A and B share profits in the ratio of 3:2.

The Balance Sheet of the firm as at April 1, 2016 was as

follows:
Liabilities ₹ Assets ₹
Creditors
Workmen Compensation Reserve
Profit & Loss Balance
Capital Accounts:
A 3,00,000
B 2,00,000
Bank Overdraft 70,000
30,000
50,000

5,00,000
1,50,000 Goodwill
Plant & Machinery
Computer
Debtors 2,00,000
Less: Provision 15,000
Stock 60,000
3,00,000
35,000

1,85,000
2,20,000
8,00,000 8,00,000
On this date C was admitted as a partner. A gives 1/3rd of his share while B gives 1/10th from his
share to C.
Following terms were agreed:
(i) C will introduce 2,00,000 as capital and will bring in his share of goodwill in cash. Goodwill of the
firm is valued at 1,50,000.
(ii) Out of creditors, a sum of 20,000 is due to C which will be transferred to his capital.
(iii) Provision for doubtful debts was found to be in excess by ₹5,000.
(iv) Liability for Workmen Compensation Claim was ₹40,000.
(v) Part of the stock which had been included at a cost of 15,000 had been badly damaged and is
expected to realise only ₹3,000.
(vi) Expenses on revaluation 8,000 are paid by B.
Prepare Revaluation Account and Capital Accounts of the partners. Also calculate the new profit
sharing ratios.
A and B are partners sharing profits in the ratio of 2: 3. Their Balance Sheet shows Machinery at
2,50,000; Stock at 1,00,000 and Debtors at 2,00,000. C is admitted and new profit sharing ratio is
agreed at 3:4: 5. Machinery is revalued at 1,90,000 and a provision is made for doubtful debts @ 5%.
A's share in loss on revaluation amount to 20,000. Revalued value of Stock will be:

(A) 2,20,000
(C) 90,000
(B) 80,000
(D) 1,20,000

Partners A, B and C share the profits of a business in the ratio of 3:2:1 respectively. They admit D
who brings in 30,000 for his share of goodwill. A, B, C and D decide to share the profits respectively
in the ratio of 5:3:2:2. Credit will be given to:

(A) A 3,000; B 3,000

(C) A 15,000; B 10,000; C 5,000
(B) A 15,000; B 9,000; C 6,000
(D) A 15,000; B 15,000

P and Q are partners in a firm sharing profits and losses in the ratio of 3:2. On 31st March, 2022,
their Balance Sheet was as under:
Liabilities ₹ Assets ₹
Creditors 1,75,000 Land & Building 5,60,000
Employee's Provident Fund 25,000 Debtors 2,00,000
Capitals A/cs: Stock 1,50,000
P 4,50,000 Patents 10,000
Q 3,00,000 7,50,000 Bank 30,000
9,50,000 9,50,000
They admit R for 1/5th share in profit. R acquires 1/5th of his share from P and 4/5th share from Q.
(i) R shall bring in 2,00,000 as capital and 50,000 for his share of goodwill. R brings in only 40% of his
share of goodwill in cash.
(i) Advertisement Expenses of 30,000 are to be carried forward to next accounting period.
(iii) Provision for doubtful debts is to be created @5%.
(iv) Outstanding salary amount to 35,500; Employee's Provident Fund is to be increased by 10,000.
(v) Patents are to be written off from the books.
(vi) Stock worth ₹1,00,000 was taken over by P and Q in their profit sharing ratio and the remaining
stock was valued at 40,000.
Prepare Revaluation Account and Partner's Capital Accounts.