Balance Sheet as on 31st March, 2012
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Capital
A/c
|
|
|
Premises
|
|
20500
|
|
Snehal
|
80000
|
|
Investments
|
|
10500
|
|
Meenal
|
45000
|
125000
|
Equipments
|
|
5000
|
|
Creditors
|
|
26000
|
Bills
Receivable
|
|
18000
|
|
Bank
Loan
(Taken
on 1.1.2012)
|
|
40000
|
Debtors
|
110000
|
|
|
|
|
|
(-)
R.D.D.
|
-11000
|
99000
|
|
|
|
|
Profit
& Loss A/c
|
|
6600
|
|
|
|
|
Bank
|
|
31400
|
|
|
|
191000
|
|
|
191000
|
They agreed to admit Kamal on 1st
April, 2012 on the following terms:
1. She should bring Rs. 50000 towards her capital
for ¼ th share in future profit.
2. Goodwill A/c be raised in the books of the firm
for Rs. 40,000.
3. R.D.D. to be maintained at 5% on debtors.
4. Premises to be valued at Rs. 30,000 and
Equipments to be written off fully.
5. Interest at the rate of 15% p.a. is due on bank
loan.
6. Creditors allowed a discount of Rs. 1,100 and
they were paid off immediately.
Pass necessary Journal Entries to record the above
scheme of admission.
Solution:
Journal Entries in the Books of New Partnership
Firm.
|
Date
|
Particulars
|
L.F.
|
Debit
|
Credit
|
|
2012
April
1.
|
Snehal's
Capital A/c ....Dr.
|
|
3300
|
|
|
|
Meenal's
Capital A/c ....Dr.
|
|
3300
|
|
|
|
To
Profit and Loss A/c
|
|
|
6600
|
|
|
[Being
debit balance of Profit and Loss A/c transferred to old partners' capital A/c
]
|
|
|
|
|
1.
|
Bank
A/c ....Dr.
|
|
50000
|
|
|
|
To
Kamal's Capital A/c
|
|
|
50000
|
|
|
[Being
Capital bought in by Kamal]
|
|
|
|
|
1.
|
Goodwill
A/c ....Dr.
|
|
40000
|
|
|
|
To
Snehal's Capital A/c
|
|
|
20000
|
|
|
To
Meenal's Capital A/c
|
|
|
20000
|
|
|
[Being
Goodwill raised]
|
|
|
|
|
1.
|
Profit
& Loss Adjustment A/c ....Dr.
|
|
6500
|
|
|
|
To
Equipment A/c
|
|
|
5000
|
|
|
To
Interest on Bank Loan A/c
|
|
|
1500
|
|
|
[Being
the value of equipment written off and interest due on Bank Loan]
|
|
|
|
|
1.
|
R.D.D.
A/c ....Dr.
|
|
5500
|
|
|
|
Premises
A/c
|
|
9500
|
|
|
|
To
Profit & Loss Adjustment A/c
|
|
|
15000
|
|
|
[Being
R.D.D. reduced and the value of premises increased]
|
|
|
|
|
1.
|
Creditors
A/c ....Dr.
|
|
26000
|
|
|
|
To
Bank A/c
|
|
|
24900
|
|
|
To
Profit & Loss Adjustment A/c
|
|
|
1100
|
|
|
[Being
creditors paid under discount]
|
|
|
|
|
1.
|
Profit
& Loss Adjustment A/c ....Dr.
|
|
9600
|
|
|
|
To
Snehal's Capital A/c
|
|
|
4800
|
|
|
To
Meenal's Capital A/c
|
|
|
4800
|
|
|
[Being
Profit on revaluation divided and transferred to old partners capital
account]
|
|
|
|
