Balance Sheet as on 31st
March, 2013
31st
march, 2013
|
Liabilities
|
Amount
(Rs.)
|
Assets
|
Amount
(Rs.)
|
|
Capital A/c
|
Furniture
|
2,100
|
|
|
Akash
|
50,000
|
Stock
|
28,700
|
|
Suraj
|
50,000
|
Land and Building
|
35,000
|
|
General Reserve
|
10,000
|
Plant and Machinery
|
49000
|
|
Sundry Creditors
|
60,000
|
Sundry debtors
|
63,000
|
|
Bills Payable
|
17,000
|
Cash
|
9,200
|
|
1,87,000
|
1,87,000
|
They agreed to admit Sanjay in their partnership on 1st April, 2013, on the following terms:
(1) Sanjay should bring Rs. 1,500, as his share of goodwill in the firm, and Rs. 2,000 as his capital.
(2) Reserve for doubtful
debts is to be provided @ 5% on debtors.
(3) Land and building be
depreciated at 10% p.a.
(4) Plant and Machinery
to be depreciated @ 5% and stock to be depreciated @ 10% p.a.
(5) The new profit
sharing ratio will be 2: 1: 1.
Prepare:
(a) Revaluation Account.
(b) Partners’ Capital Accounts.
(C) New Balance
Sheet of the firm.
Solution:
Revaluation Account
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
To Stock
|
2870
|
|
|
|
To Land and Building
|
3500
|
|
|
|
To Plant and Machinery
|
2450
|
To Loss of Revaluation
A/c
|
|
|
To R.D.D.
|
3150
|
Akash’s Capital A/c
|
7182
|
|
|
|
Suraj’s Capital A/c
|
4788
|
|
|
11970
|
|
11970
|
Partners’ Capital
Account
|
Particulars
|
Akash
|
Suraj
|
Sanjay
|
Particulars
|
Akash
|
Suraj
|
Sanjay
|
|
By Loss on Revaluation
A/c
|
7182
|
4788
|
-
|
By Balance b/d
|
50000
|
50000
|
|
|
|
|
|
|
By General Reserve
(3:2)
|
6000
|
4000
|
|
|
|
|
|
|
By Cash A/c
|
|
|
2000
|
|
|
|
|
|
By Goodwill A/c
|
1167
|
333
|
|
|
To Balance c/d
|
49985
|
49545
|
2000
|
|
|
|
|
|
|
57167
|
54333
|
2000
|
|
57167
|
54333
|
2000
|
New Balance Sheet as on
1 April, 2013
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Capital A/c
|
|
|
Furniture
|
|
2100
|
|
Akash
|
49985
|
|
Stock
|
28700
|
|
|
Suraj
|
49545
|
|
(-) Depreciation @ 10%
|
-2870
|
25830
|
|
Sanjay
|
2000
|
101530
|
Land and Building
|
35,000
|
|
|
Sundry Creditors
|
|
60000
|
(-) Depreciation @ 10%
|
-3500
|
31500
|
|
Bills Payable
|
|
17000
|
Plant and Machinery
|
49000
|
|
|
|
|
|
(-) Depreciation @ 5%
|
-2450
|
46550
|
|
|
|
|
Sundry debtors
|
63,000
|
|
|
|
|
|
(-) R.D.D. @ 5%
|
-3150
|
59850
|
|
|
|
|
Cash
|
|
12700
|
|
|
|
178530
|
|
|
178530
|
W.N. 1.Cash Account
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
To Balance b/d
|
9200
|
|
|
|
To Sanjay’s Capital
A/c
|
2000
|
|
|
|
To Goodwill A/c
|
1500
|
By Balance c/d
|
12700
|
|
|
12700
|
|
12700
|
W.N. 2. Goodwill
Account.
|
Particulars
|
Amount
|
Particulars
|
Amount
|
|
To Akash’ Capital A/c
|
1167
|
By Cash A/c
|
1500
|
|
To Suraj’s Capital
|
333
|
|
|
|
|
1500
|
|
1500
|
W.N. 3. Calculation of
Sacrifice Ratio
S.R. = O.R. – N.R.
∴ Akash’s S.R. =
∴ Suraj’s S.R. =
∴ The Sacrifice Ratio of Old
Partners is 2 : 7.