12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-7
question_answer
Aashi, Kiran and Madhu were carrying on partnership business sharing profits in the ratio of 3 : 2 : 1 respectively. On 31st December, 2017, the balance sheet of the firm stood as follows : Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
27,180
Cash
9,400
Capital A/cs
Debtors
16,000
Aashi
30,000
Stock
23,380
Kiran
20,000
Building
46,000
Madhu
20,000
70,000
Profit and Loss
2,400
97,180
97,180
Kiran retired on the above mentioned date on the following terms: (i) Buildings to be appreciated by Rs.14,000. (ii) Provision for doubtful debts to be made at 5% on debtors. (iii) Goodwill of the firm is valued at Rs. 36,000 and adjustment in this respect to be made in the continuing partners' capital account without raising goodwill account. (iv) Rs. 6,000 to be paid to Kiran immediately and the balance in her capital account to be transferred to his loan account. Prepare revaluation account, capital account and the balance sheet after Kiran's retirement. Or A and B are partners with 3 : 2 ratio. Their balance is given below: Balance Sheet as at ?
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
1,00,000
Cash
30,000
Bills Payable
1,00,000
Bank
40,000
Profit and Loss
30,000
Debtors
61,000
Reserve Fund
40,000
(-) Provision for Doubtful Debts
(1,000)
60,000
Workmen's Compensation Fund
30,000
Building
2,00,000
Provident Fund
10,000
Machinery
1,00,000
Capital A/cs
Investment
40,000
A
1,00,000
Patents
20,000
B
1,00,000
2,00,000
Goodwill
20,000
5,10,000
5,10,000
Adjustments (i) C comes as a new partner. (ii) New profit sharing ratio is 5 : 3 : 2. (iii) C brings capital Rs. 80,000 and premium Rs. 20,000 out of his share of Rs. 30,000. (iv) Make 10% provision for doubtful debts on debtors. (v) Patents are valueless. (vi) Worker compensation liabilities fixed at Rs. 20,000. (vii) Building undervalued by Rs. 40,000. (viii) Machine overvalued by Rs. 10,000. Prepare necessary accounts and balance sheet of the newly constituted firm when old partners decide to adjust their capitals on the basis of new partner's capital, the balance to be adjusted through current accounts.
Answer:
Dr Revaluation Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Provision for Doubtful Debts A/c
800
By Building A/c
14,000
To Profit Transferred to
Aashi's Capital A/c
6,600
Kiran's Capital A/c
4,400
Madhu's Capital A/c
2,200
13,200
14,000
14,000
Dr Partners 'Capital Account Cr
Particulars
Aashi (Rs.)
Kiran (Rs.)
Madhu (Rs.)
Particulars
Ashi (Rs.)
Kiran (Rs.)
Madhu (Rs.)
To Kiran?s Capital A/c
9,000
-
3,000
By Balance b/d
30,000
20,000
20,000
(Note)
To Profit and Loss A/c
1,200
800
400
By Revaluation A/c (Profit)
6,600
4,400
2,200
To Cash A/c
-
6,000
-
By Aashi?s Capital A/c
-
9000
-
To Kiran's Loan A/c
-
29,600
-
(Note)
To Balance c/d
26,400
-
18,800
By Madhu?s Capital A/c
-
3,000
-
(Note)
36,600
36,400
22,200
36,600
36,400
22,200
Dr Cash Account Cr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Balance b/d
9,400
By Kiran?s Capital A/c
6,000
By Balance c/d
3,400
9,400
9,400
Balance Sheet as at 1st April, 2015
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
27,180
Cash
3,400
Kiran's Loan A/c
29,600
Sock
23,380
Capital A/cs
Debtors
16,000
Aashi
26,400
(-) Provision For Doubtful Debts
(8000)
15,200
Madhu
18,800
45,200
Building
60,000
1,01,980
1,01,980
Note Kiran's share of goodwill' \[36,000\times 1/3\]or' 12,000 has been debited to capital accounts of Aashi and Madhu in their gaining ratio, i.e., 3:1 and credited to Kiran's capital account. Dr Revaluation Account Cr
