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Showing posts with label 2013 was as follows:. Show all posts

Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows:

Q. 3. Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows: [10]
Balance sheet as on 31st March, 2013.
Liabilities
Amount (Rs.)
Assets
Amount (Rs.)
Amount (Rs.)
Capital Accounts

Building

100000
Rani
100000
Furniture

10000
Geeta
75000
Stock

31000
Creditors
10000
Debtors
50000

Bills Payable
5000
Less: R.D.D.
-1000
49000
General Reserve
15000
Bank Balance

15000

205000


205000
On 1st April, 2013 hey admitted suvarna on the following terms:
(1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5 th share in future profit and Rs. 25,000 as goodwill.
(2) Building should be revalued at Rs. 1,25,000.
(3) Depreciate furniture @ 12.5 % and stock @ 10% p.a.
(4) R.D.D. should be maintained as it is.
(5) The Capital Accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare: Profit and loss adjustment account, capital account and balance sheet of the new firm.
Solution: In the books of the firm

Profit and Loss Adjustment A/c

Particulars
Amount Rs.
Amount Rs.
Particulars
Amount Rs.
Amount Rs.
To Furniture A/c

1250
By Building A/c

25000
To Stock A/c

3100



To Revaluation Profit :





Rani Capital A/c
12390




Geeta Capital A/c
8260
20650





25000


25000
Partners’ Capital Accounts
Particulars
Rani
Geeta
Suvarna
Particulars
Rani
Geeta
Suvarna




By Balance b/d
100000
75000





By Bank A/c


100000




By General Reserve A/c
9000
6000





By Goodwill A/c
15000
10000





By Profit and Loss Adjustment A/c
12390
8260

To Balance C/d
240000
160000
100000
By Bank A/c
103610
60740


240000
160000
100000

240000
160000
100000
Balance Sheet as on 1st April, 2013


Liabilities
Amount
Rs.
Amount
Rs.
Assets
Amount
Rs.
Amount
Rs.
Capital A/c:


Building
100000

Rani
240000

Add: Appreciation
25000
125000
Geeta
160000

Furniture
10000

Suvarna
100000
500000
Less: Depreciation
1250
8750
Creditors

10000
Stock
31000

Bills Payable

5000
Less: Written off
3100
27900



Debtors
50000




Less: R.D.D.
1000
49000



Bank Balance

304350


515000


515000

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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:

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:
Name Page No. 4 Name Page No. 5
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

Adjustments

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

Revaluation Account

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

Partners’ Capital Account

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

New Balance Sheet as on 1 April, 2013

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

Working Notes

W.N. 1. Cash Account

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

W.N. 2. Goodwill Account

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

W.N. 3. Calculation of Sacrifice Ratio

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

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

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

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

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