The following is the Balance Sheet of Ram and Laxman who share profits in the ratio 3:2 respectively as on 31st March, 2012

8. The following is the Balance Sheet of Ram and Laxman who share profits in the ratio 3:2 respectively as on 31st March, 2012.

Balance Sheet as on 31.03.2012


Liabilities
Rs.
Assets
Rs.
Creditors
15000
Plant and Machinery
24000
General Reserve
11000
Stock
16000
Capital Accounts:

Furniture
2000
Ram
30000
Debtors
30000
Laxman
20000
Cash at bank
4000





76000

76000

On this date Bharat was admitted on the following terms.

1. He has to pay Rs. 21,000 as his capital and Rs. 17,000 as his share of goodwill for 1/5 th share in future profits.

2. The amount of goodwill will be retained in the business.

3. Plant and Machinery and stock to be depreciated @ 10% and 5% respectively.

4. A provision of 6% on debtors be made for bad and doubtful debts.

5. Furniture to be revalued @ Rs. 3000

6. It was found that there was a liability for Rs. 1000 for credit purchases which was not recorded in the books of accounts.

Prepare Profit and Loss Adjustment account and Balance sheet of the firm after the admission of Bharat.


Ans.

Profit and loss adjustment a/c
Loss Rs. 5000
Balance sheet total
110000
Bank A/c Bal
42000
Capital A/c

Ram
43800
Laxman
29200
Bharat
21000


No comments:

Post a Comment