12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-4
question_answer
Ritu, Mitu and Shitu are Partners with profit sharing ratio of 2 : 2 : 1. Their balance sheet is given below: Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
1,00,000
Bank
60,000
Bills Payable
70,000
Debtors
52,000
Reserve Fund
40,000
(-) Provision for Doubtful Debts
(2,000)
50,000
Workmen Compensation fund
30,000
Building
2,00,000
Profit and Loss
20,000
Furniture
1,30,000
Provident Fund
20,000
Investment
30,000
Capital A/cs
Prepaid Insurance
10,000
Ritu
80,000
Goodwill
20,000
Mitu
80,000
Shitu
60,000
2,20,000
5,00,000
5,00,000
Adjustments (i) Chintu comes as a new partner and brings proportionate capital and goodwill. (ii) New ratio is 3 : 3 : 2 : 2. (iii) Goodwill of the firm is Rs. 50,000. (iv) Prepaid insurance is no more required. (v) Provision for doubtful debts is to be increased to Rs. 5,000. (vi) Investment is valued at Rs. 20,000 and is taken over by Ritu. (vii) Furniture valued at Rs.1,00,000. (viii) Building valued at 120%. Prepare necessary accounts and balance sheet. Or Manish, Nirjhar and Kshitij are partners with ratio 5 : 3 : 2. Balance Sheet as at?.
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
1,00,000
Cash in Hand
40,000
Expenses Owing
20,000
Debtors
60,000
Reserve Fund
30,000
Building
1,00,000
Workmen Compensation Fund
10,000
Bills Receivable
40,000
Capital A/cs
Goodwill
20,000
Manish
60,000
Profit and Loss
30,000
Nirjhar
60,000
Patents
30,000
Kshitij
40,000
1,60,000
3,20,000
3,20,000
Adjustments (i) Manish takes retirement. (ii) New ratio of Nirjhar and Kshitij is 1 : 1 and goodwill of the firm is valued at Rs. 60,000. (iii) Expenses owing increased by Rs. 10,000. (iv) Creditors increased to Rs. 1,05,000. (v) Rs. 10,000 bills receivable dishonoured and are not recoverable. (vi) Patents are now value less. (vii) Rs. 20,000 unrecorded investment brought into books. (viii) Rs. 10,000 paid to Manish in cash and balance is transferred to his loan account. Prepare necessary accounts and balance sheet.
Answer:
Dr Revaluation Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Prepaid Insurance A/
10,000
By Building A/c
40,000
To Provision for Doubtful debts A/c
3,000
By Revaluation Loss Transferred to
To Investment A/c
10,000
Ritu?s Capital A/c
5,200
To Furniture A/c
30,000
Mitu?s Capital A/c
5,200
Shitu?s Capital A/c
2,600
13,000
53,000
53,000
Dr Partners? Capital Account Cr
Particulars
Ritu (Rs.)
Mitu (Rs.)
Shitu (Rs.)
Chintu (Rs.)
Particulars
Ritu (Rs.)
Mitu (Rs.)
Shitu (Rs.)
Chintu (Rs.)
To Goodwill Ac/c
8,000
8,000
4,000
-
By Balance b/d
80,000
80,000
60,000
-
To Investment A/c
20,000
-
-
-
By Profit & Loss A/c
8,000
8,000
4,000
-
To Revaluation A/c
5,200
5,200
2,600
-
By Workmen
(Loss)
Compensation
To Balance c/d
87,800
1,07,800
71,400
66,750
Fund A/c
12,000
12,000
6,000
-
By Reserve
Fund A/c
16,000
16,000
8,000
-
By Premium for
Goodwill A/c
5,000
5,000
-
By Bank A/c
-
-
-
66,750
1,21,000
1,21,000
78,000
66,750
1,21,000
1,21,000
78,000
66,750
Dr Bank Account Cr
Particulars
Amt (Rs.)
Amt (Rs.)
To Balance b/d
60,000
By Balance c/d
1,36,750
To Premium for Goodwill A/c
10,000
To Chintu?s Capital A/c
66,750
1,36,750
1,36,750
Balance Sheet as at?
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
1,00,000
Bank
1,36,750
Bills Payable
70,000
Debtors
52,000
Provident Fund
20,000
(-) Provision for Doubtful
Capital A/cs
Debts
(5,000)
47,000
Ritu
87,800
Building (2,00,000 + 40,000)
2,40,000
Mitu
1,07,800
Furniture (1,30,000 ? 30,000)
1,00,000
Shitu
71,400
Chintu
66,750
3,33,750
3,33,750
5,23,750
5,23,750
Working Notes Sacrificing Ratio = Old Share ? New Share Ritu \[\,=\,\frac{2}{5}\,-\,\frac{3}{10}\,=\,\frac{4-3}{10}=\frac{1}{10}\] Mitu \[=\,\frac{2}{5}\,-\,\frac{3}{10}\,=\,\frac{4-3}{10}=\frac{1}{10}\] Shitu \[=\,\frac{1}{5}\,-\,\frac{2}{10}\,=\,\frac{2-2}{10}=\frac{0}{10}\] \[\therefore \] Sacrificing Ratio = Ritu : Mitu = 1 : 1 Calculation of Shitu?s Capital Total Capital of Ritu, Mitu and Shitu after all Adjustments = 87,800 + 1,07,800 + 71,400 = Rs. 2,67,000 Total Share = 1; Chintu?s Share =\[\frac{2}{10}\,;\] Remaining Share of Ritu, Mitu and Shitu \[=\,1-\frac{2}{10}\,=\,\frac{10-2}{10}\,=\,\frac{8}{10}\] Thus, for \[\frac{8}{10}th\] Share of Profits, the Capital = Rs. 2,67,000 Then, Total Capital of the Firm \[=\,2,67,000\times \frac{10}{8}\,=\,Rs.\,3,33,750\] \[\therefore \,\text{Chintu }\!\!'\!\!\text{ s}\,\,\text{Capital}\,\,\text{for}\,\frac{2}{10}\text{th}\,\,\text{Share}\,\,\text{of}\,\,\text{Profit}\,=\,3,33,750\times \frac{2}{10}=Rs.\,66,750\] Or Dr Revaluation Account Cr
