Reconstitution of a Partnership Firm - Admission of a Partner - Class 12 Accountancy - Chapter 2 - Notes, NCERT Solutions & Extra Questions
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Extra Questions - Reconstitution of a Partnership Firm - Admission of a Partner | NCERT | Accountancy | Class 12
That portion of the subscribed capital which has not yet been called up is known as ___
Option A) None of the above
Option B) Capital Reserve
Option C) Uncalled capital
Option D) Reserve capital
The correct answer to the question is:
Option C) Uncalled capital
Uncalled capital refers to the part of the subscribed capital that the company has not yet asked the shareholders to pay. This portion remains in reserve and can be called up later as needed.
If Rs 510 be divided among $A, B, C$ in such a way that $A$ gets $\frac{2}{3}$ of what $B$ gets and $B$ gets $\frac{1}{4}$ of what $C$ gets, then their shares are respectively
A Rs 120, Rs 240, Rs 150
B Rs 60, Rs 90, Rs 360
C Rs 150, Rs 300, Rs 60
D None of these
Let's denote the share of $C$ as $x$.
We know the relationships between their shares:
$A$ gets $\frac{2}{3}$ of what $B$ gets.
$B$ gets $\frac{1}{4}$ of what $C$ gets.
From this, we can express $A$ and $B$ in terms of $x$: $$ B = \frac{1}{4}x $$ $$ A = \frac{2}{3}B = \frac{2}{3} \left(\frac{1}{4}x\right) = \frac{2}{12}x = \frac{1}{6}x $$
Now we add up these shares to match the total sum: $$ A + B + C = \frac{1}{6}x + \frac{1}{4}x + x = 510 $$
Let's solve for $x$. First, obtain a common denominator for the fractions: $$ \frac{1}{6}x + \frac{1}{4}x + x = \frac{2x + 3x + 12x}{12} = \frac{17x}{12} = 510 $$
To find $x$, multiply both sides by 12 and then divide by 17: $$ 17x = 6120 \implies x = \frac{6120}{17} = 360 $$
Now calculate $B$ and $A$ using $x = 360$: $$ B = \frac{1}{4} \times 360 = 90 $$ $$ A = \frac{1}{6} \times 360 = 60 $$
Thus, the shares are as follows:
$A$ receives Rs 60
$B$ receives Rs 90
$C$ receives Rs 360
The correct option is B Rs 60, Rs 90, Rs 360.
Salaries of Ravi and Sumit are in the ratio 2:3. If the salary of each is increased by Rs. 4000, the new ratio becomes 40:57. What is Sumit's salary?
A) 34000
B) 36000
C) 38000
D) 40000
E) None
The correct answer is C). 38000
To solve this problem, start by assigning the original salaries of Ravi and Sumit as $2x$ and $3x$ respectively, based on the given ratio of 2:3. After their salaries are increased by Rs. 4000 each, their new salaries become $(2x + 4000)$ and $(3x + 4000)$ respectively. The new salary ratio is given as 40:57. Therefore, $$ \frac{2x + 4000}{3x + 4000} = \frac{40}{57} $$ Cross-multiplying gives: $$ 57(2x + 4000) = 40(3x + 4000) $$ Solving for $x$, we have: $$ 114x + 228000 = 120x + 160000 $$ $$ 114x - 120x = 160000 - 228000 $$ $$ -6x = -68000 $$ $$ x = 11333.33 $$ Thus, Sumit's original salary was $3x = 3 \times 11333.33 = 34000$.
After the increment of Rs. 4000, Sumit's new salary becomes: $$ 34000 + 4000 = 38000 $$
Thus, Sumit's new salary is Rs. 38000.
The salary of two friends Ramu and Raju is in the ratio 4:5. If the salary of each one increases by Rs. 6000, then the new ratio becomes 48:55. What is Raju's present salary?
A) 9500
B) 10500
C) 11500
D) 12500
E) None
The correct option is B) 10500
The original ratio of Ramu's and Raju's salaries is given as 4:5.
Let's denote Ramu's and Raju's original salaries as $4k$ and $5k$ respectively.
After an increase of Rs. 6000 each, the new ratio of their salaries becomes 48:55. This forms the equation: $$ \frac{4k+6000}{5k+6000} = \frac{48}{55} $$
Cross-multiplying the values: $$ 55(4k + 6000) = 48(5k + 6000) $$ Expanding and simplifying: $$ 220k + 330000 = 240k + 288000 \ 20k = 42000 $$
To determine Raju's original salary, we solve for $5k$: $$ 5k = \frac{42000}{4} = 10500 $$
Hence, Raju's current salary is Rs. 10500.
Find $\mathrm{CI}$ on a sum of Rs. 8000 for 2 years at $5%$ per annum compounded annually.
To calculate the compound interest (CI) on a sum of Rs. 8000 at an annual compound interest rate of 5% for 2 years, follow these steps:
-
Use the formula for compound interest to find the amount ($ A $): $$ A = P \left(1 + \frac{R}{100}\right)^T $$ where:
- $ P = 8000 $ (the principal amount)
- $ R = 5 $ (annual interest rate)
- $ T = 2 $ (time in years)
-
Substituting the values: $$ A = 8000 \left(1 + \frac{5}{100}\right)^2 = 8000 \left(1.05\right)^2 $$ $$ A = 8000 \times 1.1025 = 8820 $$
-
The compound interest is then calculated by subtracting the principal from the amount: $$ \text{CI} = A - P = 8820 - 8000 = 820 $$
Thus, the compound interest for 2 years is Rs. 820.
Directions: Study the following information carefully to answer the question given below. (i) In a family of 6 persons, there are two couples. (ii) The Lawyer is the head of the family and has only two sons - Mukesh and Rakesh, both Teachers. (iii) Mrs. Reena and her mother-in-law both are Lawyers. (iv) Mukesh's wife is a Doctor, and they have a son, Ajay.
What is the profession of Ajay?
A) Teacher
B) Lawyer
C) Doctor
D) Cannot be determined
E) None of these
The correct answer is D) Cannot be Determined.
From the information provided:
- The head of the family is a Lawyer.
- Mukesh and Rakesh are both Teachers and are the only sons of the Lawyer.
- Mrs. Reena, who is also a Lawyer, could likely be married to either Mukesh or Rakesh.
- Mukesh's wife is a Doctor, and they have a son named Ajay.
Given that no additional information about Ajay's profession is provided in the statement, it is impossible to ascertain his profession from the data available. Therefore, the answer is Cannot be determined.
Purchased goods worth Rs. 2,400 from Simran and it was correctly entered in the purchases book but posted to the credit of her account in the ledger as Rs. 3,400. Will this error create a difference in the trial balance or not?
A) No, there will be no difference.
B) Yes, a difference of Rs. 1,000.
C) Yes, a difference of Rs. 2,400.
D) Yes, a difference of Rs. 3,400.
The correct answer is B) Yes, a difference of Rs. 1,000.
When goods worth Rs. 2,400 were purchased from Simran, it was recorded correctly in the purchases book but erroneously posted as Rs. 3,400 to Simran's credit in the ledger. Therefore, Simran's account was credited by an additional Rs. 1,000.
This erroneous entry leads to an imbalance in the trial balance where the credit side will appear Rs. 1,000 more than it should. Consequently, the trial balance will display an imbalance or difference of Rs. 1,000.
What is the correct accounting adjustment entry to record provision for discount on debtors?
A) Bad debts A/c Dr To Debtors A/c
B) Bad debts A/c Dr To Provision for doubtful debts A/c
C) Provision for discount on debtors A/c Dr To Profit & Loss account
D) Profit & Loss A/c Dr To Provision for discount on debtors A/c
The correct answer is Option D:
-
Profit & Loss A/c Dr
- To Provision for discount on debtors A/c
The appropriate accounting adjustment entry to record a provision for discount on debtors is:
$$ \text{Profit & Loss A/c Dr} \ \text{To Provision for discount on debtors A/c} $$
This entry signifies that the Profit & Loss account is debited, indicating an expense recognition, and the Provision for discount on debtors account is credited, which is set up as a liability or contra-asset to account for future discounts to be given to debtors.
$A$ and $B$ are partners sharing profits and losses in the ratio of $3:2$. A surrenders $\frac{1}{2}$ of his share and $B$ surrenders $\frac{1}{4}$ of his share in favour of $C$. Calculate the new ratio.
The partners $A$ and $B$ share profits and losses in the initial ratio of $3:2$. Let's calculate their individual shares:
- $A$'s share = $\frac{3}{5}$
- $B$'s share = $\frac{2}{5}$
Each partner surrenders a portion of their share to a new partner $C$. Specifically:
- $A$ surrenders $\frac{1}{2}$ of his share: $$ \text{Sacrifice by } A = \frac{3}{5} \times \frac{1}{2} = \frac{3}{10} $$
- $B$ surrenders $\frac{1}{4}$ of his share: $$ \text{Sacrifice by } B = \frac{2}{5} \times \frac{1}{4} = \frac{2}{20} = \frac{1}{10} $$
Their new shares can be determined by subtracting the sacrificed portions from their original shares:
- $A$'s new share: $$ A_{\text{new}} = \frac{3}{5} - \frac{3}{10} = \frac{6}{10} - \frac{3}{10} = \frac{3}{10} $$
- $B$'s new share: $$ B_{\text{new}} = \frac{2}{5} - \frac{1}{10} = \frac{4}{10} - \frac{1}{10} = \frac{3}{10} $$
- $C$'s share (received from $A$ and $B$): $$ C = \frac{3}{10} + \frac{1}{10} = \frac{4}{10} $$
Thus, the new profit-sharing ratio among $A$, $B$, and $C$ in simplest form: $$ A:B:C = \frac{3}{10} : \frac{3}{10} : \frac{4}{10} = 3:3:4 $$
The final sharing ratio among $A$, $B$, and $C$ is therefore $3:3:4$.
On 1-4-2010, Sahil and Charu entered into a partnership for sharing profits in the ratio of 4:3. They admitted Tanu as a new partner on 1-4-2012 for a 1/5th share, which she acquired equally from Sahil and Charu. Sahil, Charu, and Tanu earned profits at a higher rate than the normal rate of return for the year ended 31-3-2013. Therefore, they decided to expand their business. To meet the requirement of additional capital, they admitted Puneet as a new partner on 1-4-2013 for a 1/7th share of profits, which he acquired from Sahil and Charu in a 7:3 ratio.
Calculate: (a) The new profit-sharing ratio of Sahil, Charu, and Tanu for the year 2012-13. (b) The new profit-sharing ratio of Sahil, Charu, Tanu, and Puneet on Puneet's admission.
Solution
Calculation of new profit sharing ratio:
(a) On the admission of Tanu (2012 - 13)
- Sahil's Old share: $$ \frac{4}{7} $$
- Sahil's surrender in favor of Tanu: $$ \frac{1}{5} \times \frac{1}{2} = \frac{1}{10} $$
- Sahil's new share: $$ \frac{4}{7} - \frac{1}{10} = \frac{33}{70} $$
- Charu's old share: $$ \frac{3}{7} $$
- Charu's surrender in favor of Tanu: $$ \frac{1}{5} \times \frac{1}{2} = \frac{1}{10} $$
- Charu's new share: $$ \frac{3}{7} - \frac{1}{10} = \frac{23}{70} $$
- Tanu's share: $$ \frac{1}{5} \times \frac{14}{14} = \frac{14}{70} $$
- New profit sharing ratio among Sahil, Charu, and Tanu: $$ \frac{33}{70} : \frac{23}{70} : \frac{14}{70} = 33 : 23 : 14 $$
(b) On Puneet's admission:
- Sahil's old share: $$ \frac{33}{70} $$
- Sahil's surrender in favor of Puneet: $$ \frac{1}{7} \times \frac{7}{10} = \frac{7}{70} $$
- Sahil's new share: $$ \frac{33}{70} - \frac{7}{70} = \frac{26}{70} $$
- Charu's old share: $$ \frac{23}{70} $$
- Charu's surrender in favor of Puneet: $$ \frac{1}{7} \times \frac{3}{10} = \frac{3}{70} $$
- Charu's new share: $$ \frac{23}{70} - \frac{3}{70} = \frac{20}{70} $$
- Tanu's share remains the same, i.e., $$ \frac{14}{70} $$
- Puneet's share: $$ \frac{1}{7} \times \frac{10}{10} = \frac{10}{70} $$
- New profit sharing ratio among partners: $$ 26: 20: 14: 10 = 13: 10: 7: 5 $$
This new distribution reflects the adjusted shares after each new partner's addition.
Directions: Study the following information carefully to answer the question given below.
Two teams of five each must be selected from a group of ten persons viz. A, B, C, D, E, F, G, H, I, J of which A, E, and G are doctors, D, H, and J are lawyers, B and I are engineers, and C and F are managers. It is also known that: (i) every team must contain persons of each of the four professions. (ii) C and H cannot be selected together. (iii) I cannot be selected into a team with two lawyers. (iv) J cannot be on a team with two doctors. (v) A and D cannot be selected together.
Who among the following must always be in the same team as A?
A) D B) B C) H D) J E) None of these
To solve this problem, first categorize the ten persons by their professions as follows:
- Doctors: A, E, G
- Lawyers: D, H, J
- Engineers: B, I
- Managers: C, F
Given the constraints: (i) Every team must have a representation from each profession. (ii) Certain pairs such as C and H, A and D cannot be paired together. (iii) Specific constraints for I and J regarding lawyers and doctors respectively.
To form two balanced teams while satisfying the conditions, consider:
- One team could include two lawyers and one doctor, and the other team two doctors and one lawyer, ensuring both teams have an engineer and a manager each.
Analyzing individual constraints:
-
Since teams need diversity, if A (a doctor) is chosen, the team requiring two lawyers cannot include A with D due to restriction (v). Therefore, A will pair with H and/or J in the team requiring only one lawyer.
-
Since C and H cannot be together (ii), place H with A. This placement also respects the rule that I cannot be with two lawyers (iii), as H and J/D would fulfill the lawyer slots in A's team, excluding I.
Thus, H must be in the same team as A. The constraints naturally lead H and A to complement each other given the roster’s requirements and restrictions.
Answer: C) H
At the gates of the dock, the agent has to hand over a few documents, and only then does he have permission to enter:
A) Indent
B) Carting Order
C) Mate's Receipt
D) Certificate of Inspection
The correct answer is B) Carting Order.
Carting Order is the document required at the gates of the dock. The agent must present this document to gain permission to enter the dock area.
State any one purpose for admitting a new partner in a firm.
One primary purpose for admitting a new partner into a firm is to procure additional capital.
A and B are partners sharing profits in the ratio of 2:1. C is admitted as a new partner and the new ratio is decided as 5:3:2.
The assets and liabilities are revalued as follows:
(i) Building was appreciated by 25% (Book value of Building Rs 4,00,000).
(ii) The provision for doubtful debts was reduced from Rs 5,000 to Rs 3,000.
(iii) A provision for Rs 4,000 was made for an outstanding bill for repairs.
(iv) Unrecorded investments were worth Rs 10,000.
(v) Unrecorded liability towards suppliers was Rs 12,000.
Pass the necessary journal entries.
Below are the necessary journal entries in table format for the revaluation of assets and liabilities when C is admitted as a new partner:
Date | Particulars | L.F | Dr.(Rs) | Cr.(Rs) |
---|---|---|---|---|
(i) | Building A/c | Dr. | 1,00,000 | |
To Revaluation A/c | 1,00,000 | |||
(Increase in the value of building) | ||||
------ | -------------- | ----- | --------- | --------- |
(ii) | Provision for Doubtful Debts A/c | Dr. | 2,000 | |
To Revaluation A/c | 2,000 | |||
(Reduction in provision for doubtful debts) | ||||
------ | -------------- | ----- | --------- | --------- |
(iii) | Revaluation A/c | Dr. | 4,000 | |
To Provision for Repairs A/c | 4,000 | |||
(Provision made for outstanding repairs bill) | ||||
------ | -------------- | ----- | --------- | --------- |
(iv) | Investments A/c | Dr. | 10,000 | |
To Revaluation A/c | 10,000 | |||
(Investments recorded in books) | ||||
------ | -------------- | ----- | --------- | --------- |
(v) | Revaluation A/c | Dr. | 12,000 | |
To Creditors A/c | 12,000 | |||
(Liability towards suppliers recorded) | ||||
------ | -------------- | ----- | --------- | --------- |
Revaluation A/c | Dr. | 96,000 | ||
To A's Capital A/c | 64,000 | |||
To B's Capital A/c | 32,000 | |||
(Transfer of profit on revaluation to old partner’s capital accounts in old profit sharing ratio) |
Note:
Profit on revaluation = Rs 1,00,000 + Rs 2,000 - Rs 4,000 + Rs 10,000 - Rs 12,000 = Rs 96,000
Sales to Meena for Rs.4,200 have been posted to the debit of the sales account as Rs.2,400.
What shall be the net effect on the Gross Profit of this transaction?
Gross profit is overstated by Rs.2,400
Gross profit is understated by Rs.4,200
Gross profit is understated by Rs.6,600
Gross profit is overstated by Rs.4,200
The correct option is C: Gross profit is understated by Rs.6,600.
Here’s the explanation:
Gross Profit is understated by Rs.4,200 (the actual sales amount) and additionally by Rs.2,400 (the incorrect posted amount), combined making a total of Rs. 4,200 + Rs. 2,400 = Rs. 6,600.
Thus, the Gross Profit is understated by Rs.6,600.
The following particulars relate to Madras Club for the year 31st March, 2018.
Dr | RECEIPT | Amount (Rs) | AND PAYMENTS ACCOUNT | Amount (Rs) |
---|---|---|---|---|
Receipts | Payments | |||
----------------- | ---------------------------- | ------------- | ----------------------- | ------------- |
To Balance b/d | 60,000 | By Salaries | 1,24,500 | |
To Subscription: | By Stationery | 24,000 | ||
2016-17 | 2,400 | By Rent | 36,000 | |
2017-18 | 1,26,600 | By Telephone Expenses | 6,000 | |
2018-19 | 4,800 | 1,33,800 | By Furniture | 75,000 |
To Income from canteen | 90,000 | By Advertisements | - | |
To Miscellaneous | 4,500 | By Postage | 10,000 | |
To Sale of Old Assets | 11,200 | By Sundry Expenses | 50,000 | |
To Interest | 48,000 | By Balance b/d | 1,72,000 | |
To Donation | 1,00,000 | |||
To Entrance Fees | 60,000 | |||
Total | 5,08,000 | Total | 5,08,000 |
You are required to prepare an Income and Expenditure Account and Balance Sheet after making the following adjustments:
(i) There are 450 members each paying a monthly subscription of Rs 25, Rs 2,700 being arrears of 2016-17 on 1-04-2017.
(ii) A donation of Rs 20,000 was wrongly recorded as interest income.
(iii) Entire donation and half of entrance fees are to be capitalized.
(iv) Stock of stationery on 01-04-2017 was Rs 3,000 and on 31-03-2018 was Rs 5,400.
(v) Cost of building is Rs 6,00,000 on 01-04-2017, depreciate it at 5% p.a. Furniture valued at Rs 75,000 was purchased on 31-03-2018.
Income and Expenditure Account for the Year Ending 31-03-2018
Expenditure | Amount (Rs) | Income | Amount (Rs) |
---|---|---|---|
To Salaries | 1,24,500 | By Subscription (2017-18) | 1,26,600 |
To Stationery Consumed | 21,600 | Add: Outstanding for 2016-17 | 2,700 |
To Rent and Taxes | 36,000 | Add: Outstanding for 2018-19 | 4,800 |
To Telephone Expenses | 6,000 | By Income from Canteen | 90,000 |
To Advertisement | 0 | By Miscellaneous Income | 4,500 |
To Postages | 10,000 | By Sale of Old Assets | 11,200 |
To Sundry Expenses | 50,000 | By Interest (Corrected) | 28,000 |
To Depreciation on Building (5% of 6,00,000) | 30,000 | By Entrance Fees (Non-Capitalized portion) | 30,000 |
To Excess of Income over Expenditure | 30,900 | ||
Total | 3,09,000 | Total | 3,09,000 |
Balance Sheet as on 31st March, 2018
Liabilities | Amount (Rs) | Assets | Amount (Rs) |
---|---|---|---|
Capital Fund | 6,65,700* | Cash in Hand | 1,72,000 |
Add: Excess of Income over Expenditure | 30,900 | Outstanding Subscription | 2,700 |
Entrance Fees (Capitalized) | 30,000 | Building (6,00,000 - 30,000 depreciation) | 5,70,000 |
Advance Subscription | 4,800 | Stock of Stationery | 5,400 |
Donations (Capitalized) | 1,00,000 | Furniture | 75,000 |
Total | 8,31,400 | Total | 8,31,400 |
Calculation of Opening Capital Fund:[ 6,00,000 + 60,000 + 2,700 + 3,000 = 6,65,700 , \text{Rs} ]