Volume-1 | Chapter-5 | Question: 46 to 50 | Admission Of A Partner | Ts grewal solution 2020-21 | Class-12th

Page No 5.90:

Question 46:

Answer: 

Journal

Date

Particulars

L.F.

Debit

Amount

   `

Credit

Amount

   `

 

 

 

 

 

 

Cash A/c

Dr.

 

3,01,000

 

 

To Boman’s capital A/c

To Premium for Goodwill A/c

 

 

 

2.80,000

21,000

 

(Being Boman’s brought his share of goodwill and capital in cash)

 

 

 

 

 

 

 

 

 

 

 

Premium for Goodwill A/c

Dr.

 

21,000

 

 

To Aman’s Capital A/c

 

 

 

21,000

 

(Being Aman’s share of Goodwill transferred in their sacrificing Ratio)

 

 

 

 

 

 

 

 

 

Working ratio:

Calculation of Capital and Goodwill to be contributed by new partner Boman:

Opening Capital of Aman

Add; profit earned during the year

(-5000+13,000+17,000+20,000+25,000)

Less; Total drawing during last five years

=

=

 

=

2,50,000

70,000

 

40,000

Boman will have to Bring as capital for equal partnership

Add: Boman’s contribution for ¼ share of goodwill

(70000×3/5×1/2=21,000)

=

=

 

2,80,000

21,000

Boman will have to Bring as capital and for goodwill

=

3,01,000

 

Page No 5.90:

Question 47:

Pass entries in the firm's journal for the following on admission of a partner:
(i) Machinery be reduced by  ` 16,000 and Building be appreciated by  ` 40,000.
(ii) A provision be created for Doubtful Debts @ 5% of Debtors amounting to ` 80,000.
(iii) Provision for warranty claims be increased by` 12,000.
 

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

Amount

 `

 

 

 

 

 

 

(i)

Revaluation A/c 

Dr.

 

16,000

 

 

     To Machinery A/c

 

 

 

16,000

 

(Value of machinery decreased)

 

 

 

 

 

 

 

 

 

 

 

Building A/c

Dr.  

 

40,000

 

 

    To Revaluation A/c 

 

 

 

40,000

 

(Value of building increased)

 

 

 

 

 

 

 

 

 

 

(ii)

Revaluation A/c 

 

 

 

 

 

     To Provision for Doubtful Debts A/c

Dr

 

4,000

 

 

(Provision created on debtors)

 

 

 

4,000

 

 

 

 

 

 

(iii)

Revaluation A/c 

Dr.

 

12,000

 

 

     To Provision for Warranty Claims A/c

 

 

 

12,000

 

(Liability  recorded)

 

 

 

 

 

 

 

 

 

Page No 5.91:

Question 48:

Pass entries in firm's Journal for the following on admission of a partner:
(i) Unrecorded Investments worth `20,000 are to be accounted.
(ii) Unrecorded liability towards suppliers for ` 5,000 is to be accounted.
(iii) An item of  ` 1,600 included in Sundry Creditors is not likely to be claimed and hence should be written back.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

Amount

 `

 

 

 

 

 

 

(i)

Investment A/c

Dr.

 

20,000

 

 

    To Revaluation A/c 

 

 

 

20,000

 

(Investments recorded)

 

 

 

 

 

 

 

 

 

 

(ii)

Revaluation A/c 

Dr.  

 

5,000

 

 

     To Creditors A/c

 

 

 

5,000

 

(Liability  recorded)

 

 

 

 

 

 

 

 

 

 

(iii)

Creditors  A/c

 

 

 

 

 

    To Revaluation A/c 

Dr

 

1,600

 

 

(Liability decreased)

 

 

 

1,600

 

 

 

 

 

 

Page No 5.91:

Question 49:

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner and fixed the new profit-sharing ratio as 3 : 2 : 1. At the time of admission of Z, Debtors and Provision for Doubtful Debts appeared at    ` 50,000 and    ` 5,000 respectively all debtors are good. Pass the necessary Journal entries.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

Amount

 `

 

 

 

 

 

 

(i)

Provision for Doubtful Debts A/c

Dr.

 

5,000

 

 

     To Revaluation A/c 

 

 

 

5,000

 

(Provision on Debtors reduced)

 

 

 

 

­

 

 

 

 

 

(ii)

Revaluation A/c 

Dr.  

 

5,000

 

 

   To X’s Capital A/c

 

 

 

3,000

 

   To Y’s Capital A/c

 

 

 

2,000

 

(Profit on Revaluation transferred to Partners’ Capital A/c)

 

 

 

 

 

 

 

 

 

Page No 5.91:

Question 50:

X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share. At the time of admission of Z, Stock (Book Value    ` 1,00,000) is to be reduced by 40% and Furniture (Book Value    ` 60,000) is to be reduced to 40%. Pass the necessary Journal entries.

Answer:

Journal

Date

Particulars

L.F.

Debit

Amount

 `

Credit

Amount

 `

 

 

 

 

 

 

 

Revaluation A/c 

Dr.

 

76,000

 

 

    To Stock A/c 

 

 

 

40,000

 

    To Furniture A/c

 

 

 

36,000

 

(Value of assets decreased)

 

 

 

 

 

 

 

 

 

 

 

 X’s Capital A/c

Dr.

 

45,600

 

 

 Y’s Capital A/c

Dr.

 

30,400

 

 

   To Revaluation A/c 

 

 

 

76,000

 

(Loss on Revaluation transferred to Partners’ Capital A/c)

 

 

 

 

 

 

 

 

 

 


Click on Below link for more questions Of Volume-1 | 
Chapter-5: Admission Of A Partner 2020

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