Topics
Introduction to Partnership and Partnership Final Accounts
- Partnership
- Partnership Deed
- Provision of the Indian Partnership Act 1932
- Methods of Capital Accounts - Fixed and Fluctuating Capital Method
- Partnership Final Accounts
Introduction to Partnership
Accounts of ‘Not for Profit’ Concerns
- Accounts of “Not for Profit” Concerns
- Receipts and Payments Account
- Income and Expenditure Account
Partnership Final Accounts
- Introduction of Final Accounts
- Preparation of Final Accounts
- Effects of Adjustments-Closing Stock
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Effects of Adjustments-Income Received in Advance
- Adjustments - Income Receivable
- Effects of Adjustments-Bad and Doubtful Debts
- Effects of Adjustments-Provision for Discount on Debtors and Creditors
- Effects of Adjustments-Depreciation
- Adjustments - Interest on Capital, Drawings and Loans
- Adjustments - Interest on Investment and Loans
- Adjustments - Goods Destroyed by Fire Or Accident (Insured Or Uninsured)
- Adjustments - Goods Stolen
- Adjustments of Financial Statements - Goods Distributed as Free Samples and Manager's Commission
- Adjustments - Goods Withdrawn by Partners
- Adjustments - Unrecorded Purchases and Sales
- Adjustments - Capital Expenditure Included in Revenue Expenses and Vice-versa
- Adjustments - Bills Receivable Dishonoured
- Adjustments - Bills Payable Dishonoured
- Adjustments - Deferred Expenses
- Adjustments - Capital Receipts Included in Revenue Receipts and Vice-versa
- Adjustments - Commission to Working Partner Managers on the Basis of Gross Profit Net Profit, Sales, Etc
- Partnership Final Accounts
Reconstitution of Partnership
- Meaning of Reconstitution
- Different Ways of Reconstitution
- Admission of a Partner
- Need of Admission of a Partner
- Capital Brought by New Partner
- Admission of a Partner - Sacrifice Ratio and New Ratio
- Concept of Goodwill
- Admission of a Partner - Adjustment of Accumulated Profits and Losses
- Admission of a Partner - Revaluation of Assets and Liabilities
- Admission of a Partner - Adjustment of Capitals
- Admission of a Partner - Treatment of Goodwill
- Meaning of Retirement or Death of a Partner
- Needs of Retirement Or Death of a Partner
- Retirement Or Death of a Partner - Treatment of Goodwill
- Retirement or Death of a Partner - Adjustment of Accumulated Profits and Losses
- Retirement or Death of a Partner - Revaluation of Assets and Liabilities
- Retirement Or Death of a Partner - Adjustment of Capitals
- Retirement Or Death of a Partner - New Ratio
- Retirement Or Death of a Partner - Gain Ratio
- Retirement Or Death of a Partner - Amount Due to Retiring Parter
- Reconstitution of Partnership
Reconstitution of Partnership (Admission of Partner)
- Reconstitution of Partnership
- Admission of a Partner
- Concept of Goodwill
- Admission of a Partner - Revaluation of Assets and Liabilities
Reconstitution of Partnership (Retirement of Partner)
- Reconstitution of Partnership (Retirement of Partner)
- Treatment of Goodwill
- Transfer of Reserve Fund Or General Reserve/Accumulated Profit Or Loss
- Accounting for Revaluation of Assets and Reassessment of Liabilities
- Retirement Or Death of a Partner - Adjustment of Capitals
- Total Payable Amount to Retiring Partner
Dissolution of Partnership Firm
Accounts of “Not for Profit” concerns
- Not for Profit Concerns
- Features of "Not for Profit" Concerns.
- Receipts and Payments Account
- Feature of Receipts and Payments Account
- Effects of Adjustments-Outstanding Expenses
- Additional Information - Prepaid Expenses of the Current and Previous Year
- Effects of Adjustments-Accrued Income
- Effects of Adjustments-Income Received in Advance
- Additional Information - Subscription Received in Advance
- Additional Information - Subscription Outstanding of the Current and Previous Year
- Effects of Adjustments-Depreciation
- Additional Information - Capitalisation of Entrance Fees
- Additional Information - Creation of Special Funds Out of Donations
- Additional Information - Stock of Stationery
- Additional Information - Opening Balances of Assets and Liabilities
- Preparation of Income and Expenditure Account and Closing Balance Sheet
- Accounts of “Not for Profit” Concerns
Reconstitution of Partnership (Death of Partner)
- Reconstitution of Partnership (Death of Partner)
Single Entry System
- Meaning of Single Entry
- Difference Between Single Entry System and Double Entry System
- Preparation of Statements for Single Entry System
- Additional Information - Additional Capital
- Effects of Adjustments-Drawings
- Additional Information - Depreciation on Fixed Asset
- Effects of Adjustments-Bad and Doubtful Debts
- Additional Information - Undervaluation of Assets and Liabilities
- Additional Information - Overvaluation of Assets and Liabilities
- Adjustments - Interest on Capital, Drawings and Loans
- Additional Information - Partners Salary
- Effects of Adjustments-Outstanding Expenses
- Effects of Adjustments-Prepaid Expenses
- Illustrations of Single Entry System
- Single Entry System Examples and Solutions
Dissolution of Partnership Firm
- Dissolution of Partnership Firm
- Accounting Procedure of Dissolution of Partnership Firm
Bill of Exchange (Only Trade Bill)
- Introduction of Bill of Exchange (Only Trade Bill)
- Necessity of Bill of Exchange (Only Trade Bill)
- Draft Or Format of Bills
- Parties to the Bill of Exchange
- Acceptance of Bill
- Important Terms of Bills of Exchange - Term of Bill
- Important Terms of Bills of Exchange - Days of Grace
- Important Terms of Bills of Exchange - Date of Maturity
- Important Terms of Bills of Exchange - Due Date
- Honouring of Bill
- Dishonour of Bill
- Important Terms of Bills of Exchange - Noting of Bill
- Protesting of Bill
- Basic Term of Bills of Exchange - Notary Public
- Basic Term of Bills of Exchange - Noting Charges
- Accounting Treatment of Bill by the Drawer Or Holder and Drawee
- Accounting Treatment - Retaining the Bill Till Due Date. Honour Or Dishonour, Insolvency of the Drawee Or Acceptor
- Accounting Treatment - Endorsement of the Bill, Honour/ Dishonour and Also Insolvency of Acceptor
- Accounting Treatment - Discounting the Bill with the Bank Honour/Dishonour and Insolvency
- Accounting Treatment of Bill - Sending the Bill to the Bank for Collection, Honour Or Dishonour and Insolvency
- Accounting Treatment of Bill - Making Part Payment of Basic Amount, Interest and Noting Charges and Drawing of New Bill
- Accounting Treatment of Bill - Honour Or Dishonour of New Bill
- Accounting Treatment of Bill - Insolvency of the Acceptor and Settlement of His Account
- Accounting Treatment of Bill - Retirement of Bill
- Accounting Treatment of Bill - Journal Entries and Ledger
- Bill of Exchange Examples and Solutions
Bills of Exchange
- Bills of Exchange
- Parties to a Bill Exchange
- Parties to a Promissory Note
- Contents of Format of Bill of Exchange
- Honour and Dishonour of Bill of Exchange
Company Accounts
- Share and Share Capital
- Nature and Types of Share and Share Capital
- Accounting for Share Capital
- Share Capital - Issue and Allotment of Equity Shares
- Private Placement of Shares
- Public Subscription of Shares
- Over Subscription of Shares
- Under Subscription of Shares
- Issue at Par and Premium and at Discount
- Calls in Advance and Arrears
- Issue of Shares for Consideration Other than Cash
- Accounting Treatment of Forfeiture and Re-issue of Share
- Disclosure of Share Capital in Company’s Balance Sheet (Horizontal Form)
- Meaning and Concept of Debentures
- Issue of Debentures at Par at Premium and at Discount
- Issue of Debentures for Consideration Other than Cash
- Interest on Debentures
Company Accounts - Issue of Shares
- Share and Share Capital
- Accounting for Share Capital
- Forfeiture of Shares
Analysis of Financial Statements
- Concept of Financial Statement Analysis
- Comparative Statements
- Common Size Statements
- Cash Flow Analysis
- Ratio Analysis and its Types
- Concept of Accounting Ratios
- Classification of Ratios
- Introductions to Current Ratio
- Introductions to Liquid Ratio
- Introductions to Gross Profit Ratio
- Operating Profit Ratio
- Return on Investment (ROI)
- ROCE
Analysis of Financial Statements
- Concept of Financial Statement Analysis
- Tools for Financial Statement Analysis
- Concept of Accounting Ratios
Computer in Accounting
- Computerized Accounting System (Cas)
- Sourcing of Accounting Software
- Legal Vs. Pirated Accounting Software
- Meaning
- Different forms of reconstitution
Shaalaa.com | Example on Partnership :- Admission, Retirement & Death
Related QuestionsVIEW ALL [32]
Following is the Balance Sheet of Dhiraj and Niraj who shared profits and losses equally.
Balance Sheet as on 31st March, 2013
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capital A/c’s | Plant and Machinery | 45000 | |
| Dhiraj | 125000 | Land and Building | 84000 |
| Niraj | 35000 | Patents | 3400 |
| Creditors | 86200 | Stock | 47800 |
| Bills Payable | 28,000 | Furniture | 10600 |
| General Reserve | 6800 | Debtors | 80000 |
| Cash | 10200 | ||
| 281000 | 281000 |
On 1st April, 2013 they agreed to admit Suraj on the following terms and conditions:
1) Suraj to bring for 1/3rd 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.
Minaxi, Ramesh and Poonam were partners sharing profits and losses in the proportion to their capitals, Their Balance sheet of the firm on 31st March, 2012 was as under:
Balance Sheet as on 31st March, 2012
| Liabilities | Amount (Rs) | Assets | Amount (Rs) | |
| Capital | Land and Building | 40,000 | ||
| Minaxi | 30,000 | Investment | 20,000 | |
| Ramesh | 20,000 | Debtors | 16,000 | 14,000 |
| Poonam | 10,000 | Less : R.D.D | 2,000 | |
| Creditors | 28,000 | Stock | 18,000 | |
| Reserve | 18,000 | Cash | 14,000 | |
| 1,06,000 | 1,06,000 | |||
Poonam died on 1st August, 2012 and the following adjustments were made
1) Assets revalued as under-Land & Building Rs 44,000, Investment Rs 18,000, Stock Rs 17,000.
2) All debtors were good.
3) Goodwill of the firm valued at two times the average profits of the last 4 years. No goodwill account to be shown in the books of the firm.
4) Poonam’s share of profit upto her death to be calculated on the basis of average profits of last two year.
5) Profits were Rs 6,000, Rs 12,000, Rs 7,000, Rs 11,000
Prepare:
1) Profits and loss adjustment A/c
2) Balance sheet as on 1st August 2012
Pai, Amba and Manoj are partners in a firm sharing profit and losses in the proportion to their capitals. Their Balance Sheet as on 31.3.2012 is as follow:
Balance Sheet as on 31st March, 2012
| Liabilities | Amount (Rs) | Assets | Amount (Rs) |
| Capitals | Cash | 3,000 | |
| Pai | 30,000 | Stock | 12,000 |
| Amba | 30,000 | Debtors | 20,000 |
| Manoj | 15,000 | Plant | 13,000 |
| Creditors | 7,000 | Building | 20,000 |
| Outstanding expenses | 15,000 | Motor Van | 31,000 |
| Profit and Loss A/c | 20,000 | Goodwill | 18,000 |
| 1,17,000 | 1,17,000 |
On the above date Pai retired and the following adjustments have been agreed upon
1) Goodwill was revalued at Rs 15,000
2) Assets and Liabilities were revalued as under debtors Rs 17,000 stock at 90% of book value Building Rs 35,000 Plant Rs 11,500 Motor Van Rs 29, 500, Outstanding expenses Rs 18,000
3) Amba and Manoj contributed additional capital of Rs 20,000 and Rs 10,000 respectively
4) Balance due to Mr. Pai is transferred to his loan account after paying him Rs 1,000/-
Prepare:- Profit and Loss adjustment A/c,. Partner’s Capital A/c’s and Balance Sheet of new firm
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
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
| Capital accounts: | Plant and Machinery | 60,000 | |
| Dhirshree | 1,50,000 | Land and building | 1,65,000 |
| Sonam | 60,000 | Stock | 36,000 |
| Simaran | 90,000 | Debtors 36,000 | |
| Sundry Creditors | 45,000 | Less: R.D.D. 3,000 | 33,000 |
| Bank balance | 51,000 | ||
| 3,45,000 | 3,45,000 |
Simran retired from the business on 31st 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.
Jitesh and Lailesh are in partnership sharing profits and losses in the ratio of 2:1. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss A/c for the year ended 31st March 2013 and the Balance Sheet as on that date:
| Trial Balance as on 31st March 2013 | ||
| Particulars | Debit Amount (Rs) | Credit Amount (Rs) |
| Prepaid Insurance | 800 | |
| Insurance | 2,000 | |
| R.B.D.D. | 1,000 | |
| Discount | 800 | |
| Postage and telephone | 3,200 | |
| Salaries | 56,000 | |
| Debtors and Creditors | 66,000 | 68,000 |
| Wages | 24,000 | |
| Opening Stock | 48,000 | |
| Carriage | 1,000 | |
| Purchases and Sales | 1,93,200 | 3,01,600 |
| Return inwards and outwards | 5,600 | 9,200 |
| Bank overdraft | 1,20,800 | |
| Plant & Machinery | 24,000 | |
| Land & Building | 1,76,000 | |
| Capital | ||
| Jitesh | 52,000 | |
| Lailesh | 48,000 | |
| Total | 6,00,600 | 6,00,600 |
2. Goods worth Rs. 4,000 were distributed as free samples.
3. Closing stock on 31.03.2013 was valued at the cost Rs. 56,000 while its market price was Rs. 60,000.
4. Salaries were outstanding Rs. 2,000.
5. Depreciate:
Plant & Machinery @ 10% p.a.
Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows
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
|
(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.
