Question

19. X and Y are partners sharing profits and losses in the ratio of 3:2. Om Istim 2016, they admit Zas a mew
partner on which date their balance sbect was as follows.
Liabilities
Rs.
Capital : x
10.000
Y
Creditors
12.000
General reserve
16.000
Workmen compensation fund 4.000


The following terms were agreed between them:
a) The new profit sharing ratio is 2:2:1
b) Z brings Rs. 10,000 in cash for goodwill
c) Revaluation of assets: Land and Building
d) Rs. 18,000. Stock Rs. 16,000.
c) The amount required for workomen compensation
1) fund is Rs. 2,000.
g) Z is to bring 20% of the combined capital of x
h) 'Y' after giving effect to the above adjustment
i) Prepare Revaluation alc, Partners capital Alc and
j) New balance sheet.​

Answer 1

revaluation a/c

dr side

To partner's alc

x 8400

y 5600

credit side

by land and building 10000

by stock 4000

total 14000

partner's capital alc

dr side. x. y. z

To balance cld 39200. 20800. 12000

cr side. x. y. z

by balance bld 10000. 8000

by wcf. 1200. 800

by general res. 9600. 640

by goodwill. 10000

by rev alc. 8400. 5600

by cash. 12000

total of both alc. 39200. 20800. 12000

balance sheet

liability

capital alc x 39200

y 20800

z 12000. 72000

creditor. 12000

wcf 2000

total 86000

assets

• debtor 11000
• land 18000
• mach. 10000
• stock. 16000
• cash. 31000

(9000+22000)

total. 86000