omtexclasses.com: The balance sheet of Medha and Radha who share profit and loss in the ratio 3: 1 is as follows Practical Problems | Q 7 | Page 164 Admission of Partner Practical Problems

The balance sheet of Medha and Radha who share profit and loss in the ratio 3: 1 is as follows Practical Problems | Q 7 | Page 164 Admission of Partner Practical Problems

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 7 | Page 164

The balance sheet of Medha and Radha who share profit and loss in the ratio 3: 1 is as follows:

Balance Sheet as on 31 March 2018

Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	80,000	Cash	78,000
Bills Payable	20,000	Sundry debtors	64,000
Bank overdraft	20,000	Stock	40,000
Capital A/c: Medha Radha	1,20,000 40,000	Plant & Machinery	60,000
General reserve	16,000	Furniture	22,000
		Land and Building	32,000
	2,96,000		2,96,000

They decided to admit krutika on 1st April 2018 on the following terms:

1. Krutika is taken as partner on 1st April 2017 she will pay 40,000 as her capital for 1/5 share in future profits and Rs. 2,500 as goodwill

2. A 5% provision for bad and doubtful debt be created on debtors.

3. Furniture be depreciated by 20%.

4. Stocks be appreciated by 5% and plant & machinery by 20%

5. The Capital accounts of all partners be adjusted in their new profit sharing ratio by adjusting the amount through loan.

6. The new profit sharing ratio will be 3/5 1/5 1/5 respectively.

You are required to prepare profit and loss adjustment A/c, Partner’s Capital A/c, Balance Sheet of the new firm.

Solution:

Dr.	Profit and Loss Adjustment Account				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To R.D.D. A/c		3,200	By Stock A/c	2,000
To Depreciation A/c – Furniture		4,400	By Plant & Machinery A/c	12,000
To Profit on Revaluation Transferred to Partners’ Capital Accounts: Medha 4,800 Radha 1,600		6,400
		14,000		14,000

Dr	Partners’ Capital Account								Cr
Particulars		Medha (₹)	Radha (₹)	Krutika (₹)	Particulars	Medha (₹)	Radha (₹)	Krutika (₹)
To Partners’ Loan A/c		18,675	6,225		By Balance b / d	1,20,000	40,000
To Balance c / d		1,20,000	40,000	40,000	By Bank A/c			40,000
					By Goodwill A/c	1,875	625
					By Revaluation A/c	4,800	1,600
					By General Reserve	12,000	4,000
		1,38,675	46,225	40,000		1,38,675	46,225	40,000

Balance Sheet as on 1st April 2018

Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital A/cs: Medha Radha Krutika	1,20,000 40,000 40,000	2,00,000	Cash		1,20,500
Sundry Creditors		80,000	Sundry Debtors Less: R.D.D	64,000 3,200	60,800
Bills Payable		20,000	Stock Add: Appreciation	40,000 2,000	42,000
Bank Overdraft		20,000	Plant & Machinery Add: Appreciation	60,000 12,000	72,000
Partner’s Loan : Medha Radha	18,675 6,225	24,900	Furniture Less: Depreciation	22,000 4,400	17,600
			Land and Building		32,000
		3,44,900			3,44,900

The balance sheet of Medha and Radha who share profit and loss in the ratio 3: 1 is as follows Practical Problems | Q 7 | Page 164 Admission of Partner Practical Problems

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.