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Accountancy · 2024 · 6 marks
Reconstitution of a Partnership Firm – Admission of a PartnerAdjustment for Accumulated Profits and Losses6 markslong answer
CBSE 2024 · Region 4 · Set 3 · Q23
Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of 7:3. Their Balance Sheet as on 31st March, 2023 was as follows: Balance…
Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of $\displaystyle 7$:3. Their Balance Sheet as on 31st March, $\displaystyle 2023$ was as follows :
Balance Sheet of Anikesh and Bhavesh as on 31st March, $\displaystyle 2023$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | $\displaystyle 60,000$ | Cash | $\displaystyle 36,000$ |
| Outstanding wages | $\displaystyle 9,000$ | Debtors $\displaystyle 54,000$ | |
| General Reserve | $\displaystyle 15,000$ | Less : Provision for doubtful debts $\displaystyle 6,000$ | $\displaystyle 48,000$ |
| Capitals : | Stock | $\displaystyle 60,000$ | |
| Anikesh $\displaystyle 1,20,000$ | Furniture | $\displaystyle 1,20,000$ | |
| Bhavesh $\displaystyle 1,80,000$ | $\displaystyle 3,00,000$ | Machinery | $\displaystyle 1,20,000$ |
| $\displaystyle 3,84,000$ | $\displaystyle 3,84,000$ |
On 1st April, $\displaystyle 2023$ Cha fat was admitted for $\displaystyle 1$/4th share in the profits on the following terms : (i) Cha fat will bring ₹ $\displaystyle 90,000$ as her capital and ₹ $\displaystyle 30,000$ as her share of Goodwill premium. (ii) Outstanding wages will be paid. (iii) Stock will be reduced by $\displaystyle 10$%. (iv) A creditor of ₹ $\displaystyle 6,300$, not recorded in the books, was to be taken into account. Pass necessary Journal Entries for the above transactions in the books of the firm.
Prina, Qadir and Kian were partners in a firm sharing profits in the ratio of $\displaystyle 7$:$\displaystyle 2$:1. On 31st March, $\displaystyle 2023$ their Balance Sheet was as follows :
Balance Sheet of Prima, Qadir and Kian as on 31st March, $\displaystyle 2023$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Land | $\displaystyle 12,00,000$ | |
| Prina $\displaystyle 9,60,000$ | Building | $\displaystyle 9,00,000$ | |
| Qadir $\displaystyle 8,40,000$ | Furniture | $\displaystyle 3,60,000$ | |
| Kian $\displaystyle 9,00,000$ | $\displaystyle 27,00,000$ | Stock | $\displaystyle 6,60,000$ |
| General Reserve | $\displaystyle 3,00,000$ | Debtors $\displaystyle 6,00,000$ | |
| Workmen's compensation Reserve | $\displaystyle 5,40,000$ | Less : Provision for doubtful debts $\displaystyle 30,000$ | $\displaystyle 5,70,000$ |
| Creditors | $\displaystyle 3,60,000$ | Cash at Bank | $\displaystyle 2,10,000$ |
| $\displaystyle 39,00,000$ | $\displaystyle 39,00,000$ |
On the above date Qadir retired. Following was agreed : (i) Goodwill of the firm was valued at ₹ $\displaystyle 12,00$,000. (ii) Land was to be appreciated by $\displaystyle 30$% and building was to be depreciated by ₹ $\displaystyle 3,54$,000. (iii) A provision of $\displaystyle 6$% is to be maintained on debtors. (iv) Liability for workmen's compensation was determined at ₹ $\displaystyle 1,40$,000. (v) Amount payable to Qadir was transferred to his loan account. (vi) Total capital of the new firm was fixed at ₹ $\displaystyle 16,00,000$ which will be adjusted according to their new profit ratio by opening current accounts. Prepare Revaluation Account and Partners' Capital Accounts.
Marking-scheme solution
Books of Anikesh and Bhavesh
Journal
L.F Debit Credit
Date Particulars Amount Amount
(₹) (₹)
General Reserve A/c Dr $\displaystyle 15,000$
To Anikesh’s Capital A/c $\displaystyle 10,500$
To Bhavesh’s Capital A/c $\displaystyle 4,500$
(General Reserve balance transferred to
partners’ capital account in old ratio)
Cash/ Bank A/c Dr $\displaystyle 1,20,000$
To Chahat’s Capital A/c $\displaystyle 90,000$
To Premium for goodwill A/c $\displaystyle 30,000$
(Amount brought in by Chahat as her capital
and her share of goodwill)
Premium for goodwill A/c Dr $\displaystyle 30,000$
To Anikesh’s Capital A/c $\displaystyle 21,000$
To Bhavesh’s Capital A/c $\displaystyle 9,000$
(Goodwill premium brought in by new
partner shared by old partners in their
sacrificing ratio)
_____________________________________
Outstanding Wages A/c Dr
$\displaystyle 9,000$
To Cash/ Bank A/c
$\displaystyle 9,000$
(Outstanding wages paid)
_____________________________________
Revaluation A/c Dr
$\displaystyle 12,300$
To Stock A/c
$\displaystyle 6,000$
To Creditors A/c
$\displaystyle 6,300$
(Decrease in the value of stock and increase in
the value of creditors on revaluation recorded)
_____________________________________
Anikesh’s Capital A/c Dr $\displaystyle 8,610$
Bhavesh’s Capital A/c Dr $\displaystyle 3,690$
$\displaystyle 12,300$
To Revaluation A/c
(Loss on revaluation of assets and
reassessment of liabilities transferred to
partners’ capital account in old ratio)
Or
Q. (b) Prina, Qadir and…………………………
Ans.
Dr Revaluation A/c Cr
Particulars Amount Amount
Particulars
(₹) (₹)
To Building A/c $\displaystyle 3,54,000$ By Land A/c $\displaystyle 3,60,000$
To Provision for doubtful $\displaystyle 6,000$
debts A/c
$\displaystyle 3,60,000$ $\displaystyle 3,60,000$
Dr Partners’ Capital A/c Cr
Particulars Prina Qadir Kian Particulars Prina Qadir Kian
₹ ₹ ₹ ₹ ₹ ₹
To Qadir’s $\displaystyle 2,10,000$ - $\displaystyle 30,000$ By balance b/d $\displaystyle 9,60,000$ $\displaystyle 8,40,000$ $\displaystyle 9,00,000$
Capital A/c
By Workmen $\displaystyle 2,80,000$ $\displaystyle 80,000$ $\displaystyle 40,000$
To Qadir’s Compensation
Loan A/c Reserve A/c
$\displaystyle 12,20,000$
To Kian’s By Prina’s
$\displaystyle 7,40,000$ $\displaystyle 2,10,000$
Current Capital A/c
(goodwill)
A/c
$\displaystyle 30,000$
By Kian’s
Capital A/c
(goodwill)
By General $\displaystyle 2,10,000$ $\displaystyle 60,000$ $\displaystyle 30,000$
Reserve A/c
By Prina’s
$\displaystyle 1,60,000$
To Balance Current A/c
$\displaystyle 14,00,000$ -- $\displaystyle 2,00,000$
c/d
$\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$ $\displaystyle 16,10,000$ $\displaystyle 12,20,000$ $\displaystyle 9,70,000$
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CBSE Class 12 Accountancy past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.