Balance Sheet as on 31st March, 2013
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Capital
A/c
|
|
|
Building
|
|
30000
|
Suresh
|
50000
|
|
Machinery
|
|
10000
|
Ramesh
|
24000
|
74000
|
Furniture
|
|
9500
|
Creditors
|
|
57000
|
Debtors
|
40000
|
|
Bills
Payable
|
|
20000
|
(-)
R.D.D.
|
-1000
|
39000
|
Reserve
Fund
|
|
9000
|
Stock
|
|
30000
|
|
|
|
Bills
Receivable
|
|
7600
|
|
|
|
Cash
at Bank
|
|
33900
|
|
|
160000
|
|
|
160000
|
They admitted Kailash on 1st April, 2013 as a partner on
the following terms:
1. Kailash will bring Rs. 30,000 as his capital
for ¼ th share in future profit and Rs. 12000 as goodwill which will be
withdrawn by old partners.
2. Stock and Machinery are to be depreciated by
10%.
3. R.D.D. is to be maintained at 5% on debtors.
4. Building is to be appreciated by 20% and
furniture is revalued at Rs. 10,000.
Prepare Profit & Loss Adjustment Account,
Partners Capital Account and Balance Sheet of the New firm.
Solution:
In the books of new Partnership firm.
Profit and Loss Adjustment Account.
Particulars
|
Rs.
|
Rs.
|
Particulars
|
Rs.
|
Rs.
|
To
Machinery A/c
|
|
1000
|
By
Building A/c
|
|
6000
|
To
Stock A/c
|
|
3000
|
By
Furniture A/c
|
|
500
|
To
R.D.D. A/c
|
|
1000
|
|
|
|
To
Partners' Capital A/c
(Profit
of Revaluation)
|
|
|
|
|
|
Suresh
|
1000
|
|
|
|
|
Ramesh
|
500
|
1500
|
|
|
|
|
|
6500
|
|
|
6500
|
Partner's capital Accounts
Particulars
|
Suresh
|
Ramesh
|
Kailash
|
Particulars
|
Suresh
|
Ramesh
|
Kailash
|
To
Bank A/c
|
8000
|
4000
|
|
By
Balance b/d
|
50000
|
24000
|
|
To
Balance c/d
|
57000
|
27500
|
30000
|
By
Reserve Fund
|
6000
|
3000
|
|
|
|
|
|
By
Bank A/c
|
|
|
30000
|
|
|
|
|
By
Goodwill A/c
|
8000
|
4000
|
|
|
|
|
|
By
Profit & Loss Adjustment A/c
|
1000
|
500
|
|
|
65000
|
31500
|
30000
|
|
65000
|
31500
|
30000
|
|
|
|
|
|
|
|
|
Balance Sheet as on 1st April, 2013
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
Partners'
Capital Account
|
|
|
Building
|
30000
|
|
Suresh
|
57,000
|
|
(+)
Appreciation @ 20%
|
6000
|
36000
|
Ramesh
|
27,500
|
|
Machinery
|
10000
|
|
Kailash
|
30,000
|
114500
|
(-)
Depreciation @ 10%
|
-1000
|
9000
|
Creditors
|
|
57000
|
Furniture
|
9500
|
|
Bills
Payable
|
|
20000
|
(+)
Appreciation
|
500
|
10000
|
|
|
|
Stock
|
30000
|
|
|
|
|
(-)
Reduction in value by 10%
|
-3000
|
27000
|
|
|
|
Bills
Receivable
|
|
7600
|
|
|
|
Debtors
|
40000
|
|
|
|
|
(-)
R.D.D.
|
-2000
|
38000
|
|
|
|
Cash
at Bank
|
|
63900
|
|
|
|
|
|
|
|
|
191500
|
|
|
191500
|