GoodwilIExists in the Balahce Sheet
41. Vidya andJyoti sharing profits equally admit
Kalam for 1/5th share in profits.
sshare of 90,000. Goodwill existsin theeBalance Sheet at
Kalam brings 50,000 for
1,60,000. Pass Journal entries.
42. Abek and Aman are partners sharing profits and losses in the ratio of3:1.They admit Anand as partner.ubs
Lnnc F 300.000as capital. Anand is to bring cash for his share of goodwill. The new ratio is to be 3-1-1
Condillof the firm is to be based on 3 years purchase of the average of 4 years' profits which were
150.000: 1,20,000; 1,80,000 and 1,90,000. Goodwill Account existsin the books at 40,000.
Pass necessary Journal entries.
A3. Yogesh. Mahesh and Ashish are partners sharing profits and losses in the ratio of 1:2:3.Nirdosh is admitted
as a partner who brings50,000 as his capital for 1/5th share in the profits. Goodwill of the frm is to he
valued at an average of the last three financial years profhts which were 62,500; 70,000 and 92. 500
respectively. Nirdosh is unable to bring his share of premium for goodwill.
Give Journalentries if goodwill already appears in the books at 60,000.
Following is their Balance
44. Jaspal and Rosyare partners in a firm sharing profits and losses in the ratio of 2: 1.
Sheet as at 1st April, 2024:
Liabilities Assets
Goodwill 60,000
Capital A/cs: 40,000
10,00,000 Furniture
Jaspal
4,20,000
4,00,000 14,00,000 Machinery
Rosy 4,80,000
Sundry Creditors 1,20,000 Building
3,60,000
Bils Payable 80,000 Debtors
240,000
Cash at Bank
16,00,000
16,00,000
AdmsionaPartner
and
Hary Garry are partners in afirm sharing profits and losses in the 3.113
62
March.2023is given below: ratio 4:1.Their
31st Balance Sheet as at
BALANCE SHEET OF HARRY AND GARRY
as at 31st March, 2023
Assets
Lgbiltes
Sundy
Creditors 30,000 Goodwill
Outstanaing
Salary 10,000 Office Equipment 20,000
General
Reserve
16,000 Sundry Debtors 74,000
Workmen
CCompensationReserve 40,000 Less: Provision for Doubtful Debts 12.800
Cash
800 12,000
Capital
Acs 50,000 90,000
50,000 1,00,000
Harry
1,96,000
Gary 196,000
admitPParry as a new partner on the following terms:
April,2023,they
On1st
new
profit-sharingratio of Harry, Garry and Parry to be equal.
la) The of 45,000 and his share of goodwill of ?50,000 in cash.
capital
Parry brings 69,000.
Equipmenttoo be valued at
Office Workmen Compensation is 10,000.
Claimagainst
requiredto prepare
Partners' Capital Accounts.
profitsandIlosses in the ratio of 6:3:1.Their fxed
Youare
Salmanand |Ranbir were in partnershipsharing
3,00,000, Salman- 1,50,000and Ranbir 50,000.
63. Aami, 31st March, 2024 were: Aamir
capitals as on
partnership with effect from 1st. April, 2024. The new profit-sharing ratio among the
Irfan into the effect of the following without affecting their
Theyadmit e3:3:3: 1. They also decidetorecord
willbe entry:
partners adjustment
passingan
hook values,by Book Values )
30,000;
GeneralReserve 5,000;
ContingencyReserve 15,000;
(Cr)
Profit &Loss A/c 20,000.
(Dr)
Advertising SuspenseAlc
adjustment entry. admit
Pass the necessary sharing profht and losses in the ratio of 6:3:1. They
Karman are in partnership profit-sharing ratio among the partners
will
6A Pawan. Sharman and from 1st April, 2024. New alues
Ariun into partnership with effect affecting their book
decide to record the effect of the following without Fluctuation Reserve)
be 3:3:3:1.They also Workmen Compensation Reserve and Investment
(after the required adjustment from
entry:
by passing an adjustment Book Values ()
2,40,000;
General Reserve 40,000;
Contingency Reserve 1,20,000;
Profit &Loss A/c (Cr) 1,00,000;
Advertisement Suspense A/c (Dr) 40,000;
Workmen Compensation Reserve 20,000.
Investment Fluctuation Reserve
Additional Information:
0 Claim on account of Workmen Compensation is 20,000.
) Book value of investment is 1,00,000 (Market value ? 90,000).
Pass the necessary adjustment entry.
Prepare necessary Ledger Accounts and Balance Sheet after Manoj's
72. Adin, Prabh and Inder are partners sharing profits and losses in theadmission.
ratio of 2:2 :1 respectively. Their
Balance Sheet as at 31sttMarch, 2024 is as given below:
Liabilities Assets
SundryCreditors 51,400 Cash 4,400
OutstandingLiabilities 6,000 Stock 47,000
General Reserve 26,000 Sundry DebtorS 22,000
CapitalA/cs: Land and Building 1.00,000
Adin 48,000 Furniture 26,000
Prabh 48,000
Inder 20,000 1,16,000
199400 1.99,400
The partners admit Dev as a partner with effect from 1st April, 2024,on the following terms:
() Dev will bring 20,000 as Capital and 10,000 as his share of Goodwill.
(0) Dev could bring only? 2,500 as Goodwillin cash.
(Gi) Value of Stock should be increased by 10,000. Furniture should be reduced by 10% and value of
Land and Building should be enhanced by 20%.
(iv) Provision for Doubtful Debts should be made at 109% of Sundry Debtors.
() Outstanding Liabilities includes 2,000 due to Raman which has been paid by Adin privately. Necessary
entry is to be passed to reimburse Adin before admittingthenew partner.
(vi) Sundry Creditors include 5,000received as commission from Amin.
(vi) New profit-sharing ratio for Adin, Prabh, Inder and Dev is 5:5:3:2.
Passthe necessary Journalentries to incorporate the above changes. Also, prepare the Capital Accounts of
Partners and Balance Sheet of the new firm.
Admission ather
and Ravi are 3.119
31st March, 2024: parthers sharlng profits in the
ratio of 3:2. Their Balance Sheet stood as at
Liabilities
Creditors
BALANCE SHEET
Outstanding Rent Assets
CapitalA/cs: 3,85,000| Cash 20,000
Rajesh
40,000| Stock 1.50,000
Ravi 2,90,000 Prepaid Insurance 15,000
150,000| 440,000 Debtors
Less: Provision for 94,000
Doubtful Debts 4,000 90,000
Machi nery
Building
1,90,000
3,50,000
Furniture 50,000
Raman is
8,65,000 8,65,000
admitted as a new partner
Raman is unable tointroducing
decided as 5:3:2. a capital of
bring in 1,60,000. The t new profit-sharing ratio is
Raman's share iin the
profts and the capital goodwill. It is decided tto value goodwill on the basis of
() Stock to be reduced by 5%. contributed by him. Following revaluations are made:
(i) Provision for Doubtful Debts is to be 5.000.
(i) Furniture to be reduced by 10%.
(iv) Building is valued at 4,00,000.
Show necessary Ledger Accounts and the
Balance Sheet of the new firm.
76. Kavita and Arpita are partners in a firm
sharing profits and losses in the ratio of 3: 2.
Balance Sheet as at 31st March, 2024: Following is ther
Liabilities
Assets
Capital A/cS:
Kavita
Building 3,50,000
5,00,000
Machinery 2,50,000
Arpita 3,00,000 8,00,000 Stock 1,50,000
Creditors 2,00,000 Debtors 1,50,000
Investments 50,000
Bank 50,000
10,00,000 10,00,000
Barun is admitted as a partner on 1st April, 2024 on the following terms:
(a) Barun is to pay 2,00,000 as Capital for 1/4th share. He also pays 50,000 as premium for Goodwill.
(b) Debtors amounting to 30,000 are to be written off as bad and a Provision of 10% is created against
Doubtful Debts on the remaining amount.
() Entry has not been passed for a debt of ? 3,000 recovered by Kavita from a customer, which was
previously written off as bad in previous year. This amount is to be debited to his Current Account now.
(d) Investments are taken by Arpita at their market value of? 49,000 against payment.
You are required to prepare Revaluation Account,Partners' Capital Accounts and new Balance Sheet
PrepareRe
Partners Capital ACCOunts, Cash Account and Balance Sheet ofthe newfirm.
80. Followingisthe Balance Sheet of Suman and Palak, who had been sharing profitsin proportion of 3/4th
as 31st March, 2024:
and1/4th, Sat
Liabilities
Assets
2,25,000
Creditors
GeneralReserve
3,75,000 Cash at Bank 30,000
60,000 Bil s Receivable
CapitalA/cs: 1,60,000
Debtors 2,00,000
3,00,000
Suman Stock 20,000
Palak 1,60,000 4,60,000 AdvertisementExpenditure(Deferred Revenue)
10,000
Furniture 2,50,000
Land and Building 8,95,000
8,95,000
They admit Anjan into partnership on 1st April, 2024 on the following terms:
(0 Anjan pays 1,40,000 as his Capital for 1/5th share in future profits.
to bring in any
(i0) Goodwill Account be valued from the books of the firm at 2,00,000. Anjan is unable
cash for his share of Goodwill.
Debtors.
(i) Stockand Furnitureewill be reduced by 10% and 59% Provision for Doubtful I Debts will be created on
(iv) Land and Building be appreciated by 20%.
Accounts of the Partners will be readjusted on the basis of their profit-sharing arrangement
(v) Capital Accounts.
and any excess or deficiency transferred to their Current
Accounts and Balance Sheet of the new fhrm.
Prepare Revaluation Account, Partners' Capital
partners in a firm sharing profits in 2:1 ratio. They admitted Santanufor 1/4th share
81, Arup and Rama are 30,000 as capital and capitals of Arup and Rama were
Santanu was to bring
inprofits on 1st April, 2024, Santanu's Capital. The Balance Sheet of Arup and
on the basis of
to be adjusted in the profit-sharing ratio
Santanu's admission) was as follows:
Rama as at 31 st March, 2024 (before
Assets
Liabilities 2,000
20,000 Cash
Sundry Creditors 50,000
19,000 Sundry Debtors
Bills Payable 10,000
6.000 Stock 25,000
General Reserve
Machinery
Capital A/cs: 40,000
50,000 Building
Arup 32,000 82,000 1,27,000
Rama 1,27,000
3.124 Double Entry Book
87. Ashish and Akash are partnersin afirm sharing profits in the ratio of 3: 2.
Keeping (Section
31st March, 2024 was as under: Their Balance
Liabilities
h
Assets Sheet as at
Capital As: Machinery
Ashish 35,000 Furniture
Akash 30,000 65,000 Investments 33,15,000000
10,000 Stock
General Reserve
9,000 Debtors 20,000
Bank Loan
Creditors 36,000 Less: Provision for Doubtful Debts 19,000 23,000
Cash 2,000 17 000
1,20,000 12,000
partnership for 1/4th share in the profit on the
1,20,000
On 1st April, 2024, they admitted Namrata into
) Namrata brings Capital
proportionate to her share.. She brings7,000 in cash as herh efol owinGoodwi
share of g termsl:.
(ii) All debtors are good.
109%.
(ii) Reduce Stock by 5% and Furniture by
willbe brought in books.
(iv) An outstanding billfor repairs 1,000
(v) Halfof the investments were to be taken by Ashish and Akash in their profit-sharina ratio at heat
(vi) Bank Loan is paid.
in the ratio of 3:3:2.
(vii) Partners agreed to share future profits
Balance Sheet of the new frm
Prepare Revaluation Account, Partners' Capital Accounts and
in the ratio of 3:2. Their Balance Sheske
88. Neha and Taraare partners in a firm sharing profits and losses
31st March, 2012, stood as follows:
Assets
Liabilities
Plant and Machinery 12,000
Capital A/cs:
