omtexclasses.com: Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows Practical Problems | Q 4

Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows Practical Problems | Q 4 | Page 163

PRACTICAL PROBLEMS [PAGES 161 - 167]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]

Practical Problems | Q 4 | Page 163

Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows

Balance Sheet as on 31st March

Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Sundry Creditors		40,000	Cash		40,000
Bill Payable		10,000	Sundry debtors		32,000
Bank Overdraft		11,000	Land & Building		16,000
Capital A/c: Deep Kara	60,000 20,000	80,000	Stock		20,000
General Reserve		8,000	Plant and machinery		30,000
			Furniture		11,000
		1,49,000			1,49,000

They admit Shubham into Partnership on 1 April 2018 The term being that:

1. He shall have to bring in ₹ 20,000 as his capital for 1/5 Share in future profits & 10,000 as his share of Goodwill.

2. A Provision for 5% doubtful debts to be created on Sundry Debtors.

3. Furniture to be depreciated by 20%

4. Stock should be appreciated by 5% and Building be appreciated by 20%

5. Capital A/c of all partners be adjusted in their new profit sharing ratio through a cash account.

Prepare Profit and Loss Adjustment A/c, Partner’s Capital A/c, Balance sheet of the new firm.

Solution:

Dr	In the books of the firm --- Profit and Loss Adjustment Account				Cr
Particulars		Amount ( ₹ )	Particulars	Amount ( ₹ )
To R.D.D. (New) A/c		1,600	By Stock A/c	1,000
To Depreciation A/c – Furniture		2,200	By Building A/c	3,200
To Profit on Revaluation Transferred to Partners’ Capital A/cs: Deep 300 Karan 100		400
		4,200		4,200

Dr.	Partners’ Capital Accounts								Cr.
Particulars		Deep (₹ )	Karan (₹ )	Shubham (₹ )	Particulars	Deep (₹ )	Karan (₹ )	Shubham (₹ )
To Cash A/c		13,800	4,600		By Balance b/d	60,000	20,000
To Balance c / d		60,000	20,000	20,000	By Cash / Bank A/c			20,000
					By Goodwill A/c	7,500	2,500
					By Revaluation on A/c (Profit)	300	100
					By General Reserve A/	6,000	2,000
		73,800	24,600	20,000		73,800	24,600	20,000

Balance Sheet as on 1st April 2018

Liabilities	Amount (₹ )	Amount (₹ )	Assets	Amount (₹ )	Amount (₹ )
			Cash		51,600
Capital A/cs : Deep Karan Shubham	60,000 20,000 20,000	1,00,000	Sundry Debtors Less: R.D.D	32,000 1,600	30,400
Sundry Creditors		40,000	Land and Building Add: Appreciation	16,000 3,200	19,200
Bills Payable		10,000	Stock Add: Appreciation	20,000 1,000	21,000
Bank Overdraft		11,000	Furniture Less: Depreciation	11,000 2,200	8,800
			Plant and Machinery		30,000
		1,61,000			1,61,000

Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows Practical Problems | Q 4 | Page 163

Dr	Cash Account				Cr
Particulars		Amount (₹ )	Particulars	Amount (₹ )
To Balance b / d		40,000	By Deep’s Capital A/c	13,800
To Shubham’s Capital A/c		20,000	By Karan’s Capital A/c	4,600
To Goodwill A/c		10,000	By Balance c / d	51,600
		70,000		70,000

PRACTICAL PROBLEMS [PAGES 161 - 167]

Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]

Practical Problems | Q 1 | Page 161

Practical Problems | Q 2 | Page 161

Practical Problems | Q 3 | Page 162

Practical Problems | Q 4 | Page 163

Practical Problems | Q 5 | Page 163

Practical Problems | Q 6 | Page 164

Practical Problems | Q 7 | Page 164

Practical Problems | Q 8 | Page 165

Practical Problems | Q 9 | Page 166

Practical Problems | Q 10 | Page 167

Select appropriate alternatives from those given below and rewrite the sentence.

Write a word/phrase/term which can substitute the following statement.