OMTEX CLASSES: The following is the Balance Sheet of Om and Jay on 31st March 2018, they share profits and losses in the ratio 3:2 Practical Problems | Q 10

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 10 | Page 167

The following is the Balance Sheet of Om and Jay on 31st March 2018, they share profits and losses in the ratio 3:2

Balance Sheet As On 31st March 2018

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	30,000	Cash	3,000
Capital A/c Om Jay	21,000 21,000	Building	15,000
Current A/c Om Jay	3,750 3,450	Machinery	21,000
		Furniture	900
		Stock	12,300
		Debtors	27,000
	79,200		79,200

They take Jagdish into partnership on 1st April 2018 the terms being

1. Jagdish should pay 3,000 as his share of Goodwill. 50% of goodwill withdrawn by partners in cash.

2. He should bring 9,000 as capital for 1/4th share in future profits.

3. Building to be valued at 18,000, Machinery and Furniture to be reduced by 10%

4. A Provision of 5% on debtors to be made for doubtful debts. 5. Stock is to be taken at a value of 15,000.

Prepare profit and loss A/c, Partner’s Current A/c, Balance Sheet of the new firm

Solution:

Dr.	Profit and Loss Adjustment Account				Cr.
Particulars		Amount (₹)	Particulars	Amount (₹)
To Depreciation A/c – Machinery		2,100	By Building A/c	3,000
To Depreciation A/c – Furniture		90	By Stock A/c	2,700
To Profit on Revaluation Transferred to Partners Capital A/cs: Om 1,296 Jay 864		2,160
		5,700		5,700

Dr.	Partners’ Current Accounts						Cr.
Particulars		Om (₹)	Jay (₹)	Particulars	Om (₹)	Jay (₹)
To Goodwill		900	600	By Balance b / d	3,750	3,450
To Balance c/d		5,946	4,914	By Goodwill A/c	1,800	1,200
				By Revaluation A/c	1,296	864
		6,846	5,514		6,846	5,514

Balance Sheet as on 1st April 2018

Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts: Om Jay Jagdish	21,000 21,000 9,000	51,000	Cash		13,500
Current A/cs: Om Jay	5,946 4,914	10,860	Building Add: Appreciation	15,000 3,000	18,000
Creditors		30,000	Machinery Less: Depreciation	21,000 2,100	18,900
			Furniture Less: Depreciation	900 90	810
			Stock Add: Appreciation	12,300 2,700	15,000
			Debtors Less: R.D.D	27,000 1,350	25,650
		91,860			91,860

Working Notes:
(1)

Dr.	Cash Account					Cr.
Particulars		Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Balance b/d			3,000	By Om’s Capital A/c By Jay’s Capital A/c	900 600	1,500
To Jagdish’s Capital A/cs			9,000	By Balance c / d		13,500
To Om’s Capital A/c To Jay’s Capital A/c		1,800 1,200	3,000
			15,000			15,000

(2) Write partner's capital accounts balance as fixed capital balance in the Balance Sheet and transferred current account balance in the Balance Sheet as Partners Current A/c.

(3) As shown in the cash account partners’ withdrew half amount of goodwill amount share.

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.