CBSE 2025, Set 2

Question

(a) Kishore and Ranjan were partners in a firm sharing profits and losses in the ratio of 3: 2. On 1st April, 2024, their Balance Sheet was as follows:

| Liabilities | Amount (₹) | Assets | Amount (₹) | |---|---|---|---| | Sundry Creditors | 1,80,000 | Cash in hand | 30,000 | | General Reserve | 20,000 | Debtors | 1,20,000 | | Capitals: | | Stock | 1,50,000 | | Kishore 6,00,000 | | Furniture | 1,00,000 | | Ranjan 4,00,000 | 10,00,000 | Land and Building | 8,00,000 | | **Total** | **12,00,000** | **Total** | **12,00,000** | On the above date, Singh was admitted as a new partner on the following terms:
(i) Singh will bring ₹1,50,000 as his capital and ₹50,000 as his share of goodwill premium.
(ii) The value of stock will be reduced by 10% and Land and Building will be appreciated by 10%.
(iii) Furniture will be revalued at ₹90,000.
(iv) A provision for doubtful debts will be created on sundry debtors at 5%.
(v) Investments worth ₹10,000 not mentioned in the Balance Sheet will be taken into account.
(vi) A creditor of ₹1,000 is not likely to claim his money and is to be written off.

Pass necessary journal entries for the above transactions in the books of the firm on Singh's admission.

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Kishore, Ranjan and Singh - Journal** | Date | Particulars | L.F. | Dr. Amount (₹) | Cr. Amount (₹) | |---|---|---|---|---| | 2024 Apr 1 | Cash/Bank A/c Dr.     To Singh's Capital A/c     To Premium for goodwill A/c (Amount brought by Singh) | | 2,00,000 | 1,50,000 50,000 | | | Premium for goodwill A/c Dr.     To Kishore's Capital A/c     To Ranjan's Capital A/c (Adjustment for goodwill in 3:2) | | 50,000 | 30,000 20,000 | | | General Reserve A/c Dr.     To Kishore's Capital A/c     To Ranjan's Capital A/c (General reserve distributed in 3:2) | | 20,000 | 12,000 8,000 | | | Revaluation A/c Dr.     To Stock A/c (10% of 1.5L)     To Furniture A/c (1L - 90k)     To Provision for doubtful debts A/c (5% of 1.2L) (Assets reduced/provision created) | | 31,000 | 15,000 10,000 6,000 | | | Land & Building A/c Dr. (10% of 8L) Investments A/c Dr. Creditors A/c Dr.     To Revaluation A/c (Assets increased/liabilities decreased) | | 80,000 10,000 1,000 | 91,000 | | | Revaluation A/c Dr. (91,000 - 31,000)     To Kishore's Capital A/c     To Ranjan's Capital A/c (Gain on reval distributed in 3:2) | | 60,000 | 36,000 24,000 |

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Accountancy > Accounting For Partnership Firms > Admission Of A Partner

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Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	1,80,000	Cash in hand	30,000
General Reserve	20,000	Debtors	1,20,000
Capitals:		Stock	1,50,000
Kishore 6,00,000		Furniture	1,00,000
Ranjan 4,00,000	10,00,000	Land and Building	8,00,000
Total	12,00,000	Total	12,00,000