Practical Problem 02
Practical Problems | Q 2 | Page 184
The Balance Sheet of Ram, Shyam and Ghanshyam sharing profits and | |||
losses 3:2:1 respectively. Their position on 31-3-2019 were n follows. | |||
Balance Sheet as on 31st March 2019 | |||
Liabilities | Amt ` | Assets | Amt ` |
Capitals : | Bank | 54,000 | |
Ram | 1,20,000 | Debtors | 90,000 |
Shyam | 90,000 | Building | 60,000 |
Ghanshyam | 60,000 | Investment | 1,50,000 |
Creditors | 22,000 | ||
Bills payable | 12,000 | ||
Loan | 50,000 | ||
3,54,000 | 3,54,000 | ||
Ghanshyam retired on 1st April 2019 on the following terms. | |||
1. Building and Investment to be appreciated by 5% and 10% respectively. | |||
2. Provision for Doubtful Debts to be created at 5% on Debtors. | |||
3. The provision of Rs 3,000 be made in respect of Outstanding Salary. | |||
4. Goodwill of the firm is valued at Rs 90,000 and partners decide that goodwill should be written back. | |||
5. The amount payable to the Retiring partner be transferred to his Loan A/c. | |||
Prepare: Profit and Loss Adjustment A/c, Partners Capital A/c, Balance Sheet of New firm. | |||
IN THE BOOKS OF Partnership Firm | |||||
Dr Profit and Loss Adjustment Account Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Debtors | 4,500 | By Building | 3,000 | ||
To Outstanding Salary | 3,000 | By Investment | 15,000 | ||
To Profit On Revaluation | |||||
Ram Capital A/c | 5,250 | ||||
Shyam Capital A/c | 3,500 | ||||
Ghanshyam Capital A/c | 1,750 | 10,500 | |||
18,000 | 18,000 | ||||
Dr Partners capital A/c Cr | |||||||
Particular | Ram | Shyam | Ghanshyam | Particular | Ram | Shyam | Ghanshyam |
To Goodwill A/c | 54,000 | 36,000 | By Balance b/d | 1,20,000 | 90,000 | 60,000 | |
To Loan A/c | 76,750 | By Goodwill A/c | 45,000 | 30,000 | 15,000 | ||
To Balance c/d | 1,16,250 | 87,500 | By Profit & Loss Adjustment A/c (Profit) | 5,250 | 3,500 | 1,750 | |
1,70,250 | 1,23,500 | 76,750 | 1,70,250 | 1,23,500 | 76,750 | ||
Balance sheet of New Firm as on 1st April 2019 | |||||
Liabilities | Amt | Amt | Asset | Amt | Amt |
Capital A/c | Building | 60,000 | |||
Ram | 1,16,250 | Add : Appreciation @ 5% | 3,000 | 63,000 | |
Shyam | 87,500 | 2,03,750 | Investment | 1,50,000 | |
Creditors | 22,000 | Add : Appreciation @ 10% | 15,000 | 1,65,000 | |
Bills payable | 12,000 | Debtors | 90,000 | ||
Loan | 50,000 | Less : R.D.D @ 5% | -4,500 | 85,500 | |
Outstanding Salary | 3,000 | Bank | 54,000 | ||
Ghanshyam Loan A/c | 76,750 | ||||
3,67,500 | 3,67,500 | ||||