Uma and Umesh were partners in a firm sharing profits and losses in the ratio of $\displaystyle 2$ : 3. On 31st March, $\displaystyle 2024$, their Balance Sheet was as follows : Balance Sheet of Uma and Umesh as at 31st March, $\displaystyle 2024$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Land and Building $\displaystyle 10,00,000$ Uma $\displaystyle 5,00,000$ Furniture $\displaystyle 1,00,000$ Umesh $\displaystyle 7,50,000$ $\displaystyle 12,50,000$ Debtors $\displaystyle 80,000$ Less : Creditors $\displaystyle 50,000$ Provision for doubtful debts $\displaystyle 5,000$ $\displaystyle 75,000$ General Reserve $\displaystyle 75,000$ Stock $\displaystyle 40,000$ Workmen Bank $\displaystyle 1,95,000$ Compensation Fund $\displaystyle 25,000$ Outstanding Electricity Bill $\displaystyle 10,000$ $\displaystyle 14,10,000$ $\displaystyle 14,10,000$ On the above date, Daya was admitted as a new partner on the following terms : (i) The new profit sharing ratio of Uma, Umesh and Daya will be $\displaystyle 2$ : $\displaystyle 3$ : 5. (ii) Daya will bring $\displaystyle 10,00,000$ as her capital and ₹ $\displaystyle 2,00,000$ as her share of goodwill premium. (iii) The value of Land and Building will be increased by ₹ $\displaystyle 2,00$,000. (iv) Furniture will be depreciated by $\displaystyle 10$%. (v) ₹ $\displaystyle 3,000$ bad debts will be written off and a provision for bad and doubtful debts be created @ $\displaystyle 5$% of debtors. (vi) Outstanding electricity bill will be paid off. Pass necessary journal entries for the above transactions on Daya's admission.

OR

Naval, Nyaya and Nritya were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 5$ : 2. On 31st March, $\displaystyle 2024$, their Balance Sheet was as follows : Balance Sheet of Naval, Nyaya and Nritya as at 31st March, $\displaystyle 2024$ Amount Amount Liabilities Assets ( ) ( ) Capitals : Land and Building $\displaystyle 9,50,000$ Naval $\displaystyle 2,00,000$ Plant and Machinery $\displaystyle 2,00,000$ Nyaya $\displaystyle 3,00,000$ Furniture $\displaystyle 50,000$ Nritya $\displaystyle 5,00,000$ $\displaystyle 10,00,000$ Stock $\displaystyle 70,000$ Debtors $\displaystyle 95,000$ Less : General Reserve $\displaystyle 80,000$ Provision for doubtful debts $\displaystyle 5,000$ $\displaystyle 90,000$ M is. Navel's Loan $\displaystyle 2,00,000$ Bank $\displaystyle 70,000$ Creditors $\displaystyle 1,50,000$ $\displaystyle 14,30,000$ $\displaystyle 14,30,000$ On the above date, Nyaya retired from the firm on the following terms : (i) Goodwill of the firm was valued at ₹ $\displaystyle 1,20,000$ and N a a's share of the same was to be adjusted through the capital accounts of remaining partners. (ii) Land and Building was to be increased by $\displaystyle 50$,000. (iii) Plant and Machinery will be depreciated by $\displaystyle 10$%. (iv) All debtors were found to be good, hence provision for bad debts was not required. (v) Investments of $\displaystyle 65,000$ were unrecorded. (vi) Amount payable to Nyaya was transferred to his loan account. Prepare Revaluation Account and Partners' Capital Accounts on Nyaya's retirement.

In the books of Uma, Umesh and Daya Journal Date Particulars L.F Dr. Cr. Amount (₹) Amount (₹) $\displaystyle 2024$ Bank A/c Dr. $\displaystyle 12,00,000$ March $\displaystyle 31$ To Daya’s Capital A/c $\displaystyle 10,00,000$ To Premium for Goodwill A/c $\displaystyle 2,00,000$ (Cash brought in by Daya as capital and share of goodwill) ,, Premium for Goodwill A/c Dr. $\displaystyle 2,00,000$ To Uma’s Capital A/c $\displaystyle 80,000$ To Umesh’s Capital A/c $\displaystyle 1,20,000$ (Goodwill brought in by Daya shared by old partners in the ratio of their sacrifice) ,, Land & Building A/c Dr. $\displaystyle 2,00,000$ To Revaluation A/c $\displaystyle 2,00,000$ (Increase in the value of assets recorded on revaluation) ,, Revaluation A/c Dr. $\displaystyle 10,000$ To Furniture A/c $\displaystyle 10,000$ (Decrease in the value of assets recorded on revaluation) ,, Bad Debts A/c Dr. $\displaystyle 3,000$ To Debtors A/c $\displaystyle 3,000$ (Bad debts written off) ,, Provision for doubtful debts A/c Dr. $\displaystyle 3,000$ To Bad Debts A/c $\displaystyle 3,000$ (Bad debts adjusted from the provision) ,, Revaluation A/c Dr. $\displaystyle 1,850$ To Provision for doubtful debts A/c $\displaystyle 1,850$ (Provision for doubtful debts created) ,, Outstanding Electricity Bill A/c Dr. $\displaystyle 10,000$ To Bank A/c $\displaystyle 10,000$ (Amount paid for outstanding electricity bill) Revaluation A/c Dr. $\displaystyle 1,88,150$ ,, To Uma’s Capital A/c $\displaystyle 75,260$ To Umesh’s Capital A/c $\displaystyle 1,12,890$ (Profit on revaluation of assets and re-assessment of liabilities transferred partners in old profit sharing ratio) ,, General Reserve A/c Dr. $\displaystyle 75,000$ To Uma’s Capital A/c $\displaystyle 30,000$ To Umesh’s Capital A/c $\displaystyle 45,000$ (Undistributed profit transferred to partners in old ratio) ,, Workmen Compensation Fund A/c Dr. $\displaystyle 25,000$ To Uma’s Capital A/c $\displaystyle 10,000$ To Umesh’s Capital A/c $\displaystyle 15,000$ (Workmen compensation fund transferred to partners in old ratio) Or Q.(b) Naval, Nyaya and Nritya……….. Ans. Dr. Revaluation A/c Cr. Particulars Amount (₹) Particulars Amount (₹) To Plant & Machinery A/c $\displaystyle 20,000$ By Land & Building A/c $\displaystyle 50,000$ To Gain on Revaluation By Investment A/c $\displaystyle 65,000$ transferred to:- By Provision for doubtful Naval’s Capital A/c $\displaystyle 30,000$ debt A/c $\displaystyle 5,000$ Nyaya’s Capital A/c $\displaystyle 50,000$ Nritya’s Capital A/c $\displaystyle 20,000$ $\displaystyle 1,00,000$ $\displaystyle 1,20,000$ $\displaystyle 1,20,000$ Dr. Partners’ Capital A/c Cr. Particulars Naval Nyaya Nritya Particulars Naval Nyaya Nritya (₹) (₹) (₹) (₹) (₹) (₹) To Nyaya’s $\displaystyle 36,000$ $\displaystyle 24,000$ By Balance b/d $\displaystyle 2,00,000$ $\displaystyle 3,00,000$ $\displaystyle 5,00,000$ Capital A/c……½ To Nyaya’s Loan $\displaystyle 4,50,000$ By Revaluation $\displaystyle 30,000$ $\displaystyle 50,000$ $\displaystyle 20,000$ A/c…………..½ A/c ………. ½ By General $\displaystyle 24,000$ $\displaystyle 40,000$ $\displaystyle 16,000$ To Balance c/d ½ $\displaystyle 2,18,000$ $\displaystyle 5,12,000$ Reserve A/c.. ½ By Naval’s $\displaystyle 36,000$ Capital A/c…½ By Nritya’s $\displaystyle 24,000$ Capital A/c…½ $\displaystyle 2,54,000$ $\displaystyle 4,50,000$ $\displaystyle 5,36,000$ $\displaystyle 2,54,000$ $\displaystyle 4,50,000$ $\displaystyle 5,36,000$