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 |
