CBSE 2024 · Region 3 · Set 2 · Q25

Sarah and Varsha were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : 2. Their Balance Sheet as at 31st March, $\displaystyle 2023$ was as follows : Balance Sheet of Sarah and Varsha as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets (<) (<) Capital : Plant and Machinery $\displaystyle 2,00,000$ Sarah $\displaystyle 60,000$ Stock $\displaystyle 30,000$ Varsha $\displaystyle 50,000$ $\displaystyle 1,10,000$ Debtors $\displaystyle 50,000$ Workmen's Less : Provision Compensation Fund $\displaystyle 20,000$ for doubtful debts $\displaystyle 5,000$ $\displaystyle 45,000$ Provident Fund $\displaystyle 1,20,000$ Cash $\displaystyle 25,000$ $\displaystyle 50,000$ Creditors $\displaystyle 3,00,000$ $\displaystyle 3,00,000$ On 1st April, $\displaystyle 2023$, they decided to admit Tasha as a new partner 1th for share in the profits of the firm on the following terms : $\displaystyle 4$ (i) Tasha brought ₹ $\displaystyle 40,000$ as her capital and ₹ $\displaystyle 20,000$ as her share of premium for goodwill. (ii) Plant and Machinery was valued at ₹ $\displaystyle 1,90$,000. (iii) An item of ₹ $\displaystyle 20,000$, included in creditors, is not likely to be claimed and should be written off. (iv) Capitals of the partners in the new firm are to be in the new profit sharing ratio on the basis of Tasha's capital , by bringing or paying off cash, as the case may be. Prepare Revaluation Account and P artners' Capital Accounts.

OR

Inder, Jonny and Kapil were partners in a firm sharing profits and losses in the ratio of $\displaystyle 9$ : $\displaystyle 3$ : $\displaystyle 4$ . Their Balance Sheet as at 31st March, $\displaystyle 2023$ was as follows : Balance Sheet of Inder, Jonny and Kapil as at 31st March, $\displaystyle 2023$ Amount Amount Liabilities Assets (<) (<) Capital : Fixed Assets $\displaystyle 1,20,000$ Inder $\displaystyle 90,000$ Stock $\displaystyle 60,000$ Jonny $\displaystyle 75,000$ Debtors $\displaystyle 1,00,000$ Kapil $\displaystyle 60,000$ $\displaystyle 2,25,000$ Cash $\displaystyle 35,000$ General Reserve $\displaystyle 80,000$ Creditors $\displaystyle 10,000$ $\displaystyle 3,15,000$ $\displaystyle 3,15,000$ Kapil retired from the firm on 31st March, $\displaystyle 2023$ on the following terms : (i) Bad Debts amounting to ₹ $\displaystyle 5,000$ were to be written off. (ii) Fixed Assets were revalued at ₹ $\displaystyle 96$,000. (iii) Stock was undervalued by ₹ $\displaystyle 29$,000. (iv) Creditors were paid off. (v) Goodwill of the firm was valued at ₹ $\displaystyle 80,000$ and Kapil's share of goodwill was to be adjusted in the accounts of Inder and Jonny. (vi) New profit sharing ratio between Inder and Jonny was $\displaystyle 3$ : 2. Pass the necessary journal entries in the books of the firm on Kapil's retirement.