Rajan & Padam are equal partners in a business. Their Balance Sheet as on 31st March, 2012 stood as under.

7. Rajan & Padam are equal partners in a business. Their Balance Sheet as on 31st March, 2012 stood as under.

Balance sheet as on 31st March, 2012

Liabilities
Rs.
Assets
Rs.
Sundry Creditors
40000
Cash at Bank
60000
Bank Overdraft
20000
Debtors
30000
Bills Payable
30000
Furniture
12000
Reserve
18000
Machinery
24000
Capitals:

Building
27000
Rajan
45000


Padam
30000







183000

183000

On 1st April, 2012, they decide to admit Sharad on the following terms:

1. The Machinery, Building & Furniture be depreciated by 5%.
2. The Reserve at 5% be created for doubtful debts on debtors.
3. The Goodwill account for Rs. 30,000 be opened in the firm's book.
4. Sharad should bring Rs. 40000 as capital for his ¼ th share in the future profits.
5. The capital accounts of all the partners be adjusted in proportion to the new profit sharing ratio.

Prepare Profit & Loss Adjustment account and the balance sheet of the firm after admission of Sharad.


Ans.

Profit and loss adjustment a/c
Loss Rs. 6150
Balance sheet total
250000
Bank A/c Bal
103150
Capital A/c

Rajan
60000
Padam
60000
Sharad
40000

No comments:

Post a Comment