12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-6
question_answer
Sohan and Mohan are two partners sharing profits and losses in the ratio of 3 : 2. Their balance sheet as at 31st March, 2017 is as follows: Balance Sheet as at 31st March, 201
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Capital A/cs
Land and Building
3,00,000
Sohan
30,00,000
Furniture
1,60,000
Mohan
20,00,000
50,00,000
Bills Receivable
40,000
General Reserve
2,00,000
Sundry Debtors
55,000
Sundry Creditors
60,000
Cash at Bank
85,000
Bills Payable
40,000
Stock
2,00,000
Workmen Compensation Fund
40,000
8,40,000
8,40,000
Rohan is to be admitted as a partner with effect from 1st April, 2017 on the following terms: (i) Rohan will bring in Rs. 2,00,000 as capital and Rs. 1,20,000 as premium for goodwill for 1/5th share of profit. (ii) Half premium withdrawn by old partners. (iii) The assets will be revalued as, land and building Rs. 4,50,000; furniture Rs. 1,20,000; stock Rs. 1,50,000. (iv) The claim of a creditor for Rs. 40,000 is settled at Rs. 35,000. (v) Capital of Sohan and Mohan adjusted in new profit sharing ratio on the basis of Rohan's capital. Difference adjusted in cash account. (vi) Bills payable paid off by raising bank loan. You are required to show the revaluation account, partners' capital accounts and the balance sheet of the new firm. Or V, W and X were carrying out a business as partners and sharing profits in the ratio of 2 : 1 : 1. Their balance sheet as at 31st December, 2017 is as follows: Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Bills Payable
10,600
Buildings
70,000
Sundry Creditors
11,000
Plant and Machinery
78,000
Capital A/cs
Stock
16,000
V
75,000
Debtors
22,000
W
50,000
(-) Provision for Doubtful Debts
(400)
21,600
X
55,000
1,80,000
Bank
7,500
Profit and Loss A/c
1,400
Cash
9,900
2,03,000
2,03,000
V decided to retire on that date because of health problems. In this regard, following adjustments were agreed upon: (i) The value of buildings to be increased to Rs. 96,000. (ii) The provision for bad and doubtful debts on debtors to be maintained at 3%. (iii) Plant and machinery should be valued at 20% less. (iv) Goodwill of the firm is valued at Rs. 36,000 and V's share is to be adjusted in the remaining partners' accounts. (v) W and X agree that the capital of the new firm would be in their new profit sharing ratio and adjustments to be made through cash. You are required to prepare revaluation account, partners' capital accounts and balance sheet.
Answer:
Dr Revaluation Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Furniture A/c
40,000
By Building A/c
1,50,000
To Stock A/c
50,000
By Creditors A/c
5,000
To Revaluation (Profit) Transferred to
Sohan's Capital A/c
39,000
Mohan's Capital A/c
26,000
65,000
1,55,000
1,55,000
Dr Partners? Capital Account Cr
Particulars
Sohan (Rs.)
Mohan (Rs.)
Rohan (Rs.)
Particulars
Sohan (Rs.)
Mohan (Rs.)
Rohan (Rs.)
To Cash A/c
36,000
24,000
-
By Balance b/d
3,00,000
2,00,000
-
(Premium)
By General Reserve A/c
1,20,000
80,000
-
To Cash A/c
39,000
26,000
-
By Cash A/c
-
-
2,00,000
(Balancing figure)
By Premium For Goodwill A/c (3 : 2)
72,000
48,000
-
To Balance c/d
4,84,000
3,20,000
2,00,000
By Workmen
(W.N.)
Compensation
Fund A/c
24,000
16,000
-
By Revaluation A/c
39,000
26,000
-
(Profit)
5,55,000
3,70,000
2,00,000
5,55,000
3,70,000
2,00,000
Dr Cash Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Balance b/d
85,000
By Sohan?s Capital A/c (Premium)
36,000
To Rohan's Capital A/c
2,00,000
By Mohan?s Capital A/c (Premium)
24,000
To Premium for Goodwill A/c
1,20,000
By Creditors A/c
35,000
To Bank Loan A/c
40,000
By Bills Payable A/c
40,000
By Sohan's Capital A/c
39,000
(Excess capital)
By Mohan's Capital A/c
26,000
(Excess capital)
By Balance c/d
2,45,000
4,45,000
4,45,000
Balance Sheet as at 31st March, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Sundry Creditors (60,000 - 40,000)
20,000
Land and Building
4,50,000
Bank Loan
40,000
(3,00,000 + 1,50,000)
Capital A/cs
Furniture (1,60,000 - 40,000)
1,20,000
Sohan
4,80,000
Bills Receivable
40,000
Mohan
3,20,000
Debtors
55,000
Rohan
2,00,000
10,00,000
Stock(2,00,000 - 50,000)
1,50,000
Bank
2,45,000
10,60,000
10,60,000
Working Notes General reserve = 2,00,000 (3 : 2) Sohan \[=\frac{3}{5}\times 2,00,000\,=\,Rs.\,1,20,000\] Mohan \[=\frac{2}{5}\times 2,00,000\,=\,Rs.\,80,000\] Calculation of New Profit Sharing Ratio Rohans' share \[=\frac{1}{5}\] Remaining share \[=1-\frac{1}{5}=\frac{5-1}{5}=\frac{4}{5}\] Sohan's share \[=\frac{3}{5}\times \frac{4}{5}=\frac{12}{25}\] Mohan's share \[=\frac{2}{5}\times \frac{4}{5}=\frac{8}{25}\] Rohan's share \[=\frac{1}{5}\times \frac{5}{5}=\frac{5}{25}\] New profit sharing ratio = 12 : 8 : 5 Calculation of Capital after Adjustment Rohan's capital for 1/5 share = Rs. 2,00,000 Firm's capital =\[2,00,000\times \frac{5}{1}\,=Rs.\,10,00,000\] Sohan's capital =\[10,00,000\times \frac{12}{25}\,=Rs.\,4,80,000\] Mohan's capital =\[10,00,000\times \frac{8}{25}\,=Rs.\,3,20,000\] Rohan's capital =\[10,00,000\times \frac{5}{25}\,=Rs.\,2,00,000\] Or Dr Revaluation Account Cr
