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 |