HSC Accounts March 2015 Board Paper Solution

HSC Board Paper March 2015: Accounts

Akash and Suraj are partners in a firm sharing profits and losses in the ratio 3:2. Their balance sheet as on 31st March, 2013 was as follows:

Balance Sheet as on 31st March, 2013

Liabilities	Amount (Rs.)	Assets	Amount (Rs.)
Capital A/c		Furniture	2,100
Akash	50,000	Stock	28,700
Suraj	50,000	Land and Building	35,000
General Reserve	10,000	Plant and Machinery	49,000
Sundry Creditors	60,000	Sundry debtors	63,000
Bills Payable	17,000	Cash	9,200
	1,87,000		1,87,000

They agreed to admit Sanjay in their partnership on 1st April, 2013, on the following terms:

(1) Sanjay should bring Rs. 1,500, as his share of goodwill in the firm, and Rs. 2,000 as his capital.

(2) Reserve for doubtful debts is to be provided @ 5% on debtors.

(3) Land and building be depreciated at 10% p.a.

(4) Plant and Machinery to be depreciated @ 5% and stock to be depreciated @ 10% p.a.

(5) The new profit sharing ratio will be 2: 1: 1.

Prepare:
(a) Revaluation Account.
(b) Partners’ Capital Accounts.
(c) New Balance Sheet of the firm.

Solution

Particulars	Amount	Particulars	Amount
To Stock	2,870
To Land and Building	3,500
To Plant and Machinery	2,450	To Loss of Revaluation A/c
To R.D.D.	3,150	Akash’s Capital A/c	7,182
		Suraj’s Capital A/c	4,788
	11,970		11,970

Particulars	Akash	Suraj	Sanjay	Particulars	Akash	Suraj	Sanjay
By Loss on Revaluation A/c	7,182	4,788	-	By Balance b/d	50,000	50,000
				By General Reserve (3:2)	6,000	4,000
				By Cash A/c			2,000
				By Goodwill A/c	1,167	333
To Balance c/d	49,985	49,545	2,000
	57,167	54,333	2,000		57,167	54,333	2,000

Liabilities	Amount	Amount	Assets	Amount	Amount
Capital A/c			Furniture		2,100
Akash	49,985		Stock	28,700
Suraj	49,545		(-) Depreciation @ 10%	-2,870	25,830
Sanjay	2,000	1,01,530	Land and Building	35,000
Sundry Creditors		60,000	(-) Depreciation @ 10%	-3,500	31,500
Bills Payable		17,000	Plant and Machinery	49,000
			(-) Depreciation @ 5%	-2,450	46,550
			Sundry debtors	63,000
			(-) R.D.D. @ 5%	-3,150	59,850
			Cash		12,700
		1,78,530			1,78,530

Particulars	Amount	Particulars	Amount
To Balance b/d	9,200
To Sanjay’s Capital A/c	2,000
To Goodwill A/c	1,500	By Balance c/d	12,700
	12,700		12,700

Particulars	Amount	Particulars	Amount
To Akash’ Capital A/c	1,167	By Cash A/c	1,500
To Suraj’s Capital	333
	1,500		1,500

$$ \text{S.R.} = \text{O.R.} - \text{N.R.} $$

$$ \therefore \text{Akash's S.R.} = \frac{3}{5} - \frac{2}{4} = \frac{12-10}{20} = \frac{2}{20} $$

$$ \therefore \text{Suraj's S.R.} = \frac{3}{5} - \frac{1}{4} = \frac{12-5}{20} = \frac{7}{20} $$

$$ \therefore \text{The Sacrifice Ratio of Old Partners is 2 : 7.} $$