Practical Problem 10

IN THE BOOKS OF NEW FIRM

Dr                                                     Profit and Loss Adjustment Account                                                                        Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Machinery A/c

2,100

By Building A/c

3,000

To Furniture A/c

90

By Stock A/c

2,700

To R.D.D A/c

1,350

To Profit on Revaluation A/c

Om Currentl A/c

1,296

Jay CurrentA/c

864

2,160

5,700

5,700

Dr                                                                                  Partner Current A/c                                                                              Cr

Particular

OM

JAY

Particular

OM

JAY

To Cash A/c

900

600

By Bal b/d

3,750

3,450

To Balance C/d

5,946

4,914

By Goodwill A/c

1,800

1,200

By Revaluation A/c

1,296

864

6,846

5,514

6,846

5,514

Balance sheet of New Firm as on 1st April….

Liabilities

Amt

Amt

Asset

Amt

Amt

Capital Account :

Building

15,000

Om Capital A/c

21,000

Add : Appreciation

3,000

18,000

Jay Capital A/c

21,000

Machinery

21,000

Jagdish Caital A/c

9,000

51,000

Less : Dep @ 10%

-2,100

18,900

Current Accounts :

Furniture

900

OM A/c

5,946

Less : Dep @10%

-90

810

Jay A/c

4,914

10,860

Stock

12,300

Add :Appreciation

2,700

15,000

Creditor

30,000

Debtor

27,000

Less : R.D.D @ 5%

-1,350

25,650

Cash

13,500

91,860

91,860

Working:

Dr                                                                                           Cash A/c                                                                                        Cr

Particular

Amt

Amt

Particular

Amt

Amt

To bal b/d

3,000

By Om Current A/c

900

To Goodwill A/c

3,000

By Jay Current A/c

600

To Jagdish Capital A/c

9,000

By Balance C/d

13,500

15,000

15,000

Dr                                                                                   Goodwill A/c                                                                            Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Om Current A/c

1,800

By cash A/c

3,000

To Jay Current A/c

1,200

3,000

3,000

3,000