[CBSE] Q 64 DK Goel Admission of a Partner Solutions Class 12 (2024-25)

The solution of Question number 64 of Admission of a Partner chapter 3 of DK Goel Class 12 CBSE (2024-25)

Q. 64. A and B are in partnership sharing profits and losses in the ratio of 3 : 2. On 1st April 2024, they admitted C into partnership. He paid ₹ 50,000 as his capital but nothing for Goodwill which was valued at ₹ 40,000 for the time. He acquired 1/5th share in profits, equally from both partners. It was also decided that:

(i) Land and Building be written off by ₹ 20,000.

(ii) Stock be written down by ₹ 3,200.

(iii) A provision of ₹ 1,000 be created for doubtful debts; and

(iv) An amount of ₹ 1,200, included in Sundry Creditors, be written off as it is no longer payable.

The Balance Sheet of A and B as at 31st March, 2024 was as under:

Balance Sheet as at 31st March, 2024

Liabilities	₹	Assets	₹
Capital Accounts A B	86,000 64,000	Goodwill	10,000
General Reserve	20,000	Land and Building	60,000
Sundry Creditors	31,200	Plant and Machinery	70,000
		Stock	36,000
		Sundryy Debtors	20,000
		Cash at Bank	4,000
		Cash in Hand	1,200
	2,01,200		2,01,200

Prepare Revaluation Account, Partner’s Capital Accounts and new Balance Sheet of the firm.

[Ans. Loss on Revaluation ₹ 23,000; C’s Current A/c (Dr. ₹ 8,000; Capital A/cs: A ₹ 82,200; B ₹ 62,800; C ₹ 50,000; B/S total ₹ 2,25,000.]

Solution:-