OMTEX CLASSES: Following is the balance sheet of Sharmila, Urmila and Pramila, who shared profits and losses in the ratio of 5:3:2 respectively.

Following is the balance sheet of Sharmila, Urmila and Pramila, who shared profits and losses in the ratio of 5:3:2 respectively.

3. Journal of Partnership Firm


Date
Particulars
L.F.
Debit (Rs.)
Credit (Rs. )
31.3.13
Reserve Fund A/c ..... Dr.

50000


To Sharmila’s Capital A/c


25000

To Urmila’s Capital A/c


15000

To Pramila’s Capital A/c


10000

[Being reserve fund distributed and transfrred to all partners’ capital account in their old ratio)



31.3.13
Goodwill A/c ...... Dr.

12000


To Pramila’s Capital A/c


12000

[Being Goodwill raised and credited to Pramila’s Capital A/c ]



31.3.13
Sharmila’s Capital A/c .... Dr.

7500


Urmila’s Capital A/c ..... Dr.

4500


To Goodwill A/c


12000

[Being Goodwill written off and debited to remaining partners’ capital A/c in their gain ratio]



31.3.13
Land and Building A/c .... Dr.

20000


Stock A/c .... Dr.

2000


To Profit and Loss Adjustment A/c


22000

[Being appreciation in the value of Assets recorded]



31.3.13
Profit and Loss Adjustment A/c .... Dr.

2000


To Furniture A/c


2000

[Being the furniture depreciated in value]



31.3.13
Profit and Loss Adjustment A/c .... Dr.

20000


To Sharmila’s Capital A/c


10000

To Urmila’s Capital A/c


6000

To Pramila’s Capital A/c


4000

[Being profit on revaluation of assets and liabilities transfered to partners’ capital A/c ]



31.3.13
Pramila’s Capital A/c .......Dr.

126000


To Pramila’s Loan A/c


126000

[Being balance due to Pramila transferred to her Loan A/c ]




Working Note: Profit and Loss Adjustment Account & Partners Capital Accounts

Profit and Loss Adjustment Account

Particulars
Amount
Amount
Particulars
Amount
Amount
To Furniture A/c

2000
By Land and Buildings A/c

20000
To Partners’ Capital A/c


By Stock A/c

2000
Sharmila
10000




Urmila
6000




Pramila
4000
20000











22000


22000


Partners Capital Accounts

Particulars
SHARMILA
URMILA
PRAMILA
Particualrs
SHARMILA
URMILA
PRAMILA
To Goodwill A/c
7500
4500

By Balance b/d
200000
150000
100000
To Pramila’s Loan A/c


126000
By Reserve Fund
25000
15000
10000




By Goodwill A/c
-
-
12000




By Profit & Loass Adjustment A/c
10000
6000
4000
To Balance c/d
227500
166500
-













235000
171000
126000

235000
171000
126000