Mr. Amit and Baban share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under Practical Problems | Q 9 | Page 166 Admission of Partner

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 9 | Page 166


Mr. Amit and Baban share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under


Balance Sheet as On 31st March 2018


Liabilities

Amount ()

Assets

Amount ()

Creditors

1,40,000

Cash

1,10,000

Capital:

Amit

Baban

100,000 100,000

Land and Building

50,000



Plant

60,000



Furniture

4,000



Stock

1,00,000



Debtors

16,000


3,40,000


3,40,000


They agreed decided to admit Kamal on 1st April 2018 on the following terms:


1. Kamal shall have 1/4th share in future profits.


2. They agreed to admit Kamal as a partner on 1st April 2018 on the following terms:


3. She shall bring 50,000 as her capital and 40,000 as her share of goodwill.


4. Land and building to be valued at 60,000 and furniture to be depreciated by 10%


5. Provision for bad and doubtful debts is to be maintained at 5% on the sundry debtors.


6. Stocks to be valued 1,10,000 The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.


Prepare profit and loss adjustment A/c, Capital A/cs, and New Balance Sheet.


Dr.

Profit and Loss Adjustment Account

Cr.

Particulars

Amount ()

Particulars

Amount ()

To Depreciation A/c – Furniture

400

By Land and Building A/c

10,000

To R.D.D. A/c

800

By Stock A/c

10,000

To Profit on Revaluation Transferred to Partners’ Capital A/cs:

Amit  7,520

Baban 11,280

18,800




20,000


20,000

 

Dr.

Partners’ Capital Accounts

Cr.

Particulars

Amit ()

Baban ()

Kamal ()

Particulars

Amit ()

Baban ()

Kamal ()

To Partners’ Loan A/c

63,520

45,280


By Balance b / d

1,00,000

1,00,000


To Balance c/d

60,000

90,000

50,000

By Bank A/c



50,000





By Goodwill A/c

16,000

24,000






By Revaluation A/c (Profit)

7,520

11,280



1,23,520

1,35,280

50,000


1,23,520

1,35,280

50,000

Balance Sheet as on 1st April 2018

Liabilities

Amount ()

Amount ()

Assets

Amount ()

Amount ()

Capital A/cs:

Amit
Baban
Kamal

60,000 90,000 50,000

2,00,000

Cash


2,00,000

Creditors


1,40,000

Land and Building

Add: Appreciation

50,000 10,000

60,000

Partners’ Loan : Amit
Baban

63,520 45,280

1,08,800

Plant


60,000




Furniture

Less: Depreciation

4,000

400

3,600




Stock

Add: Appreciation

1,00,000 10,000

1,10,000




Debtors

Less: R.D.D.

16,000 800

15,200



4,48,800



4,48,800


Working Notes :

(1) Cash balance = Opening balance + Amount brought in by Kamal

= 1,10,000 + 50,000 + 40,000

= Rs. 2,00,000

(2) For the calculation of new profit and loss ratio:

Refer to Working Note (1) of Textual Problem no. 1

(3) New profit and loss ratio = 6: 9: 5

Capital amount adjusted in their new profit and loss ratio by taking new partner Kamal’s capital ( 50,000) as a base.

 For part 5 capital =  50,000 (Kamal’s capital)

 For part 6 capital =  60,000 (Amit’s capital)

 For part 9 capital =  90,000 (Baban’s capital)

(4) After keeping these capital balances difference of the amount of Amit’s capital  63,520 and of Baban’s capital  45,280 are taken as partner’s loan to the firm and as a liability of the firm it is recorded in the Liabilities side of Balance Sheet.


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.

 

State True or False with reason.

 

Find the Odd one.

 

Calculate the following.

A and B are partners in a firm sharing profits and losses in the ratio of 1:1. C is admitted. A surrenders 1/4th share and B surrenders 1/5th of his share in favor of C. Calculate the new profit sharing ratio.

 

Calculate the following.

Anika and Radhika are partners sharing profits in the ratio of 5:1. They decide to admit Sanika in the firm for 1/5th share. calculate the sacrifice ratio of Anika and Radhika.

 

Calculate the following.

Pramod and Vinod are partners sharing profits and losses in the ratio of 3:2. After the admission of Ramesh the new ratio of Pramod, Vinod and Ramesh is 4:3:2. Find out the sacrifice ratio.

 

Answer the following.

 

Book-keeping and Accountancy 12th Standard 

HSC Maharashtra State Board. Latest Syllabus.

Chapter 1: Introduction to Partnership and Partnership Final Accounts

Chapter 2: Accounts of ‘Not for Profit’ Concerns

Chapter 3: Reconstitution of Partnership (Admission of Partner)

Chapter 4: Reconstitution of Partnership (Retirement of Partner)

Chapter 5: Reconstitution of Partnership (Death of Partner)

Chapter 6: Dissolution of Partnership Firm

Chapter 7: Bills of Exchange

Chapter 8: Company Accounts - Issue of Shares

Chapter 9: Analysis of Financial Statements

Chapter 10: Computer In Accounting

 

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