9. Mr. Baba and Mr. Kaka were in partnership sharing profits and
losses in the proportion of 3:2 respectively. Their Balance Sheet as on 31st
March, 2012 stood as follows:
Balance sheet as on 31. 03.2012
|
Liabilities
|
Rs.
|
Rs.
|
Assets
|
Rs.
|
Rs.
|
|
Capital
A/c
|
|
|
Business
Premises
|
|
140000
|
|
Mr.
Baba
|
100000
|
|
Furniture
& Fixtures
|
|
11400
|
|
Mr.
Kaka
|
60000
|
160000
|
Stock
|
|
27000
|
|
Current
A/c
|
|
|
Debtors
|
|
9100
|
|
Mr.
Baba
|
1200
|
|
Cash
at Bank
|
|
1100
|
|
Mr.
Kaka
|
1400
|
2600
|
|
|
|
|
Loan
From Mr. Chacha
|
|
20000
|
|
|
|
|
Creditors
|
|
6000
|
|
|
|
|
|
|
188600
|
|
|
188600
|
On 1st April 2012 Mr. Anna was admitted to the firm on the
following terms:
(i) Business Premises were to be valued at Rs.
170000 and furniture and fixtures at Rs. 10400. A provision for Bad debts of
Rs. 1000 was to be made. Stock should be revalued at Rs. 29,000.
(ii) Mr. Anna should bring in Rs. 40,000 as
Capital and Rs. 10,000 as his share of goodwill and it was retained in the
business and he should be given one – fourth share in the future profits.
(iii) The loan from Mr. Chacha was to be repaid.
Prepare Profit and Loss Adjustment Account, Partners Current
accounts and Balance Sheet of the new firm.
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Profit Rs. 30,000
|
|
Balance sheet
total
|
248600
|
|
Bank A/c Bal
|
31100
|
|
Current A/c
|
|
|
Baba
|
25200
|
|
Kaka
|
17400
|
