CBSE 2023 · Region 5 · Set 3 · Q24

Kamal, Rahul and Neeraj were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$ : $\displaystyle 3$ : 2. On 31st March, $\displaystyle 2022$, their Balance Sheet was as under : Balance Sheet of Kamal, Rahul and Neeraj as on 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets ($\displaystyle 1$) c) Capitals : Land and Building $\displaystyle 1,70,000$ Kamal $\displaystyle 1,20,000$ Plant and Machinery $\displaystyle 2,60,000$ Rahul $\displaystyle 1,20,000$ Stock $\displaystyle 1,00,000$ Neeraj $\displaystyle 1,20,000$ $\displaystyle 3,60,000$ Debtors $\displaystyle 80,000$ General Reserve $\displaystyle 1,20,000$ Cash $\displaystyle 50,000$ Sundry Creditors $\displaystyle 1,80,000$ $\displaystyle 6,60,000$ $\displaystyle 6,60,000$ On the above date, Rahul retired and following terms were agreed upon : (i) Goodwill of the firm was valued at ₹ $\displaystyle 3,50$,000. (ii) An item of ₹ $\displaystyle 10,000$ included in Sundry creditors is not likely to be claimed and hence written off. Stock was valued at ₹ $\displaystyle 90$,000. (iii) Capital of the new firm was fixed at ₹ $\displaystyle 2,10,000$ and the same will be adjusted in the profit sharing ratio of the remaining partners. For this purpose the required cash will be brought in or paid off as the case may be. (iv) Amount payable to Rahul will be transferred to his loan account. Prepare Revaluation Account and Partners' Capital Accounts on Rahul's retirement.

OR

As fish and Vishesh were partners sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2022$ was as under : Balance Sheet of Ashish and Vishesh as at 31st March, $\displaystyle 2022$ Amount Amount Liabilities Assets of) c) Creditors $\displaystyle 30,000$ Cash at Bank $\displaystyle 50,000$ Outstanding Debtors $\displaystyle 80,000$ electricity bill $\displaystyle 20,000$ Less : provision for Capitals bad debts $\displaystyle 2,000$ $\displaystyle 78,000$ As fish $\displaystyle 3,00,000$ Stock $\displaystyle 1,12,000$ Vishesh $\displaystyle 2,00,000$ $\displaystyle 5,00,000$ Machinery $\displaystyle 3,00,000$ Profit and Loss A/c $\displaystyle 10,000$ $\displaystyle 5,50,000$ $\displaystyle 5,50,000$ On 1st April, $\displaystyle 2022$, Manya was admitted into the firm with $\displaystyle 1$/$\displaystyle 4$*h share in the profits on the following terms : (i) Manya will bring ₹ $\displaystyle 1,00,000$ as her capital and ₹ $\displaystyle 50,000$ as her share of goodwill premium in cash. (ii) Outstanding electricity bill will be paid off. (iii) Stock was found over valued by ₹ $\displaystyle 12$,000. Pass the necessary journal entries in the books of the firm on Manya's admission.