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M.128 An Aid to Accountancy—CBSE XII

11. A, B and C are partners in a firm sharing profits in the ratio of 5 : 3 : 7. A retires from
the firm. B and C decided to share future profits in the ratio of 2 : 3. The adjusted
capitals of B and C showed the balances of ` 66,000 and ` 1,41,000 respectively. The
total amount to be paid to A is ` 1,81,000. This amount is to be paid by B and C in
such a way that their capitals become proportionate to their new profit-sharing ratio.
State the amount of actual cash to be brought or to be paid to the partners and pass
the necessary Journal entries.

As per Partnership Deed, amount due to retiring partner is to be paid in three annual
instalments without interest. However, A was in urgent need of money for his daughter’s
marriage. So B and C paid the full amount due to him by adjusting their capitals. (4)
12. Arpit and Harshit are partners in a firm sharing profits and losses equally. In order
to financially support their old classmate Shyam, they admit him as a partner with
1/4th share in the profits of the firm. Shyam brings ` 4,00,000 as his share of capital.
The value of the total assets of the firm is ` 10,80,000 and outside liabilities are
valued at ` 2,00,000 on that date. Give necessary entry to record goodwill at the time
of Shyam’s admission. (4)
13. How will be the following items dealt while preparing Income and Expenditure Account
for the year ending on 31st March, 2018 of Delhi Cricket Club and its Balance Sheet
as on 31st March, 2018:
Particulars `
(i) Building Fund as on 1st April, 2017 5,00,000
Donations received for the Building 25,00,000
Expenditure on Building construction 18,00,000
The construction work in progress
(ii) Tournament Fund as on 1st April, 2017 7,520
Donation received for Tournament 36,800
Tournament Expenses 60,400
Proceeds from Sale of Tournament Tickets 20,000
(iii) Life Membership fees received during the year 65,000
(iv) Subscription for Governor’s Party received 50,000
Outstanding Subscription for Governor’s Party 12,500
(v) Capital Fund as on 1st April, 2017 25,00,000
(6)
14. X, Y and Z were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On
31st March, 2017, their Balance Sheet was as follows:
Liabilities ` Assets `
Creditors 60,000 Bank 90,000
Employees’ Provident Fund 40,000 Stock 70,000
General Reserve 30,000 Debtors 40,000
Capital A/cs: Land and Building 5,00,000
X 3,00,000 Profit and Loss A/c 1,60,000
Y 3,00,000
Z 1,30,000 7,30,000
8,60,000 8,60,000