Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows:
On 1st April, 2024, Diya was admitted in the firm for \( \frac{1}{7} \)th share in the profits on the following terms:
- (i) New profit sharing ratio between Bittu, Chintu and Diya was 3 : 3 : 1 .
- (ii) Fixed Assets were found to be overvalued by ₹ 1,40,000.
- (iii) Creditors were paid ₹ 4,20,000 in full settlement.
- (iv) Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque.
Prepare Revaluation Account and Partners' Capital Accounts.
Bittu and Chintu were partners in a firm sharing profit and losses in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2024 was as follows:
On 1st April, 2024, Diya was admitted in the firm for \( \frac{1}{7} \)th share in the profits on the following terms:
- (i) New profit sharing ratio between Bittu, Chintu and Diya was 3 : 3 : 1 .
- (ii) Fixed Assets were found to be overvalued by ₹ 1,40,000.
- (iii) Creditors were paid ₹ 4,20,000 in full settlement.
- (iv) Diya brought proportionate capital and ₹ 5,60,000 as her share of goodwill premium by cheque.
Prepare Revaluation Account and Partners' Capital Accounts.
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Solution and Explanation
1. Revaluation Account
| Particulars | Amount (₹) | Particulars | Amount (₹) |
|---|---|---|---|
| Fixed Assets (Overvaluation) | 1,40,000 | Creditors (Settlement) | 70,000 |
| Profit on Revaluation: | |||
| Bittu (4/7) | 40,000 | ||
| Chintu (3/7) | 30,000 | ||
| Total | 1,40,000 | Total | 1,40,000 |
Explanation:
- Fixed Assets: The fixed assets were found to be overvalued by ₹ 1,40,000, so this amount is debited to reduce the value of assets.
- Creditors: Creditors of ₹4,90,000 were paid ₹ 4,20,000 in full settlement. This means that there is a profit on revaluation of ₹70,000 (₹4,90,000-₹4,20,000).
- Revaluation Profit Distribution: The profit on revaluation (₹70,000 total) is then distributed between Bittu and Chintu in their old profit-sharing ratio (4:3).
- To calculate the profit of revaluation (70000-140000)= ₹(70,000) total is then losses on revaluation is distributed between Bittu and Chintu in their old profit-sharing ratio (4:3).
- To calculate the loss of Bittu (70,000)*4/7=(40,000)
- To calculate the Loss of Chintu (70,000)*3/7=(30,000)
2. Partners' Capital Accounts
| Particulars | Bittu (₹) | Chintu (₹) | Diya (₹) | Particulars | Bittu (₹) | Chintu (₹) | Diya (₹) |
|---|---|---|---|---|---|---|---|
| To Revaluation A/c | 40,000 | 30,000 | By Balance b/d | 8,00,000 | 6,00,000 | ||
| To General Reserve A/c (4/7) | 1,20,000 | 90,000 | By General Reserve A/c (₹ 2,10,000*4/7) | 1,20,000 | 1,20,000 | ||
| By Bank (Capital) | 5,60,000 | ||||||
| To Bank A/c | By Bank(Goodwill) | 5,60,000 | |||||
| By Partner capital/ premium | 5,60,000 | ||||||
| To Balance c/d | 15,20,000 | 6,60,000 | 5,60,000 | ||||
| Total | 16,80,000 | 7,80,000 | 5,60,000 | Total | 16,80,000 | 7,80,000 | 5,60,000 |
Explanation:
- Balances b/d: These are the opening balances of the partners' capital accounts from the Balance Sheet.
- Revaluation Profit: The profit on revaluation is credited to the partners' capital accounts in their old profit-sharing ratio (4:3).
- General Reserve Distribution: The general reserve (₹ 2,10,000) is distributed to the old partners (Bittu and Chintu) in their old profit-sharing ratio (4:3)
- Bittu (210000*4/7) =1,20,000
- Chintu (210000*3/7)=90,000
- Diya's Capital: Diya brings in ₹ 5,60,000 as her capital, and this amount is credited to her capital account.
- Bittu's Goodwill: Bittu receives ₹ 5,60,000 for the goodwill and is credited to his capital account.
- Chintu's Partner Capital/ Premium: Chintu receives ₹ 5,60,000 for the premium and is credited to his capital account.
Working Notes for Diya Capital Calculation:
Given that, Diya was admitted for 1/7th share
Thus, the capital bought by Diya must be
-1/7th * of total capital=560000
-7* 560000= 560000, the amount paid by Diya will be paid as goodwill to the partners
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‘सूरदास की झोंपड़ी’ से उद्धृत कथन “हम सो लाख बार घर बनाएँगे” के सन्दर्भ में स्पष्ट कीजिए कि जीवन में आगे बढ़ने के लिए सकारात्मक सोच का होना क्यों अनिवार्य है।
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शिवालिक की सूखी नीसर पहाड़ियों पर मुस्कुराते हुए ये वृक्ष खड़ेताली हैं, अलमस्त हैं~।
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ये जैसे मुझे अनादि काल से जानते हैं~।
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फूलों से तो ऐसा लगता है कि कुछ पूछते रहते हैं~।
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मन ही मन ऐसा लगता है कि क्या मुझे भी इन्हें पहचानता~?
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पहचानता हूँ~।
उजाले के साथ, मुझे उसकी छाया पहचानती है~।
नाम भूल जाता हूँ~।
प्रायः भूल जाता हूँ~।
रूप देखकर सोच: पहचान जाता हूँ, नाम नहीं आता~।
पर नाम ऐसा है कि जब वह पेड़ के पहले ही हाज़िर हो ले जाए तब तक का रूप की पहचान अपूर्ण रह जाती है।- CBSE CLASS XII - 2025
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