# Practical Problem 01

##### IN THE BOOKS OF NEW FIRM

Dr                                                                                           Profit and Loss Adjustment Account                                                                                                  Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Furniture

300

By Land and Building

7,500

To Debtor

4,350

By Stock

7,500

To Profit on Revaluation

Vikram Capital A/c

4,140

6,210

10,350

15,000

15,000

 Dr                                                                                 Partner’s Capital Account                                                                                                       Cr Particular Vikram Pradnya Avani Particular Vikram Pradnya Avani By bal b/d 75,000 75,000 By Cash 37,500 To Loan A/c 46,140 31,170 By Goodwill A/c 12,000 18,000 To bal c/d 45,000 67,500 37,500 By P & L Adj A/c 4,140 6,210 91,140 99,210 37,500 91,140 99,210 37,500
 Balance sheet of New Firm as on 1st April 2018 Liabilities Amt Amt Asset Amt Amt Capital A/c Land and building 37,500 Vikran 45,000 Add: Appreciation 7,500 45,000 Pradnya 67,500 Plant 45,000 Avani 37,500 1,50,000 Furniture 3,000 Less: Depreciation -300 2,700 Creditors 1,05,000 stock 75,000 Add: Appreciation 7,500 82,500 Loan A/c Debtor 87,000 Vikran 46,140 Less: R.D.D@ 5% -4350 82,650 Pradnya 31,710 77,850 Cash 75,000 3,32,850 3,32,850

Working

 Dr                                                                                            Cash A/c                                                                                     Cr Particular Amt Amt Particular Amt Amt To bal b/d 7500 To Avani Capital A/c 37,500 To Goodwill A/c 30,000 By Bal c/d 75,000 75,000 75,000
 Dr                                                                              Goodwill A/c                                                            Cr Particular Amt Amt Particular Amt Amt To Vikram Capital A/c 12,000 By Cash A/c 30,000 To Pradnya Capital A/c 18,000 30,000 30,000 30,000
 OlD Rato  = 2 : 3 New Partner Share 1/4th Balance of One = 1 – New Partner Share = 1 – 1/4th = 3/4th New Ratio = Old Ratio X Balance of 1 Vikram = 2/5  x  3/4  = 6/20 Pradnya =  3/5  x 3/4 = 9/20 Avani = 1/4 x  5/5 = 5/20   (Making Denominator Equal) New Ratio : 6 : 9 : 5