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M.310 An Aid to Accountancy—CBSE XII

Or
X, Y and Z are partners in a firm sharing profits and losses equally. Their Balance
Sheet as at 31st March, 2018, was as under:
BALANCE SHEET as at 31st March, 2018
Liabilities ` Assets `
Creditors 1,40,000 Building 2,00,000
General Reserve 60,000 Machinery 1,00,000
Capital A/cs: Patents and Copyrights 1,50,000
X 2,50,000 Stock 1,25,000
Y 2,00,000 Debtors 1,50,000
Z 1,50,000 6,00,000 Bank 75,000
8,00,000 8,00,000
From 1st April, 2018, the partners decided to share profits and losses in the ratio of
3 : 2 : 1 and for that purpose following revised values of assets were agreed upon:
Building ` 2,75,000; Machinery ` 90,000; Patents and Copyrights ` 1,32,500; Stock
` 2,00,000; Prepaid Insurance ` 5,000; and Debtors ` 1,42,500.
Goodwill of the firm was valued at ` 60,000.
Partners decide not to disturb the General Reserve. Also, they decide not to record the
revised values of assets in the books of account.
You are required to:
(i) Record the necessary Journal entries giving effect to the above agreement.
(ii) Prepare Capital Accounts of the partners; and
(iii) Prepare Balance Sheet of the firm after reconstitution. (4 + 2 or 6)

15. Ram and Shyam were partners in a firm sharing profits in the ratio of 2 : 3 respectively.
They became old and no one was able to look after their business. Therefore, they decided
to dissolve the business. On 31st January, 2019 (on the date of dissolution) their
Balance Sheet was as follows:

BALANCE SHEET as on 31st January, 2019
Liabilities ` Assets `
Creditors 65,000 Land 1,20,000
Bills Payable 35,000 Machinery 65,000
Capital A/cs: Goodwill 10,000
Ram 75,000 Stock 25,000
Shyam 75,000 1,50,000 Debtors 20,000
Cash 10,000
2,50,000 2,50,000
Following additional information is given:
(i) Ram paid the Creditors at a discount of 15% and Shyam paid Bills Payable in full.
(ii) Assets realised as follows: Land at 20% less; Machinery at ` 35,000, Stock at 25%
less and Debtors at ` 12,500.