Following is the balance sheet of the firm Sonu, Monu and Piyu who share profits and losses in the ratio of their capital.

Solution: In the  books of Sonu, Monu and Piyu
Profit and Adjustment A/c

Particulars
Amount
Amount
Particulars
Amount
Amount
To Stock A/c

960
By Land and Building A/c

11000
To R.D.D. A/c

200









To Profit on Revaluation Transferred to partners Capital A/c





Sonu Capital A/c
4920




Monu Capital A/c
1968




Piyu Capital A/c
2952
9840











11000


11000


Partners’ Capital A/c

Particulars
Sonu
Monu
Piyu
Particulars
Sonu
Monu
Piyu
To Goodwill A/c (5:1)
3000
600
-
By Balance b/d
50000
20000
30000
To Cash A/c


36552
By Profit and Loss Adjustment A/c [Profit on Revaluation]
4920
1968
2952




By Goodwill A/c


3600




By Cash A/c
68080
18632
-








To Balance C/d
120000
40000






123000
40600
36552

123000
40600
36552

In the books of M/s Sonu and Monu.

Balance Sheet as on 1st April, 2013.

Liabilities
Amount
Amount
Assets
Amount
Amount
Creditors

15000
Plant and Machinery

20000
Capital A/c


Land and Building
55000

Sonu
120000

Add: Appreciation
11000
66000
Monu
40000
160000
Stock
12000




Less: Written off
960
11040



Debtors
12000




Less: R.D.D.
1200
10800



Cash

67160








175000


175000