RELIABLE CLASSES ADMISSION OF A PARTNER S.Y.J.C. A/cs.
PROF. BHAMBWANI’S
RELIABLE CLASSES
SYJC (RECORDING) WORD FILE (CHAPTER WISE)
ADMISSION OF PARTNER
LEC 1:THEORY
LEC 2:THEORY
LEC 3:THEORY
LEC 4:Following Balance Sheet of Tinu and Vinu who share profits and losses in the ratio of 2:1.
BALANCE SHEET as on 1.7.1997.
Liabilities Rs. Assets Rs.
Creditors 19,200 Plant and Machinery 30,000
General Reserve 12,000 Stock 20,000
Capital Accounts: Furniture 4,000
Tinu 38,000 Debtors 30,000
Vinu 21,000 59,000 Less: R.D.D. 800 29,200
Cash at bank 7,000
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90,200 90,200
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On the above date, Tushar is admitted on the following terms:
1. Tushar should bring in Rs.24,000 as his capital and Rs.12,000 as Goodwill for his 1/4 share in the future profits.
2. The amount Goodwill is to be withdrawn by Tinu and Vinu.
3. Plant and Machinery and stock is to be depreciated by 5% and 10% respectively and Furniture is taken over by Tinu at Rs.5,700.
4. A provision for Bad and doubtful debts should be maintained at 7%.
5. It was found that a liability of Rs.1000 for credit purchases of goods was not recorded in the books, whereas, out of present creditors Rs.300 will not have to be paid.
6. New P/S ratio is to be 7:5:4 for Tinu, Vinu and Tushar.
Prepare: 1. Profit and losses Adjustment Account; 2. Partner's Capital Accounts; 3. Bank account; and 4. Balance Sheet of new firm.
LEC 5: Following is the Balance Sheet of M/s Babloo and Buntu who were sharing profits and losses as 2/3 and 1/3 respectively.
Balance Sheet as on 1.4.1997.
Liabilities Rs. Assets Rs.
Capital accounts: Buildings 27,500
Babloo 22,500 Plant and machinery 15,500
Buntu 20,500 42,500 Stock in trade 17,800
Sundry Creditors 22,650 Debtors 8,000
Reserve Fund 6,900 Less: R.D.D. 250 7,750
Cash in hand 3,500
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72,050 72,050
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Omu is admitted to partnership on 1.4.1992 with 1/4th share in profit, on following terms:
1. He is to bring Rs. 20,000 as capital.
2. Goodwill is to be raised and written off in the books of the firm. Goodwill to be valued at 2 year's purchase of average profit of last 3 years which were as follows:
1989-1990 Rs.20,000; 1990-1991 Loss Rs.6,000; 1991-1992 Rs.13,000.
3. To maintain reserve for doubtful debts at 5% on Debtors.
4. To appreciate building by 10%.
5. An outstanding expenditure of Rs.350 has not been recorded in the books of the firm.
6. Stock is over valued by Rs.2,800.
Prepare: 1. Revaluation account. 2. Partner's Capital Accounts and 3. Balance sheet of the new firm M/s BBO.
LEC 6:The following is the balance sheet of Binaca and Cibaca as on 31-12-1999 who share profits and losses equally.
BALANCE SHEET
Liabilities Rs. Assets Rs.
Capital: Binaca 20,000 Machinery 55,000
cibaca 20,000 Stock 20,000
Creditors 20,000 Debtors 15,000
Current accounts: Binaca20,000 Bills Receivable 5,000
Cibaca20,000 Cash/Bank 5,000
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1,00,000 1,00,000
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They admit Dinaca as an equal partner on 1-1-2000, Goodwill valued at Rs.30,000. Stock to be valued at Rs.30,000; Machinery at Rs.50,000. C is to bring in Rs.30,000 as his Capital but does not brings cash for his share of Goodwill. Show necessary journal entries and also the balance sheet after admission of Dinaca.
LEC 7:THEORY
LEC 8:The following is the Balance Sheet of Benson, Cynthia & Danny sharing profits & losses in the ratio of 6/14th, 5/14th & 3/14th respectively.
Balance Sheet
Liabilities / Amount / Assets / AmountCreditors / 12,000 / Land & Building / 24,400
Bills Payable / 6,000 / Furniture / 6,000
Benson Capital / 19,000 / Stock / 14,000
Cynthia Capital / 16,000 / Debtors / 15,600
Danny Capital / 8,000 / Cash / 1,000
61,000 / 61,000
They agreed to take Emanual into partnership and give him 1/8th share on the following terms:
(a)Emanual should bring in Rs. 7,000 as Goodwill and Rs. 17,000 as Capital.
(b)Furniture be depreciated by 12%.
(c)Stock be depreciated by 10%.
(d)A reserve of 5% created on debtors for doubtful debts.
(e)The value of Land & Building having appreciated be brought upto Rs. 31,000.
(f)After making the above adjustments, the capital account of the old partners (who continued to share in the same proportion of Emanual’s capital to his share in the business. (i.e. Actual cash to be paid off or to be brought in by the old partners as the case may be.)
Show necessary ledger accounts & Opening Balance sheet of the firm as newly constituted.
LEC 9:A and B are partners in a firm sharing profits and losses in the ratio of 4:1. Their Balance sheet as on 31st March 1991 is as follows.
Liabilities Assets
Capital A/cs Furniture 20,000
A Rs. 25,000 Stock 40,000
B Rs. 65,000 90,000 Bills receivables 10,000
Reserve 20,000 Debtors 30,000
Creditors 25,000 Cash at Bank 40,000
Bills payable 5,000
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1,40,000 1,40,000
They agreed to take C as a partner with effect from 1st April 1991 on the following terms:
a) A, B and C will share profit and losses in the ratio of 5:3:2.
b) C will bring Rs.20,000 as premium for goodwill and Rs 30,000 as capital
c) Half of the Reserve is to be withdrawn by the partners.
d) The assets will be revalued as follows :
Furniture 30,000
Stock 39,500
Debtors 28,500
e) A creditor for Rs 12,000 has agreed to forgo his claim by Rs 2,000
f) After making the above adjustments the Capital Accounts of A and B should be adjusted on the basis of C's Capital by bringing cash or withdrawing cash, as the case may be.
Pass necessary Journal entries and prepare the Balance sheet of the new firm as on 1st April 1991.
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