4. Amar and Akbar are the partners in a business sharing profits
and losses in the ratio 3:2 respectively. Their Balance Sheet as on 31st March,
2012 stood as under.
Balance sheet as on 31st March, 2012
|
Liabilities
|
Rs.
|
Assets
|
Rs.
|
|
Sundry
Creditors
|
12600
|
Land
and Building
|
25000
|
|
Amar
Capital A/c
|
27000
|
Furniture
|
3700
|
|
Akbar
Capital A/c
|
18000
|
Stock
|
14500
|
|
|
|
Sundry
Debtors
|
13400
|
|
|
|
Cash
at Bank
|
1000
|
|
|
|
|
|
|
|
|
|
|
|
|
57600
|
|
57600
|
They admitted Amit on 1.4.2012 as a partner on the following
terms.
1. Depreciate Furniture by Rs. 800 and stock by
10%.
2. Reserve of 5% on debtors be created for bad and
doubtful debts.
3. Amit should bring in Rs. 7000 as capital and
Rs. 4000 as Goodwill.
4. Amit will receive 1/8 th share in future
profits.
5. The value of Land and Building be raised upto
Rs. 32,000
6. The Capital accounts of all the partners be
adjusted in proportion to their profit sharing ratio and excess amount be
refunded to partner.
Prepare Profit and Loss Adjustment Account, Capital Accounts of
Partners and Balance Sheet of the new firm.
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Profit 4080
|
|
Balance sheet
total
|
68600
|
|
Bank Balance
|
7920
|
|
Capital A/c
|
|
|
Amar
|
29400
|
|
Akbar
|
19600
|
|
Amit
|
7000
|
|
New ratio
|
21:14:5
|
