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Accountancy · 2024 · 6 marks
Reconstitution of a Partnership Firm – Admission of a PartnerRevaluation of Assets and Reassessment of Liabilities6 markslong answer
CBSE 2024 · Region 1 · Set 1 · Q26
Shubhi and Revanshi were partners in a firm sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2023 was as…
Shubhi and Revanshi 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 Shubhi and Revanshi as at 31st March, $\displaystyle 2023$
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capitals : | Fixed Assets | $\displaystyle 90{,}000$ | |
| Shubhi $\displaystyle 60{,}000$ | Stock | $\displaystyle 38{,}000$ | |
| Revanshi $\displaystyle 32{,}000$ | Debtors | $\displaystyle 30{,}000$ | |
| $\displaystyle 92{,}000$ | Cash | $\displaystyle 52{,}000$ | |
| General Reserve | $\displaystyle 30{,}000$ | ||
| Bank Loan | $\displaystyle 18{,}000$ | ||
| Creditors | $\displaystyle 70{,}000$ | ||
| $\displaystyle 2{,}10{,}000$ | $\displaystyle 2{,}10{,}000$ |
On 1st April, $\displaystyle 2023$ they admitted Pari into the partnership on the following terms : (i) Pari will bring ₹ $\displaystyle 50{,}000$ as her capital and ₹ $\displaystyle 50{,}000$ for her share of premium for goodwill for $\displaystyle 1$/4th share in the profits of the firm. (ii) Fixed assets were depreciated @ $\displaystyle 30$%. (iii) Stock was valued at ₹ $\displaystyle 45$,000. (iv) Bank loan was paid off. (v) After all adjustments capitals of Shubhi and Revanshi were to be adjusted taking Pari's capital as the base. Actual cash was to be paid off or brought in by the old partners as the case may be. Prepare Revaluation Account and Partners' Capital Accounts.
Rishi, Shashi and Trishi were partners in a firm sharing profits and losses in proportion of $\displaystyle 1$/$\displaystyle 2$, $\displaystyle 1$/$\displaystyle 6$ and $\displaystyle 1$/$\displaystyle 3$ respectively. Their Balance Sheet as at 31st March, $\displaystyle 2023$ was as follows :
Balance Sheet of Rishi, Shashi and Trishi as at 31st March, $\displaystyle 2023$
| Liabilities | Amount ₹ | Assets | Amount ₹ |
| Capitals : | Fixed Assets | $\displaystyle 80{,}000$ | |
| Rishi $\displaystyle 36{,}000$ | Stock | $\displaystyle 20{,}000$ | |
| Shashi $\displaystyle 30{,}000$ | Debtors | $\displaystyle 30{,}000$ | |
| Trishi $\displaystyle 20{,}000$ | Cash | $\displaystyle 40{,}000$ | |
| $\displaystyle 86{,}000$ | |||
| General Reserve | $\displaystyle 30{,}000$ | ||
| Creditors | $\displaystyle 54{,}000$ | ||
| $\displaystyle 1{,}70{,}000$ | $\displaystyle 1{,}70{,}000$ |
Shashi retired from the firm on 1st April, $\displaystyle 2023$ on the following terms : (i) Fixed Assets were valued at ₹ $\displaystyle 56$,000. (ii) Stock was taken over by Shashi at ₹ $\displaystyle 26$,000. (iii) Goodwill of the firm was valued at ₹ $\displaystyle 18{,}000$ on Shashi's retirement (iv) Balance in Shashi's Capital Account was transferred to her loan account. Prepare Revaluation Account and Partners' Capital Accounts.
Marking-scheme solution
Dr. REVALUATION A/c Cr.
Particulars Amount Particulars Amount
₹ ₹
To Fixed Assets A/c $\displaystyle 27{,}000$ By Stock A/c $\displaystyle 7{,}000$
By Loss transferred to
Partners Capital A/c:
Shubhi- $\displaystyle 12{,}000$
$\displaystyle 20{,}000$
Revanshi- $\displaystyle 8{,}000$
$\displaystyle 27{,}000$ $\displaystyle 27{,}000$
Dr. PARTNERS’ CAPITAL A/c Cr.
Particulars Shubhi Revanshi Pari Particulars Shubhi Revanshi Pari
₹ ₹ ₹ ₹ ₹ ₹
To Revaluation $\displaystyle 12{,}000$ $\displaystyle 8{,}000$ By Bal b/d $\displaystyle 60{,}000$ $\displaystyle 32{,}000$
A/c
To Cash A/c By General
$\displaystyle 6{,}000$ $\displaystyle 18{,}000$ $\displaystyle 12{,}000$
Reserve A/c
To Bal c/d
$\displaystyle 90{,}000$ $\displaystyle 60{,}000$ $\displaystyle 50{,}000$
$\displaystyle 50{,}000$
By Cash A/c
By Premium
for Goodwill $\displaystyle 30{,}000$ $\displaystyle 20{,}000$
A/c
By Cash A/c
$\displaystyle 4{,}000$
$\displaystyle 1{,}08{,}000$ $\displaystyle 68{,}000$ $\displaystyle 50{,}000$ $\displaystyle 1{,}08{,}000$ $\displaystyle 68{,}000$ $\displaystyle 50{,}000$
Rishi, Shashi and Trishi were partners in a firm….
Dr. REVALUATION A/c Cr.
Particulars Amount Particulars Amount
₹ ₹
To Fixed Assets A/c $\displaystyle 24{,}000$ By Stock A/c $\displaystyle 6{,}000$
By Loss transferred to
Partners Capital A/c:
Rishi- $\displaystyle 9{,}000$
Shashi- $\displaystyle 3{,}000$ $\displaystyle 18{,}000$
Trishi- $\displaystyle 6{,}000$
$\displaystyle 24{,}000$ $\displaystyle 24{,}000$
Dr. PARTNERS’ CAPITAL A/c Cr.
Particulars Rishi Shashi Trishi Particulars Rishi Shashi Trishi
₹ ₹ ₹ ₹ ₹ ₹
To Revaluation $\displaystyle 9{,}000$ $\displaystyle 3{,}000$ $\displaystyle 6{,}000$ By Bal b/d $\displaystyle 36{,}000$ $\displaystyle 30{,}000$ $\displaystyle 20{,}000$
A/c
By General
To Stock A/c Reserve A/c
$\displaystyle 26{,}000$ $\displaystyle 15{,}000$ $\displaystyle 5{,}000$ $\displaystyle 10{,}000$
To Shashi’s $\displaystyle 1{,}800$ $\displaystyle 1{,}200$ By Rishi’s Capital
Capital A/c A/c
$\displaystyle 1{,}800$
To Shashi’s Loan By Trishi’s Capital
$\displaystyle 9{,}000$
A/c A/c
$\displaystyle 40{,}200$ $\displaystyle 22{,}800$ $\displaystyle 1{,}200$
To Bal c/d
$\displaystyle 51{,}000$ $\displaystyle 38{,}000$ $\displaystyle 30{,}000$ $\displaystyle 51{,}000$ $\displaystyle 38{,}000$ $\displaystyle 30{,}000$
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