T S Grewal Solutions 2026-27 [Class 12] – Admission of a Partner – Q 61 to 70

Solution for Q 61 to 70 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 Preparation of revaluation account, partners capital Account and Balance sheet, adjustment of old partners capital on the basis of new partners capital.

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 61 (a)

Journal Entries

Cash A/c Dr..	400000
To M's Capital A/c		300000
To Premium for Goodwill A/c		100000

Premium for Goodwill A/c	100000
To J's Capital A/c		60000
To K's Capital A/c		40000

** Here sacrificing ratio will be same as profit sharing ratio

Old Profit Sharing Ratio
J	K	Total
3	2	5

Calculation of New ratio
M Admitted for 1/2 share
Let the total profits be 1			1
M's Share is 1/2			1/2
Balance for old partners			1/2
A's Share			3/10
B's Share			1/5

New Profit Sharing ratio
J	K	M
3/10	1/5	1/2
3	2	5

Partner Capital A/c
Particulars	J	K	M	Particulars	J	K	M
				By Bal B/d	150000	100000
				By Cash			300000
				By Prem for G/w	60000	40000
To Bal C/d	270000	180000	300000	By Gen Res	60000	40000

Total	270000	180000	300000		270000	180000	300000

Cash A/c
Particulars	Amount	Particulars	Amount
To Bal B/d	200000
To Pre for G/w	100000
To M Cap A/c	300000	By Bal C/d	600000

Total	600000	Total	600000

Balance Sheet of the new firm
Liabilities		Amount	Assets		Amount
			Cash		600000
			Other Assets		150000
J's Capital A/c		270000
K's Capital A/c		180000
M's Capital A/c		300000

	Total	750000		Total	750000

* Old partners Capital A/c = Opening Balance + Reserves + Share in Goodwill

▶ Video Solution: Coming Soon

Question 61 (b)

Journal Entries
Cash A/c Dr..	400000
To M's Capital A/c		300000
To Premium for Goodwill A/c		100000

Premium for Goodwill A/c	100000
To J's Capital A/c		50000
To K's Capital A/c		50000

** Here sacrificing ratio will be Equal

Old Profit Sharing Ratio
J	K	Total
3	2	5

M Admitted for 1/2 share	1/2

Sacrificing Ratio
J	K
1	1

J sacrificed		1/4	(1/2*1/2)
K sacrificed		1/4	(1/2*1/2)

J new share		7/20	(3/5-1/4)
K new share		3/20	(2/5-1/4)

New Profit Sharing ratio
J	K	Z
7/20	3/20	1/2
7	3	10

Partner Capital A/c
Particulars	J	K	M	Particulars	J	K	M
				By Bal B/d	150000	100000
				By Cash			300000
				By Prem for G/w	50000	50000
To Bal C/d	260000	190000	300000	By Gen Res	60000	40000

Total	260000	190000	300000		260000	190000	300000

Cash A/c
Particulars	Amount	Particulars	Amount
To Bal B/d	200000
To Pre for G/w	100000
To M Cap A/c	300000	By Bal C/d	600000

Total	600000	Total	600000

Balance Sheet of the new firm
Liabilities		Amount	Assets		Amount
			Cash		600000
			Other Assets		150000
J's Capital A/c		260000
K's Capital A/c		190000
M's Capital A/c		300000

	Total	750000		Total	750000

* Old partners Capital A/c = Opening Balance + Reserves + Share in Goodwill

▶ Video Solution: Coming Soon

Question 61 (c)

Journal Entries
Cash A/c Dr..	400000
To M's Capital A/c		300000
To Premium for Goodwill A/c		100000

Premium for Goodwill A/c	100000
To J's Capital A/c		75000
To K's Capital A/c		25000

** Here sacrificing ratio will be 3:1

Calculation of New Profit sharing ratio

Old Profit Sharing Ratio
J	K	Total
3	2	5

M Admitted for 1/2 share	1/2

Sacrificing Ratio
X	Y	Total
3	1	4

J sacrificed		3/8	(1/2*3/4)
K sacrificed		1/8	(1/2*1/4)

J new share		9/40	(3/5 - 3/8)
K new share		11/40	(2/5 - 1/8)

New Profit Sharing ratio
J	K	Z
9/40	11/40	1/2
9	11	20

Partner Capital A/c
Particulars	J	K	M	Particulars	J	K	M
				By Bal B/d	150000	100000
				By Cash			300000
				By Prem for G/w	75000	25000
To Bal C/d	285000	165000	300000	By Gen Res	60000	40000

Total	285000	165000	300000	Total	285000	165000	300000

Cash A/c
Particulars	Amount	Particulars	Amount
To Bal B/d	200000
To Pre for G/w	100000
To M Cap A/c	300000	By Bal C/d	600000

Total	600000	Total	600000

Balance Sheet of the new firm
Liabilities		Amount	Assets		Amount
			Cash		600000
			Other Assets		150000
J's Capital A/c		285000
K's Capital A/c		165000
M's Capital A/c		300000

	Total	750000		Total	750000

* Old partners Capital A/c = Opening Balance + Reserves + Share in Goodwill

** for cases (b) and (c) only the balance of Old partners capital a/c will change

Rest of the Balance Sheet will be same

▶ Video Solution: Coming Soon

Question 62

Old Profit Sharing Ratio

A	B	Total
2	1	3

New Partner Admitted	C
C's Share in profits	1/4

Journal Entries

Cash A/c Dr..	160000
To C's Capital A/c		100000
To Premium for Goodwill A/c		60000

Premium for Goodwill A/c Dr..	60000
To A's Capital A/c		40000	(60000*2/3)
To B's Capital A/c		20000	(60000*1/3)

** sacrificing ratio same as old ratio

Revaluation A/c Dr..	8000		(4000+3000+1000)
To Stock A/c		4000
To Creditors		1000
To Prov for Doubtful Debts		3000

Plant A/c Dr..	20000
Building A/c Dr..	15000
To Revaluation A/c		35000	(20000+15000)

Revaluation A/c Dr..	27000
To A's Capital A/c		18000
To B's Capital A/c		9000
(Being profit on revaluation transferred to old partner capital A/c)

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Stock A/c	4000	By Plant A/c	20000
To Creditors	1000	By Building A/c	15000
To Prov for Doubtful Debts	3000


To Profit on Revaluation :
To A's Capital A/c	18000
To B's Capital A/c	9000

	35000		35000

Partners Capital A/c
Particulars		A	B	C	Particulars		A	B	C
					By Balance B/d		180000	150000
							18000	9000
					By Bank A/c				100000
					By Premium for Goodwill A/c		40000	20000

				0
To Balance c/d		238000	179000	100000

	Total	238000	179000	100000		Total	238000	179000	100000

Balance Sheet
Liabilities		Amount	Assets		Amount
Creditors	58000		Building		165000
Add - Unrecorded	1000	59000	Plant		120000
Bills Payable		10000	Stock		36000
O/s Expenses		2000	Sundry Debtors	60000
A's Capital A/c		238000	Less - Prov	3000	57000
B's Capital A/c		179000	Cash in Hand		10000
C's Capital A/c		100000	Cash at Bank		200000


		588000			588000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	40000
To Premium for Goodwill	60000
To C's Capital A/c	100000	By Balance C/d	200000

Total	200000	Total	200000

▶ Video Solution: Coming Soon

Question 63

Old Profit Sharing Ratio

Madhu	Vidhi	Total
2	3	5

New Partner Admitted			Gayatri
Gayatri's Share in profits			1/2	(5/10 as per new ratio given in question)

Calculation of Sacrificing ratio:

New Profit Sharing Ratio
Madhu	Vidhi	Gayatri	Total
2	3	5	10

Sacrificing Ratio
Madhu	Vidhi	Total
1/5	3/10	or
2	3	5
Sacrifice	Sacrifice

Journal Entries

Cash A/c Dr..	550000
To Gayatri's Capital A/c		400000
To Premium for Goodwill A/c		150000

Premium for Goodwill A/c Dr..	150000
To Madhu's Capital A/c		60000
To Vidhi's Capital A/c		90000

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Prov for Doubtful Debts	5000	By Land and Buildings	26000
To Workmen Comp Claim	6000



To Profit on Revaluation :
To Madhu's Capital A/c	6000
To Vidhi's Capital A/c	9000

	26000		26000

Partners Capital A/c
Particulars		Madhu	Vidhi	Gayatri	Particulars		Madhu	Vidhi	Gayatri
					By Balance B/d		520000	300000
					By Revaluation A/c		6000	9000
					By Bank A/c				400000
					By Premium for Goodwill A/c		60000	90000
					By General Reserve		12000	18000
				0
To Balance c/d		598000	417000	400000

	Total	598000	417000	400000		Total	598000	417000	400000

Balance Sheet
Liabilities	Amount	Assets		Amount
Bills Payable	150000	Land and Building		326000
Workmen Comp Claim	6000	Machinery		280000
		Stock		80000
		Debtors	300000
Madhu's Capital A/c	598000	Less - Prov	15000	285000
Vidhi's Capital A/c	417000	Bank		600000
Gayatri's Capital A/c	400000


	1571000			1571000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	50000
To Premium for Goodwill	150000
To C's Capital A/c	400000	By Balance C/d	600000

Total	600000	Total	600000

▶ Video Solution: Coming Soon

Question 64

Old Profit Sharing Ratio

A	B	Total
3	2	5

New Partner Admitted	C
C's Share in profits	1/5

Journal entries

Cash A/c Dr..		150000
To C's Capital A/c			100000
To Premium for Goodwill A/c			50000

Premium for Goodwill A/c Dr..		50000
To A's Capital A/c			30000
To B's Capital A/c			20000
(Sacrificing ratio same as old ratio)

Investment Fluctuation Fund A/c Dr..			12000
	To Investments A/c
	To A's Capital A/c
	To B's Capital A/c

Revaluation A/c
Particulars	Amount	Particulars	Amount
To O/s Salaries	2000	By Bank A/c	12000




To Profit on Revaluation :
To A's Capital A/c	6000
To B's Capital A/c	4000

	12000		12000

Partners Capital A/c
Particulars		A	B	C	Particulars		A	B	C
					By Balance B/d		160000	140000
					By Revaluation A/c		6000	4000
					By Bank A/c				100000
					By Premium for Goodwill A/c		30000	20000
					By General Reserve		15000	10000
					By Inv Fluctuation Fund		1200	800
				0
To Balance c/d		212200	174800	100000

	Total	212200	174800	100000		Total	212200	174800	100000

Balance Sheet
Liabilities		Amount	Assets		Amount
Creditors		30000	Cash at Bank		182000

O/s Salaries		2000	Debtors	85000
			Less - Prov	5000	80000
			Stock		130000
A's Capital A/c	212200		Investments		50000
B's Capital A/c	174800		Furniture		77000
C's Capital A/c	100000	487000


		519000			519000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	20000
To Premium for Goodwill	50000
To C's Capital A/c	100000	By Balance C/d	182000
To Revaluation A/c-Bad Debts	12000
Total	182000	Total	182000

▶ Video Solution: Coming Soon

Question 65

Old Profit Sharing Ratio

X	Y	Total
5	3	8

New Partner Admitted	Z
New Partners Share	1/8
New Partner share of Goodwill	12000
X's share in Goodwill	12000
Y's share in Goodwill	0

Journal Entries

Bank A/c Dr..	32000
To Z Capital A/c		20000
To Premium for Goodwill A/c		12000

Premium for Goodwill A/c Dr..	12000
To X Capital A/c		12000

X Capital A/c Dr..	1500		(5/8*2400)
Y Capital A/c Dr..	900		(3/8*2400)
To Profit and Loss A/c		2400

WCR A/c Dr..	5800
To X Capital A/c		3625	(5/8*5800)
To Y Capital A/c		2175	(3/8*5800)

Revaluation A/c Dr..	5000
To EPF A/c		5000

Prov for Bad Debts A/c Dr..	600
To Revaluation A/c		600

Revaluation A/c Dr..	3000
To Stock A/c		3000

Revaluation A/c Dr..	1000
To Creditors A/c		1000

Revaluation A/c Dr..	10000
To Fixed Assets A/c		10000

X Capital A/c Dr..	11500
Y Capital A/c Dr..	6900
To Revaluation A/c		18400

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Employees PF	5000	By Prov for Doubtful Debts	600
To Stock A/c	3000
To Creditors	1000
To Fixed Assets	10000



		By Loss on Revaluation :
		By X's Capital A/c	11500
		By Y's Capital A/c	6900

	19000		19000

Partners Capital A/c
Particulars	X	Y	Z	Particulars	X	Y	Z
				By Balance B/d	70000	31000
To Revaluation A/c-Loss	11500	6900
To Profiit & Loss A/c	1500	900		By Bank A/c			20000
				By Premium for Goodwill A/c	12000	0
				By Workmen Compensation Res	3625	2175
			0
To Balance c/d	72625	25375	20000

Total	85625	33175	20000	Total	85625	33175	20000

Balance Sheet
Liabilities	Amount	Assets	Amount
Creditors	16000	Sundry Debtors	20000
Employees provident Fund	15000	Stock (25000-3000)	22000

	0	Fixed Assets	70000
X's Capital A/c	72625	Cash at Bank	37000
Y's Capital A/c	25375	(5000+20000+12000)
Z's Capital A/c	20000


	149000		149000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	5000
To Premium for Goodwill	12000
To Z's Capital A/c	20000	By Balance C/d	37000

Total	37000	Total	37000

▶ Video Solution: Coming Soon

Question 66

Note : This question is of hidden goodwill

Old Profit Sharing Ratio
Rajesh	Ravi	Total
3	2	5

New Partner Admitted	Raman
New Partners Share	1/5
New Partner share of Goodwill	3270	(16350 X 1/5)

Rajesh's share in Goodwill	1635	(In Sacrificing Ratio 1:1)
Ravi's share in Goodwill	1635

Goodwill Valuation:

Capital based on New partner share	80000	(16000 / 1/5)
Total Capital of New Firm	63650	(29000 + 15000 + 16000 + Rev Gain)
		** Always take capital of the new firm
		** So it will include Revaluation Gain/Loss
Goodwill i.e. Difference	16350

Find Sacrificing Ratio :

Old Profit Sharing Ratio
Rajesh	Ravi	Total
3	2	5

New Profit Sharing Ratio
Rajesh	Ravi	Raman
5	3	2

Sacrificing Ratio
Rajesh	Ravi
1/10	1/10
1	1

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Stock A/c	750	By Building	5000
To Prov for Doubtful Debts	100
To Furniture	500




To Profit on Revaluation :
To Rajesh's Capital A/c	2190
To Ravi's Capital A/c	1460

	5000		5000

Partners Capital A/c (Before Adjustment of G/w)
Particulars	Rajesh	Ravi	Raman	Particulars	Rajesh	Ravi	Raman
				By Balance B/d	29000	15000
				By Revaluation A/c-Profit	2190	1460
				By Bank A/c			16000



To Balance c/d	31190	16460	16000

Total	31190	16460	16000	Total	31190	16460	16000

Partners Capital A/c (After Adjustment of G/w)

Particulars	Rajesh	Ravi	Raman	Particulars	Rajesh	Ravi	Raman
				By Balance C/d	31190	16460	16000
				By Raman's Current A/c	1635	1635
To Balance C/d	32825	18095	16000
	32825	18095	16000		32825	18095	16000

Raman Current A/c
Particulars	Amount	Particulars		Amount
To Rajesh Cap A/c	1635
To Ravi Cap A/c	1635
		By Balance C/d		3270

Total	3270		Total	3270

Balance Sheet
Liabilities	Amount	Assets		Amount
Creditors	38500	Cash (2000+16000)		18000
Outstanding Rent	4000	Stock		14250
		Prepaid Insurance		1500
		Debtors	9400
		Less - Prov	500	8900
		Machinery		19000
Rajesh's Capital A/c	32825	Building		40000
Ravi's Capital A/c	18095	Furniture		4500
Raman's Capital A/c	16000
		Raman Current A/c		3270

	109420			109420

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	2000
To Raman's Capital A/c	16000
		By Balance C/d	18000

Total	18000	Total	18000

▶ Video Solution: Coming Soon

Question 67

Old Profit Sharing Ratio

Divya	Yasmin	Fatima	Total
11	7	2	20

New Partner Admitted	Aditya
New Partners Share	1/5
New Partner share of Goodwill	200000	(1000000 X 1/5)

Valuation of Goodwill

2016-2017	200000
2017-2018	600000
Total profits for last 2 years	800000
Average profits for last 2 years	400000
No of years Purchase	2.5
Value of Goodwill of Firm	1000000

Divya Share in Goodwill	110000.0	(200000*11/20)
Yasmin Share in Goodwill	70000	(200000*7/20)
Fatima Share in Goodwill	20000	(200000*2/20)
(Sacrificing ratio same as old ratio)

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Creditor	7000	By Plant and Machinery	20000
		By O/s Expenses	1000





To Profit on Revaluation :
To Divya's Capital A/c	7700
To Yasmin's Capital A/c	4900
To Fatima's Capital A/c	1400


	21000		21000

Partners Capital A/c
Particulars		Divya	Yasmin	Fatima	Aditya	Particulars		Divya	Yasmin	Fatima	Aditya
						By Balance B/d		510000	300000	500000
						By Revaluation A/c-Profit		7700	4900	1400
To Furniture A/c		80000	80000	80000		By Bank A/c					450000
						By Premium for Goodwill		110000	70000	20000
						By Bank A/c			50000
						By Reserve Fund		49500	31500	9000


					0
To Balance c/d		597200	376400	450400	450000

	Total	677200	456400	530400	450000		Total	677200	456400	530400	450000

Balance Sheet
Liabilities	Amount	Assets		Amount
Creditors	77000	Factory Building		735000
Public Deposits	119000	Plant and Machinery		200000
O/s Expenses	9000	Furniture		20000
		Stock		145000
A's Capital A/c	597200	Debtors	150000
B's Capital A/c	376400	Less - Prov	30000	120000
C's Capital A/c	450400	Cash at Bank		859000
D's Capital A/c	450000

	2079000			2079000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	159000
To Aditya's Capital A/c	450000
To Premium for Goodwill	200000	By Balance C/d	859000
To Yasmin Capital A/c	50000
Total	859000	Total	859000

Working Note :

In this question partners have withdrawn the furniture

This is similar to drawings

In the normal drawings the partners withdraw cash. And here they are withdrawing Furniture.

Both the cash and Furnituure are assets of the firm

Partners can make drawings in the form of any asset like cash, bank, furniture, vehicle, machinery, etc.

It is not necessary that the drawings should always be in cash

So the journal entry will be the entry for drawings

Partner Capital A/c Dr..
To Cash/Bank/Asset
(Normal drawings entry)

Divya Capital A/c Dr..	80000
Yasmin Capital A/c Dr..	80000
Fatima Capital A/c Dr..	80000
To Furniture		240000

▶ Video Solution: Coming Soon

Question 68

Old Profit Sharing Ratio
A	B	Total
3	2	5

New Partner Admitted	C
New Partners Share	1/5
New Partner share of Goodwill	5000

A's share in Goodwill	3000	(Sacrificing ratio same as old ratio)
B's share in Goodwill	2000

Revaluation A/c
Particulars	Amount	Particulars	Amount
		By Stock A/c	2000
To Debtors	4000	By Creditors	800



		By Loss on Revaluation :
		By A's Capital A/c	720
		By B's Capital A/c	480

	4000		4000

** Stock
If Actual Value Rs 100		In Books Rs 90
Now
In Books Rs 90		Actual Value Rs 100
In Books Rs 1		Actual Value Rs 100/Rs 90
In Books Rs 18000		Actual Value Rs 100/90* Rs 18000
		20000

OR can do by considering x

We do not know the actual value of stock
Let the actual value of stock be x
10% of x = x * 10/100 = 0.1x
Actual value - undervaluation = stock Book Value
x - 0.1x = 18000
0.9x = 18000	x = 18000/0.9		20000
			2000
			18000

** The 50% less expected recovery will be recognised immediately as per conservatism and booked as provision

Partners Capital A/c
Particulars	A	B	C	Particulars	A	B	C
				By Balance B/d	50000	40000
To Revaluation A/c-Loss	720	480
				By Bank A/c - C's Capital			25000
				By Premium for Goodwill	3000	2000
				By Reserve	6000	4000

To Balance c/d	58280	45520	25000

Total	59000	46000	25000	Total	59000	46000	25000

Balance Sheet
Liabilities	Amount	Assets	Amount
Creditors	19200	Building	50000
Outstanding Expenses	5000	Plant and Machinery	30000
		Stock	20000
		Debtors	18000
		Bank	35000

A's Capital A/c	58280
B's Capital A/c	45520
C's Capital A/c	25000


	153000		153000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	5000
To C's Capital A/c	25000
To Premium for Goodwill	5000	By Balance C/d	35000

Total	35000	Total	35000

▶ Video Solution: Coming Soon

Question 69

Old Profit Sharing Ratio
X	Y	Total
3	2	5

New Partner Admitted	Z
New Partners Share	1/6
Firms Goodwill	84000
New Partner share of Goodwill	14000	(84000*1/6)

X share in Goodwill	14000*3/5	8400
Y share in Goodwill	14000*2/5	5600
(Sacrificing ratio same as old profit ratio)

Journal entry for Goodwill :

Z Current A/c Dr..	14000
To X Capital A/c		8400
To Y Capital A/c		5600

New Profit sharing ratio

X	Y	Z	Total
15	10	5	30
3	2	1	6

Revaluation A/c
Particulars	Amount	Particulars	Amount
		By Plant & Machinery	14000
		By Building	11000
		(109000-98000)
		By Prov for Bad Debts	7000

To Profit on Revaluation :
To X's Capital A/c	19200
To Y's Capital A/c	12800

	32000		32000

Partners Capital A/c
Particulars	X	Y	Z	Particulars	X	Y	Z
				By Balance B/d	119000	112000
				By Revaluation A/c	19200	12800
				By Bank A/c			56000
				By General Reserve	8400	5600
				By Z Current A/c (Goodwill)	8400	5600
To Balance C/d	155000	136000	56000
	155000	136000	56000		155000	136000	56000
To Y Current A/c		24000		By Balance B/d	155000	136000	56000
				By X Current A/c	13000



To Balance C/d	168000	112000	56000
	168000	136000	56000		168000	136000	56000

Calculation of New Capital

Z's Capital	56000
Z's profit share	1/6
Total Capital of the new firm	336000	(56000*6/1)

Particulars	X	Y
Revised Capital of the partners	168000	112000
	(336000*3/6)	(336000*2/6)
Existing Capital	155000	136000
Deficit/Surplus	13000	24000
Capital A/c	Cr	Dr
Current A/c/Cash	Dr	Cr

Journal entry for capital adjustment shown here only for understanding :

X Current A/c Dr..	13000
To X Capital A/c		13000

Y Capital A/c Dr..	24000
To Y Current A/c		24000

Not required in the answer. Shown here only for understanding

Balance Sheet
Liabilities	Amount	Assets	Amount
Creditors	56000	Plant & Machinery	84000
		(70000+14000)
Y Current A/c	24000	Buildings	109000
		Stock	21000
		Debtors	42000
		Cash in Hand	133000
		(77000+56000)
		X Current A/c	13000
X's Capital A/c	168000	Z Current A/c	14000
Y's Capital A/c	112000
Z's Capital A/c	56000


	416000		416000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	77000
To Z's Capital A/c	56000
		By Balance C/d	133000

Total	133000	Total	133000

Note :

a) When current A/c are opened only for capital adjustment then the other adjustment entries like revaluation,

goodwill will go in capital A/c only. Understand that all these adjustments are done first and capital adjustment is done in the end.

b) However if the balance sheet given in question already have current A/c then the adjustment entries will go in current A/c only

▶ Video Solution: Coming Soon

Question 70

Revaluation A/c
Particulars	Amount	Particulars	Amount
To Fixed Assets	27000	By Stock	7000




		By Loss on Revaluation
		Shubhi Capital	12000
		Revanshi Capital	8000

	27000		27000

Partners Capital A/c
Particulars	Shubhi	Revanshi	Pari	Particulars	Shubhi	Revanshi	Pari
To Revaluation A/c	12000	8000		By Balance B/d	60000	32000

				By Bank A/c			50000
				By Premium for Goodwill	30000	20000
				By General Reserve	18000	12000

To Balance C/d	96000	56000	50000
	108000	64000	50000		108000	64000	50000
To Cash A/c	6000			By Balance B/d	96000	56000	50000
				By Cash A/c		4000



To Balance C/d	90000	60000	50000
	96000	60000	50000		96000	60000	50000

Working Note :
Calculation of New profit sharing ratio

Let the total profits be 1	1
Pari's Share is	1/4
Balance for old partners	3/4

Shubhi's Share	9/20	(3/4 X 3/5)
Revanshi's Share	3/10	(3/4 X 2/5)

New Profit Sharing ratio
Shubhi	Revanshi	Pari	Total
9/20	3/10	1/4
9	6	5	20

Calculation of Sacrificing Ratio
Shubhi	Revanshi	Total
3	2	5

(Same as old ratio)

Capital Adjustment
Pari Capital	50000
Pari Profit Share	1/4
Firms Capital	200000	(50000*4/1)

	Shubhi	Revanshi
New Capital	90000	60000
Old Adj Capital	96000	56000
Cash withdraw	6000
Cash Brought		4000

Not required in the answer. Shown here only for understanding

Balance Sheet
Liabilities		Amount	Assets	Amount
Capitals			Fixed Assets	63000
Shubhi	90000
Revanshi	60000		Stock	45000
Pari	50000	200000	Debtors	30000
			Cash	132000
Creditors		70000



		270000		270000

Cash/Bank A/c
Particulars	Amount	Particulars	Amount
To Balance B/d	52000	By Shubhi Cap A/c	6000
To Revanshi Cap A/c	4000	By Bank Loan	18000
To Pari Capital	50000
To Premium for G/w	50000
		By Balance C/d	132000

Total	156000	Total	156000

▶ Video Solution: Coming Soon

Q 1-10 | Q 11-20 | Q 21-30 | Q 31-40 | Q 41-50 | Q 51-60 | Q 61-70 | Q 71-78

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

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

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