# 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

##### 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