[ISC] Q. 59 Solution of Admission of Partner TS Grewal Accounts Class 12 (2026-27)
Solution to Question number 59 of the Admission of partner chapter 3 of TS Grewal Book 2026-27 Edition ISC/CISCE Board?
Bhumi and Chavi are partners sharing profits in the ratio of 2: 1. An extract of their Balance Sheet as on 31st March, 2026, is given below:
BALANCE SHEET OF BHUMI AND CHAVI (AN EXTRACT)
as at 31st March, 2026
| Liabilities | ₹ | Assets | ₹ |
| Workment Compensation Reserve | 70,000 | Investments (Market Value ₹ 1,93,000) | 2,00,000 |
| General Reserve | 1,00,000 | Sundry Debtors | 2,50,000 |
| Investment fluctuation Reserve | 25,000 | Profit & Loss A/c | 1,20,000 |
On 1st April, 2026, they admit Aditi as a partner and the profit-sharing ratio of the three partners is agreed at 2:2:1.
They also agreed on the following terms regarding the treatment of reserves and the accumulated losses.
(a) Accumulated losses, if any, to be written off. losses:
(b) A Workmen Compensation Claim of 25,000 existed.
(c) Machinery Replacement Reserve to be made to the extent of 10% of the debtors from General Reserve.
You are required to pass necessary Journal entries to record the above adjustments at the time of Aditi’s admission.
Solution:
