Title: 11th accounts chapter
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2This Presentation is madebystudenrts ofQASMI
Classes
3Presented by Shahrukh Safiullah
4Shahrukh
5Safiullah
6Admission of a partner
7Topics
- Ratio
- Treatment of Goodwill
- Revaluation of Assets Liabilities
- Partners capital Account
- Capital Adjustment
8Ratio
- Relation Between Two or More Things Of Same Nature
9Types of questions
Simple
From
Of
If any old partner would retain his original share
New ratio of old partners are given
10Simple
11Simple
Simple wale case me to old ratio hi sacrificing
ratio hota hai
12From
13From
From wale case me to sacrificing ratio diya hota
hai
14Of
15Of
Of wale case me to sacrificing ratio asaani se
nikaal lete hai
16When old partners sacrificing for new partner
Treatment of goodwill
17Treatment of goodwill
1st
Goodwill brought by new partner will be
distributed among old partners in sacrificing
ratio
18Treatment of goodwill
2nd
New partner bring his capital his share of
goodwill at the time of admission
19Treatment of Goodwill
Case A
- When new partner bring his share of Goodwill in
cash
20Treatment 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
21Treatment of Goodwill
Case B
When new partner CANT bring share of Goodwill in
cash
22Treatment 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
23Admission of a Partner
1
- 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
24If Old ratio is Given then it will be treated as
sacrificing Ratio
Admission of a Partner
2
Old Ratio Sacrificing Ratio
25If 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
3
Particulars Amt(Dr) Amt(Cr)
Old Partners Capital A/C ---Dr To Goodwill A/C (Being Goodwill treated) XXX XXX
26Revaluation 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
27Preparation of Partners capital A/C
STEPS Balance sheet items Additional
Information Revaluation Profit/Loss
28Preparation 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
29All Items are given in the balance sheet than
these must be cross Tfd to Capital A/C in Old
Ratio
Balance Sheet
30Balance 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
31This Chapter is given From
Double entry Book Keeping
32ISH
33(No Transcript)