Practical Problem 01
Practical Problems | Q 1 | Page 202
Rajesh, Rakesh and Mahesh were equal Partner on 31st March 2019. | |||
Their Balance Sheet was as follows 31st March 2019 | |||
Balance Sheet AS on 31st March 2019 | |||
Liabilities | Amt | Assets | Amt |
Capital Account : | Land and Building | 4,00,000 | |
Rajesh | 5,00,000 | Furniture | 3,00,000 |
Rakesh | 2,00,000 | Debtors | 3,00,000 |
Mahesh | 2,00,000 | Stock | 1,00,000 |
Sundry creditors | 90,000 | Cash | 1,00,000 |
Bills Payable | 60,000 | ||
Bank loan | 1,50,000 | ||
12,00,000 |
| 12,00,000 | |
Mr. RAJESH died on 30th June 2019 AND the following ADJUSTMENT were AGREED AS | |||
1) Furniture WAS to be ADJUSTED to its MARKET price of 3,40,000 | |||
2) LAND AND Building WAS to be DEPRECIATED by 10% | |||
3) Provide R.D.D 5% on debtors | |||
4) The Profit up to the DATE of DEATH of Mr. RAJESH is to be CALCULATED on the BASIS of LAST YEARS | |||
profit which WAS 1,80,000 | |||
Prepare : 1) Profit AND Loss ADJUSTMENT A/c , 2) PARTNERS CAPITAL ACCOUNT, 3) BALANCE sheet of the continuing firm | |||
IN THE BOOKS OF Partnership Firm | |||||
Dr Profit and Loss Adjustment Account Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Land & Building A/c | 40,000 | By Furniture A/c | 40,000 | ||
To R.D.D A/c | 15,000 | By Partner’s Capital A/c (Loss) | |||
Rajesh | 5,000 | ||||
Rakesh | 5,000 | ||||
Mahesh | 5,000 | 15,000 | |||
55,000 | 55,000 | ||||
Dr Partner Capital A/c Cr | |||||||
Particular | Rajesh | Rakesh | Mahesh | Particular | Rajesh | Rakesh | Mahesh |
To Profit & Loss Adj A/c | 5,000 | 5,000 | 5,000 | By balance b/d | 5,00,000 | 2,00,000 | 2,00,000 |
To Rajesh’s Executor’s A/c | 5,10,000 | By Profit & Loss Suspense A/c | 15,000 | ||||
To Balance C/d | 1,95,000 | 1,95,000 | |||||
5,15,000 | 2,00,000 | 2,00,000 | 5,15,000 | 2,00,000 | 2,00,000 | ||
Balance sheet of New Firm as on 1st April 2019 | |||||
Liabilities | Amt | Amt | Asset | Amt | Amt |
Capital A/c | Land & Building | 4,00,000 | |||
Rakesh | 1,95,000 | Less : Depreciation | -40,000 | 3,60,000 | |
Mahesh | 1,95,000 | 3,90,000 | Furniture | 3,00,000 | |
Sundry Creditor | 90,000 | Add : Appreciation | 40,000 | 3,40,000 | |
Bills Payable | 60,000 | Debtors | 3,00,000 | ||
Bank Loan | 1,50,000 | Less : R.D.D(5%) | -15,000 | 2,85,000 | |
Rajesh’s Executor’s Loan A/c | 5,10,000 | Stock | 1,00,000 | ||
Cash | 1,00,000 | ||||
Profit & Loss Suspense A/c | 15,000 | ||||
12,00,000 | 12,00,000 | ||||