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