Practical Problem 03
Practical Problems | Q 3 | Page 162
Vasu and Viraj Share Profits and Losses in the Ratio of 3:2 respectively | |||||||
Their Balance Sheet as on 31st March 2019 was as under | |||||||
Balance Sheet as on 31st March, 2019 | |||||||
Liabilities | Rs | Asset | Rs | ||||
Sundry Creditors | 45,000 | Cash at bank | 750 | ||||
General Reserve | 30,000 | Sundry debtors | 66,750 | ||||
Capital : |
| Stock | 25,500 | ||||
Vasu | 1,08,000 | Investment | 36,000 | ||||
Viraj | 72,000 | Plant | 90,000 | ||||
|
| Building | 36,000 | ||||
| 2,55,000 |
| 2,55,000 | ||||
They admit Hari into Partnership on 1.4. 2019 the terms being that : | |||||||
1 He shall have to bring in ` 60,000 as his Capital for 1/4 share in future profits | |||||||
2. Value of Goodwill of the Firm is to be fixed at The average profits for the last three years. | |||||||
The Profit were. | |||||||
2009-10 | 48,000 | ||||||
2010-11 | 81,000 | ||||||
2011-12 | 73,500 | ||||||
Hari is unable to bring the value of the Goodwill in cash. It is decided to raise the Goodwill | |||||||
3. Reserve for Doubtful Debts is to be created at ` 1,500. | |||||||
4. Closing Stock is valued at ` 22, 500 | |||||||
5. Plant and Building is to be depreciated by 5% | |||||||
Prepare Profit and Loss Adjustment A/c, Capital Accounts of Partners And Balance Sheet of the New Firm | |||||||
Particular | Vasu | Viraj | Hari | Particular | Vasu | Viraj | Hari |
By Bal b/d | 1,08,000 | 72,000 | |||||
To P& L Adj A/c | 6,480 | 4,320 | By Gen. Res A/c | 18,000 | 12,000 | ||
To Bal c/d | 1,60,020 | 1,06,680 | 60,000 | By Cash | 60,000 | ||
By Goodwill A/c | 40,500 | 27,000 | |||||
1,66,500 | 1,11,000 | 60,000 | 1,66,500 | 1,11,000 | 60,000 |
Balance sheet of New Firm as on 1st April…. | |||||
Liabilities | Amt | Amt | Asset |
| Amt |
Capital A/c | Plant | 90,000 | |||
Vasu | 1,60,020 | Less: Dep @ 5% | -4,500 | 85,500 | |
Viraj | 1,06,680 | Building | 36,000 | ||
Hari | 60,000 | 3,26,700 | Less: Dep @ 5% | -1,800 | 34,200 |
Sundry Debtor | 66,750 | ||||
Sundry Creditor | 45,000 | Less: R.D.D | -1,500 | 65,250 | |
Stock | 25,500 | ||||
Less: W/off | -3,000 | 22,500 | |||
Investment | 36,000 | ||||
Cash | 60,750 | ||||
Goodwill | 67,500 | ||||
3,71,700 | 3,71,700 | ||||
Working :
Dr Cash A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Bal b/d | 750 | ||||
To Hari Capital A/c | 60,000 | By Bal c/d | 60750 | ||
60,750 | 60,750 | ||||
Dr Goodwill A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Vasu Capital A/c | 40,500 |
| |||
To Viraj Capital A/c | 27,000 | 67,500 | |||
By Bal c/d | 67,500 | ||||
67,500 | 67,500 | ||||