Balance Sheet as on 31st
March, 2014
|
Liabilities
|
Rs.
|
Assets
|
|
Rs.
|
|
Sundry
Creditors
|
15000
|
Bank
|
|
250
|
|
Reserve
Fund
|
5000
|
Sundry
Debtors
|
22500
|
|
|
Capital
Accounts
|
|
Less:
RDD
|
250
|
22250
|
|
Ranade
|
36000
|
Stock
|
|
8500
|
|
Kanade
|
24000
|
Investments
|
|
12000
|
|
|
|
Plant
|
|
15000
|
|
|
|
Building
|
|
22000
|
|
|
80000
|
|
|
80000
|
On 1st April 2014, Mr.
Hegade was admitted to partnership on the following terms.
1. He should bring Rs. 18650 as his capital for
his 1/5 share.
2. Valuation of the goodwill of the firm was to be
made at twice the average profit of the last three years. The profits were as
follows.
2011 – 12 = Rs. 16000
2010 – 11 = Rs. 27000 and
2009 – 10 = Rs. 24500
Hegade is to bring the goodwill in cash equal to
his share.
3. Before admitting Hedage, R.D.D. was to be
raised upto Rs. 500 only.
4. Closing stock was to be valued at Rs. 7,500.
5. Appreciate Building by 5%.
Prepare Profit and Loss
Adjustment Account, Capital Account of the Partners and Balance Sheet of the
new firm.
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Loss: Rs. 150
|
|
Balance sheet
total
|
107500
|
|
Bank Balance
|
27900
|
|
Capital A/c
|
|
|
Ranade
|
44310
|
|
Kanade
|
29540
|
|
Hegade
|
18650
|
|
Share of goodwill
bought by Hegade
|
9000
|
