Reconstitution of Partnership

Following is the Balance Sheet of Dhirshree, Sonam, and Simaran who were sharing profit and losses in the proportion of their capitals:

Balance Sheet as on 31st March, 2016

Simran retired from the business on 31^st March 2016 and the following adjustments were agreed to:
1) The stock is to be valued at 92% of its book value.
2) R.D.D. is to be maintained at 10% on sundry Debtors.
3) The value of land and building be appreciated by 20%.
4) The goodwill of the firm be fixed at Rs. 36,000 and simran's share in the same adjusted in the accounts of containuing partners in the gain ratio.
5) The entire capital of the new firm be fixed at Rs. 4,80,000 between Dhirshree and Sonam in the proportion to their new profit sharing ratio which is fixed as 3: 1 by making adjustment for difference in cash.
Prepare : 
1) Profit and Loss Adjustment Account.
2) Partner's Capital Accounts.
3) Balance Sheet after retirement of Simran.

Vaibhav and Vilas were partners sharing profit and losses in the ratio of 2: 3 respectively. Their Balance Sheet as on 31^st March 2012 was as follows.

               Balance Sheet as on 31^st March 2012

They agreed to admit Vivek as a partner on 1^st April 2012 on the following terms:

1) Vivek will have 1/4^th share in future profits for which he shall bring Rs 25,000 as his capital and Rs 20,000 as his share of goodwill.

2) Land & Building are valued at Rs 30,000 and while stock is valued at Rs 55,000.

3) Plant is taken over by Vilas 10% discount.

4) Depreciate furniture by 10%.

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

6) The capital account of all the partners to be adjusted in their new profit sharing ratio and excess amount to be transferred to their loan account.

Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of New Firm.

Sathe, Deshpande and Madlani were partners sharing profits and losses in the ratio of 5:2:3. Their Balance Sheet was as follows:

             Balance Sheet as on 31^st March, 2012

Deshpande retired on that date on the following terms:

1) Plant to be depreciated by 10% and Motor Van by 20%.

2) Stock to be appreciated by 10% and building by 20%.

3) R.D.D. is no longer necessary

4) Provision is to be made for Rs 8,000 being compensation to worker

5) The goodwill of the firm to be valued at Rs 40,000 and Deshpande’s share in it should be raised.

6) Both the remaining partners decided to write off the goodwill

7) Amount payable to Shri. Deshpande to be kept as his Loan

Prepare:

1 ) Profit and Loss Adjustment Account

2) Partner’s Capital Accounts

3) New Balance Sheet

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

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 :

1. Revaluation Account.
2. Partners’ Capital Accounts.
3. New Balance Sheet of the firm.

Following is the Balance Sheet of Dhiraj and Niraj who shared profits and losses equally.

                  Balance Sheet as on 31^st March, 2013

On 1^st April, 2013 they agreed to admit Suraj on the following terms and conditions:

1) Suraj to bring for 1/3^rd share in future profit in cash Rs 90,000 towards his capital.

2) The firms goodwill should be raised to Rs 90,000 and it is to be written off after Suraj admission in new profit ratio.

3) Plant and Machinery was found undervalued by 10% and Land and Building was found overvalued by 20%.

4) Stock to be increased by Rs 2,200 and furniture to be reduced to Rs 10,000/-

5) Out of creditors Rs 1,200 is no more payable.

6) The Capital A/c to be adjusted in new profit sharing ratio by opening the current accounts.

Prepare Revaluation A/c, Capital A/c and New Balance Sheet.

Vilas, Mangal, Guru were partners in a business sharing profits and losses in the ratio of 2:1:1 respectively. Their Balance sheet as on 31^st March, 2012 was as follows: 

          Balance Sheet as on 31st March 2012

Guru died on 1^st July, 2012

1) Land and Building was to be revalued to Rs 7,000 and RDD was to be created of Rs 200.

2) The drawings of Guru upto the date of his death amounted to Rs 1,000/-

3) Charge interest on drawings Rs 100/-

4) His share of goodwill should be calculated at ‘Three’ years purchase of the profits for the last four years which were Rs 15,000, Rs 13,000/-, Rs 7,000, Rs 5,000

5) The deceased partners share of profit upto the date of his death to be calculated on the basis of average profit of last two years.

Prepare:

1) Profit and Loss Adjustment A/c

2) Partners Capital A/cs

3) Balance Sheet of the continuing firm

4) Give working or share of profit and goodwill

Pravin and Kishor are partners sharing profits and losses in the ratio 3 : 2. Their Balance Sheet as on 31st March, 2019 was as under:

On 1.04.2019 they admitted Asha on the following terms:

1. For 1/2 share in profits in future, Asha will bring ₹ 30,000 for capital and ₹ 15,000 for goodwill.
2. Half of the amount of goodwill is withdrawn by old partners.
3. Stock is to be depreciated by 10% and Machinery by 5%.
4. RDD is to be maintained at ₹ 3,000.
5. Furniture be valued at ₹ 16,050 and Building be appreciated by 20%

Pass the necessary Journal entries in the books of the firm and prepare working notes.