Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4.2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs.2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.
On that date, the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000. Their assets apart from cash included Stock Rs. 10,000 ; Debtors Rs.40,000; Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
Total assets side of new firm balance sheet is
Option 1: Rs 6,55,000
Option 2: Rs 6,57,000
Option 3: Rs 6,60,000
Option 4: Rs 6,00,000
Correct Answer: Rs 6,57,000
Solution : Answer = Rs 6,57,000
Total Assets = 1,78500 + 218500 + 200000 + 60,000+15000
= 6,57,000.
Hence, the correct option is 2.
Answer laterQuestion : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4 .2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs. 2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.
On that date the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000 . Their assets apart from cash included Stock Rs.10,000; Debtors Rs.40,000;
Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
After all adjustment the balance of their capitals are
Option 1: Murari 1,78,50,0 Vohra 2,18,500, and Robin Rs 2,00,000
Option 2: Murari Rs 166,000, Vohra 1,88,500 and Robin Rs 2,00,000
Option 3: Murari Rs 1,55,000, Vohra 175,000 and Robin Rs 2,00,000
Option 4: None of the above
Correct Answer: Murari 1,78,50,0 Vohra 2,18,500, and Robin Rs 2,00,000
Solution : Answer = Murari 1,78,500, Vohra 2,18,500 and Robin Rs 2,00,000
Partner's Capital Account
| Particulars | Murari | Vohra | Robin | Particulars | Murari | Vohra | Robin |
| By Bank B/D | 1,20,000 | 1,60,000 | - | ||||
| By R/r (profit) | 13,500 | 13,500 | - | ||||
| Bal. c/d | 1,78,500 | 2,18,500 | 2,00,000 | By Bank | 2,00,000 | ||
| By Premium for Goodwill | 45,000 | 45,000 | - | ||||
| 1,78,500 | 2,18,500 | 2,00,000 | 1,78,500 | 2,18,500 | 2,00,000 |
Hence, the correct option is 1.
Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4 .2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs. 2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.
On that date the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000 . Their assets apart from cash included Stock Rs.10,000; Debtors Rs.40,000;
Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs.5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
Revaluation account will be
Option 1: Debited by Rs 27,000
Option 2: Crediting with Rs 27,000
Option 3: No profit and no loss
Option 4: None of the above
Correct Answer: Debited by Rs 27,000
Solution : Answer = Debited by Rs 27,000
Revaluation A/c
| Stock | 2000 |
Land and Building (2,00,000 x 25 /100) |
50,000 |
| Plant And Machinery | 16000 | ||
| Debtors | 5000 | ||
| Profit | 27000 | ||
|
Murari = 13500 Vohra = 13500 |
|||
| 50,000 | 50,000 |
Debited by Rs 27,000
Hence, the correct option is 1.
Question : Murari and Vohra of Chandigarh were partners in a firm with capitals of Rs. 1,20,000 and Rs. 1,60,000 respectively. On 1.4.2018 they admitted their manager, Robin Gurung of Meghalaya, as a partner for one-fourth share in profits on his payment of Rs.2,00,000 as his capital and Rs. 90,000 for his one-fourth share of goodwill.
On that date the creditors of Murari and Vohra were Rs. 60,000 and Bank overdraft was Rs. 15,000. Their assets apart from cash included Stock Rs. 10,000; Debtors Rs.40,000;
Plant and Machinery Rs.80,000; Land and Building Rs.2,00,000. It was agreed that stock should be depreciated by Rs.2,000; Plant and Machinery by 20%, Rs. 5,000 should be written off as bad debts and Land and Building should be appreciated by 25%.
Question:
Value of cash will be
Option 1: Rs 25,000
Option 2: Rs 35,000
Option 3: Rs 10,000
Option 4: None of the above
Correct Answer: Rs 25,000
Solution : Answer = Rs 25,000
Memorandum Balance Sheet
| Creditor | 60,000 | Stock | 10,000 |
| Bank Overdraft | 15,000 | Debtor | 40,000 |
| Capital Murari | 1,20,000 | Plant | 80,000 |
| Capital Vohra | 1,60,000 | Building | 2,00,000 |
| Cash (b/f) | 25,000 | ||
| 3,55,000 | 3,55,000 |
Hence, the correct option is 1.
