OMTEX CLASSES: Ram and Madan were Partners sharing profits and Losses equally.

Ram and Madan were Partners sharing profits and Losses equally.

3. In the books of Partnership Firm
Profit and Loss Adjustment Account


Particulars
Amount
Amount
Particulars
Amount
Amount
To Furniture A/c
(Depreciation)

1500
By Stock A/c
(Appreciation in Value)

2500
To partners’ Capital Account.(Profit)





Ram
500




Madan
500
1000





2500


2500


Partners Capital Accounts

Particulars
Ram
Madan
Sohan
Particualrs
Ram
Madan
Sohan
To Goodwill A/c
10000
10000
10000
By Balance b/d
100000
100000





By General Reserves A/c
20000
20000
-




By Bank A/c
(Capital Contribution)
-
-
100000




By Goodwill A/c
15000
15000





By Profit & Loss Adj. A/c
(Profit)
500
500

To Balance C/d
125500
125500
90000













135500
135500
100000

135500
135500
100000

Balance Sheet as on 1st April, 2012


Liabilities
Amount
Amount
Assets
Amount
Amount
Sundry Creditors

55300
Plant  & Machinery

90000
Partners’ Capital A/c


Furniture:
15000

Ram
125500

Less: Depreciation @10%
1500
13500
Madan
125500

Sundry Debtors

91000
Sohan
90000
341000
Stock
68000




Add: Increase in value
2500
70500



Cash in Hand

4200



Cash at Bank

127100








396300


396300


Goodwill A/c

Particulars
Amount
Amount
Particulars
Amount
Amount
To Ram’s Capital A/c

15000
By Ram’s Capital A/c

10000
To Madan’s Capital A/c

15000
By Madan’s Capital A/c

10000



By Shohan’s Capital A/c

10000


30000


30000


Bank A/c

Particulars
Amount
Amount
Particulars
Amount
Amount
To Balance b/d

27100



To Sohan’s Capital A/c

100000
By Balance C/d

127100


127100


127100