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Accountancy · 2022 · 5 marks
Reconstitution of a Partnership Firm – Retirement/Death of a PartnerAdjustment for Revaluation of Assets and Liabilities5 markslong answer
CBSE 2022 · Region 4 · Set 2 · Q7
X, Y and Z were partners in a firm sharing profits and losses in the ratio of 3: 3: 4. On 31st March, 2022 their Balance Sheet was as follows:…
X, Y and Z were partners in a firm sharing profits and losses in the ratio of $\displaystyle 3$ : $\displaystyle 3$ : 4. On 31st March, $\displaystyle 2022$ their Balance Sheet was as follows :
Balance Sheet of X, Y and Z as at 31st March, $\displaystyle 2022$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Sundry Creditors | $\displaystyle 34,000$ | Bank | $\displaystyle 1,74,000$ |
| Bills Payable | $\displaystyle 29,000$ | Sundry Debtors | $\displaystyle 2,00,000$ |
| General Reserve | $\displaystyle 2,00,000$ | Bills Receivable | $\displaystyle 26,000$ |
| Capitals : | Stock | $\displaystyle 1,50,000$ | |
| X $\displaystyle 3,00,000$ | Furniture | $\displaystyle 1,28,000$ | |
| Y $\displaystyle 3,00,000$ | Machinery | $\displaystyle 2,00,000$ | |
| Z $\displaystyle 4,00,000$ | $\displaystyle 10,00,000$ | Land and Building | $\displaystyle 3,85,000$ |
| $\displaystyle 12,63,000$ | $\displaystyle 12,63,000$ |
On the above date, Z retired on the following terms : (i) A provision of $\displaystyle 3$% on debtors will be created for bad and doubtful debts. (ii) Stock will be reduced by ₹ $\displaystyle 5,000$ and furniture by ₹ $\displaystyle 2$,000. (iii) Land and building will be brought up to ₹ $\displaystyle 4,00,000$ and machinery will be brought down to ₹ $\displaystyle 1,80$,000. Prepare Revaluation Account and Z's Capital Account, transferring the amount due to his loan account.
Sonu, Monu and Ashu 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 follows :
Balance Sheet of Sonu, Monu and Ashu as at 31st March, $\displaystyle 2022$
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | $\displaystyle 35,000$ | Bank | $\displaystyle 22,000$ |
| General Reserve | $\displaystyle 25,000$ | Stock | $\displaystyle 25,000$ |
| Capitals : | Debtors $\displaystyle 20,000$ | ||
| Sonu $\displaystyle 50,000$ | Less : Provision for bad debts $\displaystyle 2,000$ | $\displaystyle 18,000$ | |
| Monu $\displaystyle 30,000$ | Furniture | $\displaystyle 15,000$ | |
| Ashu $\displaystyle 20,000$ | $\displaystyle 1,00,000$ | Land and Building | $\displaystyle 80,000$ |
| $\displaystyle 1,60,000$ | $\displaystyle 1,60,000$ |
On the above date, the firm was dissolved on the following terms : (i) Land and Building realised for ₹ $\displaystyle 85,000$, Furniture realised for ₹ $\displaystyle 6,000$ and Debtors realised full amount. (ii) Stock was taken over by Sonu at book value. There was an unrecorded asset which was taken over by Ashu for ₹ $\displaystyle 3$,000. (iii) Monu agreed to bear all realisation expenses. For his services Monu was paid ₹ $\displaystyle 2$,000. Actual expenses on realisation amounted to ₹ $\displaystyle 2$,200. (iv) Creditors were paid at $\displaystyle 2$% less. Prepare Realisation Account.
Marking-scheme solution
Dr. Revaluation A/c Cr.
.
Particulars Amount Particulars Amount
(₹) (₹)
Provision for doubtful Land & Building a/c $\displaystyle 15,000$
debts A/c $\displaystyle 6,000$ Partners’ Capital A/cs –
Stock A/c $\displaystyle 5,000$ - loss on Revaluation :
Furniture A/c $\displaystyle 2,000$ X $\displaystyle 5,400$
Machinery A/c $\displaystyle 20,000$ Y $\displaystyle 5,400$
Z $\displaystyle 7,200$ $\displaystyle 18,000$
$\displaystyle 33,000$ $\displaystyle 33,000$
Dr. Z’s Capital A/c Cr.
Particulars Amount Particulars Amount
(₹) (₹)
Revaluation A/c (loss) $\displaystyle 7,200$ Balance B/d $\displaystyle 4,00,000$
Z’s Loan A/c (Bal. fig.) $\displaystyle 4,72,800$ General Reserve A/c $\displaystyle 80,000$
$\displaystyle 4,80,000$ $\displaystyle 4,80,000$
Q. Sonu, Monu and Ashu were partners…………………………
Ans.
Dr. REALIZATION A/C Cr.
Amounts (₹) Amounts
Particulars Particulars
(₹)
Sundry Assets : Sundry Liabilities :
Stock $\displaystyle 25,000$ Creditors $\displaystyle 35,000$
Debtors $\displaystyle 20,000$ Provision for
Furniture $\displaystyle 15,000$ D/D $\displaystyle 2,000$ $\displaystyle 37,000$
$\displaystyle 1,40,000$
Land & Bldg. $\displaystyle 80,000$ Bank A/c :
$\displaystyle 34,300$ Land & Bldg. $\displaystyle 85,000$
Bank A/c (Creditors)
Furniture $\displaystyle 6,000$
Monu ’s Capital A/c
Debtors $\displaystyle 20,000$ $\displaystyle 1,11,000$
$\displaystyle 2,000$
(Remuneration) Ashu’s Capital A/c
$\displaystyle 3,000$
(Unrecorded Asset)
Sonu’s Capital A/c
Stock $\displaystyle 25,000$
Loss Transferred to :
Sonu’s Capital A/c150
Monu’s Capital A/c $\displaystyle 90$
Ashu’s Capital A/c $\displaystyle 60$ $\displaystyle 300$
$\displaystyle 1,76,300$ $\displaystyle 1,76,300$
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