Page 157 - DEBKVOL-1

6.24 Double Entry Book Keeping—CBSE XII

(c) Provision for Doubtful Debts was created up to 5%.
(d) Provision for Legal charges to be made ` 385.
(e) Goodwill of the firm be fixed at ` 5,400 and B’s share be adjusted into the accounts of A and C.
(f) The capital of the new firm be fixed at ` 14,000 in the profit-sharing ratio.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C transferring
B’s Capital Account to his Loan Account.
[Ans.: Gain (Profit) on Revaluation—` 1,800; Balances: A’s Capital A/c—` 9,333;
C’s Capital A/c—` 4,667; B’s Loan A/c—` 9,900;
Cash at Bank—` 2,350; Balance Sheet Total—` 27,735.]
8. The Balance Sheet of A, B and C who were sharing profits in proportion to their capitals, stood as at
31st March, 2018:

Liabilities ` Assets `
Creditors 27,600 Cash at Bank 22,000
Capital A/cs: Debtors 20,000
A 80,000 Less: Provision for Doubtful Debts 400 19,600
B 60,000 Stock 32,000
C 40,000 1,80,000 Machinery 34,000
Building 1,00,000
2,07,600 2,07,600

B retired on 1st April, 2018 and the following was agreed upon:
(a) Stock be reduced by 6%.
(b) Provision for Doubtful Debts to be brought up to 5% on Debtors.
(c) Building be appreciated by 20%.
(d) Provision of ` 3,080 be made in respect of Outstanding Legal Charges.
(e) Goodwill of the entire firm be valued at ` 43,200 and B’s share of it be adjusted into the accounts of
A and C who are going to share future profits in the ratio of 5 : 3.
(f) That the entire capital of the firm as newly constituted to be fixed at ` 1,12,000 between
A and C in the ratio of 5 : 3 (actual cash to be brought in or paid off as the case may be).
You are required to prepare Revaluation Account, Capital Accounts of Partners and the Balance Sheet of
the firm after B’s retirement.
[Ans.: Gain (Profit) on Revaluation—` 14,400; Amount brought in by C—` 5,400;
Amount paid to A—` 8,600; Balance Sheet Total—` 2,21,880.]
9. Vijay, Vivek and Vinay were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 31st March, 2018, Vivek
retired from the firm. On the date of Vivek’s retirement the Balance Sheet of the firm was:
Liabilities ` Assets `
Creditors 54,000 Bank 55,200
Bills Payable 24,000 Debtors 12,000
Outstanding Rent 4,400 Less: Provision for Doubtful Debts 800 11,200
Provision for Legal Claims 12,000 Stock 18,000
Capital A/cs: Furniture 8,000
Vijay 92,000 Premises 1,94,000
Vivek 60,000
Vinay 40,000 1,92,000
2,86,400 2,86,400