# Practical Problem 05

 Journal Entry In the Books of New Firm Date Particular Amt Amt 1st April 18 1 General Reserve A/c…………………………………………..Dr 12,000 To Kishore Capital A/c 9,000 To Lal Capital A/c 3,000 (Being Reserve Distributed among Old partners) 2 Bank A/c ………………………………………………………….Dr 60,000 To Ram Capital A/c 60,000 ( Being Capital Brought by Ram) 3 Goodwill A/c………………………………………………………Dr 60,000 To Kishore Capital A/c 45,000 To Lal Capital A/c 15,000 (Being Goodwill Raised) 4 Land and Building A/c ……………………………………….Dr 15,000 To Revaluation A/c 15,000 (Being Asset Appreciated by 20%) 5 Revaluation A/c………………………………………………….Dr 6,600 To Furniture A/c 600 To Stock A/c 6,000 (Being Asset Depreciated by 10%) 6 Revaluation A/c………………………………………………….Dr 8,400 To Kishore Capital A/c 6,300 To Lal Capital A/c 2,100 (Being Profit on revaluation Distributed) 7 Lal Capital A/c…………………………………………………….Dr 8,100 To Bank A/c 8,100 (Being Excess Capital paid to Lal) 8 Bank A/c 29,700 TO Kishore Capital A/c 29,700 (Being Deficit Capital Received from Kishore) 1,99,800 1,99,800
 Balance sheet as on 1st April…. Liabilities Amt Amt Asset Amt Creditors 1,20,000 Land and Building 75,000 Capital A/c Add: Appreciation 15,000 90,000 Kishore 1,80,000 Furniture 6000 Lal 60,000 Less: Depreciation @ 10% -600 5,400 Ram 60,000 3,00,000 Stock 60000 Less: Depreciation @ 10% -6000 54,000 Debtors 60,000 Bill Receivable 39,000 Cash at bank 1,11,600 GOODWILL 60,000 4,20,000 4,20,000

Working

Revaluation Profit = Credit Balance – Debit Balance = 15,000 – (600+ 6,000) = 8,400

 Dr                                                                                                    Partner Capital Account                                                                                              Cr Particular Kishore Lal Ram Particular Kishore Lal Ram To Bank A/c 8,100 By Balance b / d 90,000 48,000 To Balance c / d 1,80,000 60,000 60,000 By Bank A/c 60,000 By Goodwill A/c 45,000 15,000 By Gen. Res A/c 9,000 3,000 By Revaluation A/c (Profit) 6,300 2,100 By Bank A/c 29,700 1,80,000 68,100 60,000 1,80,000 68,100 60,000