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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 2 · Set 3 · Q24
Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4: 3. Their Balance Sheet as at 31st March, 2024 was as follows:…
Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of $\displaystyle 4$ : 3. Their Balance Sheet as at 31st March, $\displaystyle 2024$ was as follows :
Balance Sheet of Bittu and Chintu as at 31st March, $\displaystyle 2024$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Fixed Assets | $\displaystyle 15,40,000$ | |
| Bittu $\displaystyle 8,00,000$ | Stock | $\displaystyle 3,50,000$ | |
| Chintu $\displaystyle 6,00,000$ | $\displaystyle 14,00,000$ | Debtors | $\displaystyle 1,40,000$ |
| General Reserve | $\displaystyle 2,10,000$ | Bank | $\displaystyle 70,000$ |
| Creditors | $\displaystyle 4,90,000$ | ||
| $\displaystyle 21,00,000$ | $\displaystyle 21,00,000$ |
1th On 1st April, $\displaystyle 2024$, Diya was admitted in the firm for - share in $\displaystyle 7$ the profits on the following terms : ($\displaystyle 1$ New profit sharing ratio between Bittu, Chintu and Diya will be $\displaystyle 3$ : $\displaystyle 3$ : 1. (ii) Fixed Assets were found to be overvalued by ₹ $\displaystyle 1,40$,000. (iii) Creditors were paid ₹ $\displaystyle 4,20,000$ in full settlement. (iv) Diya brought proportionate capital and ₹ $\displaystyle 5,60,000$ as her share of goodwill premium by cheque. Prepare Revaluation Account and Partners' Capital Accounts.
Rupal, Shanu and Trisha were partners in a firm sharing profits and losses in the ratio of $\displaystyle 4$ : $\displaystyle 3$ : 1. Their Balance Sheet as at 31st March, $\displaystyle 2024$ was as follows :
Balance Sheet of Rupal, Shanu and Trisha as at 31st March, $\displaystyle 2024$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Capitals : | Fixed Assets | $\displaystyle 8,20,000$ | |
| Rupal $\displaystyle 8,00,000$ | Stock | $\displaystyle 2,80,000$ | |
| Shanu $\displaystyle 6,00,000$ | Debtors | $\displaystyle 5,00,000$ | |
| Trisha $\displaystyle 2,00,000$ | $\displaystyle 16,00,000$ | Cash | $\displaystyle 7,20,000$ |
| General Reserve | $\displaystyle 3,20,000$ | ||
| Creditors | $\displaystyle 4,00,000$ | ||
| $\displaystyle 23,20,000$ | $\displaystyle 23,20,000$ |
Trisha retired from the firm on 1st April, $\displaystyle 2024$ on the following terms : (i) Trisha's share of profit was entirely taken by Shanu. (ii) Fixed assets were found to be undervalued by ₹ $\displaystyle 2,40$,000. (iii) Stock was revalued at ₹ $\displaystyle 2,00$,000. (iv) Goodwill of the firm was valued at ₹ $\displaystyle 8,00,000$ on Trisha's retirement. (v) The total capital of the new firm was fixed at ₹ $\displaystyle 16,00,000$ which was adjusted according to the new profit sharing ratio of the partners. For this necessary cash was paid off or brought in by the partners as the case may be. Prepare Revaluation Account and Partners' Capital Accounts.
Marking-scheme solution
Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Fixed Assets … $\displaystyle 1,40,000$ By Creditors A/c $\displaystyle 70,000$
By Loss transferred to:
Bittu’s Capital A/c $\displaystyle 40,000$
Chintu’s Capital A/c $\displaystyle 30,000$ $\displaystyle 70,000$
$\displaystyle 1,40,000$ $\displaystyle 1,40,000$
Dr. Partners’ Capital Accounts Cr.
Particulars Bittu Chintu Diya Particulars Bittu Chintu Diya
(₹) (₹) (₹) (₹) (₹) (₹)
To Revaluation $\displaystyle 40,000$ $\displaystyle 30,000$ By Balance b/d $\displaystyle 8,00,000$ $\displaystyle 6,00,000$
A/c
To Balance c/d $\displaystyle 14,40,000$ $\displaystyle 6,60,000$ $\displaystyle 3,50,000$ By Bank A/c $\displaystyle 3,50,000$
By Premium for
goodwill A/c $\displaystyle 5,60,000$
By General
Reserve $\displaystyle 1,20,000$ $\displaystyle 90,000$
$\displaystyle 14,80,000$ $\displaystyle 6,90,000$ $\displaystyle 3,50,000$ $\displaystyle 14,80,000$ $\displaystyle 6,90,000$ $\displaystyle 3,50,000$
Working Note:
Calculation of Divya’s capital
Capital of Bittu and Chintu after all adjustments for $\displaystyle 6$/$\displaystyle 7$ share= ₹$\displaystyle 14,40,000$ + ₹$\displaystyle 6,60,000$
= ₹$\displaystyle 21,00,000$
Divya’s proportionate capital for $\displaystyle 1$/$\displaystyle 7$ share= ₹$\displaystyle 21,00,000$ x $\displaystyle 7$/$\displaystyle 6$ x $\displaystyle 1$/$\displaystyle 7$
= ₹$\displaystyle 3,50,000$
Q. (b) Rupal, Shanu and Trisha were partners in a firm…
Ans.
Dr. Revaluation A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
To Stock……………… $\displaystyle 80,000$ By Fixed Assets A/c $\displaystyle 2,40,000$
To Profit transferred to:
Rupal’s Capital A/c $\displaystyle 80,000$
Shanu’s Capital A/c $\displaystyle 60,000$
Trisha’s Capital A/c $\displaystyle 20,000$ $\displaystyle 1,60,000$
$\displaystyle 2,40,000$ $\displaystyle 2,40,000$
.
Dr. Partners’ Capital Accounts Cr.
Particulars Rupal Shanu Trisha Particulars Rupal Shanu Trisha
(₹) (₹) (₹) (₹) (₹) (₹)
To Trisha’s Capital $\displaystyle 1,00,000$ By Balance b/d $\displaystyle 8,00,000$ $\displaystyle 6,00,000$ $\displaystyle 2,00,000$
A/c
To Trisha’s Loan A/c $\displaystyle 3,60,000$ By General
Reserve A/c $\displaystyle 1,60,000$ $\displaystyle 1,20,000$ $\displaystyle 40,000$
To Cash A/c $\displaystyle 2,40,000$ By Shanu’s Capital
A/c $\displaystyle 1,00,000$
To Balance c/d $\displaystyle 8,00,000$ $\displaystyle 8,00,000$ -- By Revaluation $\displaystyle 80,000$ $\displaystyle 60,000$ $\displaystyle 20,000$
A/c
By Cash A/c $\displaystyle 1,20,000$
$\displaystyle 10,40,000$ $\displaystyle 9,00,000$ $\displaystyle 3,60,000$ $\displaystyle 10,40,000$ $\displaystyle 9,00,000$ $\displaystyle 3,60,000$
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