T S Grewal Solutions 2026-27 [Class 12] – Admission of a Partner – Q 41 to 50

Solution for Q 41 to 50 of Chapter 4 of T S Grewal Class 12 Accountancy 2026-27 are given below. The Chapter name is Admission of a Partner from Partnership Accounts class 12. These Solutions are based on topics hidden Goodwill at the time of admission of a partner, Revaluation of assets and reassessment of liabilities, how to calculate revaluation gain or revaluation loss at the time of admission of a partner, preparation of revaluation account.

Working notes are given with each solution. These help in understanding the steps and are also important for board exams as marks are given for steps.

These solutions are also useful for CA Foundation, CS Foundation and CMA Foundation students. The solutions will be helpful for students as well as teachers teaching class 12 accounts.

Question 41

Z's Capital	80000
Z's share	1/4
Total Capital of the firm	320000	(80000*4/1)
(Based on New partner capital)

X's Capital	50000
Y's Capital	50000
Z's Capital	80000
P&L A/c Balance	40000
Total Adjusted Capital	220000	(Actual capital of the new firm)

Goodwill of the firm	100000	(320000 - 220000)

Z's Share	25000	(10000*1/4)

Z's Current A/c Dr..	25000
To X's Capital A/c		12500
To Y's Capital A/c		12500

** Z's Current A/c can also be used

** X and Y profit sharing ratio is assumed to be equal in the absence of information

▶ Video Solution: Coming Soon

Question 42

Ajay's Capital	500000
Ajay's share	1/5
Total Capital of the firm/firm's worth	2500000	(500000*5/1)
(Based on New partner capital)

Total Assets of the firm	1500000	(given in the question)
Less - Outside Liabilities	500000	(given in the question)
Total capital of the old partners	1000000
Add - Ajay's Capital	500000
Total Adjusted Capital	1500000	(Actual capital of the new firm)

Goodwill of the firm	1000000

Ajay's Share	200000	(1000000*1/5)

Ajay's Current A/c Dr..	200000
To Asin's Capital A/c		100000
To Shreyas's Capital A/c		100000

** Asin and Shreyas profit sharing ratio is assumed to be equal in the absence of information

▶ Video Solution: Coming Soon

Question 43

Let the original value of machinery be x

Value as per balance sheet will be 1.333x

1.333x = 200000

x = 150038 or 150000

Note : remember that the % increase is always of the original value

So here we cannot simply find 33.33% of Rs 200000. That is incorrect

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Question 44

Journal Entries

Investments A/c Dr..	20000
To Revaluation A/c		20000
(Being Investments value increased)
Revaluation A/c Dr..	5000
To Sundry Creditors A/c		5000
(Being creditors value increased)
Sundry Creditors A/c	1600
To Revaluation A/c		1600
(Being creditors written back)

▶ Video Solution: Coming Soon

Question 45

Journal Entries

X's Capital A/c Dr..	24000
Y's Capital A/c Dr..	16000
To Investments A/c		40000

Investments A/c Dr..	10000
To Revaluation A/c		10000

Revaluation A/c Dr..	10000
To X's Capital A/c		6000
To Y's Capital A/c		4000

▶ Video Solution: Coming Soon

Question 46

Journal Entries

Provision for Doubtful Debts A/c Dr..	5000
To Revaluation A/c		5000

Revaluation A/c Dr..	5000
To X's Capital A/c		3000
To Y's Capital A/c		2000

▶ Video Solution: Coming Soon

Question 47

Journal Entries

Prov for Doubtful Debts A/c Dr..	6000
To Debtors A/c		6000
(Being bad Debts written off)

Revaluation A/c Dr..	1500
To Prov for Doubtful Debts		1500

Ashok's Capital A/c Dr..	900
Bhaskar's Capital A/c Dr..	600
To Revaluation A/c		1500
(Being loss on revaluation distributed to old partners)

** Note that the Expenses need not be debited here as the same was already debited at the time of creating the provision

**Total Debtors reduced to RS 70000. Prov required now is 5% of Rs 70000 i.e. Rs 3500

** Total available provision reduced to Rs 2000 due to write off as per above entry

** The entry for additional provision will be routed through revaluation account and not through Bad Debts A/c

This is because as the same will be debited to partners capital a/c through revaluation and not through P & L A/c

If later any such provision is reversed then the same can however be routed through P & L A/c as

revalaution will not exist

Note that the revaluation A/c is a transit a/c i.e. temporary account and will not hold any balance at the end of period

▶ Video Solution: Coming Soon

Question 48

(i)	Revaluation A/c Dr..	16000
	To Machinery A/c		16000

	Building A/c Dr..	40000
	To Revaluation A/c		40000

(ii)	Revaluation A/c Dr..	4000
	To Prov for Doubtful Debts A/c		4000	(80000 X 5%)

(iii)	Revaluation A/c Dr..	12000
	To Prov for warranty claims		12000

(iv)	Revaluation A/c Dr..	20000
	To Furniture A/c		20000	(50000 X 40%)

(v)	Revaluation A/c Dr..	30000
	To Furniture A/c		30000

▶ Video Solution: Coming Soon

Question 49

Journal Entries

Creditors A/c Dr..	5000
Building A/c Dr..	40000
Investments A/c Dr..	15000
To Revaluation A/c		60000

Revaluation A/c Dr..	10000
To Prov for Doubtful Debts		5000
To Prov for O/s repairs		2000
To Sundry Creditors		3000

Revaluation A/c Dr..	50000
To Ramesh's Capital A/c		25000
To Naresh's Capital a/c		25000

** In the absence of information the old profit sharing ratio of partners is assumed to be equal

Revaluation A/c
Particulars		Amount	Particulars	Amount
To Prov for Doubtful Debts		5000	By Creditors A/c	5000
To Prov for O/s repairs		2000	By Buildings A/c	40000
To Sundry Creditors		3000	By Investments A/c	15000

To Profit on Revaluation :
Ramesh Capital A/c	25000
Naresh Capital A/c	25000	50000

Total		60000	Total	60000

▶ Video Solution: Coming Soon

Question 50

Current rate of provision	15000/150000 X 100	=	10%

Particulars	Provision	Debtors
Existing	15000	150000
Less - Bad Debts from Mohan	12000	12000

Remaining	3000	138000

Provision to be maintained @ 10%		13800

Additional Provision required to be created	10800

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 |

T S Grewal Solutions – Admission of a Partner– All Questions

T S Grewal Solutions Class 12 2026-27 – All Chapters

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