HOLIDAY HOMEWORK( ) CLASS XII SUBJECT: ACCOUNTANCY

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1 HOLIDAY HOMEWORK( ) CLASS XII SUBJECT: ACCOUNTANCY Instructions for submission 1. Date of submission: 27 th June Project work has to be done on ruled sheets compiled in a folder. 3. Project File should be neatly handwritten and presentable with page numbers. 4. Worksheet has to be done in separate worksheet register. PROJECT WORK Prepare Comprehensive Project which includes initial stage of Accounting i.e. Take financial transactions of any partnership firm. Journalize the financial transactions of business. Post all the items into relevant ledger accounts. Prepare Trial Balance. Prepare Trading A/c, Profit and Loss A/c, Profit and Loss Appropriation A/c, Partner s Capital Account and Balance Sheet. Worksheet 1. Tom and Jerry are partners in a firm sharing profits and losses in the ratio of 3:2. They admit Harry as a partner. The profits and losses sharing ratios shall be so adjusted between Tom and Jerry that their former ratio is maintained, while between Jerry and Harry their shall be the same ratio as between Tom and Jerry. Calculate new profit sharing ratio and Sacrificing Ratio. (3) 2. A,B& C are partners sharing profits and losses in the ratio of 2:3:5. D is admitted with 1/6th share. Capitals of A, B & C after all necessary adjustments were Rs , & resp. Calculate the amount of capital brought in by new partner. (3) 3. A &B are partners with capital of `8,000 &`6,000 respectively. They admit C as a partner with 1/4th share in the profits of the firm. C brings `8,000 as his share of capital. Give the necessary journal entries. (3) 4. A and B who shares the profits & Losses in the ratio of 3:2 are partners with Capital of `230,000 and `20,000. On date of C's admission, P&L A/c (Cr.) balance `6,000. Reserves `55,000, advertisement Expenditure (Deferred Revenue) `1,000.They admit C as a partner with 1/5th share in the profits of the firm. C brings `240,000. Give necessary journal entries on C's admission with regard to capital and goodwill. (4) 5. A, B and C were partners in a firm. Their capitals were A `1,00,000, B ` 2,00,000 and C ` 3,00,000 respectively on 1st January According to the partnership deed they were entitled to an interest on p.a. In addition A was also entitled to draw a salary of `5,000 per month. C was entitled to a commission of 5% on the profits after charging the interest on capital but before charging the salary payable to A. The net profits for the year were ` 3,60,000 distributed in the ratio of their capitals without providing for any of the above adjustments. The profits were to be shared in the ratio 2:3:5. Pass the necessary adjustment entry showing the workings clearly. (4) 6. A and B are partners in a firm. The profits earned by them in the last 3 years( before charging remuneration of partners amounting to `50,000) are as follows; `2,00,000; `2,30,000; `2,50,000. The goodwill of

2 the firm is to be valued at 4 years purchase of weighted average profits of last 3 years. The profits to be weighted as 1,2,3, the greatest weight been given to the last year. Calculate the value of goodwill. (4) 7. The goodwill of a firm is estimated at 2 years purchase of the average profit of the last 5 years. If goodwill of the firm is determined at `47,200 and profits and losses of last four years is given as : Year Profit ` 25,000? 27,000(loss) 35,000 40,000 Calculate profit or loss earned by firm in the year (4) 8. The profits of a firm for the last three years were: `5, 00,000 (including an abnormal gain of ` 1, 50,000) 2002 `4, 00,000 (after charging an abnormal loss of ` 2, 00,000) 2003 `6, 00,000 (excluding ` 2, 00,000 payable for the insurance Premium) Calculate the value of firms goodwill on the bases of four years purchases of the average profits of the last three years. (4) 9. Calculate the value of goodwill at 2 year s purchase of the average profits of the last 3 years. The profit of the first year was Rs 50,000, for second year twice the profit of first year and for the third year one and half times the profit of the second year. (4) 10. From the following information, calculate the value of goodwill of the firm of Chander and Gupta. On the basis Capitalisation of Super profit. i. Average capital employed in the business `7, 00,000. ii. Net trading result of the firm for the past years-profit `1,47,000; Loss `1,48,000; Profit-` 4,48,700 iii. Rate of interest expected from capital having regard to the risk involved 18%. iv. Remuneration to each partner for his service `500 p.m. v. Assets (excluding goodwill) `7,54,762. Liabilities `31,329. (4) 11. Find out the goodwill of the firm on the basis of four years purchase of weighted average profits of last five years: Years Profits Weights ,00, ,50, ,60, ,90, ,00,000 5 Following abnormalities took place during different years: i. There was a major break down in the factory on which 21,000 were spent in This amount was charged to Profit and loss Account. ii. The closing stock of the year 2009 was overvalued by 5,000 iii. The machine was repaired at a cost of 10,000 which was capitalisedin It is a revenue expense it should have been charged to Profit and Loss Account.A depreciation of 10% was also charged on this. (4) 12. B and C are partners in a firm with capital of 3,00,000 and 2,00,000 sharing profits and losses in the ratio of 4:3.On 1 st April,2014 they admitted D as a new partner for 1/4 th share in the profits which he acquired from B and C in 3:4 ratio. D brought 1,80,000 for his capital and 42,000 for his 1/4 th share in goodwill. D is guaranteed that his share of profit will not be less than 80,000.Any excess profit received by D over his 1/4 th share will be borne by B and C in the ratio of 4:1. Partners are entitled to interest on

3 10% p.a. Profit for the year ended 31 st March, 2015 before allowing interest on capital amounted to 3,52,200. Pass the necessary journal entries and Prepare Profit and Loss Appropriation A/c. (4) 13. P and Q are partners with capitals of ` 6, 00,000 and ` 4,00,000 respectively. The profit and Loss Account of the firm showed a net Profit of ` 4, 26,800 for the year. Prepare Profit and Loss account after taking the following into consideration:- (i) Interest on P's Loan of `2, 00,000 to the firm (ii) Interest on 'capital to be 6% p.a. (iii) Interest on 8% p.a. Drawings were; P ` 80,000 and Q `10, 00,000. (iv) Q is to be allowed a commission on 3%. Sales for the year was `10, 00,000 (v) 10% of the divisible profits are to be kept in a Reserve Account. (6) 14. A, B and C are partners with fixed capitals of `2,00,000, `. 1,50,000 and `1,00,000 respectively. The balance of current accounts on 1st January, 2014 were A `10,000 (Cr.); B `4,000 (Cr.) and C `3,000 (Dr.). A gave a loan to the firm of ` 25,000 on 1st July, The Partnership deed provided for the following:- (i) Interest on Capital at 6%. (ii) Interest on drawings at 9%. Each partner drew `12,000 on 1st July, (iii) ` 25,000 is to be transferred in a Reserve Account. (iv) Profit sharing ratio is 5:3: 2 up to `80,000 and above `80,000 equally. Net Profit of the firm before above adjustments was `1,98,360. From the above information prepare Profit and Loss Appropriation Account, Capital and Current Accounts of the partners. (6) 15. A and B are partners sharing profits in the ratio of 3:2. Their combined capital as on was 80,000. Interest on capital is 6% p.a. During , the profits of the year prior to calculation of interest on capital but after charging B s salary amounted to 12,500. A provision of 5% of the profit is to be made in respect of manager s commission. Fill in missing figures in the following Accounts: (6) Profit and Loss A/c For the year ended 31 st March2014 Particulars ` Particulars ` To Manager commission 750 By net profit - To Profit tranf. to Profit & Loss Appropriation A/c -- - Profit And Loss Appropriation A/c For the year ended 31 st March,2014 Liabilities ` Assets ` To A s Capital A/c (Interest on Capital) To B s Capital A/c (Interest on Capital) To B s Capital A/c (Salary) To profit Tranf to 3,000 1,800 By profit and loss A/c A s Capital A/c B s Capital A/c

4 Partners capital A/c Particulars A B Particulars A B To Balance c/d ---- Balance b/d By Profit & Loss Appropriation A/c By Profit & Loss Appropriation A/c(IOC) By Profit & Loss Appropriation A/c(profit) Anshu, Anju and Anupma are partners in a firm sharing profit in the ratio of 2 : 2 : 1. Their Balance Sheet as at March 31, 2012 was as follows: Liabilities Amount (Rs.) Assets Amount (Rs.) Sundry Creditors Bills Payable General Reserve Capital A/c: Anshu 2,40,000 Anju 2,00,000 Anupma 1,60,000 65,000 7,000 48,000 Cash in hand Land Building Plant Stock Debtors 20,000 2,00,000 80,000 1,60,000 2,10,000 50,000 6,00,000 7,20,000 7,20,000 Anshu, Anju and Anupma decided to share the profit equally, w. e. f. April 1,2013. For this purpose it was agreed that: (i) The goodwill of the firm should be valued at Rs. 60,000. (ii) Land should be revalued at Rs. 3,00,000 and building and plant should be depreciated by 5%. Stock be valued at Rs. 2,25,000. (iii) Creditors amounting to Rs. 2,000 were not likely to be claimed and hence should be written off. You are required to: (a) Record the necessary journal entries to give effect to the above agreement, without opening revaluation account; (b) Prepare the capital accounts of the partners; and (c) Prepare the balance sheet of the firm after reconstitution. (8) 17. A, B and C are equal partners in a firm, their Balance Sheet as at 31 st March 2015was as follows: Liabilities Rs. Assets Rs. Sundry Creditors 27,000 Goodwill 1,17,000 Employees Provident Fund 6,000 Building 1,25,000 Bills Payable 45,000 Machinery 72,000 General Reserve 18,000 Furniture 24,000 Capitals: Stock 1,14,000 A 2,17,000 Bad Debts 1,02,000 B 1,66,000 Cash 12,000 C 90,000 Advertisement Suspense A/c 3,000 5,69,000 5,69,000

5 On that date they agree to take D as equal partner on the following terms: a. D should bring in Rs. 1, 60,000 as his capital and goodwill. His share of goodwill is valued at Rs. 60,000. b. Goodwill appearing in the books must be written off. c. Provision for loss on stock and provision for doubtful debts is to be made at 10% and 5% respectively. d. The value of building is to taken Rs. 2,00,000. e. The total capital of the new firm has been fixed has been fixed at Rs. 4,00,000 and the partners capital accounts are to be adjusted in the profit sharing ratio. Any excess is to be transferred to current account and any deficit is to be brought in cash. Required : Revaluation Account, Partners Capital Accounts, and the Balance Sheet of the new firm. 18. A and B share profits in the proportion of 3:1. their Balance sheet as at 31 st March 2014 was as follows: Liabilities ` Assets ` Sundry Creditors 41,500 Goodwill 8,500 Reserve Fund 4,000 Cash at Bank 26,500 Capitals Accounts: A 30,000 B ,000 Bills 3,000 Receivable Debtors 16,000 Stock 20,000 Profit and loss A/c 8,500 Land and 25,000 Buildings Fixtures 1,000 1,00,000 1,00,000 On April 1, 2014,C was admitted into partnership for 1/5' share on the fallowing terms: a) That C pays ` 10,000 as his capital. b) That C pays `5,000 for goodwill. Half of this sum is to be withdrawn by A and B. c) That Stocks and Fixtures be reduced by 10% and 5% provision for doubtful debts be created on Sundry Debtors and Bills Receivable. d) That the value of Land and Buildings be appreciated by 20%. e) There being a claim against the firm for damages, a liability to the extent of`1,000should be created. f) An item of ` 650 included in the Sundry Creditors is not likely to be claimed and hence should be written back. Prepare Revaluation A/c, Partners Capital A/c and Balance sheet. 19. A and B are partners sharing profits and losses in the ratio of 7:3. Their balance sheet as at 31st March 2014 was as follows: (8) BALANCE SHEET Liabilities Rs. Assets Rs. Sundry Creditors 40,000 Cash in Hand 36,000 Bank Overdraft 20,000 Sundry Debtors 46,000 General Reserve 10,000 Less:Provfor Capital Account doubtful debts 2,000 44,000 A 50,000 Furniture 30,000 B 40,000 90,000 Stock 50,000 1,60,000 1,60,000

6 On 1st April 2014 C joins the firm as a third party or for 1/4th share of the future profits on the following terms: 1. Goodwill is valued at 40,000 and C is Unable to bring the necessary amount in cash aspremium for goodwill % of the reserve is to remain as a provision against bad and doubtful debts. 3. Stock-in-trade is to be reduced by 40% and furniture is to be reduced to 40%. 4. A is to pay off the bank overdraft. 5. C is to introduce 30,000 as his share of capital to which amount other partner'scapital shall have to be adjusted. Show the necessary journal entries, to record the above and prepare balance sheet after C's admission. (Ledger accounts are not required). 20. A and B are partners and the profit is divided as follows: ½ to A ; 1/3 to B and 1/6 carried out to a reserve. They admitted C as a partner on 1 st April 2014 at which date the Balance Sheet of the firm was as under: (8) BALANCE SHEET Liabilities Rs. Assets Rs. Sundry Creditors Outstanding Expenses General Reserve Capital Account 1,60,000 12,000 90,000 Cash in Hand Sundry Debtors Stock Plant & Machinery 20,000 2,20,000 1,80,000 1,50,000 A 3,18,000 Building Advertisement expenditure 2,00,000 10,000 B 2,00,000 5,18,000 7,80,000 7,80,000 Following terms were agreed upon : (i) Stock is undervalued by 10%. (ii) Depreciation of `30,000 had been omitted on plant and machinery for the year ended 31st March, 2014 (iii) Creditors include a contingent liability of `50,000 which has been decided by the Court at `43,000. (iv) In respect of debtors, the following debts proved bad or doubtful: `15,000 due from Ram bad to the full extent; `20,000 due from Shyam insolvent, estate expected to pay only 40%. (v) Goodwill of the firm is valued at `60,000. However, C is unable to bring his share of goodwill in cash. (vi) C is given 1/5th share of profits which he acquires equally from A and B. C is to bring in capital proportionate to his share of profits in the firm. (vii) The partners decide that 5% of profit of each year be given to a N.G.O. (Non-Government Organisation) which is working for cleanliness drive in the area. You are required to prepare Revaluation Account, Capital Accounts and the new balance sheet of the firm. Also identify the values in the question. "S"

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