OMTEX CLASSES: Vikram and Pradnya share profits and losses in the ratio 2:3 respectively, Practical Problems | Q 1 | Page 161, Balbharati solutions for Book-keeping and Accountancy 12th

Vikram and Pradnya share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under.

Balance Sheet as on 31st March 2018

Liabilities	Amount (₹)	Assets	Amount (₹)
Creditors	1,05,000	Cash	7,500
Capitals :		Land & Building	37,500
Vikram	75,000	Plant	45,000
Pradnya	75,000	Furniture	3,000
		Stock	75,000
		Debtors	87,000
	2,55,000		2,55,000

They agreed to admit Avani as a partner on 1st April 2018 on the following terms:

1 Avani shall have 1/4th share in future profits.

2. He shall bring ₹ 37,500 as his capital and ₹ 30,000 as his share of goodwill.

3. Land and building to be valued at ₹ 45,000 and furniture to be depreciated by 10%.

4. Provision for bad and doubtful debts is to be maintained at 5% on the Sundry Debtors.

5 Stocks to be valued ₹ 82, 500.

The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.

Prepare Profit and Loss Adjustment Account, Capital Accounts, and New Balance Sheet.

Solution:

Dr	In the books of Partnership Firm Profit and Loss Adjustment Account				Cr
Particulars		Amount (₹)	Particulars	Amount (₹)
To R.D.D. A/c		4,350	By Land & Building A/c	7,500
To Furniture A/c (Depreciation)		300	By Stock A /c	7,500
To Profit on Revaluation
Vikram 4,140
Pradnya 6,210		10,350
		15,000		15,000

Dr	Partners’ Capital Accounts								Cr
Particulars		Vikram (₹)	Pradnya (₹)	Avani (₹)	Particulars	Vikram (₹)	Pradnya (₹)	Avani (₹)
To Partners’ Loan A/c		46,140	31,710		By Balance b/d	75,000	75,000
To Balance c /d		45,000	67,500	37,500	By Bank A/c	-	-	37,500
					By Revaluation A/c (Profit)	4,140	6,210
					By Goodwill A/c	12,000	18,000
		91,140	99,210	37,500		91,140	99,210	37,500

Dr	Balance Sheet as on 1st April 2018						Cr
Liabilities		Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital Accounts: Vikram Pradnya Avani		45,000 67,500 37,500	1,50,000	Cash		75,000
Creditors			1,05,000	Land & Building Add: Appreciation	37,500 7,500	45,000
Partners’ Loan A/c : Vikram Pradnya		46,140 31,710	77,850	Furniture Less: Depreciation	3,000 300	2,700
				Plant		45,000
				Stock Add: Appreciation	75,000 7,500	82,500
				Debtors Less : R.D.D. (5 %)	87,000 4,350	82,650
			3,32,850			3,32,850

Vikram and Pradnya share profits and losses in the ratio 2:3 respectively, Practical Problems | Q 1 | Page 161, Balbharati solutions for Book-keeping and Accountancy 12th

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.