CBSE 2025, Set 3

Question

Bose and Ghosh were partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet on 31st March, 2024 was as follows:
| Liabilities | Amount (₹) | Assets | Amount (₹) | |---|---|---|---| | Capitals: | | Machinery | 4,20,000 | | Bose 3,00,000 | | Furniture | 1,05,000 | | Ghosh 2,25,000 | 5,25,000 | Debtors 90,000 | | | Workmen's Comp Res | 45,000 | Less: Prov 4,500 | 85,500 | | Bank loan | 75,000 | Stock | 97,500 | | Creditors | 93,000 | Cash | 30,000 | | **Total** | **7,38,000** | **Total** | **7,38,000** |

Dutt was admitted into the firm on 1st April, 2024 for 1/6th share in the profits of the firm on the following terms:
(i) Dutt will bring capital proportionate to his share in the profits of the firm.
(ii) Goodwill of the firm was valued at ₹ 3,00,000 and Dutt will bring his share of goodwill premium in cash.
(iii) Machinery was revalued at ₹ 4,80,000.
(iv) A provision for doubtful debts was to be made equal to 10% of debtors.
(v) A liability of ₹ 3,000 included in creditors was not likely to arise.

Prepare Revaluation Account and Partners' Capital Accounts on Dutt's admission.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Bose and Ghosh** **Revaluation A/c** | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Provision for doubtful debts (9000-4500) | 4,500 | By Machinery A/c (4,80,000 - 4,20,000) | 60,000 | | To Profit transferred to: | | By Creditors A/c | 3,000 | | Bose's Capital A/c (35,100) | | | | | Ghosh's capital A/c (23,400) | 58,500 | | | | **Total** | **63,000** | **Total** | **63,000** | **Partners' Capital Accounts** | Dr. Particulars | Bose (₹) | Ghosh (₹) | Dutt (₹) | Cr. Particulars | Bose (₹) | Ghosh (₹) | Dutt (₹) | |---|---|---|---|---|---|---|---| | To Balance c/d | 3,92,100 | 2,86,400 | 1,35,700 | By Balance b/d | 3,00,000 | 2,25,000 | - | | | | | | By Cash A/c (Cap) | - | - | 1,35,700 | | | | | | By Prem for GW A/c | 30,000 | 20,000 | - | | | | | | By WCR A/c | 27,000 | 18,000 | - | | | | | | By Revaluation A/c | 35,100 | 23,400 | - | | **Total** | **3,92,100**| **2,86,400**| **1,35,700**| **Total** | **3,92,100**| **2,86,400**| **1,35,700**| *Working Note for Dutt's Capital:* Combined capital of old partners for 5/6th share = 3,92,100 + 2,86,400 = ₹ 6,78,500. Total capital of new firm = 6,78,500 × (6/5) = ₹ 8,14,200. Dutt's Capital = 8,14,200 × (1/6) = ₹ 1,35,700.

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Accountancy > Accounting For Partnership Firms > Admission Of A Partner

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Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Machinery	4,20,000
Bose 3,00,000		Furniture	1,05,000
Ghosh 2,25,000	5,25,000	Debtors 90,000
Workmen's Comp Res	45,000	Less: Prov 4,500	85,500
Bank loan	75,000	Stock	97,500
Creditors	93,000	Cash	30,000
Total	7,38,000	Total	7,38,000