Admission of Partner Practice Questions

  ASSIGNMENTS-1

 

1.       A and B are partners in a firm sharing profits in the ratio of 2:1 is admitted into the firm with 1/4th share in profits. He will bring Rs. 30,000 as his capital. The balance sheet of A and B as on 31.3.2003 was as under:

Liabilities	Rs	Assets	Rs
Creditors Bills Payable general reserve A’s capital B’s capital	8,000 4,000 6,000 52,000 30,000     1,00,000	Cash Debtors Stock Furniture Machinery building	12,000 8,000 10,000 5,000 25,000 40,000   1,00,000

Other terms of the agreement are as under

                          i.          C will bring I Rs 12,000 as his share of goodwill.

                        ii.          The building was valued at Rs. 45,000 and Machinery at Rs 23,000.

                      iii.          A provision for bad debt is to be created @6% on debtors.

Prepare Revaluation A/c, Partners’ Capital A/cs and the balance sheet of new firm.

 

2.       Ram and Shyam were partners in a firm sharing profits in the ratio of 3 : 2. On 31. 3. 2013. Their Balance Sheet was as follows:

Liabilities	Amount	Assets	Amount
Sundry Creditors  Bills Payable Outstanding Expenses Capitals: Ram         1,80,000   Shyam           70,000	50,000 20,000 10,000       2,50,000 3,30,000	Land and Building Machinery Stock Debtors Cash	1,00,000 80,000 1,00,000 40,000  10,000     3,30,000

On the above date Mohan was admitted as a new partner in the firm for 1/4th share of profits on the following terms:

       i.           Mohan will bring Rs.1,20,000 for his capital and Rs.20,000 for his share as premium for goodwill.

     ii.          Machinery was to be depreciated by 10% and Land and Building was to be appreciated by Rs.30,000.

   iii.           Stock was overvalued by Rs.20,000.

    iv.          A provision of 5% was to be created for doubtful debts.

      v.          Salary outstanding was Rs.5,000.

Prepare Revaluation A/c, Partners Capital A/cs and Balance Sheet of new firm.