14. Raja and Rani were
partners sharing profits and losses in proportion of their capitals. Their
Balance Sheet on 31st March, 2012 was as under:
Balance Sheet as on 31st
March, 2012.
|
Particulars
|
Rs.
|
particulars
|
Rs.
|
|
Capitals:
|
|
Building
|
8000
|
|
Raja
|
14000
|
Furniture
|
2000
|
|
Rani
|
7000
|
Debtors
|
16000
|
|
General
Reserve
|
6000
|
Stock
|
11000
|
|
Bills
Payable
|
3000
|
Cash
in Hand
|
3000
|
|
Creditors
|
10000
|
|
|
|
|
40000
|
|
40000
|
On 1st April, 2012 they decided to admit
Kanchan to partnership on the following terms:
(i) Kanchan to bring Rs. 12000 as capital for ¼ th
share in future profits.
(ii) The goodwill of the firm to be valued at two
years purchase of the average profit for the last 4 years and Kanchan to bring
in her share of goodwill in cash.
(iii) The trading results for the last 4 years
were: 2008-09 Rs. 18000 Profit, 2009 – 10 Rs. 18000 Profit, 2010 – 11 Rs. 9000
Loss and 2011 – 12 Rs. 21000 Profit.
(iv) The stock to be revalued at 90% of its book
value.
(v) Building and Furniture to be depreciated by
10%.
(vi) The capitals of all partners in the new firm
be adjusted in their new profit sharing ratio by making adjustments in cash and
taking Kanchan's Capital as base.
You are required to
prepare a profit and loss adjustment A/c the capital A/c of the partners and
the Balance Sheet of the new firm.
|
Ans.
|
|
|
Profit and loss
adjustment a/c
|
Loss 2100
|
|
Balance sheet
total
|
61000
|
|
Cash A/c Bal
|
26100
|
|
Capital A/c
|
|
|
Raja
|
24000
|
|
Rani
|
12000
|
|
Kanchan
|
12000
|
