3.
From the above information prepare necessary accounts and balance sheet after
admission.
6. Parshvi and Aneri are the partners sharing profit and loss in the ratio of 2:1. Balance
sheet of their firm as on 31-3-2016 was as under:
Balance Sheet
Liabilities Amt (₹) Assets Amt (₹)
Capital:- Goodwill 21,000
Parshvi. 91,000 Building 1,40,000
Aneri. 84,000 1,75,000 Furniture 28,000
Capital reserve 14,700 Stock 18,200
Workmen saving account 7000 Debtors 16,800
Workmen profit sharing fund 8400 Cash 56,000
10% Loan from bank 35,000
Creditors 39,900
2,80,000 2,80,000
On 1-4-2016 they admitted Henshi as a new partner on the following conditions:
(1) New profit and loss sharing ratio is to be kept at 3:4:2.
(2) Henshi brings ₹ 40,000 as capital.
(3) Interest on bank loan is outstanding for one year.
(4) Personal expense of Parshvi paid by the firm is debited to the profit and loss
account ₹ 5600.
(5) Reconstruction expense is paid by Aneri ₹ 8400.
(6) Goodwill is valued at ₹ 90,000.
(7) Parshvi and Aneri will maintain their capital in the new firm in their new profit and
loss sharing ratio by taking Henshi's capital as base. For this purpose necessary
adjustments should be made in partners current account.
Prepare necessary accounts and balance sheet after admission.
Expert Classes
th
Class: - 12 Marks: - 20
Subject: - Account PAPER 2 Time: - 60 minutes
•Multiple Choice Questions. (3M)
1. When new partner brings his share of goodwill in cash, account is credited.
(a) cash. (b) premium for goodwill (c) goodwill. (d) his capital account
2.Revaluation account is also known as
(a)Profit-loss account. (b)Profit and loss adjustment account
(c)Profit and loss appropriation account . (d)Profit and loss suspense account
3.When only old profit-loss sharing ratio is given; sacrificing ratio of old partners = …….
(a)Equal. (b)Old ratio. (c)Old share new share. (d) Can not be calculated.
• Answer the following questions. (1M)
4.How is a new partner admitted in a firm ?
•Solve the following. (16M)
5. Bhavya and Shlok are partners in a firm sharing profit and loss in the ratio of 3:2
Balance sheet of their firm as on 31-3-2017 is as under:
Balance Sheet
Liabilities Amt.(₹) Assets Amt.(₹)
Capital:- Goodwill 1,00,000
Bhavya 4,00,000 Land-Building 3,50,000
Shlok 3,00,000 7,00,000 Machinery 2,00,000
General reserve 90,000 Stock 1,80,000
Workmen’s compensation reserve 20,000 Debtors. 1,20,000
Investment reserve 10,000 –Bad debt reserve. 10,000 1,10,000
Creditors 1,40,000 Investment 20,000
Bills payable 60,000 Cash-Bank 50,000
Advertisement campaign 10,000
expenditure
10,20,000 10,20,000
They admitted Aayush as a new partner on 1-4-2017 on the following conditions:
(1) Aayush brought ₹ 5,00,000 as his capital and ₹ 1,00,000 as his share of goodwill in
cash.
(2) Value of land-building is to be increased by ₹ 80,000.
(3) Value of machinery is to be reduced upto ₹ 1,60,000.
(4) Provision for doubtful debt is to be kept 10% on debtors.
(5) Provision for outstanding repairing expense is to be made ₹ 8000.
(6) New profit and loss sharing ratio of all partners is to be kept at 2:1:2.
From the above particulars; Prepare Revaluation a/c, Partners' capital a/c, Cash-bank a/c
and new balance sheet after admission.
6. Pandit and Pandya are partners in a firm sharing profit and loss in the ratio of 2:1. The
balance-sheet of the firm as on 31-3-2016 was as under:
Balance Sheet
Liability Amt.(₹) Assets Amt.(₹)
Capital: Goodwill 30,000
Pandit 1,30,000 Building 2,00,000
Pandya 1,20,000 2,50,000 Furniture 40,000
Capital reserve 21,000 Stock 26,000
Workmen’s savings A/c 10,000 Debtors 24,000
Workmen’s profit sharing fund 12,000 Cash 80,000
10%loan 50,000
Creditors 57,000
4,00,000 4,00,000
They admitted Patel as a new partner as on 1-4-2016 on the following terms:
(1) New profit and loss sharing ratio is to be kept at 3:5:1.
(2) Patel brought ₹ 50,000 as his capital in cash.
(3) Interest on loan is outstanding for last year.
(4) Personal expenses ₹ 8000 of Pandya was debited to the profit and loss account.
(5) Reconstruction's expense of ₹ 12,000 is paid by Pandit.
(6) Goodwill is valued at ₹ 2,70,000.
(7) Capital of Pandit and Pandya in the new firm should be kept in new profit and loss
ratio by taking Patel's capital as the base. For this purpose necessary adjustments
are to be made in their current account.
Prepare necessary accounts and balance sheet of the new firm.
