Question : X and Y were partners in a firm sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2017 was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 42,000 | Current Assets | 2,00,000 |
| Employee's Provident Fund | 20,000 | Investments | 50,000 |
| Contingency Reserve | 30,000 | Furniture | 20,000 |
| Profit & Loss Account | 45,000 | Machinery | 90,000 |
| Workmen Compensation Reserve | 18,000 | Advertisement Expenditure (Deferred Revenue Expenditure) |
20,000 |
| Investment Fluctuation Reserve | 25,000 | ||
| Capitals: | |||
| X- 1,20,000 | |||
| Y- 80,000 | 2,00,000 | ||
| 3,80,000 | 3,80,000 |
They admit Z into partnership on 1st April, 2017 and the new profit sharing ratio is agreed at 2: 1: 1. It is estimated that:
(i) Claim on account of Workmen's Compensation is estimated at Rs. 10,000.
(ii) Market value of Investments is Rs.46,000.
After all adjustment the balances of their capitals will be
Option 1: Balances X 1,70,400, Y Rs 1,13,600
Option 2: Balances X Rs 1,82,400, Y Rs 1,21,600
Option 3: Balances X Rs 1,20,000, Y Rs 80,000
Option 4: None of the above
Correct Answer: Balances X 1,70,400, Y Rs 1,13,600
Solution : Answer = Balances X 1,70,400, Y Rs 1,13,600
| X | Y | Z | X | Y | Z | ||
| Ad. Exp | 12000 | 8000 | - | ||||
| By Bal. B/D | 1,20,000 | 80000 | - | ||||
| By Reserve (3:2) | 18000 | 12000 | - | ||||
| Bal C/D | 1,70400 | 113600 | By Profit and loss A/c | 27000 | 18000 | - | |
| By W.C. Res. | 4800 | 3200 | - | ||||
| By I.F. Res. | 12600 | 8400 | - | ||||
| 182400 | 1,21,600 | 182400 | 1,21,600 |
Hence, the correct option is 1.
Related Questions
Question : A and B are partners in a firm. Their balance sheet as at 31 st March, 2018 was as follows:
| Liabilities | Rs. | Assets | Rs. |
| Provision for Doubtful Debts | 4,000 | Cash | 10,000 |
| Workmen Compensation Reserve | 5,600 | Sundry Debtors | 80,000 |
| Outstanding Expenses | 3,000 | Stock | 20,000 |
| Creditors | 30,000 | Fixed Assets | 38,600 |
| Capitals | Profit & Loss A/c | 4,000 | |
| A | 50,000 | ||
| B | 60,000 | ||
| 1,52,600 | 1,52,600 |
C was taken into partnership as from 1st April, 2018. C brought Rs.40,000 as his capital but he is unable to bring any amount for goodwill. New profit sharing ratio is 3: 2: 1. Following terms were agreed upon :
1. Claim on account of Workmen's Compensation is Rs.3,000.
2. To write off Bad Debts amounting to Rs.6,000.
3. Creditors are to be paid Rs.2,000 more.
4. Rs.2,000 be provided for an unforeseen liability.
5. Outstanding expenses be brought down to Rs. 1,200.
6. Goodwill is valued at $1 \frac{1}{2}$ year's purchase of the average profits of last three years. Profits of 3 years amounted to Rs.8,000; Rs. 10,000 and Rs. 18,000 .
Question:
Revaluation account debited and credited with Rs
Option 1: Debiting Rs 4,200
Option 2: Crediting Rs 4,200
Option 3: No profit and no loss
Option 4: None of the above
Question : Chain and Harsha were partners in a firm sharing profits in the ratio of 3: 2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet of Charu and Harsha as on 1st April, 2014 | |||
| Liabilities | Amount(Rs) | Assets | Amount(Rs) |
| Creditors | 17,000 | Cash | 6,000 |
| General Reserve | 4,000 | Debtors | 15,000 |
| Workmen Compensation Fund | 9,000 | Investments | 20,000 |
| Investment Fluctuation Fund | 11,000 | Plant | 14,000 |
| Provision for bad debts | 2,000 | Land & buildings | 38,000 |
| Capitals: | |||
| Charu- 30,000 | |||
| Harsha- 20,000 | 50,000 | ||
| 93,000 | 93,000 | ||
On the above date Vaishali was admitted for 1/4 th share in the profits of the firm on the following terms :
(a) Vaishali will bring Rs.20,000 for her capital and Rs.4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs. 15,000.
(d) There was a liability of Rs.6,000 for workmen compensation.
(e) Capital accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening current accounts.
Question:
Amount of Revaluation profit and loss will be
Option 1: Rs 2,000
Option 2: Rs 3,000
Option 3: Rs 4,000
Option 4: None of the above
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
Question : From the following information,
| Net Prof-it before Tax and Extraordinary Items | 2,23,500 |
| Depreciation | 42,000 |
| Interest on Borrowings | 8,400 |
| Goodwill Amortised | 9,300 |
| Loss on Sale of Machinery | 9,000 |
| Premium on Redemption of Debentures | 3,000 |
| Interest and Dividend Received on Investments | 13,800 |
| Profit on Sale of Investments | 6,000 |
Operating profit before change in working capital is------------.
Option 1: Rs 2,92,400
Option 2: Rs 2,72,400
Option 3: Rs 3,00,000
Option 4: None of the above
Question : Following is the extract of the balance sheet of A and B as of March 31st, 2021.
| Balance sheet as of March 31st, 2021 | |||
| Liabilities | Amt | Assets | Amt |
| Capital | |||
| A | 10,00,000 | ||
| B | 10,00,000 | ||
| Current a/c | |||
| A | 1,00,000 | ||
| B | 3,00,000 | ||
| Profit | 4,00,000 | ||
During the year A's drawings were Rs 30,000. Profit during the year ended March 31st, 2021 is Rs 10,00,000.
Calculate interest on capital @ 5% p.a. for the year ended March 31st, 2021.
Option 1: 50,000 each
Option 2: 60,000, 40,000
Option 3: 30,000, 20,000
Option 4: None of these
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