SDCCL PUBLIC SCHOOL

(CBSE Aff il iat ion N o. 43 0 0 09 )

DATE 10-09-2024 CLASS – XII WORKSHEET NO-1

SUBJECT- ACCOUNTANCY CHAPTER: PART - I & Share Capital

01 What journal entries will be recorded for the following transaction on the dissolution of a firm?
(i) Payment of unrecorded liabilities of Rs. 3200.
(ii) Stock worth Rs. 7500 is taken over by a partner Rohit.
(iii) Profit on Realisation amounting to Rs. 18000 is to be distributed between the
partners Ashish
And Tarun in the ratio of 5:7.
(iv) An unrecorded assets realised Rs. 5500.

02. Verma and Sharma are partners in a firm sharing profits and losses in the ratio of 5:3. They admitted
Ghose as a new partner for 1/5 share of profits. Ghose is to bring in Rs. 20000 as capital and Rs. 4000 as his
share of goodwill premium. Give the necessary journal entries;
(i) When the amount of goodwill is retained in the business.
(ii) When the amount of goodwill is fully withdrawn.
(iii) When 50% of the amount of goodwill is withdrawn
(iv) When goodwill is paid privately.

03. Himanshu, Gagan and Naman are partners sharing profits and losses in the ratio of 3:2:1 on March 31,
2017, Naman retires.
The various assets and liabilities of the firm on the date were as follows:
Cash Rs. 10000, Building Rs. 100000, Plant and Machinery Rs. 40000, stock Rs. 20000, Debtor Rs. 20000
and investment Rs. 30000.
The following was agreed upon between the partners on Naman’s retirement:
(i) Building to be appreciated by 20%.
(ii) Plant and Machinery to be depreciated by 10%.
(iii) A provision of 5% on debtors to be created for bad and doubtful debts.
(iv) Stock was to be valued at Rs. 18000 and investment at Rs. 35000.
Record the necessary journal entries to the above effect and prepare the revaluation account.

04. Given below is the Balance sheet of A and B, who are carrying on Partnership business as on March 31,
2017. A and B share profits in the ratio of 2:1.

Balance sheet of A and B as at March 31, 2017

Liabilities Amt Assets Amt

Bills Payable 10000 Cash in Hand 10000
Sundry Creditors 58000 Cash at Bank 40000
Outstanding Expenses 2000 Sundry Debtors 60000
Capital Stock 40000
A 180000 Plant and Machinery 100000
B 150000 330000 Building 150000
400000 400000
C is admitted as a partner on the date of the balance sheet on the following terms;

Page | 1
 SDCCL PUBLIC SCHOOL
(CBSE Aff il iat ion N o. 43 0 0 09 )

(1) C will bring in Rs. 100000 as his capital and Rs. 60000 as his share of goodwill for ¼ shares in profit.
(2) Plant is to be appreciated to Rs. 120000 and the value of building is to be appreciated by 10%.
(3) Stock is found overvalued by Rs. 4000.
(4) A provision for doubtful debts is to be created at 5% of debtors.
(5) Creditors were unrecorded to the extend of Rs. 1000.
Record revaluation account, Partners’ capital account, and Balance sheet of the constituted firm
after admission of the new partner.

05. The following was the balance sheet of Arun, Bablu and chetan sharing profit and losses in the
ratio of 6/14: 5/14: 3/14 respectively.
Liabilities Amt Assets Amt
Capital Account: Land and Building 24,000
Arun 19,000 Furniture 3,500
Bablu 16,000 Stock 14,000
Chetan 8,000 43,000 Debtors 12,600
Creditors 9,000 cash 900
Bills payable 3,000
55,000 55,000
They agreed to take Deepak into partnership and give him a share of 1/8 on the following terms:
(i) deepat should bring In Rs. 4,200 as goodwill and Rs 7,000 as his capital;
(ii) Furniture be depreciated by 12%; (iii) stock be depreciated by 10%
(iv) Reserve of 5% be created for for doubtful debts;
(v) the value of Land and Building having appreciated be brought up to Rs. 31,000;
(vi) after making the adjustment the capital accounts of the old partners ( who continue to share in the
same proportion as before) be adjusted on the basis of the proportion of Deepak’s capital to his share
in the business. i.e., actual cash to be paid off to, or brought in by the old partners as in case may be
Prepare cash account, Profit and loss Adjustment account, and the opening balance sheet of the new
firm.

06. Pankaj, Naresh and Saurabh are partners sharing profits In the ratio of 3:2:1. Naresh retired from the
firm due to his illness on September 30, 2017. On that date the balance sheet of the firm was as follows:
Books of Pankaj, Naresh and Saurabh Balance sheet as on September 30, 2017

Liabilities Amt Assets Amt

General Reserve 12,000 Bank 7,600
Sundry Creditors 15,000 Debtors 6000
Bills Payable 12,000 Less BDR - 400 5,600
Outstanding Salary 2,200 Stock 9,000
Provision for Legal Damages 6,000 Furniture 41,000
Capital premises 80,000
Pankaj 46,000
Naresh 30,000
Saurabh 20,000 96,000
1,43,200 1,43,200

Page | 2
 SDCCL PUBLIC SCHOOL
(CBSE Aff il iat ion N o. 43 0 0 09 )

Additional information
(i) Premises have appreciated by 20%, Stock depreciated by 10% and provision for doubtful debts was to
be made 5% on debtors. Further, provision for legal damages is to be made for Rs. 1,200 and furniture to
be brought up to Rs. 45,000.
(ii) Goodwill of the firm be valued at Rs. 42,000.
(iii) Rs. 26,000 from Naresh’s Capital account be transferred to his loan account and balance be paid
through bank; if required, necessary loan may be obtained from bank.
(iv) Naresh share of profit till the date of retirements is to be calculated on the basis of last year’s profit,
i.e., Rs. 60,000.
(v) New profit sharing ratio of Pankaj and Saurabh is decided to be 5:1.
Give the necessary ledger accounts and balance sheet of the firm after Naresh’s retirement.

07. Digvijay, Brijesh and Prakash were partners in a firm sharing profit in the ratio of 2:2:1. Their Balance
sheet as on March 31, 2020 was as follows:
Liabilities Amt Assets Amt
Creditor 49,000 Cash 8,000
Reserve 18,500 Debtors 19,000
Digvijay capital 82,000 Stock 42,000
Brijesh capital 60,000 Buildings 2,07,000
Prakash capital 75,500 patents 9,000
2,85,000 2,85,000
Brijesh retired on March 31, 2020 on the following terms:
(i) Goodwill of the firm was valued at Rs. 70,000 and was not to appear in the books.
(ii) Bad debts amounting to Rs. 2,000 were to be written off.
(iii) Patents were considered as valueless,
(iv) Prepare Revaluation A/c, partner’s Capital A/c and the Balance shree of Digvijay and Prakash after
Brijesh’s Retirement.

08. Balance sheet of Ashwani and Bhrat as on March 31, 2017

Liabilities Amt Assets Amt

Creditors 76,000 Cash at bank 17,000
Mrs. Ashwani’s Loan 10,000 Stock 10,000
Mrs. Bharat loan 20,000 Investment 20,000
Investment fluctuation reserve 2,000 Debtors 40,000
General Reserve 20,000 Less : Provision for Debts 4000 36,000
Capitals: Buildings 70,000
Ashwani 20,000 Goodwill 15,000
Bharat 20,000 40000
1,68,000 1,68,000

Page | 3
 SDCCL PUBLIC SCHOOL
(CBSE Aff il iat ion N o. 43 0 0 09 )

The firm was dissolved on that date. The following was agreed transaction took place.
(i) Ashwani promised to pay mrs. Ashwani’s loan and took away stock for Rs. 8000.
(ii) Bharat took away half of the investment at 10% less.
Debtors realized for Rs. 38,000. Creditors were paid at less of Rs. 380. Building realized for Rs. 1, 30,000,
Goodwill Rs. 12,000 and the remaining investment were sold at Rs. 9000. An old typewriter not recorded in
the book was taken over by bharat for Rs. 600. Realisation expenses amount to Rs. 2000. Prepare
Realisation A/c, partner’s capital A/c and bank A/c.

09. Sita, Rita and meeta are partner sharing profit and loss in the ratio of 2:2:1. Their balance sheet as on
March 31, 2017 is follows:
Balance sheet of Sita, Rita ad Meeta as on March 31, 2017

Liabilities Amt Assets Amt

General Reserve 2,500 Cash at Bank 2,500
Creditors 2,000 Stock 2,500
Capital: Furniture 1,000
Sita 5,000 Debtors 2,000
Rita 2,000 Plant and Machinery 4,500
Meeta 1,000 8,000
12,500 12,500
They decided to dissolve the business. The following amounts were realized:
Plant and Machinery Rs. 4,250; Stock Rs. 3,500; Debtors Rs. 1850; Furniture Rs. 750;
Sita agreed to bear all realization paid by the firm expenses. For the service sita is paid Rs. 60.Actual
expenses on realisation paid by firm amounted to Rs. 450. Creditors paid 2% Less. There was an
unrecorded asset of Rs. 250, which was taken over by rita at Rs. 200.
Prepare the necessary account to close the books of the firm.
10 Krishna Ltd. Issued 15000 share of Rs. 100 each at a premium of Rs. 10 per share, payable as follows;
On Application Rs. 30

On Allotment Rs. 50 ( including premium)

On first and final call Rs. 30

All the shares subscribed and the company received all the money due, with the exception of the allotment and call
money on 150 shares. These shares were forfeited and reissued to Neha as fully paid share at an issue price of Rs.
120 each.

Give journal entries in the books of the company.

11 Himalaya company issued for public subscription of 120000 equity shares of Rs. 10 each at a premium of Rs. 2
per share payable as under;
With Application Rs. 3 on Allotment (including Premium) Rs. 5
On first call Rs. 2 On Second and Final call Rs. 2
Application were received for 160000 shares, Allotment was made on pro-rata basis. Excess money on Application
was adjusted against the amount due on allotment.

Page | 4
 SDCCL PUBLIC SCHOOL
(CBSE Aff il iat ion N o. 43 0 0 09 )

Rohan , whom 4800 share were allotted, failed to pay for the two calls. These shares were subsequently forfeited
after second call was made. The entire shares forfeited were reissued to Teena as fully paid at Rs. 7 per share.
Record the Journal Entry and show Calculation of all call.

12. Rakhi and Shikha are partners in a firm, with capitals of Rs. 200000 and Rs. 300000 respectively. The
profit of the firm, for the year ended 2016-17 is Rs. 23200. As per the Partnership agreement, they
share the profit in their capital ratio, after allowing a salary of Rs. 5000 per month to shikha and
interest on partner’s capital at the rate of 10% p.a. During the year Rakhi withdrew Rs. 7000 and Shikha
Rs. 10000 for their personal use. As per partnership deed, salary and interest on capital appropriation
treated as charge on profit. You are required to prepare profit and loss appropriation account and
partner’s capital accounts.

13. The partnership agreement between Maneesh and Girish provides that:
(i) Profit will be share equally;
(ii) Maneesh will be allowed a salary of Rs. 400 p.m;
(iii) Girish who manages the sales department will be allowed a commission equal to 10% of the
net profits, after allowing Maneesh’s salary;
(iv) 7% p.a. interest will be allowed on partner’s fixed capital;
(v) 5% p.a. interest will be charged on partner’s annual drawing;
(vi) The fixed capitals of Maneesh and Girish are Rs. 100000 and Rs. 80000. Respectively. Their
annual drawings were Rs. 16000 and Rs. 14000. Respectively. The net profit for the year
ending March 31, 2019 amounted to Rs. 40000.
Prepare firm’s Profit and Loss Appropriation Account.

14. Arti and Bharti are partners in a firm sharing profits in 3:2 ratio, they admitted Sarthi for ¼ shares in
the profits of the firm. Sarthi brings Rs. 50,000 for his capital and Rs. 10,000 for his ¼ share of goodwill.
Goodwill already appears in the book of Arti and Bharti at Rs. 5,000. The new profit sharing ratio between
Arti, Bharti and Sarthi will be 2:1:1. Record the necessary journal entries in the books of the new firm?
15. Rajesh and Mukesh are equal partners in a firm. They admit Hari into partnership and the new profit
sharing ratio between Rajesh, Mukesh and Hari is 4:3:2. On Hari’s admission goodwill of the firm is valued
at Rs. 36,000. Hari is unable to bring his share of Goodwill premium in cash. Rajesh, Mukesh and Hari
decided not to show goodwill in their balance sheet. Record necessary journal entries for the treatment of
goodwill on Hari’s admission.
16. Amar and Akbar are equal partners in a firm. They admitted Antony as a new partner and the new
profit sharing ratio is 4:3:2. Anthony could not bring this share of goodwill Rs. 45,000 in cash. It is decided
to do adjustment for goodwill without opening goodwill account. Pass the necessary journal entry for the
treatment of goodwill?
17. Singh, Gupta and Khan are partners in a firm sharing profits in 3:2:3 ratios. They admitted Jain as a new
partner. Singh surrendered ⅓ of his share in favour of Jain: Gupta surrendered ¼ of his share in favour Jain
and Khan surrendered ⅕ in favour of Jain. Calculate a new profit sharing ratio?

Page | 5