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M.390 An Aid to Accountancy—CBSE XII
Answers
PART A
1. Receipts and Payments Account records all receipts and payments whether they are
of Capital nature or Revenue nature or whether they relate to previous, current or
following accounting years.
Or
Balance of Receipts and Payments Account is cash in hand and/or at bank whereas
balance of Income and Expenditure Account is either surplus or deficit.
2. Maximum partners allowed in a partnership firm are 50. It is provided in the Companies
Act, 2013.
3. Reconstitution of a firm means change in existing agreement of partnership. As a
result, the existing agreement among partners comes to an end and a new agreement
comes into existence and the firm continues.
4. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
P’s Capital A/c ...Dr. 24,000
Q’s Capital A/c ...Dr. 6,000
To R’s Capital A/c 30,000
(Being R’s share of goodwill adjusted to the Capital Accounts of
P and Q in their gaining ratio, i.e., 4 : 1)
Notes: (i) R’s Share of Goodwill = ` 90,000 × 1/3 = ` 30,000.
(ii) Gain of Partner = New Share – Old Share
-
-
3 1 95 4 2 1 65 1
P’s Gain = - = = ; Q’s Gain = - = =
5 3 15 15 5 3 15 15
Thus, Gaining Ratio = 4 : 1.
5. JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Investment Fluctuation Reserve A/c ...Dr. 40,000
To Investment A/c 10,000
To X’s Capital A/c 15,000
To Y’s Capital A/c 9,000
To Z’s Capital A/c 6,000
(Being the value of investment brought down to market value and surplus
IFR transferred to Partners’ Capital Accounts in their old profit-sharing ratio)
Or
JOURNAL
Date Particulars L.F. Dr. (`) Cr. (`)
Workmen Compensation Reserve A/c ...Dr. 60,000
To Workmen Compensation Claim A/c 40,000
To A’s Capital A/c 10,000
To B’s Capital A/c 6,000
To C’s Capital A/c 4,000
(Being the liability of workmen compensation claim created and
surplus WCR transferred to partners in their old profit-sharing ratio)