The following is the Balance Sheet of the firm Sangam Traders as on 31st March, 2012. Ganga and Yamuna are the partners of the firm who share profits and losses in the ratio of 3 : 2 respectively.

11. The following is the Balance Sheet of the firm Sangam Traders as on 31st March, 2012. Ganga and Yamuna are the partners of the firm who share profits and losses in the ratio of 3 : 2 respectively.


Balance Sheet as on 31st March, 2012


Liabilities
Rs.
Rs.
Assets
Rs.
Rs.
Creditors

24800
Cash at Bank

2000
Capital :


Building

10,000
Ganga
14000

Machinery

14000
Yamuna
14000
28000
Furniture

600



Stock

8200



Debtors

18000


52800


52800


They take Saraswati into partnership on 1st April, 2012 the terms being:


(i) That the new firm is to be retained as "Triveni Traders"

(ii) That Saraswati shall pay Rs. 2000 as her share of goodwill, the amount to be retained in business.

(iii) That she shall bring Rs. 6000 as capital for ¼ th share in the future profits.

(iv) The firm's assets were to be revalued as under:
Building to be valued at Rs. 12000; Machinery and Furniture to be reduced by 10%. A provision of 5% on debtors is to be made for doubtful debts. the stock is to be taken at a value of Rs. 10,000.

(v) The excess of capital of Ganga and Yamuna over their due proportion of sharing profits in the new firm is to be transferred to their respective loan account.


Prepare Profit and Loss Adjustment Account, Capital Account of Partners and Opening Balance Sheet of Triveni Traders.


Ans.

Profit and loss adjustment a/c
Profit. Rs. 1440
Balance sheet total
62240
Bank A/c Bal
10000
Capital A/c

Ganga
10800

No comments:

Post a Comment