Practical Problem 04
IN THE BOOKS OF NEW FIRM | |||||
Dr Profit and Loss Adjustment Account Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Sundry Debtors | 1,600 | By Stock | 1,000 | ||
To Furniture A/c | 2,200 | By Land & Building | 3,200 | ||
To Profit On Revaluation: | |||||
Deep Capital A/c | 300 | ||||
Karan Capital A/c | 100 | 400 | |||
4,200 | 4,200 | ||||
Dr Partners Capital A/c Cr | |||||||
Particular | Deep | Karan | Shubham | Particular | Deep | Karan | Shubham |
By Bal b/d | 60,000 | 20,000 | |||||
By Gen Res A/c | 6,000 | 2,000 | |||||
To Cash A/c | 13,800 | 4,600 | By Cash A/c | 20,000 | |||
To Bal c/d | 60,000 | 20,000 | 20,000 | By Goodwill A/c | 7,500 | 2,500 | |
By P&L Adj A/c | 300 | 100 | |||||
73,800 | 24,600 | 20,000 | 73,800 | 24,600 | 20,000 | ||
Balance sheet of New Firm as on 1st April…. | |||||
Liabilities | Amt | Amt | Asset |
| Amt |
Capital A/c | Land & Building | 16,000 | |||
Deep | 60,000 | Add: Appreciation @ 20% | 3,200 | 19,200 | |
Karan | 20,000 | Plant and machinery | 30,000 | ||
Shubham | 20,000 | 1,00,000 | |||
Sundry Creditor | 40,000 | Furniture | 11,000 | ||
Bill Payable | 10,000 | Less Depreciation @ 20% | -2,200 | 8,800 | |
Bank Overdraft | 11,000 | Sundry debtors | 32,000 | ||
Less R.D.D @5% | -1,600 | 30,400 | |||
Stock | 20,000 | ||||
Add: Appreciation | 1000 | 21,000 | |||
Cash A/c | 51,600 | ||||
1,61,000 | 1,61,000 | ||||
Working:
Dr Cash A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Bal b/d | 40,000 | By Deep Capital A/c | 13,800 | ||
TO Shubham Capital A/c | 20,000 | By Karan Capital A/c | 4,600 | 18,400 | |
To Goodwill A/c | 10,000 | ||||
By Bal c/d | 51,600 | ||||
70,000 | 70,000 | ||||
Dr Goodwill A/c Cr | |||||
Particular | Amt | Amt | Particular | Amt | Amt |
To Deep Capital A/c | 7,500 | By Cash | 10,000 | ||
To Karan Capital A/c | 2,500 | 10,000 | |||
10,000 | 10,000 | ||||