7. Rajan & Padam are equal partners in a business. Their
Balance Sheet as on 31st March, 2012 stood as under.
Balance sheet as on 31st March, 2012
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Sundry
Creditors
|
40000
|
Cash
at Bank
|
60000
|
|
Bank
Overdraft
|
20000
|
Debtors
|
30000
|
|
Bills
Payable
|
30000
|
Furniture
|
12000
|
|
Reserve
|
18000
|
Machinery
|
24000
|
|
Capitals:
|
|
Building
|
27000
|
|
Rajan
|
45000
|
|
|
|
Padam
|
30000
|
|
|
|
|
|
|
|
|
|
183000
|
|
183000
|
On 1st April, 2012, they decide to admit Sharad on
the following terms:
1. The Machinery, Building & Furniture be
depreciated by 5%.
2. The Reserve at 5% be created for doubtful debts
on debtors.
3. The Goodwill account for Rs. 30,000 be opened
in the firm's book.
4. Sharad should bring Rs. 40000 as capital for
his ¼ th share in the future profits.
5. The capital accounts of all the partners be
adjusted in proportion to the new profit sharing ratio.
Prepare Profit & Loss Adjustment account and the balance
sheet of the firm after admission of Sharad.
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Loss Rs. 6150
|
|
Balance sheet
total
|
250000
|
|
Bank A/c Bal
|
103150
|
|
Capital A/c
|
|
|
Rajan
|
60000
|
|
Padam
|
60000
|
|
Sharad
|
40000
|
