The balance sheet of
Shrihas and Madan as on 31st March, 2012 is set out below, they
share profits and losses in the ratio of 2:1.
Balance sheet as on 31st March, 2012
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Shrihas's
Capital
|
40000
|
Building
|
20000
|
|
Madan's
capital
|
30000
|
Furniture
|
6000
|
|
General
Reserve
|
24000
|
Stock
|
12000
|
|
Creditors
|
16000
|
Debtors
|
60000
|
|
|
|
Cash
|
6000
|
|
|
|
Profit
& Loss A/c
|
6000
|
|
|
|
|
|
|
|
110000
|
|
110000
|
On 1st April, 2012, they agreed to admit Prasanna as a partner
into the firm on the following terms:
1. Prasanna to bring Rs. 12,000 as capital and Rs.
9,000 as a Goodwill which is to ratained in the business. He will be entitled
to 1/4th share of profits of the firm.
2. 50% of General Reserve is to remain as Reserve
for Doubtful Debts.
3. Furniture is to be depreciated by 5%.
4. Stock is to be revalued Rs. 13,000.
5. Creditors of Rs. 1000 are not likely to claim
and hence should be written off.
6. Rent of Rs. 400 due not received has not been
recorded in the books.
Prepare Profit and Loss Adjustment A/c, Partner's Capital A/c
and Balance sheet of the firm after admission of Prasanna.
|
Ans.
|
|
Profit and loss
adjustment a/c Profit: 2100
|
|
Balance sheet
total = Rs. 114100
|
|
Cash A/c Balance
= 27000
|
|
Capital A/c
Shrihas = 51400, Madan = 35700, Prasanna = 12,000
|
