6. Sharad and Pankaj sharing profits in proportion of 3/5 and
2/5 respectively admit Nilesh into partnership on 1st April 2012
giving him ¼ share in profits on his agreeing to bring Rs. 10000 as capital.
The old Partners guarantee the assets and liabilities as per the Balance Sheet
given below.
You are required to draw up Profot & Loss Adjustment account
and show the Balance sheet of the new Partnership after considering the other
adjustments.
Balance sheet as on 31.03.2012
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Creditors
|
5000
|
Cash
|
1000
|
|
Capital
A/c
|
|
Investments
|
3000
|
|
Sharad
|
12000
|
Debtors 6000
(-)
Reserve (- 500)
|
5500
|
|
Pankaj
|
4000
|
Stock
|
4500
|
|
|
|
Plant
and Machinery
|
7000
|
|
|
|
|
|
|
|
21000
|
|
21000
|
It was later on discovered that:
1. A contingent liability of Rs. 500 not included
in the above Balance Sheet had to be cleared.
2. Bad debts were expected to be Rs. 700.
3. Stock was revalued at Rs. 3000 because a part
of it had been eaten by white ants.
4. Investments had been valued at Rs. 2700
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Loss Rs. 2500
|
|
Balance sheet
total
|
28500
|
|
Cash A/c Bal.
|
10500
|
|
Capital A/c
|
|
|
Sharad
|
10500
|
|
Pankaj
|
3000
|
|
Nilesh
|
10000
|
