Amol and Abhijeet share Profits and Losses in the ratio of 3:2 in partnership firm. Their Balance Sheet as on 31st March, 2012 was as under.

10. Amol and Abhijeet share Profits and Losses in the ratio of 3:2 in partnership firm. Their Balance Sheet as on 31st March, 2012 was as under.

Balance Sheet as on 31st March, 2012

Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Creditors

12500
Bank

7500
Bills Payable

10000
Bills Receivable

3800
Bank Loan

16000
Debtors
20800

General Reserve

2500
Less: R.D.D.
800
20000
Capitals:


Stock

12000
Amol
15000

Furniture

4700
Abhijeet
12000
27000
Machinery

5000



Building

15000


68000


68000

On 1.4.2012 they admitted Ashok on the following terms:

(i) For 1/5 th share in profit in future. Ashok should being Rs. 10,000 for capital and Rs. 5000 for goodwill in cash.

(ii) Half of the amount of goodwill be withdrawn by old partners.

(iii) The stock is to be depreciated by 10% and Machinery by 5%.

(iv) R.D.D. be maintained at Rs. 1000

(v) Furniture should be appreciated to Rs. 5350 and building be appreciated by 20%.

Pass the necessary journal entries and open Revaluation A/c and Goodwill A/c in the books of the firm.




Ans.

Profit and loss adjustment a/c
Profit Rs. 2000
Balance sheet total
82500
Bank A/c Bal
20000
Capital A/c

Amol
19200
Abhijeet
14800
Ashok
10000

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