Practical Problem 09
Practical Problems | Q 9 | Page 166
Mr. Amit and Baban share profits and losses in the ratio 2:3 respectively. | ||||
Their balance sheet as on 31st March 2018 was as under. | ||||
Balance Sheet as on 31st March,2018 . | ||||
Liabilities | Amt | Asset | Amt | |
Creditors | 1,40,000 | Cash | 1,10,000 | |
Capital : | Land and Building | 50,000 | ||
Amit | 1,00,000 | Plant | 60,000 | |
Baban | 1,00,000 | Furniture | 4,000 | |
Stock | 1,00,000 | |||
Debtors | 16,000 | |||
3,40,000 |
| 3,40,000 | ||
They agreed decided to admit Kamal on 1st April 2018 on following terms: | ||||
1. Kamal shall have 1/4th share in future profits. | ||||
2. They agreed to admit Kamal as a partner on 1st April 2018 on the following terms: | ||||
3. She shall bring 50,000 as her capital and 40,000 as her share of goodwill. | ||||
4. Land and building to be valued at 60,000 and furniture to be depreciated by 10% | ||||
5. Provision for bad and doubtful debts is tobe maintained at 5% on the sundry debtors. | ||||
6. Stocks to be valued 1,10,000 | ||||
The capital A/c of all partners to be adjusted in their new profit and loss ratio and | ||||
excess amount be transferred to their loan accounts. | ||||
Prepare profit and loss adjustment A/c, Capital A/cs, and New Balance Sheet |
IN THE BOOKS OF NEW FIRM | |||||
Dr Profit and Loss Adjustment Account Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Furniture | 400 | BY Land & Building | 10,000 | ||
To Debtors | 800 | By Stock A/c | 10,000 | ||
To Profit on Revaluation | |||||
Amit Capital A/c | 7,520 | ||||
Baban capital A/c | 11,280 | 18,800 | |||
20,000 | 20,000 |
Dr Partner Capital A/c Cr | |||||||
Particular | Amit | Baban | Kamal | Particular | Amit | Baban | Kamal |
By Bal b/d | 1,00,000 | 1,00,000 | |||||
To Loan A/c | 63,520 | 45,280 | By Cash A/c | 50,000 | |||
To Bal c/d | 60,000 | 90,000 | 50,000 | By Goodwill A/c | 16,000 | 24,000 | |
By P & L Adj A/c | 7,520 | 11,280 | |||||
1,23,520 | 1,35,280 | 50,000 | 1,23,520 | 1,35,280 | 50,000 |
Balance sheet of New Firm as on 1st April 2018. | |||||
Liabilities | Amount | Amount | Asset | Amount | Amount |
Capital A/c | Land and Building | 50,000 | |||
Amit | 60,000 | Add: Appreciation | 10,000 | 60,000 | |
Bban | 90,000 | Plant | 60,000 | ||
Kamal | 50,000 | 2,00,000 | Furniture | 4,000 | |
Creditors | 1,40,000 | Less: Dep @ 10% | -400 | 3,600 | |
Amit Loan | 63,520 | Stock | 1,00,000 | ||
Baban Loan | 45,280 | Add: Appreciation | 10,000 | 1,10,000 | |
Debtors | 16,000 | ||||
Less: RDD @ 5% | -800 | 15,200 | |||
Cash | 2,00,000 | ||||
4,48,800 | 4,48,800 |
Working:
Dr Cash A/c Cr | |||||
Particular | Amount | Amount | Particular | Amount | Amount |
To Bal b/d | 1,10,000 | ||||
To Kamal Capital A/c | 50,000 | By Bal c/d | 2,00,000 | ||
To Goodwill A/c | 40,000 | ||||
2,00,000 | 2,00,000 |
Dr Goodwill A/c Cr | ||||||
Particular | Amount | Amount | Particular | Amount | Amount | |
To Amit Capital A/c | 16,000 | By Cash | 40,000 | |||
To Baban Capital A/c | 24,000 | 40,000 | ||||
40,000 | 40,000 |