[CBSE] Q 85 DK Goel Admission of a Partner Solutions Class 12 (2024-25)

The solution of Question number 85 of Admission of a Partner chapter 3 of DK Goel Class 12 CBSE (2024-25)

Om, Ram and Shanti were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2014 their Balance Sheet was as follows:

Liabilities	₹	Assets	₹
Capital Accounts: Om Ram Shanti General Reserve Creditors Bills Payable	3,58,000 3,00,000 2,62,000 48,000 1,60,000 90,000	Land and Building Plant and Machinery Furniture Bills Receivables Sundry Debtors Stock Bank	3,64,000 2,95,000 2,33,000 38,000 90,000 1,11,000 87,000
	12,18,000		12,18,000

On the above date Hanuman was admitted on the following terms:

(i) He will bring ₹ 1,00,000 for his capital and will get 1/10th share in the profits.

(ii) He will bring necessary cash for his share of goodwill premium. The goodwill of the firm was valued at ₹ 3,00,000.

(iii) A liability of ₹ 18,000 will be created against bills receivables discounted.

(iv) The value of stock and furniture will be reduced by 20%.

(v) The value of land and building will be increased by 10%.

(vi) Capital accounts of the partners will be adjusted on the basis of Hanuman’s Capital in their profit sharing raito by opening current accounts.

Prepare Revaluation Account and Partner’s Capital Accounts.

[Ans: Loss on Revaluation ₹ 50,400; Capital Accounts Om ₹ 4,50,000; Ram ₹ 3,00,000; Shanti ₹ 1,50,000 and Hanuman ₹ 1,00,000; Om’s Current A/c ₹ 78,200 (Dr.) Ram’s Current A/c ₹ 9,200 (Cr.); Shanti’s Current A/c ₹ 1,16,600 (Cr.).]