57 :- X, Y and Z are equal partners with capitals of Rs 15,000; Rs 17,500 and Rs 20,000 respectively. They agree to admit W into equal partnership upon payment in cash Rs 15,000 for 1/4th share of the goodwill and Rs 18,000 as his capital, both sums to remain in the business. The liabilities of the old firm were Rs 30,000 and the assets, apart from cash, consist of Motors Rs 12,000, Furniture Rs 4,000, Stock Rs 26,500 and Debtors Rs 37,800. The Motors and Furniture were revalued at Rs 9,500 and Rs 3,800 respectively.
Pass journal entries to give effect to the above arrangement and also show balance sheet of the new firm.
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58 :- Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2025:
They admit C into partnership on 1st April, 2024 on the following terms:
(a) C was to being Rs 7,500 as his capital and Rs 3,000 as goodwill for 1/4th share in the firm.
(b) values of the stock and Plant and Machinery were to be reduced by 5%.
(c) A Provision for Doubtful Debts was to be created on respect of Sundry Debtors Rs 375.
(d) Building was to be appreciated by 10%.
Pass necessary Journal entries to give effect to the arrangements. Prepare Profit & Loss Adjustment Account (or Revaluation Account), Partner’s Capital Accounts and Balance Sheet of the new firm.
59 :- Balance sheet of J and K who share profits in the ratio of 3:2 is as follows :-
M joins the firm from 1st April, 2024 for half share in the future profits. He is to pay Rs 1,00,000 as goodwill and Rs 3,00,000 for capital. Draft the Journal entries and prepare Balance Sheet in each of the following cases:
(a) If M gets his share of profits in the profit-sharing ratio of the old partners.
(b) If M gets his share of profits in equal proportion from the old partners.
(c) If M gets his share of profits in the ratio of 3 : 1 from the old partners, determine the future profit sharing ratio of the partners in each case.
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60 :- Given below is the Balance Sheet of A and B on 31st March, 2024, who are carrying on partnership business. A and B share profits and losses in the ratio of 2 : 1.
C is admitted as a partner on 1st April, 2023 on the following terms:
(a) C will bring Rs 1,00,000 as his capital and Rs 60,000 as his share of goodwill for 1/4th share in the profits.
(b) Plant is to be appreciated to Rs 1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by Rs 4,000.
(d) A provision for doubtful debts is to be created at 5% of sundry debtors
(e) Creditors were unrecorded to the extent of Rs 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partner’s Capital Accounts and Show the Balance Sheet after the admission of C.
Question 1 to 5 (Calculation of New Profit – Sharing Ratio and Sacrificing Ratio)
Question 6 to 10 (Calculation of New Profit – Sharing Ratio and Sacrificing Ratio)
Question 11 to 14 (Calculation of New Profit – Sharing Ratio and Sacrificing Ratio)
Question 15 to 18 (Calculation of New Profit – Sharing Ratio and Sacrificing Ratio)
Question 19 to 23 (Goodwill/Premium for Goodwill is brought in Cash by the New Partner and Retained in the Business)
Question 24 to 28 (Goodwill/Premium for Goodwill is brought in Cash by the New Partner and Retained in the Business)
Question 29 (Premium for Goodwill brought in Kind)
Question 30 to 32 (When Premium for Goodwill is brought by New or Incoming Partner and is withdrawn by Old Partners Fully or Partly)
Question 33 to 34 (When Only Part of Premium for Goodwill is brought by New Partner)
Question 35 to 36 (When New or Incoming Partner is not able to bring his Share of Premium for Goodwill)
Question 37 to 41 (Hidden Goodwill)
Question 42 to 46 (Revaluation of Assets and Reassessment of Liabilities)
Question 47 to 50 (Revaluation of Assets and Reassessment of Liabilities)
Question 51 to 54 (Reserves and Accumulated Profits/Losses and Preparation of Revaluation Account)
Question 55 to 56 (Preparation of Revaluation Account and Partner’s Capital Accounts)
Question 57 to 60 (Preparation of Revaluation Account, Partner’s Capital Accounts and Balance Sheet)
Question 61 to 64 (Preparation of Revaluation Account, Partner’s Capital Accounts and Balance Sheet)
Question 65 to 68 (Preparation of Revaluation Account, Partner’s Capital Accounts and Balance Sheet)
Question 69 to 73 (Adjustments of the Old Partner’s Capitals on the Basis of New or Incoming Partner’s Capital)
Question 74 to 76 (When the New Partner is required to bring Proportionate Capital)
Question 77 to 78 (When New Partner has to bring Capital on the basis of Combined Capitals of Old Partners)