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Partnership NEW RK NOTES
Partnership NEW RK NOTES
Class 12 - Accountancy
Explanation:
Adjustment of amounts will be done as follows:
Amount wrongly taken (2%) L Rs.30,000 M Rs.60,000 N Rs.1,20,000 = Total Rs.2,10,000
Adjust 2,10,000 in 2:3:5 ratio L Rs.42,000 M Rs.63,000 N Rs.1,05,000
L has already taken Rs.30,000 but he should get 42,000, so credit him for Rs.12,000
M has already taken Rs.60,000 but he should get 63,000, so credit him for Rs.3,000
N has already taken Rs.1,20,000 but he should get 1,05,000, so Debit him for Rs.15,000
Entry will be:
5
2
4
of 3
5
= 3
20
5
- 3
20
= 9
20
or 27
60
3
of 2
5
= 15
2
5
- 2
15
= 4
15
or 16
60
Ghanshyam share = share received from ram + share receive from shyam
3 9+8 17
= 20
+ 2
15
= 60
= 60
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As they are distributing capital equal so,
The new capital of A and C will be = Rs.35,000 each
A will bring = 35,000 - 23,000 = Rs.12,000
7. (c) Credited Rs.1500
Explanation: Share of profit of T will be calculated as follows:
Profit = Rs.24,000
Profit for 3 months (from the last balance sheet till the date of his death) = 24,000 × 3
12
= Rs.6,000
T's share = 4
16
16
= Rs. 1,500
Profit received by T as he died so credited in his account.
8. In the books of Firm
Profit and Loss Appropriation Account
for the year ended March 31, 2013
Amount Amount
Particulars Particulars
(₹) (₹)
To Profit transferred to:(See W.N.) By Profit & Loss A/c (Given) 90,000
6
5
5
×
5
6
=
15
30
5
×
5
6
=
10
30
Anshu's share = 1
6
or 5
30
9. ADJUSTMENT ENTRY
Date Particulars LF Amt(₹) Amt(₹)
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Share of Profit i.e, ₹1,00,000 in 3: 1: 1
2018
April
Reserve A/c Dr. 15,000
1
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To C's Capital A/c 2,000
(20% of Reserve retained as provision for doubtful debts and the balance credited to old
partners in 3: 2: 1)
(Recording the liability for damages and decrease in the value of stock and patents through
revaluation account)
(Goodwill already existing in the books written off in the old ratio)
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(Surplus capital withdrawn by B and C)
PARTNER'S CAPITAL ACCOUNTS
Dr. Cr.
Particulars A B C D Particulars A B C D
₹ ₹ ₹ ₹ ₹ ₹ ₹ ₹
To Revaluation A/c 10,500 7,000 3,500 --- By Balance b/d 60,000 60,000 50,000 ---
To Goodwill 7,500 5,000 2,500 --- By ReserveA/c 6,000 4,000 2,000 ---
To Balance c/d 77,000 61,000 46,000 60,000 By Overdraft 20,000 --- --- ---
To Cash (b/f) --- 11,000 6,000 --- By Balance b/d 77,000 61,000 46,000 60,000
C 40,000
D 60,000
2,73,000 2,73,000
Working Notes :
1. New Profit sharing ratios :
A= − =3
6
1
8
3
B= 2
6
−
1
8
=
5
24
C= 1
D= 1
8
:
5
24
:
1
6
:
1
4
or 9
24
:
5
24
:
4
24
:
6
24
or 9 : 5 : 4 : 6
D brings in ₹60,000 as his capital according to his 1/4th share of profit. Therefore, based on D’s capital, the total capital of the
new firm will be 60,000 × = ₹2,40,0004
24
= ₹90,000
= ₹50,000
5
B’s Capital in the new firm = 2,40,000 × 24
24
= ₹40,000
= ₹60,000
6
D’s Capital in the new firm = 2,40,000 × 24
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12. Revaluation Account
Dr. Cr.
Particulars ₹ Particulars ₹
To Fixed Assets A/c (60,000 - 57,500) 2,500 By Creditors A/c (10,000 - 8,000)
To Provision for Doubtful Debts A/c 5,000 By Loss on Revaluation transferred to:
7,500 7,500
Partners' Capital Account
Dr. Cr.
Particulars X Y Z Particulars X Y Z
To Revaluation A/c 2,750 1,650 1,100 By Balance b/d 40,000 62,000 33,000
X's Capital A/c 24,000 16,000 By Profit and Loss A/c 42,500 25,500 17,000
′ 2 2 4−2 2
Z s= − = =
5 10 10 10
Z's Capital = 2
5
× 1,97,500 = 79,500
Particulars X Z
Particulars ₹ Particulars ₹
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To Balance b/d 40,000 By Creditors A/c 8,000
1,42,750 1,42,750
2014
June
Workmen Compensation Reserve A/c Dr. 6,400
30
June
Interest on Capital A/c Dr. 375
30
June
A's Capital A/c Dr. 10,500
30
(Adjustment of B's share of goodwill into the Capital A/cs of A and C in their gaining ratio
i.e., equally)
June
Profit & Loss Suspense A/c Dr. 2,625
30
June
B's Capital A/c Dr. 60,400
30
2014 2014
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June 30 By A's Capital A/c 10,500
60,400 60,400
B's EXECUTOR'S A/C
Dr. Cr.
2014 July 1 To Bank A/c 20,400 2014 June 30 By B's Capital A/c 60,400
By Interest A/c
2015 March 31 To Balance c/d 41,800 2015 March 31 6 9 1,800
(60,400 - 20,400) × 100
×
12
62,200 62,200
To Bank A/c
2015 June 30 12,400 2015 April 1 By Balance b/d 41,800
(10,000 + 1,800 + 600)
6 3
2016 March 31 To Balance c/d 31,350 2015 June 30 By Interest A/c 40, 000 × 100
×
12
600
6 9
2016 March 31 By Interest A/c 30, 000 × 100
×
12
1,350
43,750 43,750
To Bank A/c
2016 June 30 11,8000 2016 April 1 By Balance b/d 31,350
(10,00 + 1,350 + 450)
6 3
2017 March 31 To Balance c/d 20,900 2016 June 30 By Interest A/c 30, 000 × 100
×
12
450
6 9
2017 March 31 By Interest A/c 20, 000 × 100
×
12
900
32,700 32,700
2017 June 30 To Bank A/c (10,000 + 900 + 300) 11,200 2017 April 1 By Balance b/d 20,900
6 3
2018 March 31 To Balance c/d 10,450 2017 June 30 By Interest A/c 20, 000 × 100
×
12
300
6 9
2018 March 31 By Interest A/c 10, 000 × 100
×
12
450
21,650 21,650
2018 June 30 To Bank A/c (10,000 + 450 + 150) 10,600 2018 April 1 By Balance b/d 10,450
6 3
2018 June 30 By Interest A/c 10, 000 × 100
×
12
150
10,600 10,600
Notes:
i. Total amount due to B9s Executor’s is ₹ 40,000 payable in 4 instalments. Hence, yearly instalment = 40,000 ÷ 4 = ₹ 10,000
plus interest.
14. Realisation Account
Particulars ₹ Particulars ₹
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To Cash A/c- A 1,000
1,81,100 1,81,100
Cash Account
Particulars ₹ Particulars ₹
C 18,000 71,000
1,23,400 1,23,400
Partner's Capital Accounts
Particulars A (₹) B (₹) C (₹) Particulars A (₹) B (₹) C (₹)
By Provision for
Building 1,20,000 4,000
Doubtful Debts
By Mrs. Param's
Debtors 34,000 84,000
Loan
By Investments
Bills Receivable 37,400 8,000
Fluctuation Reserve
By Raman's Capital
Realisation Expenses 2,500 80,500 27,000
A/c
By Loss transferred
(Remuneration)
to:
4,36,500 4,36,500
RAMAN'S LOAN ACCOUNT
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Particulars ₹ Particulars ₹
88,000 88,000
PARTNERS' CAPITAL ACCOUNTS
Particulars Param (₹) Raman (₹) Particulars Param (₹) Raman (₹)
2,18,000 2,18,000
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