omtexclasses.com: The Balance Sheet of Sahil and Nikhil who share profits in the ratio of 3: 2 as on 31st March 2017 Practical Problems | Q 8

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 8 | Page 165

The Balance Sheet of Sahil and Nikhil who share profits in the ratio of 3: 2 as on 31st March 2017

Balance Sheet as on 31st March 2017

Liabilities	Amt. (₹)	Amt. (₹)	Assets	Amt. (₹)	Amt. (₹)
Creditors		60,000	Furniture		60,000
Capitals: Sahil Nikhil	80,000 1,00,000	1,80,000	Building		72,000
			Debtors		40,000
			Closing Stock		48,000
			Cash in Hand		20,000
		2,40,000			2,40,000

Varad admitted on 1St April 2017 on the following terms :

1. Varad was to pay 1,00,000 for his share of capital.

2. He was also to pay 40,000 as his share of goodwill.

3. The new profit sharing ratio was 3:2:3

4. Old partners decided to revalue the assets as follows:

Building 1,00,000, Furniture- 48,000, Debtors - 38,000 (in view of likely bad debts)

5. It was found that there was a liability for 3,000 for goods in March 2017 but recorded on 2nd April 2017.

You are required to prepare:

a) Profit and Loss adjustment accounts

b) Capital accounts of the partners

c) Balance sheet after the admission of Varad

Solution:

Dr.	Profit and Loss Adjustment Account				Cr
Particulars		Amount (₹)	Particulars	Amount (₹)
To Furniture A/c		12,000	By Building A/c	28,000
To Bad Debts A/c (likely)		2,000
To Unrecorded Liability A/c		3,000
To Profit on Revaluation Transferred to Partners’ Capital A/cs: Sahil 6,600 Nikhil 4,400		11,000
		28,000		28,000

Dr	Partners’ Capital Accounts								Cr
Particulars		Sahil (₹)	Nikhil (₹)	Varad (₹)	Particulars	Sahil (₹)	Nikhil (₹)	Varad (₹)
					By Balance b / d	80,000	1,00,000
					By Bank A/c			1,00,000
					By Goodwill A/c	24,000	16,000
To Balance c / d		1,10,600	1,20,400	1,00,000	By Revaluation A/c	6,600	4,400
		1,10,600	1,20,400	1,00,000		1,10,600	1,20,400	1,00,000

Balance Sheet as on 1st April 2017

Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Capital A/cs: Sahil Nikhil Varad	1,10,600 1,20,400 1,00,000	3,31,000	Furniture Less: Depreciation	60,000 12,000	48,000
Creditors		60,000	Building Add: Appreciation	72,000 28,000	1,00,000
Unrecorded Liability		3,000	Debtors Less: Bad Debts (likely)	40,000 2,000	38,000
			Closing Stock		48,000
			Cash in Hand		1,60,000
		3,94,000			3,94,000

The Balance Sheet of Sahil and Nikhil who share profits in the ratio of 3: 2 as on 31st March 2017 Practical Problems | Q 8 | Page 165 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 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.