OMTEX CLASSES: Amalendu and Sameer share profits and losses in the ratio 3:2, Practical Problems | Q2 | Page 161, Balbharati solutions for Book-keeping and Accountancy 12th

PRACTICAL PROBLEMS [PAGES 161 - 167]

Balbharati solutions for Book-keeping and Accountancy 12th Standard HSC Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]

Practical Problems | Q 2 | Page 161

Amalendu and Sameer share profits and losses in the ratio 3:2 respectively Their balance sheet as on 31st March 2017 was as under.

Balance Sheet as on 31st March 2017

Liabilities	Amount (₹)	Assets	Amount (₹)
Sundry Creditors	10,000	Cash at bank	12,000
Amlendu capital	60,000	Sundry debtors	24,000
Sameer capital	40,000	Land & Building	50,000
General reserve	20,000	Stock	16,000
		Plant and machinery	20,000
		Furniture & fixture	8,000
	1,30,000		1,30,000

On 1st April 2017, they admit Paresh into partnership. The term being that:

1 He shall pay ₹16,000 as his share of Goodwill 50% amount of Goodwill shall be withdrawn by the old partners.

2 He shall have to bring in ₹20,000 as his Capital for 1/4 share in future profits.

3. For the purpose of Paresh’s admission, it was agreed that the assets would be revalued as follows.

A) Land and Building is to be valued at ₹60,000

B) Plant and Machinery to be valued at ₹16,000

C) Stock valued at ₹20,000 and Furniture and Fixtures at ₹4,000

D) A Provision of 5% on Debtors would be made for Doubtful Debts.

Pass The necessary Journal Entries in the Books of a New Firm.

Solution:

Journal entries in the books of Partnership Firm

Date	Particulars	L.F	Debit (₹)	Credit (₹)
2017 April 1	General Reserve A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being general reserve distributed among old partners)		20,000	12,000 8,000
	Profit and Loss Adjustment A/c Dr. To Plant and Machinery A/c To Furniture & Fixture A/c To R.D.D. A/c (Being decrease in the value of assets and reserve for doubtful debts.)		9,200	4,000 4,000 1,200
	Land and Building A/c Dr. Stock A/c Dr. To Profit and Loss Adjustment A/c (Being appreciation in the value of assets)		10,000 4,000	14,000
	Profit and Loss Adjustment A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being profit on revaluation distributed in profit sharing ratio)		4,800	2,880 1,920
	Cash / Bank A/c Dr. To Paresh’s Capital A/c (Being amount brought in for capital by Paresh)		20,000	20,000
	Cash / Bank A/c Dr. To Goodwill A/c (Being amount brought in for goodwill by Paresh)		16,000	16,000
	Goodwill A/c Dr. To Amalendu’s Capital A/c To Sameer’s Capital A/c (Being goodwill distributed among old partners)		16,000	9,600 6,400
	Amalendu’s Capital A/c Dr. Sameer’s Capital A/c Dr. To Bank A/c (Being half of the goodwill amount withdrawn by old partners)		4,800 3,200	8,000

Working Notes :

Dr	Goodwill Account				Cr
Particulars		Amount (₹)	Particulars	Amount (₹)
To Amalendu’s Capital A/c		9,600	By Cash / Bank A/c	16,000
To Sameer’s Capital A/c		6,400
		16,000		16,000

Dr	Profit and Loss Adjustment Account						Cr
Particulars		Amount (₹)	Amount (₹)	Particulars	Amount (₹)	Amount (₹)
To Plant and Machinery A/c			4,000	By Land & Building A/c		10,000
To Furniture and Fixture A/c			4,000	By Stock A/c		4,000
To R.D.D. Debts A/c			1,200
To Profit on Revaluation Transferred to Partners’
Capital A/cs : Amalendu Sameer		2,880 1,920	4,800
			14,000			14,000

PRACTICAL PROBLEMS [PAGES 161 - 167]

Balbharati solutions for Book-keeping and Accountancy 12th Standard Hsc Maharashtra State Board Chapter 3 Reconstitution of Partnership (Admission of Partner) Practical Problems [Pages 161 - 167]

Practical Problems | Q 1 | Page 161

Practical Problems | Q 2 | Page 161

Practical Problems | Q 3 | Page 162

Practical Problems | Q 4 | Page 163

Practical Problems | Q 5 | Page 163

Practical Problems | Q 6 | Page 164

Practical Problems | Q 7 | Page 164

Practical Problems | Q 8 | Page 165

Practical Problems | Q 9 | Page 166

Practical Problems | Q 10 | Page 167

Select appropriate alternatives from those given below and rewrite the sentence.

Write a word/phrase/term which can substitute the following statement.