12th Class
Accountancy
Sample Paper
Accountancy - Sample Paper-1
question_answer
Rachit and Madhur were partners in a firm sharing profits and losses in the ratio of 4 : 3. The following is the balance sheet of the firm as on 31st December, 2016. Balance Sheet as at 31st December, 2016
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Sundry Creditors
20,000
Cash
14,800
Bills Payable
3,000
Debtors
20,500
Bank Overdraft
17,000
(-) Provision for Doubtful Debts
(300)
20,200
Capital A/cs
Stock
20,000
Rachit
70,000
Plant
40,000
Madhur
60,000
1,30,000
Building
75,000
1,70,000
1,70,000
They agreed to admit Rishant as a partner with effect from 1st January, 2017 for 1/4th share in profits on the following terms: (i) Rishant will bring in capital to the extent of l/4th of the total capital of the new firm after all adjustments have been made. (ii) Building is to be appreciated by Rs. 14,000 and plant to be depreciated by Rs. 7,000. (iii) The provision on debtors is to be raised to Rs. 1,000. (iv) The goodwill of the firm has been valued at Rs. 21,000. Prepare revaluation account, partners' capital account and balance sheet of the firm immediately after Rishant's admission. Or Randhir, Rishi and Rajeev are partners with 2 : 2 : 1 ratio. Balance Sheet as at 31st December, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
60,000
Cash in Hand
30,000
General Reserve
20,000
Bank
20,000
Workmen Compensation Fund
10,000
Debtors
50,000
Capital A/cs
Building
1,00,000
Randhir
60,000
Investment
20,000
Rishi
40,000
Deferred Revenue Expenses
10,000
Rajeev
40,000
1,40,000
2,30,000
2,30,000
Adjustments (i) Rajeev takes retirement. (ii) New profit sharing ratio between Randhir and Rishi is 11: 9 and goodwill of the firm is valued at Rs. 40,000. (iii) Investment is taken over by Rajeev at Rs. 15,000. (iv) Rs. 6,000 worth unrecorded typewriter is taken by Randhir at Rs. 5,000. (v) Building increase by 10%. (vi) 10,000 paid to Rajeev in cash and the balance transferred to his loan account. (vii) Continuing partners decide to adjust their capitals in their profit sharing ratio. Adjustments are to be made through cash. Prepare necessary accounts and balance sheet.
Answer:
DrRevaluation AccountCr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Plant A/c
7,000
By Building A/c
14,000
To Provision for Bad Debts A/c
700
To Profit Transferred to
Rachit?s Capital A/c
3,600
Madhur?s Capital A/c
2,700
6,300
14,000
14,000
DrPartner?s Capital AccountCr
Particulars
Rachit (Rs.)
Madhur (Rs.)
Rishant (Rs.)
Particulars
Rachit (Rs.)
Madhur (Rs.)
Rishant (Rs.)
To Balance c/d
76,600
64,950
47,183
By Balance b/d
70,000
60,000
-
By Revaluation A/c (Profit)
3,600
2,700
-
By Rishant?s Current A/c
3,000
2,250
-
By Cash A/c
-
-
47,183
76,600
64,950
47,183
76,600
64,950
47,183
Balance Sheet As at 1st January, 2017
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Sundry Creditors
20,000
Cash (14,800+47,183)
61,983
Bills Payable
3,000
Debtors
20,500
Bank Overdraft
17,000
(-) Provision for Doubtful Debts
(1,000)
19,500
Capital A/cs
Stock
20,000
Rachit
76,600
Plant
40,000
Madhur
64,950
(-) Depreciation
(7,000)
33,000
Rishant
47,183
1,88,733
Building
75,000
(+) Appreciation
14,000
89,000
Rishant?s Current A/c
5,250
2,28,733
2,28,733
Working Notes 1. Total share = 1; Rishant?s share = 1/4 ; Remaining share of Rachit and Madhur \[=1-\frac{1}{4}=\frac{3}{4}\] Total capital of Rachit and Madhur for 3/4th share = 76,600+64,950 = Rs. 1,41,550 Total Capital of the firm \[=1,41,550\times \frac{4}{3}=\,Rs.\,1,88,733\] 2. Rishant?s share of goodwill \[=21,000\times \frac{1}{4}=Rs.\,5,250\] To be distributed among old partners in their sacrificing ratio, i.e. 4 : 3. Rachit?s gain \[=5,250\times \frac{4}{7}=Rs.\,3,000;\]Madhur?s gain \[5,250\times \frac{3}{7}\,Rs.\,2,250\] Or DrRevaluation AccountCr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Investment A/c
5,000
By Building A/c
10,000
To Profit Transferred to
By Unrecorded Typewriter A/c
5,000
Randhir?s Capital A/c
4,000
Rishi?s Capital A/c
4,000
Rajeev?s Capital A/c
2,000
10,000
15,000
15,000
DrPartners? Capital AccountCr
Particulars
Randhir (Rs.)
Rishi (Rs.)
Rajeev (Rs.)
Particulars
Randhir (Rs.)
Rishi (Rs.)
Rajeev (Rs.)
To Deferred Revenue Expenses A/c
4,000
4,000
2,000
By Balance b/d
60,000
40,000
40,000
To Rajeev?s Capital A/c
6,000
2,000
-
By General Reserve A/c
8,000
8,000
4,000
To Unrecorded Typewriter A/c
5,000
-
-
By Workmen Compensation Fund A/c
4,000
4,000
2,000
To Investment A/c
-
-
15,000
By revaluation A/c (Profit)
4,000
4,000
2,000
To Cash A/c
-
-
10,000
By Randhir?s Capital A/c
-
-
6,000
To Rajeev?s Loan A/c
-
-
29,000
By Rishi?s Capital A/c
-
-
2,000
To Cash A/c (Balancing figure)
-
50
-
By Cash A/c (Balancing figure)
50
-
-
To Balance c/d
61,050
49,950
-
76,050
56,000
56,000
76,050
56,000
56,000
DrCash AccountCr
Particulars
Amt (Rs.)
Particulars
Amt (Rs.)
To Balance b/d
30,000
By Rajeev?s Capital A/c
10,000
To Randhir?s Capital A/c
50
By Rishi?s Capital A/c
50
By Balance c/d
20,000
30,050
30,050
Balance Sheet As at 31st December, 2015
Liabilities
Amt (Rs.)
Assets
Amt (Rs.)
Creditors
60,000
Cash
20,000
Rajeev?s Loan A/c
29,000
Debtors
50,000
Capital A/cs
Building (1,00,000+10,000)
1,10,000
Randhir
61,050
Bank
20,000
Rishi
49,950
1,11,000
2,00,000
2,00,000
Working Notes 1. Goodwill of firm = Rs. 40,000; Rajeev?s share of goodwill \[=40,000\times \frac{1}{5}=Rs.\,8,000\] Gaining Ratio = New Share ? Old Share; \[Randhir\,=\frac{11}{20}-\frac{2}{5}-\frac{11-8}{20}=\frac{3}{20};\] \[Rishi\,=\,\frac{9}{20}-\frac{2}{5}=\frac{9-8}{20}=\frac{1}{20};\]Gaining ratio = 3 : 1. JOURNAL
Date
Particulars
LF
Amt (Dr)
Amt (Cr)
Randhir?s Capital A/c
Dr
6,000
Rishi?s Capital A/c
Dr
2,000
To Rajeev?s Capital A/c
8,000
(Being Rajeev?s share of goodwill credited to Randhir and Rashi)
