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

    

Pradnya Capital A/c

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: [email protected] 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