Practical Problem 08

IN THE BOOKS OF NEW FIRM

Dr                                                               Profit and Loss Adjustment Account                                                             Cr

Particular

Amount

Amount

Particular

Amount

Amount

 

To Furniture A/c

 

12,000

By Building A/c

 

28,000

 

To Debtors

 

2,000

 

 

 

 

To Unrecorded Liability

 

3,000

 

 

 

 

 

 

 

 

 

 

 

To Profit on Revaluation A/c

 

 

 

 

 

 

Sahil Capital A/c

6600

 

 

 

 

 

Nikhil Capital A/c

4400

11,000

 

 

 

 

 

 

28,000

 

 

28,000

 

 

Dr                                                                    Partners Capital A/c                                                                                          Cr

Particular

Sahil

Nikhil 

Varad

Particular

Sahil

Nikhil 

Varad

 

 

 

 

By Bal b/d

80,000

1,00,000

 

 

 

 

 

By Cash A/c

 

 

1,00,000

To Bal c/d

1,10,600

1,20,400

1,00,000

By Good willl A/c

24,000

16,000

 

 

 

 

 

By Profit & Loss Adj A/c

6,600

4,400

 

 

1,10,600

1,20,400

1,00,000

 

1,10,600

1,20,400

1,00,000

 

Balance sheet of New Firm as on 1st April 2017

Liabilities

Amount

Amount

Asset

Amount

Amount

 

Creditors

 

60,000

Furniture

60,000

 

 

Unrecorded Liability

 

3,000

Less: Depreciation

12,000

48,000

 

Capital A/c

 

 

Building 

72,000

 

 

Sahil A/c

1,10,600

 

Add: Appreciation

28,000

1,00,000

 

Nikhil A/c

1,20,400

 

Debtors

40,000

 

 

Varad A/c

1,00,000

3,31,000

Less: RDD

2,000

38,000

 

 

 

 

Closing Stock 

 

48,000

 

 

 

 

Cash A/c

 

1,60,000

 

 

 

3,94,000

 

 

3,94,000

 

 

Dr                                                                      Cash A/c                                                                                       Cr

Particular

Amount

Amount

Particular

Amount

Amount

 

To Bal b/d

 

20,000

 

 

 

 

To Vardha Capital A/c

 

1,00,000

 

 

 

 

To Goodwill A/c

 

40,000

By Bal c/d

 

1,60,000

 

 

 

1,60,000

 

 

1,60,000

 

 

 

 

Dr                                                          Goodwill A/c                                                            Cr

Particular

Amount

Amount

Particular

Amount

Amount

 

To Sahil Capital

24,000

 

By Cash A/c

 

40,000

 

To Nikhil Capital

16,000

40,000

 

 

 

 

 

 

 

 

 

 

 

 

 

40,000

 

 

40,000