11th accounts chapter

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This Presentation is madebystudenrts ofQASMI
Classes
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Presented by Shahrukh Safiullah
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Shahrukh
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Safiullah
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Admission of a partner
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Topics

• Ratio
• Treatment of Goodwill
• Revaluation of Assets Liabilities
• Partners capital Account
• Capital Adjustment

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Ratio

• Relation Between Two or More Things Of Same Nature

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Types of questions
Simple
From
Of
If any old partner would retain his original share
New ratio of old partners are given
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Simple
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Simple
Simple wale case me to old ratio hi sacrificing
ratio hota hai
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From
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From
From wale case me to sacrificing ratio diya hota
hai
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Of
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Of
Of wale case me to sacrificing ratio asaani se
nikaal lete hai
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When old partners sacrificing for new partner
Treatment of goodwill
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Treatment of goodwill
1st
Goodwill brought by new partner will be
distributed among old partners in sacrificing
ratio
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Treatment of goodwill
2nd
New partner bring his capital his share of
goodwill at the time of admission
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Treatment of Goodwill
Case A

• When new partner bring his share of Goodwill in
  cash

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Treatment of Goodwill
Case A
Particulars Amount (Dr) Amount (Cr)
Cash A/C ---Dr To New partner Capital A/C To Premium A/C (Being Goodwill in Capital brought by(NP) xxx xxx xxx
Premium A/C ---Dr To Old Partners A/C (Being Goodwill Distributed between(OP) xxx xxx
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Treatment of Goodwill
Case B
When new partner CANT bring share of Goodwill in
cash
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Treatment of Goodwill
Case B
Particulars Amt(Dr) Amt(Cr)
Cash A/C ---Dr To New partner cap A/c (Being Capital brought by New partner) XXX XXX XXX
New partner Capital A/C ---Dr To Old Partners Capital A/c (Being Capital Adjusted) XXX XXX
Old Partners capital A/C ---Dr To Goodwill A/C (Being Goodwill Written Off) XXX XXX
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Admission of a Partner
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• If Old ratio new ratio both are given in the
  question then we have to calculate sacrificing
  ratio in Working Note

sacrificing ratio
Old Ratio-New Ratio
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If Old ratio is Given then it will be treated as
sacrificing Ratio
Admission of a Partner
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Old Ratio Sacrificing Ratio
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If any old Goodwill appears in balance sheet or
books it must be Written Off before the among old
partners in Old ratio
Admission of a Partner
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Particulars Amt(Dr) Amt(Cr)
Old Partners Capital A/C ---Dr To Goodwill A/C (Being Goodwill treated) XXX XXX
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Revaluation A/C
/PL A/C
Particulars Amt Paticulars Amt
To decrease in value of Assets To increase in value of liabilities To Profit on revaluation TFD to capital A/C As share XXX Bs share XXX XXX XXX XXX XXX By increase value of Assets By decrease value of liabilities By Loss on revaluation TFD to capital A/C As share XXX Bs share XXX XXX XXX XXX XXX
XXX XXX
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Preparation of Partners capital A/C
STEPS Balance sheet items Additional
Information Revaluation Profit/Loss
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Preparation of Partners capital A/C
Particulars A B C Particulars A B C
To cash A/C (Withdraw) To Revaluation A/C (Loss) To Bal C/d XXX XXX XXX XXX XXX XXX --- --- XXX By bal b/d By Cash A/C By Premium A/C By revaluation A/C (Profit) XXX --- XXX XXX XXX --- XXX XXX --- XXX --- ---
XXX XXX XXX XXX XXX XXX
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All Items are given in the balance sheet than
these must be cross Tfd to Capital A/C in Old
Ratio
Balance Sheet
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Balance Sheet
Particulars Amt Particulars Amt
General reserve Reserve Fund Workmens Compensation Fund Profit/Loss (Cr Balance) Accumulated Profit Undistributed Profit XXX XXX XXX XXX XXX Goodwill Deffered Revenue Exp (Like Advertisement) Profit/Loss (Dr Balance) Accumulated Loss Undistributed Loss XXX XXX XXX XXX XXX
XXX XXX
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This Chapter is given From
Double entry Book Keeping
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ISH
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