OMTEX CLASSES: Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively Practical Admission of Partner Problems | Q 5

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 5 | Page 163

Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively.

Balance Sheet as on 31 March 2018

Liabilities	Amt ₹	Amt ₹	Assets	Amt ₹	Amt ₹
Creditors		1,20,000	Land and Building		75,000
General Reserve		12,000	Furniture		6,000
Capital A/c: Kishor Lal	90,000 48,000	1,38,000	Stock		60,000
			Debtors		60,000
			Bills Receivable		39,000
			Cash at Bank		30,000
		2,70,000			2,70,000

They decided to admit Ram on 1 April 2018 on following terms:

1. He should be given 1/5th share in profit and for that he brought in ₹ 60,000 as capital through RTGS.

2. Goodwill should be raised at ₹ 60,000

3. Appreciate Land and Building by 20%

4. Furniture and Stock are to be depreciated by 10%

5. The Capitals of all partners should be adjusted in their new profit sharing ratio through Bank A/c.

Pass necessary Journal Entries in the books of the Partnership firm and a Balance sheet of the new firm.

Solution:

Journal entries in the books of the firm

Date	Particulars	L.F	Debit (₹)	Credit (₹)
2018 April 1	General Reserve A/c Dr. To Mr. Kishor’s Capital A/c To Mr. Lal’s Capital A/c (Being general reserve distributed among old partners)		12,000	9,000 3,000
1	Profit and Loss Adjustment A/c Dr. To Furniture A/c To Stock A/c (Being decrease in the value of assets)		6,600	600 6,000
1	Land and Building A/c Dr. To Profit and Loss Adjustment A/c (Being increase in the value of assets)		15,000	15,000
1	Profit and Loss Adjustment A/c Dr. To Mr. Kishor’s Capital A/c To Mr. Lal’s Capital A/c (Being profit on revaluation distributed in profit sharing ratio)		8,400	6,300 2,100
1	Bank A/c Dr. To Ram’s Capital A/c (Being capital amount brought in through RTGS)		60,000	60,000
1	Goodwill A/c Dr. To Kishor’s Capital A/c To Lal’s Capital A/c (Being the goodwill raised and transferred to capital A/cs in their old ratio)		60,000	45,000 15,000
1	Bank A/c Dr. To Kishor’s Capital A/c (Being deficit in capital account settled in cash by Kishor)		29,700	29,700
1	Lal’s Capital A/c Dr. To Bank A/c (Being surplus capital amount paid to Lal)		8,100	8,100

Dr.	Balance Sheet as on 1st April 2018						Cr.
Liabilities		Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts: Mr. Kishor Mr. Lal Ram		1,80,000 60,000 60,000	3,00,000	Land & Building Add: Appreciation	75,000 15,000	90,000
Creditors			1,20,000	Furniture Less: Depreciation	6,000 600	5,400
				Stock Less : Depreciation	60,000 6,000	54,000
				Debtors		60,000
				Goodwill		60,000
				Bills Receivable		39,000
				Cash at Bank		1,11,600
			4,20,000			4,20,000

Working Notes :

(1)

Dr	Partners’ Capital Accounts								Cr
Particulars		Kishor (₹)	Lal (₹)	Ram (₹)	Particulars	Kishor (₹)	Lal (₹)	Ram (₹)
To Bank A/c			8,100		By Balance b / d	90,000	48,000
To Balance c / d		1,80,000	60,000	60,000	By Bank A/c			60,000
					By Goodwill A/c	45,000	15,000
					By General Reserve A/c	9,000	3,000
					By Revaluation A/c (Profit)	6,300	2,100
					By Bank A/c	29,700
		1,80,000	68,100	60,000		1,80,000	68,100	60,000

Bank Account

Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b / d	30,000	By Lal’s Capital A/c	8,100
To Ram’s Capital A/c	60,000	By Balance c / d	1,11,600
To Kishor’s Capital A/c	29,700
	1,19,700		1,19,700

Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively Practical Admission of Partner Problems | Q 5 | 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 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.