Balance Sheet as on 31 st March, 2012
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Capital: Ramakant
|
134000
|
Leasehold Property
|
20000
| ||
Shyamkant
|
120000
|
254000
|
Livestock
|
6600
| |
Creditors
|
51000
|
Loose Tools
|
90200
| ||
Rent Outstanding
|
10000
|
Stock
|
84800
| ||
Reserve Fund
|
7200
|
Debtors
|
48000
| ||
Current A/c: Ramakant
|
2800
|
(-) R.D.D.
|
-2000
|
46000
| |
Bank
|
75400
| ||||
Current A/c: Shyamkant
|
2000
|
On 1st April, 2012 Umakant was admitted as 1/4th partner on the following terms:
1. He brings equipments of Rs. 80,000 as his capital.
2. Firm's Goodwill is valued at Rs. 1,44,000 and Umakant agreed to bring his share in firm's goodwill by cheque.
3. R.D.D. should be maintained at 7.5% on debtors.
4. Increase the value of livestock by Rs. 2,600 and write off loose tools by 20%.
5. Outstanding rent paid Rs. 9040 in full settlement.
Pass necessary journal entries to record the above scheme of admission.
Journal Entries in the books of New Partnership firm.
Date
|
Particulars
|
L.F.
|
Debit
|
Credit
|
2012
April 1.
|
Reserve Fund A/c ....Dr.
|
7200
| ||
To Ramakant's Current A/c
|
4800
| |||
To Shyamkant's Current A/c
|
2400
| |||
[Being balance in Reserve Fund transferred to Partners Current A/c]
| ||||
April 1.
|
Equipment A/c ....Dr.
|
80000
| ||
To Umakant's Capital A/c
|
80000
| |||
[Being Capital contributed in the form of equipment by new partner]
| ||||
April
1.
|
Bank A/c ....Dr.
|
36000
| ||
To Goodwill A/c
|
36000
| |||
[Being goodwill brought in by Umakant by Cheque]
| ||||
April
1.
|
Goodwill A/c ....Dr.
|
36000
| ||
To Ramakant's Current A/c
|
24000
| |||
To Shyamkant's Current A/c
|
12000
| |||
[Being Goodwill credited to old partner's current A/c ]
| ||||
April.
1.
|
Profit & Loss Adjustment A/c ....Dr.
|
19640
| ||
To R.D.D.A/c
|
1600
| |||
To Loose Tools A/c
|
18040
| |||
[Being R.D.D. raised and Loose Tools written off by 20%]
| ||||
April
1.
|
Outstanding Rent A/c ....Dr.
|
10,000
| ||
To Bank A/c
|
9040
| |||
To Profit & Loss Adjustment A/c
|
960
| |||
[Being outstanding rent paid under discount]
| ||||
April
1.
|
Livestock A/c ....Dr.
|
2600
| ||
To Profit & Loss Adjustment A/c
|
2600
| |||
[Being the Value of livestock increased by Rs. 2600]
| ||||
April.
1
|
Ramkant's Current A/c ....Dr.
|
10720
| ||
Shyamkant's Current A/c ....Dr.
|
5360
| |||
To Profit and Loss Adjustment A/c
|
16080
| |||
[Being loss on revaluation of assets and liabilities transferred to old partners' current A/c]
| ||||