Manish and Nitin are
partners in a firm sharing Profits and Losses in the ratio of 3:1. Their
Balance Sheet as on 31st March, 2012 was as follows:
Balance Sheet as on
31.03.2012
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Manish's
Capital
|
30000
|
Cash
in Hand
|
2500
|
|
Nitin's
Capital
|
16000
|
Bills
Receivable
|
6000
|
|
Creditors
|
18000
|
Debtors
|
16000
|
|
Bills
Payable
|
3000
|
Stock
|
20000
|
|
General
Reserve
|
4000
|
Furniture
|
1500
|
|
|
|
Land
and Building
|
25000
|
|
|
71000
|
|
71000
|
Sachin is admitted as a
partner in the firm on 1st April, 2012 on the following terms:
1. Sachin is to pay Rs. 20,000 as capital for 1/5
th share in future profit and he should bring Rs. 4000 for goodwill.
2. Stock and Furniture to be reduced by 10%.
3. R.D.D. is to be made at 5% on the debtors.
4. Land and Building is to be appreciated by 20%.
You are required to
prepare Profit and Loss Adjustment A/c, partner's Capital Accounts and Balance
Sheet of the new firm.
Ans. Profit and Loss
Adjustment A/c = Profit Rs. 2050
Balance Sheet total =
Rs. 97050
Cash A/c Bal. 25600
Capital A/c : Manish =
Rs. 37538
Nitin = Rs. 18512
Sachin = Rs. 20000