Practical Problem 01

                                                                                                                   IN THE BOOKS OF Partnership Firm

Dr                                                                                                          Profit and Loss Adjustment Account                                                                                             Cr

Particular

Amt

Amt

Particular

Amt

Amt

To Furniture A/c

1,750

By Live Stock A/c

1,250

To Motor Car A/c

500

By Plant A/c

4,500

To Provision for Claim A/c

2,000

By R.D.D A/c or Debtors

500

To Partner’s Capital A/c :

Mama

800

Kaka

600

Baba

600

2,000

6,250

6,250

Dr                                                                                                                             Partner Capital A/c                                                                                                                      Cr

Particular

Mama

Kaka

Baba

Particular

Mama

Kaka

Baba

To Loan A/c

20,175

By Bal b/d

20,000

15,000

12,250

To Balance C/d

23,300

14,725

By Gen Res A/c

2,500

1,875

1,875

By Goodwill A/c

2,700

By P & L Adj A/c (Profit)

800

600

600

23,300

20,175

14,725

23,300

20,175

14,725

                                                                                         Balance sheet of New Firm as on 1st April 2018

Liabilities

Amt

Amt

Asset

Amt

Amt

Partners Capital A/c

Goodwill

2,700

Mama

23,300

Live Stock

12,500

Baba

14,725

38,025

Add : Appreciation @ 10%

1,250

13,750

Suppliers

7,000

Motor Car

4,000

Loan

5,000

Less : Depreciation @ 12.5%

-500

3,500

Provision for Claims

2,000

Furniture

17,500

Kaka’s Loan A/c

20,175

Less : Depreciation @ 10%

-1,750

15,750

Plant

22,500

Add : Appreciation @ 20%

4,500

27,000

Sundry Debtor

5,000

Cash

4,500

72,200

72,200