12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-8
question_answer
A and B are partners with profit sharing ratio of 3 : 1. Their balance sheet is given below: Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
4,00,000
Cash
60,000
Bills Payable
80,000
Bank
1,00,000
General Reserve
80,000
Debtors
1,20,000
Profit and Loss
40,000
Building
4,00,000
Outstanding Expenses
40,000
Machinery
2,00,000
Capital A/cs
Investment
80,000
A
2,00,000
Patent
40,000
B
2,00,000
4,00,000
Goodwill
40,000
10,40,000
10,40,000
Adjustments
(a) C comes for l/5th share and brings capital Rs. 1,60,000 and premium for goodwill Rs. 40,000.
(b) Building increased by 20%.
(c) Outstanding expenses valued at Rs. 50,000.
(d) Make 5% provision for discount on creditors.
(e) Make 10% provision for doubtful debts and 5% provision for discount on debtors.
(f) Capitals of A and B adjusted in new ratio on the basis of C's capital and difference adjusted in current account.
(g) Half premium withdrawn by old partners.
Prepare revaluation account, partners' capital account, cash account and balance sheet. Or A, B and C are partners. They share profits in capital ratio. Their balance sheet is given below: Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
2,00,000
Cash in Hand
80,000
Bank Overdraft
1,00,000
Debtors
82,000
Reserves
60,000
(-) Provision for doubtful Debts
(2,000)
80,000
Expenses Due
40,000
Land and Building
4,00,000
Capital A/cs
Machinery
40,000
A
80,000
B
80,000
C
40,000
2,00,000
6,00,000
6,00,000
Adjustments
(a) B takes retirement.
(b) New ratio of A and C is 1 : 1.
(c) Goodwill of the firm Rs. 1,20,000.
(d) Make 5% provision for debtors.
(e) Building increased by 10%.
(f) Make provision for claim for damages of Rs. 12,000.
(g) Rs. 20,000 paid to B in cash. Balance transferred to his loan account.
(h) Capital of new firm Rs. 4,00,000, difference adjusted through current accounts.
Prepare revaluation account, partners' capital accounts, cash account and balance sheet.
Answer:
Dr Revaluation Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Outstanding Expenses A/c
10,000
By Building A/c
80,000
To Provision for Doubtful Debts A/c
12,000
By Provision for Discount on Creditors A/c
20,000
To Provision for Discount on Debtors A/c
5,400
To Profit Transferred to
A's Capital A/c
54,450
B's Capital A/c
18,150
72,600
1,00,000
1,00,000
Dr Partners' Capital Account Cr
Particulars
A (Rs.)
B (Rs.)
C (Rs.)
Particulars
A (Rs.)
B (Rs.)
C (Rs.)
To Cash A/c
15,000
5,000
-
By Balance b/d
2,00,000
2,00,000
-
To Goodwill A/c
30,000
10,000
-
By Cash A/c
-
-
1,60,000
To Current A/c
-
83,150
-
By Premium for
-
To Balance c/d
4,80,000
1,60,000
1,60,000
Goodwill A/c
30,000
10,000
Reserve A/c
60,000
20,000
-
By Profit and Loss A/c
30,000
10,000
-
By Revaluation A/c
54,450
18,150
-
(Profit)
By Current A/c
1,50,550
-
-
5,25,000
2,58,150
1,60,000
5,25,000
2,58,150
1,60,000
Dr Cash Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Balance b/d
60,000
By A?s Capital A/c
15,000
To C's Capital A/c
1,60,000
By B?s Capital A/c
5,000
To Premium for Goodwill A/c
40,000
By Balance c/d
2,40,000
2,60,000
2,60,000
Balance Sheet as at ...
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors (4,00,000 ? 20,000)
3,80,000
Cash
2,40,000
Bills Payable
80,000
Bank
1,00,000
Outstanding Expenses (40,000+10,000)
50,000
Debtors
1,20,000
B's Current A/c
83,150
(-) Provision for Doubtful Debts
(12,000)
Capital A/cs
1,08,000
A
4,80,000
(-) Discount on Debtors
(5,400)
1,02,600
B
1,60,000
Building (4,00,000+80,000)
4,80,000
C
1,60,000
8,00,000
Machinery
2,00,000
Investment
80,000
Patents
40,000
A/s Current A/c
1,50,550
13,93,150
13,93,150
Working Notes 1. Calculation for New Profit Sharing Ratio C's Share \[=\frac{1}{5}\] Remaining Share \[=1-\frac{1}{5}=\frac{4}{5}\] A's New Share \[=\frac{4}{5}\times \frac{3}{4}=\frac{12}{20}\] B's New Share \[=\frac{4}{5}\times \frac{1}{4}=\frac{4}{20}\] C's New Share \[=\frac{1}{5}\times \frac{4}{4}=\frac{4}{20}\] New Profit Sharing Ratio = 12 : 4 : 4 = 3 : 1 : 1 2. C's Share \[=\frac{1}{5}\] C's Capital = Rs. 1,60,000 Total Capital of Firm \[=1,60,000\times \frac{5}{1}=Rs.\,8,00,000\] A's Capital \[=8,00,000\times \frac{3}{5}=Rs.\,4,80,000\] B's Capital \[=8,00,000\times \frac{1}{5}=Rs.\,1,60,000\] C'S Capital \[=8,00,000\times \frac{1}{5}=Rs.\,1,60,000\] JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Cash A/c
Dr
2,00,000
To C's Capital A/c
1,60,000
To Premium for Goodwill A/c
40,000
(Being cash brought in by C for capital and goodwill)
Goodwill A/c
Dr
40,000
To A's Capital A/c
30,000
To B's Capital A/c
10,000
(Being goodwill transferred to A and B in their sacrificing ratio)
