Veena and Leela of Udgir are equal partners in a business. Their Balance Sheet as on 31st March, 2012 stood as under.

13. Veena and Leela of Udgir 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.
Rs.
Assets
Rs.
Rs.
Sundry Creditor

180000
Cash at Bank

120000
General Reserve

36000
Debtors
62000

Capitals:


Less: RDD
2000
60000
Veena
90000

Bills Receivable

24000
Leela
60000
150000
Building

114000



Machinery

48000


366000


366000

They decided to admit Asha on 1st April, 2012 on the following terms.


(i) The machinery and the building be depreciated by 10% and Reserve for doubtful debts to be increased to Rs. 5000.

(ii) Bills Receivable are taken over by Veena at a discount of 10%.

(iii) Asha should bring Rs. 80,000 as capital for her ¼ th share in future profits.

(iv) The Capital accounts of all the partners be adjusted in proportion to the new profit sharing ratio by opening current accounts of the partners.

Prepare Profit and Loss Adjustment A/c Partners Capital Account and New Balance Sheet of the firm.


Ans.

Profit and loss adjustment a/c
Loss Rs. 21600
Balance sheet total
500000
Bank A/c Bal
200000
Capital A/c

Veena
120000
Leela
120000
Asha
80000

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