Practical Problem 02

Working

Dr Profit and Loss Adjustment Account Cr
Particulars	Amt (₹)	Amt (₹)	Particulars	Amt (₹)	Amt (₹)
To Plant and Machinery A/c		4,000	By Land & Building A/c		10,000
To Furniture and Fixture A/c		4,000	By Stock A/c		4,000
To R.D.D. Debts A/c		1,200
To Profit on Revaluation Transferred to Partners’ Capital A/cs :
Amalendu Sameer	2,880 1,920	4,800
		14,000			14,000

Journal Entry In the Books of New Firm
Date	Particular	Amt	Amt
1st April 17
1	General Reserve A/c Dr	20,000
	To Amalendu Capital A/c		12,000
	To Sameer Capital A/c		8,000
	(Being Reserve Distributed among old Partners)
2	Cash A/c Dr	16,000
	To Goodwill A/c		16,000
	(Being Goodwill Brought by Paresh)
3	Goodwill A/c Dr	16,000
	To Amalendu Capital A/c		9,600
	To Sameer Capital A/c		6,400
	(Being Goodwill Distributed to old Partners)
4	Amalendu Capital A/c Dr	4,800
	Sameer Capital A/c Dr	3,200
	To Cash		8,000
	(Being 50% Of Goodwill Withdrawn)
5	Cash A/c Dr	20,000
	TO Paresh Capital A/c		20,000
	(Being Cash Brought by New Partner)
6	Land & Building A/c Dr	10,000
	To Revaluation A/c		10,000
	(Being Building Appreciated)
7	Revaluation A/c Dr	4,000
	To Plant and Machinery A/c		4,000
	(Being Plant and Machinery Depreciated)
8	Stock A/c Dr	4,000
	To Revaluation A/c		4,000
	(Being Stock Appreciated)
9	Revaluation A/c Dr	4,000
	To Furniture and Fixture		4,000
	(Being Furniture Depreciated)
10	Revaluation A/c Dr	1,200
	To Debtor		1,200
	(Being RDD Created @ 5%)
11	Revaluation A/c Dr	4,800
	To Amalendu Capital A/c		2,880
	To Sameer Capital A/c		1,920
	(Being Profit on Revaluation trf to Partners)
		1,08,000	1,08,000