[CBSE] Q 87 DK Goel Admission of a Partner Solutions Class 12 (2024-25)
The solution of Question number 87 of Admission of a Partner chapter 3 of DK Goel Class 12 CBSE (2024-25)
Karan and Vijay are partners in a firm sharing profits and losses in the ratio of 4 : 3. They admit Shrey for 1/3 share in the profits.
On the date of Shrey’s admission:
(a) The capitals of Karan and Vijay are : ₹ 40,000 and ₹ 30,000 respectively.
(b) Profit and Loss Account has a debit balance of ₹ 7,000.
(c) General Reserve shows a balance of ₹ 21,000 which is not to be disturbed.
(d) Goodwill of the firm is valued at ₹ 42,000.
(e) The cash at bank is ₹ 15,000.
(f) Shrey brings in proportionate capital and his share of goodwill in cash.
You are required to prepare:
(i) Partner’s Capital Accounts:
(ii) Cash at Bank Account of the reconstituted firm on the date of Shrey’s admission.
[Ans. Capital Accounts : karan ₹ 48,000; Vijay ₹ 36,000 and Shrey ₹ 42,000; Balance at Bank ₹ 71,000.]
Solution:-
Note:- General Reserve is not to be distributed thus, it would be adjusted in gaining and sacrificing ratio of the partners.
In the absence of any further information, the sacrificing ratio is always equal to the old ratio.
Adjustment of General Reserve
Shrey’s share in general reserve 21,000 x 1/3 = ₹ 7,000 (Debit)
Karan will get 7,000 x 4/7 = ₹ 4,000 (Credit)
Vijay will get 7,000 x 3/7 = ₹ 3,000 (Credit)
Journal Entry:-
Shrey’s Current A/c Dr. 7,000
To Karan’s Capital A/c 4,000
To Vijay’s Capital A/c 3,000
