CBSE 2026 · Region 2 · Set 3 · Q26

Mitali and Karan were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$:2. Their Balance Sheet as on $\displaystyle 315$ March, $\displaystyle 2025$ was as follows : Balance Sheet of Mitali and Karan as on $\displaystyle 315$ March, $\displaystyle 2025$ Amount Amount Liabilities Assets (t) of) Capitals : Machinery $\displaystyle 8,00,000$ Mitali $\displaystyle 8,00,000$ Furniture $\displaystyle 5,00,000$ Kazan $\displaystyle 5,00,000$ $\displaystyle 13,00,000$ Investments $\displaystyle 1,50,000$ Investment Debtors $\displaystyle 1,10,000$ Fluctuation fund $\displaystyle 20,000$ Less provlslon for doubtful debts $\displaystyle 10,000$ $\displaystyle 1,00,000$ $\displaystyle 1,30,000$ Stock $\displaystyle 80,000$ Creditors $\displaystyle 2,00,000$ Cash $\displaystyle 20,000$ $\displaystyle 16,50,000$ $\displaystyle 16,50,000$ On 1st April, $\displaystyle 2025$, Nit in was admitted for $\displaystyle 1$/$\displaystyle 4$ share in the profits of the firm on the following terms : (i) Nit in will bring ₹ $\displaystyle 3,00,000$ as Capital and ₹ $\displaystyle 1,50,000$ for his share of goodwill premium in cash. (ii) Stock was sold at ₹ $\displaystyle 70$,000. (iii) Machinery was found to be overvalued by ₹ $\displaystyle 8$,500. (iv) All debtors were found to be good, hence provision for doubtful debts was not required. (v) A liability of ₹ $\displaystyle 3,500$ included in creditors is not likely to arise. (vi) The market value of the investments was ₹ $\displaystyle 1,40$,000. (vii) The new profit sharing ratio between Mitali, Karan and Nit in will be $\displaystyle 2$:$\displaystyle 2$:1. Pass necessary journal entries for the above transactions on Nitin's admission.

OR

Raghav, Meeta and Pranav were partners in a firm sharing profits and losses in the ratio of $\displaystyle 5$:$\displaystyle 3$:2. Their balance sheet as at 31st March, $\displaystyle 2025$ was as follows : Balance Sheet of Raghav, Meeta and Pranav as on 31st March, $\displaystyle 2025$ Amount Amount Liabilities Assets ($\displaystyle 5$) R) Capitals : Plant and Machinery $\displaystyle 4,30,000$ Raghav $\displaystyle 2,50,000$ Furniture $\displaystyle 1,60,000$ Meeta $\displaystyle 2,00,000$ Stock $\displaystyle 90,000$ Pranav $\displaystyle 1,50,000$ $\displaystyle 6,00,000$ Debtors $\displaystyle 80,000$ General Reserve $\displaystyle 40,000$ Less provlslon Bills payable $\displaystyle 30,000$ for doubtful Creditors $\displaystyle 1,20,000$ debts $\displaystyle 2,000$ $\displaystyle 78,000$ Cash $\displaystyle 32,000$ $\displaystyle 7,90,000$ $\displaystyle 7,90,000$ On 1st April, $\displaystyle 2025$, Pranav retired from the firm on the following terms : (i) Plant and Machinery was found to be undervalued by ₹ $\displaystyle 20$,000. (ii) Furniture was revalued at ₹ $\displaystyle 1,62$,000. (iii) The provision for doubtful debts on debtors was to be created @ $\displaystyle 5$%. (iv) Goodwill of the firm was valued at ₹ $\displaystyle 4,00,000$ and the same was to be adjusted through the capital accounts of the remaining partners. (v) Pranav was paid in cash brought in by Raghav and Meeta in such a way so as to make the capital proportionate to the new profit sharing ratio. Prepare Revaluation Account and Partners' Capital Accounts.