Balance sheet as on 31st March, 2012
Liabilities
|
Amount Rs.
|
Assets
|
Amount Rs.
|
Capital A/c
Rajkumar
Rajendrakumar
General Reserve
Creditors
| 200000
150000
120000
80000
|
Buildings
Furniture
Stock
Debtors
Cash
Profit and Loss A/c
|
100000
30000
60000
300000
30000
30000
|
550000
|
550000
|
They agreed to admit Dhirajkumar on 1st April, 2012 as a partner into the firm on the following terms.
- Dhirajkumar to bring Rs. 60000 as capital and Rs. 45000 as goodwill, which is to be retained in the business. He will be entitled to 1/4 th share of profit of the firm.
- 50% of General Reserve is to remain as Reserve for doubtful debts.
- Furniture is to be depreciated by 5%
- Stock is to be revalued at Rs. 65,000.
- Creditors of Rs. 5000 are not likely to claim and hence should be written of.
- Rent of Rs. 2,000 due but not received has not been recorded in the books.
Pass necessary journal entries in the books of new firm and prepare Balance sheet of the new firm.
Solution:
1. Rajkumar’s Capital A/c......... Dr. 2000
Rajendrakumar’s Capital A/c Dr. 1000
To Proft and Loss A/c 3000
[Being debit balance of Profit and Loss Accopunt is transfered to
Partners Capital Account in old ratio]
2. General Reserve A/c ....... Dr. 60,000
To Rajkumar’s Capital A/c 40000
To Rajendrakumar’s Capital A/c 20000
[Being Credit Balance in General Reserve Account is transfered to
Old Partners Capital ACcount]
3. Cash / Bank A/c ......... Dr. 105000
To Dhirajkumar’s Capital A/c 60000
To Goodwill A/c 45000
[Being Capital and Goodwill brought in by new partner]
4.Goodwill A/c ....... Dr. 45000
To Rajkumar’s Capital A/c 30000
To Rajendrakumar’s Capital A/c 15000
[Being Goodwill is retained in the business]
5. General Reserve A/c ..... Dr. 60000
To R.D.D. A/c 60000
[Being R.D.D. is created by transferring fund from General Reserve A/c )
6. Revaluation A/c ..... Dr. 1500
To Furniture A/c 1500
[Being depreciation is charged on furniture]
7. Stock A/c .... Dr. 5000
Creditors A/c ..... Dr. 5000
` Rent receivable A/c .... Dr. 2000
To Revaluation A/c 12000
[Being Asset appreciated, Creditors written off and income receivable recorded.]
8. Revaluation A/c ..... Dr. 10500
To Rajkumar’s Capital A/c 7000
To Rajendrakumar’s Capital A/c 3500
[Being Profit on revaluation account is transfered to old partners capital A/c]
