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 ΒΌ 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
|
