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Accountancy · 2025 · 6 marks
Reconstitution of a Partnership Firm – Admission of a PartnerRevaluation of Assets and Reassessment of Liabilities6 markslong answer
CBSE 2025 · Region 4 · Set 1 · Q26
Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of 5: 2. Their Balance Sheet as at 31st March, 2024 was as follows:…
Atharv and Anmol were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2024$ was as follows :
Balance Sheet of Atharv and Anmol as at 31st March, $\displaystyle 2024$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Fixed Assets | $\displaystyle 14,00,000$ | |
| Atharv $\displaystyle 8,00,000$ | Stock | $\displaystyle 4,90,000$ | |
| Anmol $\displaystyle 4,00,000$ | Debtors | $\displaystyle 5,60,000$ | |
| $\displaystyle 12,00,000$ | Cash | $\displaystyle 10,000$ | |
| General Reserve | $\displaystyle 3,50,000$ | ||
| Creditors | $\displaystyle 9,10,000$ | ||
| $\displaystyle 24,60,000$ | $\displaystyle 24,60,000$ |
$\displaystyle 2$ On 1st April, $\displaystyle 2024$, Surya was admitted as a new partner for th $\displaystyle 7$ share in the profits of the firm on the following terms : (i) The new profit sharing ratio between Atharv, Anmol and Surya will be $\displaystyle 4$ : $\displaystyle 1$ : 2. (ii) Fixed Assets were to be reduced by $\displaystyle 10$%. (iii) Stock was sold at ₹ $\displaystyle 4,20$,000. (iv) Surya shall bring ₹ $\displaystyle 3,00,000$ as capital and ₹ $\displaystyle 2,00,000$ for his share of goodwill premium in cash. (v) Capital accounts of old partners be adjusted on the basis of Surya's capital in the business, actual cash to be paid off t0, or brought in by the old partners, as the case may be. Prepare Revaluation Account and Partners' Capital Accounts.
Chandan, Deepak and Elvish were partners in a firm sharing profits and losses in the ratio of $\displaystyle 1$ : $\displaystyle 2$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2024$ stood as follows : Balance Sheet of Chandan, Deepak and Elvish as at
31st March, $\displaystyle 2024$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Fixed Assets | $\displaystyle 27,00,000$ | |
| Chandan $\displaystyle 7,00,000$ | Stock | $\displaystyle 3,00,000$ | |
| Deepak $\displaystyle 5,00,000$ | Debtors | $\displaystyle 2,00,000$ | |
| Elvish $\displaystyle 3,00,000$ | Cash | $\displaystyle 1,00,000$ | |
| $\displaystyle 15,00,000$ | |||
| General Reserve | $\displaystyle 4,50,000$ | ||
| Creditors | $\displaystyle 13,50,000$ | ||
| $\displaystyle 33,00,000$ | $\displaystyle 33,00,000$ |
Chandan retired from the firm on 1st April, $\displaystyle 2024$ on the following terms : (i) Fixed assets were to be depreciated by $\displaystyle 10$%. (ii) Debtors of ₹ $\displaystyle 30,000$ were to be written off as bad debts. (iii) Goodwill of the firm was valued at ₹ $\displaystyle 6,00,000$ and the retiring artner's share is adjusted through the capital accounts of the remaining partners. (iv) Chandan was paid through cash brought in by Deepak and Elvish in such a way so as to make their capitals proportionate to their new profit sharing ratio. Prepare Revaluation Account and Partners' Capital Accounts.
Marking-scheme solution
Dr. Revaluation Account Cr.
Particulars Amount ( ₹) Particulars Amount ( ₹)
To Fixed Assets $\displaystyle 1,40,000$ By Loss t/f to Capital A/c
To Stock $\displaystyle 70,000$ Atharv $\displaystyle 1,50,000$
Anmol $\displaystyle 60,000$ $\displaystyle 2,10,000$
$\displaystyle 2,10,000$ $\displaystyle 2,10,000$
Dr. Partners’ Capital Accounts Cr.
Particulars Atharv Anmol Surya Particulars Atharv Anmol Surya
( ₹) ( ₹) ( ₹) ( ₹) ( ₹) ( ₹)
To $\displaystyle 1,50,000$ $\displaystyle 60,000$ - By balance b/d $\displaystyle 8,00,000$ $\displaystyle 4,00,000$ -
Revaluation
A/c
By General
Reserve A/c
$\displaystyle 2,50,000$ $\displaystyle 1,00,000$ -
To Cash A/c $\displaystyle 4,00,000$ $\displaystyle 3,90,000$ By Cash A/c
(1)
- $\displaystyle 3,00,000$
To balance $\displaystyle 6,00,000$ $\displaystyle 1,50,000$ $\displaystyle 3,00,000$ By Premium
c/d for Goodwill $\displaystyle 1,00,000$ $\displaystyle 1,00,000$ -
A/c
$\displaystyle 11,50,000$ $\displaystyle 6,00,000$ $\displaystyle 3,00,000$ $\displaystyle 11,50,000$ $\displaystyle 6,00,000$ $\displaystyle 3,00,000$
Q. Chandan, Deepak and Elvish were partners ……………………….
Ans:
Dr. Revaluation Account Cr.
Particulars Amount ( ₹) Particulars Amount ( ₹)
To Fixed Assets $\displaystyle 2,70,000$ By Loss t/f to Capital A/c
To Bad Debts $\displaystyle 30,000$ Chandan $\displaystyle 60,000$
Deepak $\displaystyle 1,20,000$
Elvish $\displaystyle 1,20,000$ $\displaystyle 3,00,000$
$\displaystyle 3,00,000$ $\displaystyle 3,00,000$
Dr. Partners’ Capital Accounts Cr.
Particulars Chandan Deepak Elvish Particulars Chandan Deepak Elvish
( ₹) ( ₹) ( ₹) ( ₹) ( ₹) ( ₹)
To $\displaystyle 60,000$ $\displaystyle 1,20,000$ $\displaystyle 1,20,000$ By balance $\displaystyle 7,00,000$ $\displaystyle 5,00,000$ $\displaystyle 3,00,000$
Revaluation b/d
A/c
To Chandan’s $\displaystyle 60,000$ $\displaystyle 60,000$ By General $\displaystyle 90,000$ $\displaystyle 1,80,000$ $\displaystyle 1,80,000$
Capital A/c Reserve A/c
By Deepak’s $\displaystyle 60,000$
Capital A/c
By Elvish’s $\displaystyle 60,000$
Capital A/c
To Cash A/c $\displaystyle 8,50,000$ By Cash A/c $\displaystyle 3,25,000$ $\displaystyle 5,25,000$
To balance $\displaystyle 8,25,000$ $\displaystyle 8,25,000$
c/d
$\displaystyle 9,10,000$ $\displaystyle 10,05,000$ $\displaystyle 10,05,000$ $\displaystyle 9,10,000$ $\displaystyle 10,05,000$ $\displaystyle 10,05,000$
Capital of new firm = $\displaystyle 8,50,000$ + $\displaystyle 5,00,000$ + $\displaystyle 3,00,000$
= ₹$\displaystyle 16,50,000$
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CBSE Class 12 Accountancy past-paper question from the 2025 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.