Uma and Umesh were partners in a firm sharing profits and losses in the ratio of 2:3. On 31st March, 2024, their Balance Sheet was given. Daya was admitted with 2:3:5 profit sharing ratio, bringing in capital and goodwill. Various revaluations and adjustments were also made. Journalise the transactions related to Daya’s admission.
Uma and Umesh were partners in a firm sharing profits and losses in the ratio of 2:3. On 31st March, 2024, their Balance Sheet was given. Daya was admitted with 2:3:5 profit sharing ratio, bringing in capital and goodwill. Various revaluations and adjustments were also made. Journalise the transactions related to Daya’s admission.
Show Hint
Solution and Explanation
Journal Entries in the Books of Uma, Umesh and Daya
1. Bank A/c Dr. ₹12,00,000 To Daya's Capital A/c ₹10,00,000 To Premium for Goodwill A/c ₹2,00,000 (Being capital and goodwill brought in by Daya)
2. Premium for Goodwill A/c Dr. ₹2,00,000 To Uma’s Capital A/c ₹80,000 To Umesh’s Capital A/c ₹1,20,000 (Being goodwill distributed in sacrificing ratio of 2:3)
3. Land and Building A/c Dr. ₹2,00,000 To Revaluation A/c ₹2,00,000 (Being increase in value of Land and Building)
4. Revaluation A/c Dr. ₹10,000 To Furniture A/c ₹10,000 (Being depreciation of furniture @ 10% on ₹1,00,000)
5. Provision for Doubtful Debts A/c Dr. ₹5,000 Bad Debts A/c Dr. ₹3,000 To Debtors A/c ₹8,000 (Being ₹3,000 bad debts written off and old provision removed)
6. Revaluation A/c Dr. ₹4,000 To Provision for Doubtful Debts A/c ₹4,000 (Being new provision created @ 5% of ₹80,000)
7. Revaluation A/c Dr. ₹1,86,000 To Uma’s Capital A/c ₹74,400 To Umesh’s Capital A/c ₹1,11,600 (Being profit on revaluation distributed in old ratio 2:3)
8. General Reserve A/c Dr. ₹75,000 To Uma’s Capital A/c ₹30,000 To Umesh’s Capital A/c ₹45,000 (Being distribution of general reserve in 2:3)
9. Workmen Compensation Fund A/c Dr. ₹25,000 To Uma’s Capital A/c ₹10,000 To Umesh’s Capital A/c ₹15,000 (Being distribution of Workmen Compensation Fund)
10. Outstanding Electricity Bill A/c Dr. ₹10,000 To Bank A/c ₹10,000 (Being payment of outstanding electricity bill)
Top CBSE CLASS XII Accountancy Questions
From the following Balance Sheet of Hira Ltd. as at 31st March, 2023, prepare Comparative Balance Sheet:
- On 1st May, 2023, Amrit Ltd. issued 10,000, 10% debentures of ₹100 each at a premium of 10%, redeemable at a premium of 10%. Loss on issue of debentures will be:
- Gupta and Sharma are partners in a firm sharing profit in the ratio of 4:1. They admitted Preeti as a new partner for \( \frac{1}{4} \) share in the profits, which she acquired wholly from Gupta. The new profit sharing ratio of Gupta, Sharma, and Preeti will be:
- On the dissolution of a partnership firm, there were debtors of ₹34,000. Debtors of ₹1,000 became bad, and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realization from debtors?
- If vendors are issued fully paid shares of ₹1,25,000 in purchase consideration of net assets of ₹1,50,000, the balance of ₹25,000 will be credited to:
Top CBSE CLASS XII Partnership Questions
Pooja and Kumari were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 1st April, 2023, Noori was admitted for a new partner \( \frac{1}{4} \) share in the profits of the firm. Noori was guaranteed a minimum profit of 1,20,000. Any deficiency on this account was to be borne by Pooja and Kumari in their profit sharing ratio. During the year ended 31st March, 2024, the firm earned a net profit of 3,60,000. The amount of deficiency borne by Pooja will be:
- There are two statements Assertion (A) and Reason (R):
Assertion (A): Private assets of a partner can also be used for paying off the firm’s debts.
Reason (R): Liability of a partner for acts of the firm is limited.
Choose the correct alternative from the following: - Nandan and Abhinandan were partners in a firm. They admitted Govindan as a new partner for \( \frac{1}{3}^{\text{rd}} \) share in the profits. On Govindan’s admission, the Balance Sheet of the firm showed sundry debtors at 3,00,000 and a provision for bad debts at 24,000. It was decided to maintain the provision for bad debts at 10% of the debtors. Which of the following journal entries will show the correct accounting treatment for the above transactions?
Saloni and Mohini were partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2024, Saloni’s capital was 1,50,000. During the year, she withdrew 10,000 and introduced additional capital of 32,000. For the year ended 31st March, 2024, the firm earned a profit of 50,000. Saloni’s capital as on 1st April, 2023, was:
Hari, Chander, Prakash and Govind were partners in a firm sharing profits and losses in the ratio of 5 : 3 : 1 : 1. On 1st April, 2024, Hari retired and his share was acquired equally by Chander, Prakash and Govind. The new profit sharing ratio of Chander, Prakash and Govind will be:
Top CBSE CLASS XII Questions
- 2, b, c are in A.P. and the range of determinant $\begin{vmatrix}1&1&1\\ 2&b&c\\ 4&b^{2}&c^{2}\end{vmatrix}$ is [2, 16]. Then find range of c is
- A boy of mass 50 kg is standing at one end of a, boat of length 9 m and mass 400 kg. He runs to the other, end. The distance through which the centre of mass of the boat boy system moves is
- A capillary tube of radius r is dipped inside a large vessel of water. The mass of water raised above water level is M. If the radius of capillary is doubled, the mass of water inside capillary will be
- A circular disc is rotating about its own axis. An external opposing torque 0.02 Nm is applied on the disc by which it comes rest in 5 seconds. The initial angular momentum of disc is
- A circular disc is rotating about its own axis at uniform angular velocity \(\omega.\) The disc is subjected to uniform angular retardation by which its angular velocity is decreased to \(\frac {\omega}{2}\) during 120 rotations. The number of rotations further made by it before coming to rest is