Home
Class 12
ACCOUNTS
L, M and N were partners in a firm shari...

L, M and N were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet on 31st March, 2015 was as follows:

On the above date, O was admitted as a new partner and it was decided that:
(i) The new profit-sharing ratio between L, M, N and O will be 2:2:1:1.
(ii) Goodwill of the firm was valued atRs 1,80,000 and O brought his share of goodwill premium in cash.
(iii) The market value of investments wasRs 36,000.
(iv) Machinery will be reduced toRs 58,000.
(v) A creditor ofRs 6,000 was not likely to claim the amount and hence was to be written off.
(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

Text Solution

Verified by Experts

The correct Answer is:
Loss on Revaluation-Rs30,000; Capital A/cs: L-Rs1,56,000; M-Rs84,000;
N-Rs42,000 and O-Rs56,400; Balance Sheet Total -Rs5,00,400.
Promotional Banner

Topper's Solved these Questions

  • Admission of a Partner

    TS GREWAL|Exercise VERY SHORT ANSWER QUESTIONS|33 Videos

  • ACCOUNTING RATIOS

    TS GREWAL|Exercise Exercise|147 Videos

  • CASH FLOW STATEMENT

    TS GREWAL|Exercise CASH FLOW FROM INVESTING ACTIVITES|1 Videos

Similar Questions

Explore conceptually related problems

A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 31st March, 2015, their Balance Sheet was as follows: On the above date, D was admitted as a new partner and it was decided that : (i) The new profit-sharing ratio between A, B, C and D will be 2 : 2 : 1 :1. (ii) Goodwill of the firm was valued at RS.90,000 and D brought his share of goodwill premium in cash. (iii) The market value of investments was RS.24,000. (iv) Machinery will be reduced to RS.20,000. (v) A credior of RS.3,000 was not likely RS.29,000. (vi) D will bring proportionate capital so as to give him 1/6th share in the profits of the firm. Prepare Revaluation Account, Partner's Capital Accounts and the Balance Sheet of the reconstituted firm.

A and B are partners in a firm sharing profits in the ratio of 3 : 2 . They decided to share profits in the ratio of 3 : 4 w.e.f., April 1, 2016. On that date there was journal entry assuming that partners decide to distribute the profits.

A, B and C were partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The partners decide to share future profits and losses in the ratio of 2 : 2 : 1. Indicate each partner's gain or sacrifice due to change in ratio.

A, B and C are the partner sharing profits in the ratio 3 : 2 : 1 , C retires . What will be the new profit - sharing ratio?

A, B and C were partners in a firm sharing profits and losses in the ratio of 3:2:1. The partners decide to share future profits and losses in ratio of 2:2:1. Each partner's gain or sacrifice due to change in ratio will be :

B and N are partners in a firm sharing profits in the ratio of 3 : 2. They admit S as a partner for 1/4th share in the profits. S acquires his share from B and N in the ratio of 2 : 1. The new profit-sharing ratio will be :