PRACTICAL PROBLEMS [PAGES 161 - 167]
Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]
Practical Problems | Q 2 | Page 161
Amalendu and Sameer share profits and losses in the ratio 3:2 respectively Their balance sheet as on 31st March 2017 was as under.
Balance Sheet as on 31st March 2017
Liabilities | Amount (₹) | Assets | Amount (₹) |
Sundry Creditors | 10,000 | Cash at bank | 12,000 |
Amlendu capital | 60,000 | Sundry debtors | 24,000 |
Sameer capital | 40,000 | Land & Building | 50,000 |
General reserve | 20,000 | Stock | 16,000 |
Plant and machinery | 20,000 | ||
Furniture & fixture | 8,000 | ||
1,30,000 | 1,30,000 |
On 1st April 2017, they admit Paresh into partnership. The term being that:
1 He shall pay ₹16,000 as his share of Goodwill 50% amount of Goodwill shall be withdrawn by the old partners.
2 He shall have to bring in ₹20,000 as his Capital for 1/4 share in future profits.
3. For the purpose of Paresh’s admission, it was agreed that the assets would be revalued as follows.
A) Land and Building is to be valued at ₹60,000
B) Plant and Machinery to be valued at ₹16,000
C) Stock valued at ₹20,000 and Furniture and Fixtures at ₹4,000
D) A Provision of 5% on Debtors would be made for Doubtful Debts.
Pass The necessary Journal Entries in the Books of a New Firm.
Solution:
Journal entries in the books of Partnership Firm
Date | Particulars | L.F | Debit (₹) | Credit (₹) |
2017 April 1 | General Reserve A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being general reserve distributed among old partners) | 20,000 | 12,000 8,000 | |
Profit and Loss Adjustment A/c Dr. To Plant and Machinery A/c To Furniture & Fixture A/c To R.D.D. A/c (Being decrease in the value of assets and reserve for doubtful debts.) | 9,200 | 4,000 4,000 1,200 | ||
Land and Building A/c Dr. Stock A/c Dr. To Profit and Loss Adjustment A/c (Being appreciation in the value of assets) | 10,000 4,000 | 14,000 | ||
Profit and Loss Adjustment A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being profit on revaluation distributed in profit sharing ratio) | 4,800 | 2,880 1,920 | ||
Cash / Bank A/c Dr. To Paresh’s Capital A/c (Being amount brought in for capital by Paresh) | 20,000 | 20,000 | ||
Cash / Bank A/c Dr. To Goodwill A/c (Being amount brought in for goodwill by Paresh) | 16,000 | 16,000 | ||
Goodwill A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being goodwill distributed among old partners) | 16,000 | 9,600 6,400 | ||
Amalendu’s Capital A/c Dr. Sameer’s Capital A/c Dr. To Bank A/c (Being half of the goodwill amount withdrawn by old partners) | 4,800 3,200 | 8,000 |
Working Notes :
Dr | Goodwill Account | Cr | |||
Particulars | Amount (₹) | Particulars | Amount (₹) | ||
To Amalendu’s Capital A/c | 9,600 | By Cash / Bank A/c | 16,000 | ||
To Sameer’s Capital A/c | 6,400 | ||||
16,000 | 16,000 |
Dr | Profit and Loss Adjustment Account | Cr | |||||
Particulars | Amount (₹) | Amount (₹) | Particulars | Amount (₹) | Amount (₹) | ||
To Plant and Machinery A/c | 4,000 | By Land & Building A/c | 10,000 | ||||
To Furniture and Fixture A/c | 4,000 | By Stock A/c | 4,000 | ||||
To R.D.D. Debts A/c | 1,200 | ||||||
To Profit on Revaluation Transferred to Partners’ | |||||||
Capital A/cs : Amalendu | 2,880 1,920 | 4,800 | |||||
14,000 | 14,000 |
PRACTICAL PROBLEMS [PAGES 161 - 167]
Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]
Practical Problems | Q 1 | Page 161
Practical Problems | Q 2 | Page 161
Practical Problems | Q 3 | Page 162
Practical Problems | Q 4 | Page 163
Practical Problems | Q 5 | Page 163
Practical Problems | Q 6 | Page 164
Practical Problems | Q 7 | Page 164
Practical Problems | Q 8 | Page 165
Practical Problems | Q 9 | Page 166
Practical Problems | Q 10 | Page 167
Select appropriate alternatives from those given below and rewrite the sentence.
Write a word/phrase/term which can substitute the following statement.
State True or False with reason.
Calculate the following.
Calculate the following.
Calculate the following.
Book-keeping and Accountancy 12th Standard
HSC Maharashtra State Board. Latest Syllabus.
Chapter 1: Introduction to Partnership and Partnership Final Accounts
Chapter 2: Accounts of ‘Not for Profit’ Concerns
Chapter 3: Reconstitution of Partnership (Admission of Partner)
Chapter 4: Reconstitution of Partnership (Retirement of Partner)
Chapter 5: Reconstitution of Partnership (Death of Partner)
Chapter 6: Dissolution of Partnership Firm
Chapter 8: Company Accounts - Issue of Shares
Chapter 9: Analysis of Financial Statements
Chapter 10: Computer In Accounting
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