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Assertion (A): Ajay and Akansha are partners sharing profits in the ratio of 3 : 2. General Reserve existed in the books at ₹ 1,00,000. They admitted Amit as a partner for 2/5th share in profits. ₹ 50,000 was transferred to Workmen Compensation Reserve and the balance was transferred to the Capital Accounts of Ajay and Akansha in the ratio of 3 : 2.

Ans – a) Explanation:- General Reserve can be used for any purpose. Thus, the amount can be transferred to Workmen Compensation Reserve and rest is distributed to old partners in old ratio as it is part of past profits.

Assertion (A): Ajeet and Akash are partners sharing profits in the ratio of 3 : 2. They admit Prakash as a new partner for 1/4th share. Goodwill is valued at ₹ 1,00,000 and the new Partner will compensate both Ajeet and Akash by crediting ₹ 25,000 in the ratio of 3 : 2.

Ans – b) Explanation:- In the absence of any further information sacrificing ratio is always equal to old ratio. the prakash would bring 1/4th of ₹ 1,00,000 as premium of goodwill. It would be credited to sacrificing partners, Ajeet and…

Ganga and Jamuna are partners sharing profits in the ratio of 2 : 1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s Capital was ₹ 73,000. Saraswati brings ₹ 25,000 as her share of goodwill and she agrees to contribute proportionate capital in the new firm. How much capital will be brought by Saraswati?

Ans – c) Solution;- Total adjusted capital of the old partners = ₹ 1,02,000 + ₹ 73,000 + 25000 = ₹ 2,00,000 Combine profit share of old partners = 1 – 1/5 = 4/5 Total Capital of the firm =…

Ans – d) Explanation:- 1 Reserve funds are part of the accumulated profit. 2. Sacrificing Ratio = Old Ratio – New Ratio 3. Increase in the value of the liability is debited to Revaluation Account 4. Increase in the value…

Angle and Circle were partners in a firm. Their Balance Sheet showed Furniture at ₹ 2,00,000; Stock at ₹ 1,40,000; Debtors at ₹ 1,62,000 and Creditors at ₹ 60,000. Square was admitted and new profit sharing ratio was agreed at 2 : 3 : 5. Stock was revalued at ₹ 1,00,000, Creditors of ₹ 15,000 are not likely to be claimed, Debtors for ₹ 2,000 have become irrecoverable and Provision for doubtful debts to be provided @ 10%. Angle’s share in loss on revaluation amount to ₹ 30,000. Revalued value of Furniture will be

Ans – d) Solution:- Revaluation loss = 30,000 × 2 = ₹ 60,000 Particulars ₹ Particulars ₹ To Furniture A/c (B/f) Stock A/c To Debtors A/c To Provision for doubtful Debts A/c   17,000 40,000 2,000 16,000 By Creditors A/c…