Balance sheet as on 31st March, 2012
Liabilities
|
Amount
|
Assets
|
Amount
|
Capital A/c
|
Buildings
|
100000
| |
Rajkumar
|
200000
|
Furniture
|
30000
|
Rajendrakumar
|
150000
|
Stock
|
60000
|
General Reserve
|
120000
|
Debtors
|
300000
|
Creditors
|
80000
|
Cash
|
30000
|
Profit & Loss A/c
|
30000
| ||
550000
|
550000
|
They agreed to admit Dhirajkumar on 1st April, 2012 as a partner into the firm on the following terms.
1. Dhirajkumar to bring Rs. 60000 as capital and Rs. 45000 as goodwill, which is to be retained in the business. He will be entitled to 1/4 th share of profit 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 at Rs. 65,000.
5. Creditors of Rs. 5000 are not likely to claim and hence should be written of.
6. Rent of Rs. 2,000 due but not received has not been recorded in the books.
Pass necessary journal entries in the books of new firm and prepare Balance Sheet of the new firm.
Solution:
Journal Entries in the books of New Partnership Firm
Date
|
Particulars
|
LF
|
Debit
|
Credit
|
1.
|
Rajkumar's Capital A/c … Dr.
|
20000
| ||
Rajendra Kumar's Capital Ac/
|
10000
| |||
To Profit and Loss A/c
|
30000
| |||
[Being debit balance of Profit & Loss Account is transferred to Partners Capital Account in Old Ratio]
| ||||
2.
|
General Reserve A/c ....... Dr.
|
60000
| ||
To Rajkumar's Capital A/c
|
40000
| |||
To Rajendra Kumar's Capital A/c
|
20000
| |||
[Being Credit Balance in General Reserve is transferred to Old Partners Capital Account in old ratio]
| ||||
3.
|
Cash/ Bank A/c .... Dr.
|
105000
| ||
To Dhirajkumar's Capital A/c
|
60000
| |||
To Goodwill A/c
|
45000
| |||
[Being Capital and Goodwill brought in by the new partner]
| ||||
4.
|
Goodwill A/c .... Dr.
|
45000
| ||
To Rajkumar's Capital A/c
|
30000
| |||
To Rajendra Kumar's Capital A/c
|
15000
| |||
[Being Goodwill is retained in the business]
| ||||
5.
|
General Reserve A/c ... Dr.
|
60000
| ||
To R.D.D. A/c
|
60000
| |||
[Being R.D.D. is created by transferring fund from General Reserve A/c]
| ||||
6.
|
Revaluation A/c ... Dr.
|
1500
| ||
To Furniture A/c
|
1500
| |||
[Being depreciation is charged on furniture]
| ||||
7.
|
Stock A/c ....Dr.
|
5000
| ||
Creditors A/c
|
5000
| |||
Rent receivable A/c .... Dr.
|
2000
| |||
To Revaluation A/c
|
12000
| |||
[Being Asset appreciated, Creditors written off and income receivable recorded.]
| ||||
8.
|
Revaluation A/c ... Dr.
|
10500
| ||
To Rajkumar's Capital A/c
|
7000
| |||
To Rajendra Kumar's Capital A/c
|
3500
| |||
[Being Profit on revaluation account is transferred to old partners capital A/c]
|
Balance Sheet as on 1st April, 2012
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Capital A/c
|
Buildings
|
100000
| |||
Rajkumar
|
257000
|
Furniture
|
30000
| ||
Rajendrakumar
|
178500
|
(-) Depreciation @5%
|
1500
|
28500
| |
Dhirajkumar
|
60000
|
495500
|
Stock
|
60000
| |
Creditors
|
80000
|
(+) Appreciation
|
5000
|
65000
| |
(-)Claims written off
|
-5000
|
75000
|
Debtors
|
300000
| |
(-) R.D.D.
|
-60000
|
240000
| |||
Cash in Hand
(30000 + 60000 + 45000)
|
135000
| ||||
Rent Due but not received
|
2000
| ||||
570500
|
570500
|
1. Working Note
Revaluation A/c
Debit
|
Credit
|
1500
|
12000
|
10500
| |
12000
|
12000
|