CBSE 2025, Set 1

Question

(a) Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3:1. Their Balance Sheet on 31st March, 2024 was as follows:

| Liabilities | Amount (₹) | Assets | Amount (₹) |
|---|---|---|---|
| Capitals: | | Machinery | 3,90,000 |
| Aryan 3,20,000 | | Furniture | 90,000 |
| Adya 2,40,000 | 5,60,000 | Debtors 80,000 | |
| Workmen's Comp Res | 20,000 | Less: Prov 1,000 | 79,000 |
| Bank loan | 60,000 | Stock | 77,000 |
| Creditors | 48,000 | Cash | 32,000 |
| | | P&L Account | 20,000 |
| **Total** | **6,88,000** | **Total** | **6,88,000** |

Dev was admitted into the firm on 1st April, 2024 for 1/5th share in the profits of the firm on the following terms:
(i) Dev will bring capital proportionate to his share in the profits of the firm.
(ii) Goodwill of the firm was valued at ₹ 2,00,000 and Dev will bring his share of goodwill premium in cash.
(iii) Machinery was revalued at ₹ 4,50,000.
(iv) A provision for doubtful debts was to be created at 5% on debtors.
(v) A liability of ₹ 3,500 included in creditors was not likely to arise.

Prepare Revaluation Account and Partners' Capital Accounts on Dev's admission.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Aryan and Adya** **Revaluation A/c** | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Provision for doubtful debts (4000-1000) | 3,000 | By Machinery A/c (4,50,000 - 3,90,000) | 60,000 | | To Profit transferred to: | | By Creditors A/c | 3,500 | | Aryan's Capital A/c (45,000) | | | | | Adya's capital A/c (15,000) | 60,500 | | | | **Total** | **63,500** | **Total** | **63,500** | **Partners' Capital Accounts** | Dr. Particulars | Aryan (₹) | Adya (₹) | Dev (₹) | Cr. Particulars | Aryan (₹) | Adya (₹) | Dev (₹) | |---|---|---|---|---|---|---|---| | To P&L A/c | 15,000 | 5,000 | - | By Balance b/d | 3,20,000 | 2,40,000 | - | | To Balance c/d | 3,95,000 | 2,65,000 | 1,65,000 | By Cash A/c (Cap) | - | - | 1,65,000 | | | | | | By Prem for GW A/c | 30,000 | 10,000 | - | | | | | | By WCR A/c | 15,000 | 5,000 | - | | | | | | By Revaluation A/c | 45,000 | 15,000 | - | | **Total** | **4,10,000**| **2,70,000**| **1,65,000**| **Total** | **4,10,000**| **2,70,000**| **1,65,000**| *Working Note for Dev's Capital:* Combined capital of old partners for 4/5th share = 3,95,000 + 2,65,000 = ₹ 6,60,000. Total capital of new firm = 6,60,000 × (5/4) = ₹ 8,25,000. Dev's Capital = 8,25,000 × (1/5) = ₹ 1,65,000.

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Machinery	3,90,000
Aryan 3,20,000		Furniture	90,000
Adya 2,40,000	5,60,000	Debtors 80,000
Workmen's Comp Res	20,000	Less: Prov 1,000	79,000
Bank loan	60,000	Stock	77,000
Creditors	48,000	Cash	32,000
		P&L Account	20,000
Total	6,88,000	Total	6,88,000