CBSE 2025, Set 2

Question

(a) Suman and Raman 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 | 2,80,000 | | Suman 2,00,000 | | Furniture | 70,000 | | Raman 1,50,000 | 3,50,000 | Debtors 60,000 | | | Workmen's Comp Res | 30,000 | Less: Prov 3,000 | 57,000 | | Bank loan | 50,000 | Stock | 65,000 | | Creditors | 62,000 | Cash | 20,000 | | **Total** | **4,92,000** | **Total** | **4,92,000** |

Kiran was admitted into the firm on 1st April, 2024 for 1/6th share in the profits of the firm on the following terms:
(i) Kiran will bring capital proportionate to her share in the profits of the firm.
(ii) Goodwill of the firm was valued at ₹ 1,50,000 and Kiran will bring her share of goodwill premium in cash.
(iii) Machinery was revalued at ₹ 3,20,000.
(iv) A provision for doubtful debts was to be made equal to 10% of debtors.
(v) A liability of ₹ 2,000 included in creditors was not likely to arise.

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

Edvaya · Accepted Answer

The correct answer is Subjective. **Books of Suman and Raman** **Revaluation A/c** | Dr. Particulars | Amount (₹) | Cr. Particulars | Amount (₹) | |---|---|---|---| | To Provision for doubtful debts (6000-3000) | 3,000 | By Machinery A/c (3,20,000 - 2,80,000) | 40,000 | | To Profit transferred to: | | By Creditors A/c | 2,000 | | Suman's Capital A/c (23,400) | | | | | Raman's capital A/c (15,600) | 39,000 | | | | **Total** | **42,000** | **Total** | **42,000** | **Partners' Capital Accounts** | Dr. Particulars | Suman (₹) | Raman (₹) | Kiran (₹) | Cr. Particulars | Suman (₹) | Raman (₹) | Kiran (₹) | |---|---|---|---|---|---|---|---| | To Balance c/d | 2,56,400 | 1,87,600 | 88,800 | By Balance b/d | 2,00,000 | 1,50,000 | - | | | | | | By Cash A/c (Cap) | - | - | 88,800 | | | | | | By Prem for GW A/c | 15,000 | 10,000 | - | | | | | | By WCR A/c | 18,000 | 12,000 | - | | | | | | By Revaluation A/c | 23,400 | 15,600 | - | | **Total** | **2,56,400**| **1,87,600**| **88,800**| **Total** | **2,56,400**| **1,87,600**| **88,800**| *Working Note for Kiran's Capital:* Combined capital of old partners for 5/6th share = 2,56,400 + 1,87,600 = ₹ 4,44,000. Total capital of new firm = 4,44,000 × (6/5) = ₹ 5,32,800. Kiran's Capital = 5,32,800 × (1/6) = ₹ 88,800.

Edvaya Target

Edvaya Aspire

Take a Free Mock Test

Target Subjects

Aspire Subjects

Subject Mastery

Accountancy > Accounting For Partnership Firms > Admission Of A Partner

Keep Practicing

Edvaya Target

Current Question

Community Stats

Track Your Progress

Quick Actions

We Value Your Privacy

Liabilities	Amount (₹)	Assets	Amount (₹)
Capitals:		Machinery	2,80,000
Suman 2,00,000		Furniture	70,000
Raman 1,50,000	3,50,000	Debtors 60,000
Workmen's Comp Res	30,000	Less: Prov 3,000	57,000
Bank loan	50,000	Stock	65,000
Creditors	62,000	Cash	20,000
Total	4,92,000	Total	4,92,000