PD learning curve

Std: XII Marks:30

Sub: Accounts Time:1.15hr
Chapter: Admission Of Partners

Q1​. Riya and Diya were partners sharing profits and losses in the ratio of 2:3 respectively.
Their Balance sheet as on 31​st​ March 2015 was as follows: (10m)
st​
Balance Sheet as on 31​ March 2015
Liabilities Amount Assets Amount
Capital A/c: Debtors 1,70,000
Riya 1,50,000 Less: R.D.D ​10,000 1,60,000
Diya 1,50,000 Furniture 6,000
Creditors 2,10,000 Plant 90,000
Land and Building 75,000
Stock 1,50,000
Cash 29,000

5,10,000 5,10,000
st​
They agreed to admit Siya as a partner on 1​ April 2014 on the following terms:
I. Siya for future profits shall bring Rs.75,000 as her capital and Rs.60,000 as her share
of goodwill. 60% of the goodwill is not retained in the business.
II. Land & Building is valued at Rs.90,000 while stock is valued at Rs.1,65,000.
III. Half of the Plant is taken over by Diya at 10% premium.
IV. Depreciate furniture by 10%
V. Provision for bad and doubtful debts is to be maintained at 5% on debtors. New profit
sharing Ratio after admission will be 2:2:1
Journalize the above transactions.
Q2. ​Gagan and Magan were partners and shared profits and losses in the ratio of 3/5 and 2/5
on 31​st​ March 2012 their balance sheet is as follows: ​(20m)
Balance as on 31st March, 2012
Liabilities Amount Assets Amount
Sundry Creditors 120,000 Cash at bank 2,000
General Reserve 15,000 Sundry Debtors 180,000
Workmen’s
25,000 Less : RDD ​2,000 1,78,000
Compensation Reserve
Capital A/c's Stock 68,000
Gagan 2,88,000 Investments 96,000
Magan 1,92,000 Plant 120,000
Building 1,76,000
6,40,000 6,40,000
st​ th​
On 1​ April, 2012 Chagan was admitted to partnership with 1/4​ share on the following
terms :
1) He should bring Rs 80,000 as his capital .
2) Valuation of the goodwill of the firm to be made twice the average profit of last 3 years.
The profits were Rs 96,000, Rs 1,04,000 and Rs 1,60,000 respectively. Suraj was unable
to bring the goodwill in cash and hence goodwill was raised in the books of the firm.
3) Before admitting Suraj, R.D.D was to be raised upto Rs 4,000.
4) Closing stock was to be valued at Rs 64,000.
5) Half of plant was taken by Gagan at book value.
6) Provide depreciation on Building at 5% p.a.
7) Goodwill is written off after the admission .
8) The capital account of all the partners to be adjusted in their new sharing ratio and excess
amount to be transferred to their loan account.
​Prepare Profit and loss Adjustment A/c, Capital A/c of partners and Balance Sheet of
the new firm.