12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-3
question_answer
A and B are partners sharing profits and losses in the ratio of 1:1. Following is their balance sheet. Balance Sheet as at...
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
1,00,000
Cash
50,000
General Reserve
60,000
Debtors
60,000
Workmen Compensation Fund
40,000
Building
2,00,000
Employees Provident Fund
50,000
Machine
1,00,000
Bills Payable
50,000
Stock
80,000
Capital A/cs
Patents
20,000
A
2,00,000
Investment
50,000
B
1,00,000
3,00,000
Goodwill
20,000
Profit and Loss
20,000
6,00,000
6,00,000
Adjustments
(i) C comes for l/6th share and brings capital of Rs. 1,00,000 and proportionate share in goodwill.
(ii) Goodwill of the firm is valued at Rs. 1,20,000.
(iii) Half the premium is withdrawn by old partners.
(iv) Rs. 20,000 unrecorded typewriter brought into books.
(v) Make Rs. 5,000 provision for unforseen liabilities.
(vi) Bills payable paid-off.
(vii) Building was found undervalued by Rs. 40,000.
(viii) Capital of A and B adjusted in new profit sharing ratio on the basis of C's capital. The difference is adjusted in cash.
Prepare revaluation account, partners' capital accounts, cash account and balance sheet of the new firm. Or A, B and C are partners with profit sharing ratio 5 : 3 : 2. Their balance sheet is as follows: Balance Sheet as at..
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
80,000
Bank
40,000
Bills Payable
60,000
Debtors
60,000
General Reserve
30,000
Furniture
40,000
Reserve for Contingency
20,000
Investment
30,000
Workmen Compensation Fund
40,000
Building
1,00,000
Provident Fund
40,000
Prepaid Insurance
10,000
Capital A/cs
Goodwill
20,000
A
40,000
Patents
30,000
B
30,000
Profit and Loss
40,000
C
30,000
1,00,000
3,70,000
3,70,000
Adjustments
(i) C takes retirement, new ratio of A and B is 3 : 2.
(ii) Rs. 10,000 given to C in cash and balance transferred to C's loan account.
(iii) Capital of new firm fixed at Rs. 2,00,000 and difference adjusted in cash.
(iv) Prepaid insurance is no more required.
(v) Rs. 10,000 unrecorded typewriter has to be shown in the balance sheet.
(vi) Investment is valued at Rs. 20,000 and is taken over by A at this value.
(vii) Make 5% provision for discount on creditors.
(viii) Outstanding repair bills due Rs. 10,000.
(ix) Provident fund decreased by 10,000.
(x) Accrued commission Rs. 5,000.
(xi) Building increased by 20%.
(xii) Goodwill of the firm valued at Rs. 40,000.
Prepare necessary ledgers.
Answer:
Dr Revaluation Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Provision for Unforseen Liability A/c
5,000
By Unrecorded Typewriter A/c
20,000
To Revaluation (Profit) Transferred to
By Building A/c
40,000
A,s Capital A/c
27,500
B?s Capital A/c
27,500
55,000
60,000
60,000
Dr Partners? Capital Account Cr
Particulars
A (Rs.)
B (Rs.)
C (Rs.)
Particulars
A (Rs.)
B (Rs.)
C (Rs.)
To Profit and Loss A/c
10,000
10,000
-
By Balance b/d
2,00,000
1,00,000
-
To Goodwill A/c
10,000
10,000
-
By Cash A/c
-
-
1,00,000
To Cash A/c
5,000
5,000
-
By General Reserve A/c
30,000
30,000
-
To Cash A/c
12,500
-
-
By Workmen Compensation Fund A/c
20,000
20,000
-
To Balance c/d
2,50,000
2,50,000
1,00,000
By Revaluation A/c (Profit)
27,500
27,500
-
By Premium for Goodwill A/c
10,000
10,000
-
By Cash A/c
-
87,500
-
2,87,500
2,75,000
1,00,000
2,87,500
2,75,000
1,00,000
Balance Sheet as at...
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Provision for Unforseen Liability
5,000
Typewriter (Unrecorded)
20,000
Creditors
1,00,000
Building (2,00,000 + 40,000)
2,40,000
Employee Provident Fund
50,000
Debtors
60,000
Capital A/c
Machine
1,00,000
A
2,50,000
Stock
80,000
B
2,50,000
Patents
20,000
C
1,00,000
6,00,000
Investment
50,000
Cash
1,85,000
7,55,000
7,55,000
Dr Cash Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Balance b/d
50,000
By Bills Payable A/c
50,000
To C?s Capital A/c
1,00,000
By A?s Capital A/c
5,000
To Premium for Goodwill A/c
20,000
By B?s Capital A/c
5,000
To B?s Capital A/c
87,500
By A?s Capital A/c
12,500
By Balance c/d
1,85,000
2,57,500
2,57,500
JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Cash A/c
Dr
1,20,000
To C?s Capital A?c
1,00,000
To Premium for Goodwill A/c
20,000
(Being cash brought in by Capital and good will
Premium for goodwill A/c
Dr
20,000
To A?s Capital A/c
10,000
To B?s Capital A/c
10,000
(Being amount of goodwill brought in by transferred to A and B)
Calculation of New Profit Sharing Ratio C?s Share \[\,=\,\frac{1}{6};\] Remaining Share \[\,=\,1-\frac{1}{6}=\frac{5}{6}\] A?s New Share \[=\,\frac{5}{6}\times \frac{1}{2}=\frac{5}{12};\] B?s New Share \[=\,\frac{5}{6}\times \frac{1}{2}=\frac{5}{12}\] Total Goodwill = Rs. 1,20,000 C?s Share in Goodwill \[\,=\,1,20,000\times \frac{1}{6}=\,Rs.\,20,000\] To be distributed between A and B in their sacrificing ratio i.e., 1 : 1. Adjustment of Capital C?s Share\[=\frac{1}{6};\] \[C\,brings\,Capital\,for\,\frac{1}{6}th\] Share = Rs. 1,00,000 Total Capital of Firm taking C?s Capital as Base = \[1,00,000\times \frac{6}{1}=\,Rs.\,6,00,000\] A?s Capital\[=\,6,00,000\times \frac{5}{12}=\,Rs.\,2,50,000\] B?s Capital \[\,=\,6,00,000\times \frac{5}{12}=\,Rs.\,2,50,000\] C?s Capital \[\,=\,6,00,000\times \frac{2}{12}=\,Rs.\,1,00,000\] Dr Revaluation Account Cr
