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प्रश्न
Kushal Kumar and Kavita were partners in a firm sharing profit in the ratio 3:1:1. On 1st April 2012 their Balance Sheet was as follows:
Balance Sheet of Kushal, Kumar and Kavita as on 1st April 2012
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|
Creditors Bill payable General Reserve Capital: Kushi 3,00,000 Kumar 2,80,000 Kavita 3,00,000 |
1,20,000 1,80,000 1,20,000
8,80,000 |
Cash Debtors 2,00,000 Less: Provision 10,000 Stock Furniture Building Land |
70,000
1,90,000 2,20,000 1,20,000 3,00,000 4,00,000 |
| 13,00,000 | 13,00,000 |
On the above date, Kavita retired and the following was agreed:
i. Goodwill of the firm was valued at Rs.40,000.
ii. The land was to be appreciated by 30% and the building was to be depreciated by Rs.1,00,000.
iii. Value of furniture was to be reduced by Rs.20,000.
iv. Bad debts reserve is to be increased to Rs.15,000.
v. 10% of the amount payable to Kavita was paid in cash and the balance was transferred to her Loan Account.
vi. Capitals of Kushal and Kumar will be in proportion to their new profit sharing ratio. The surplus/deficit, if any in their Capital Accounts will be adjusted through Current Accounts.
Prepare Revaluation Account, Partners Capital Accounts and Balance Sheet of Kushal and Kumar after Kavita's retirement.
उत्तर
| Revaluation Account |
|||
| Particulars | Amount(Rs.) | Particulars | Amount(Rs.) |
|
To Building A/c To Furniture A/c To Provision for bad-debts
|
1,00,000 20,000 5,000
|
By Land By Revaluation A/c Kushal 3,000 Kumar 1,000 Kavita 1,000
|
1,20,000
5,000
|
| 1,25,000 | 1,25,000 | ||
| Partners’ Capital Account |
|||||||
| Particulars | Kushal | Kumar | Kavita | Particulars | Kushal | Kumar | Kavita |
|
To Kavita’s Capital A/c To Revaluation loss A/c To Kumar Current A/c To Cash A/c To Kavita’s Loan A/c
To Balance c/d
|
6,000 3,000
4,98,000
|
2,000 1,000 1,35,000
1,66,000
|
1,000
33,100 2,97,900
|
By Balance b/d By General Reserve A/c By Kushal’s Capital A/c By Kumar’s Capital A/c By Kushal’s Capital A/c
|
3,00,000 72,000
1,35,000
|
2,80,000 24,000
|
3,00,000 24,000 6,000 2,000
|
| 5,07,000 | 3,04,000 | 3,32,000 | 5,07,000 | 3,04,000 | 3,32,000 | ||
| Balance Sheet As on April 01, 2012 after Kavita’s retirement |
|||
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|
Kushal’s Capital A/c Kumar’s Capital A/c Bill payable Creditors Kavita’s Loan A/c Kushal’s Current A/c
|
4,98,000 1,66,000 1,80,000 1,20,000 2,97,900 1,35,000
|
Land Building Furniture Stock Cash A/c (70,000–33,100) Debtors 2,00,000 Less :Provision 15,000 Kumar’s Current A/c |
5,20,000 2,00,000 1,00,000 2,20,000 36,900
1,85,000 1,35,000 |
| 13,96,900 | 13,96,900 | ||
Working Note:
Total Capital of Kushal = 3,72,000 – 3,000 = 3,69,000
Total Capital of Kumar = 3,04,000 – 1,000 =3,03,000
Total Capital of new firm = 3,69,000 + 3,03,000 = 6,72,000
The new capital has to be in the new profit sharing ratio = 3:1
Therefore, Kushal's new capital =`672000xx3/4=504000`
Kumar's new Capital `=6,72,000xx1/4=168000`
APPEARS IN
संबंधित प्रश्न
Ajay, Aman and Anand were partners in a firm sharing profits in the ratio of 5:1:4. Their Balance Sheet as on 31-3-2015 was as follows :
Balance Sheet of Ajay,Aman and Anand as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors Bills Payable General Reserve Capitals Ajay 5,00,000 Aman 1,00,000 Anand 1,60,000 |
1,47,000 33,000 2,10,000
7,60,000 |
Land Building Plant Stock Debtors Bank
|
5,40,000 2,70,000 1,90,000 75,000 60,000 15,000
|
| 11,50,000 | 11,50,000 |
From 1-4-2015 Ajay. Aman and Anand decided to share future profits equally. For this it was agreed that:
(i) Goodwill of the firm be valued at Rs1, 80,000.
(ii) Land be revalued at Rs.6,00,000 and building be depreciated by 10%.
(iii) Creditors of Rs.15,000 were not likely to be claimed and hence be written-off.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.
A, B and C were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-2015 their Balance sheet was as follows :
Balance Sheet of A,B and C as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors General Reserve
Capitals A 60,000 B 40,000 C 20,000 |
84,000 21,000
1,20,000 |
Bank Debtors Stock Investments Furniture & Fittings Machinery
|
17,000 23,000 1,10,000 30,000 10,000 35,000
|
| 2,25,000 | 2,25,000 |
On the above date D was admitted as new partner and it was decided that
(i) The new profit sharing ratio between A, B, C and D will be 2:1:1:1.
(ii) Goodwill of the firm was valued at Rs.90,000 and D brought his share of goodwill premium in cash.
(iii) The Market value of investments was Rs.24,000
(iv) Machinery will be reduced to Rs.29,000
(v) A Creditor of Rs.3,000was not likely to claim the amount and hence to be written off.
(vi) D will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluations Account, Partner’s Capital Accounts and Balance Sheet of the reconstitute firm
X, Y and Z were partners in a firm sharing profit’s in the firm of 5:3:2. On 31-3-2015 their Balance Sheet was as follows:
Balance sheet of X,Y and Z as on 31st march,2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors Investment Fluctuation Fund P & L Account Capital: X 50,000 Y 40,000 Z 20,000
|
21,000 10,000 40,000
1,10,000
|
Land and Building Motor Vans Investments Machinery Stock Debtors 40,000 Less: 3,000 Cash |
62,000 20,000 19,000 12,000 15,000
37,000 16,000 |
| 1,81,000 | 1,81,000 |
On the above date Y retired and X and Z agreed to continue the business on the following terms:
(1) Goodwill of the firm was valued at Rs.51,000
(2) There was a claim of 4,000 for Workmen’s Compensation.
(3) Provision for bad debts was to be reduced by 1,000
(4) Y will be paid 8,200 in cash and the balance will be transferred in his loan account which will be paid in four equally yearly instalments together with interest @ 10% p.a.
(5) The new profit sharing ratio between X and Z will be 3:2 and their capitals will be in their new profit sharing ratio. The Capital adjustments will be done by opening current Accounts
Prepare Revaluation Account. Partner’s Capital Accounts and the Balance Sheet of reconstituted firm.
R, S and T were partners in a firm sharing profit in the ratio of 1:2:3. On 31-3-2015 their Balance sheet was as follows :
Balance Sheet of A,B and C as on 31-3-2015
| Liabilities | Amount (Rs.) | Assets | Amount (Rs.) |
|
Creditors Bills Payable General Reserve Capitals R 1,00,000 S 50,000 T 25,000 |
50,000 20,000 30,000
1,75,000 |
Land Building Plant Stock Debtors Bank
|
50,000 50,000 1,00,000 40,000 30,000 5,000
|
| 2,75,000 | 2,75,000 |
R,S and T decided to share the profits equally with effects from 1.4.2015. For this it was agreed that:
(a) Goodwill of the firm will be valued at Rs.1,50,000
(b) Land will be revalued at Rs.80,000 and building be depreciated by 6%.
(c) Creditors of Rs.6,000 were not likely to be claimed and hence should be written off
Prepare Revaluations Account, Partner’s Capital Accounts and Balance Sheet of the reconstitute firm.
L, M and N were partners in a firm sharing profit in the ratio of 3:2:1. Their Balance Sheet on 31.3.2015 was as follows :
Balance Sheet of L,M and N as on 31-3-2015
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors General Reserve Capitals L 1,20,000 M 80,000 N 40,000
|
1,68,000 42,000
2,40,000
|
Bank Debtors Stock Investments Furniture Machinery
|
34,000 46,000 2,20,000 60,000 20,000 70,000
|
| 4,50,000 | 4,50,000 |
On the above date O was admitted as a new partner and it was decided that:
(i) The new profit sharing ratio between L, M, N and 0 will be 2: 2: 1: 1.
(ii) Goodwill of the firm was valued at Rs.1,80,000 and O brought his share of goodwill premium in cash.
(iii) The market value of investments was Rs.36,000.
(iv) Machinery will be reduced to Rs.58,000.
(v) A creditor of Rs.6,000 was not likely to claim the amount and hence to be written-off.
(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account. Partner's Capital Accounts and the Balance Sheet of the New Firm
Mohan and Mahesh were partners in a firm sharing profit in the ratio 3:2. On 1st April 2012, they admitted Nusrat as a partner in the firm. The Balance Sheet of Mohan and Mahesh on that date was as under:
Balance Sheet of Mohan and Mahesh as on 1st April 2012
| Liabilities | Amount(Rs.) | Assets | Amount(Rs.) |
|
Creditors Workman’s Compensation Fund General Reserve Capital: Mohan 1,00,000 Mahesh 80,000
|
2,10,000 2,50,000 1,60,000
1,80,000
|
Cash in hand Debtors Stock Machinery Building
|
1,40,000 1,60,000 1,20,000 1,00,000 2,80,000
|
| 8,00,000 | 8,00,000 |
It was agreed that:
i. The value of Building and Stock be appreciated to Rs.3,80,000 and Rs.1,60,000 respectively.
ii. The liabilities of workmen's compensation fund was determined at Rs.2,30,000.
iii. Nusrat brought in her share of goodwill Rs.1,00,000 in cash.
iv. Nusrat was to bring further cash as would make her capital equal to 20% of the combined capital of Mohan and Mahesh after above revaluation and adjustments are carried out.
v. The future profit sharing ratio will be Mohan 2/5, Mahesh 2/5, Nusrat 1/5.
Prepare Revaluation Account, Partner's Capital Accounts and Balance Sheet of the new firm. Also show clearly the calculation of Capital brought by Nusrat.
X, Y and Z were partners in a firm sharing profit in the ratio of 1:2:3. On 31-3-2015 their Balance sheet was as follows :
Balance Sheet of X,Y and Z as on 31-3-2015
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Bills Payable General Reserve Capitals X 50,000 Y 25,000 Z 12,500 |
25,000 10,000 10,000
87,500 |
Land Building Plant Stock Debtors Bank
|
25,000 25,000 50,000 20,000 15,000 2,500
|
| 1,37,500 | 1,37,500 |
X, Y and Z decided to Share the profits equally with effect from 1-4-2015. For this It was agreed that
(i) Goodwill of the firm will be valued at 75,000
(ii) Land will be revalued at 40,000 and building be depreciated by 6%.
(iii) Creditors of 3,000 were not likely to be claimed and hence should be written off
Prepare Revaluations Account, Partner’s Capital Accounts and Balance Sheet of the reconstitute firm.
Charu and Harsha were partners in a firm sharing profits in the ratio of 3:2. On 1-4-2014 their Balance Sheet was as follows :
| Balance Sheet | |||
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors General Reserve Workmen Compensation Fund Investment Fluctuation Fund Provision for bad debts Capitals Charu 30,000 Harsha 20,000 |
17,000 4,000 9,000 11,000 2,000
50,000 |
Cash Debtors Investments Plant Land and building
|
6,000 15,000 20,000 14,000 38,000
|
| 93,000 | 93,000 | ||
On the above date, Vaishali was admitted for 1/4th share in the profits of the firm on the following terms:
(a) Vaishali will bring Rs 20,000 for her capital and Rs 4,000 for her share of goodwill premium.
(b) All debtors were considered good.
(c) The market value of investments was Rs 15,000.
(d) There was a liability of Rs 6,000 for workmen compensation.
(e) Capital accounts of Charu and Marsha are to be adjusted on the basis of Vaishali's capital by
opening current accounts.
Prepare Revaluation Account and Partners' Capital Accounts
Xavier, Yusuf and Zaman were partners in a firm sharing profits in the ratio of 4:3: 2. On 1.4.2014 their Balance sheet was as follows:
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Sundry Creditors Capital Accounts Xavier 1,20,000 Yusuf 90,000 Zaman 60,000
|
41,400
2,70,000
|
Cash at Bank Sundry Debtors 30,450 Less: Prov. For Bad debts 1,050 Stock Plant and Machinery Land and Building |
33,000
29,400 48,000 51,000 1,50,000 |
| 3,11,400 | 3,11,400 |
Yusuf had been suffering from ill health and thus gave notice of retirement from the firm. An agreement was, therefore, entered into as on 1.4.2014, the terms of which were as follows:
1) That land and building be appreciated by 10%
2) The provision for bad debts is no longer necessary
3) That stock be appreciated by 20%
4) That goodwill of the firm be fixed at Rs 54,000. Yusuf share of the same be adjusted into Xavier's and Zamna's Capital Accounts, who are going to share future profits in the ratio of 2:1
5) The entire capital of the newly constituted firm be readjusted by bringing in or paying necessary cash so that the future capitals of Xavier and Zaman will be in their profit sharing ratio.
Prepare Revaluation Account and Partner's Capital Account
A, B and C were partners in a firm sharing profits in the ratio of 3:2:1. On 1.4.2014 their Balance Sheet was as follows :
| Liabilities |
Amount Rs |
Assets |
Amount Rs |
|
Creditors Provident Fund General Reserve Capital Accounts A 80,000 B 73,000 C 40,000 |
25,200 3,000 21,000
1,93,000 |
Bank Debtors 60,000 Less: Provision 2,000 Stock Investment Patents Machinery |
8,200
58,000 50,000 20,000 10,000 96,000 |
| 2,42,200 | 2,42,200 |
On the above date, C retired. It was agreed that:
(i) Goodwill of the firm will be valued at Rs 5,400.
(ii) Depreciation of 10% was to be provided on machinery.
(iii) Patents were to be reduced by 20%.
(iv) Liability on account of Provident Fund was estimated at Rs 2,500.
(v) C took over investments for Rs 31,700.
(vi) A and B decided to adjust their capitals in proportion to their profit sharing ratio. For this
purpose, current accounts were opened.
Prepare Revaluation Account and Partners' Capital Accounts on C's retirement
Shikhar and Rohit were partners in a firm sharing profit in the ratio 7:3. On 1st April 2013, they admitted Kavi as a new partner for a ¼ share in the profit of the firm. Kavi brought Rs 4,30,000 as his capital and Rs 25,000 for his share of goodwill premium. The Balance Sheet of Shikhar and Rohit as on 1st April 2013 was as follows:
| Balance Sheet of Shikhar and Rohit as on 1st April 2013 | |||
| Liabilities | Rs | Assets | Rs |
|
Capital: Shikhar 8,00,000 Rohit 3,50,000 General Reserve Workman’s Compensation Fund Creditors |
11,50,000 1,00,000 1,00,000 1,50,000 |
Land and Building Machinery Debtors 2,20,000 Less: Provision 20,000 Stock Cash |
3,50,000 4,50,000
2,00,000 3,50,000 1,50,000 |
| 15,00,000 | 15,00,000 | ||
It was agreed that:
1. The value of Land and Building will be appreciated by 20%.
2. The value of Machinery will be depreciated by 10%.
3. The liabilities of Workmen's Compensation Fund was determined at Rs 50,000.
4. Capitals of Shikhar and Rohit will be adjusted on the basis of Kavi's capital and actual cash to be brought in or to be paid off as the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.
L, M and N were partners in firm sharing profits in the ratio of 2:1:1. On 15' April 2013 their Balance Sheet as follows:
| Balance Sheet of L, M and N as on 1st April 2013 |
|||
| Liabilities | Rs | Assets | Rs |
|
Capital: L 6,00,000 M 4,80,000 N 4,80,000 General Reserve Workman’s Compensation Fund Creditors
|
15,60,000 4,40,000 3,60,000 2,40,000
|
Land Building Furniture Debtors 4,00,000 Less: Provision 20,000 Stock Cash
|
8,00,000 6,00,000 2,40,000
3,80,000 4,40,000 1,40,000
|
| 26,00,000 | 26,00,000 | ||
On the above date, N retired
The following were agreed:
i. Goodwill of the firm was valued at Rs 6,00,000.
ii. The land was to be appreciated by 40% and Building was to be depreciated by Rs 1,00,000. Furniture was to be depreciated by Rs 30,000.
iii. The liabilities for Workmen's Compensation Fund was determined at Rs 1,60,000.
iv. The amount payable to N was transferred to his loan account.
v. Capitals of L and M were to be adjusted in their new profit sharing ratio and for this purpose current accounts of the partners will be opened.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.
N, S and G were partners in a firm sharing profits and losses in the ratio of 2 : 3 : 5. On 31.3.2016 their Balance Sheet was as under:
|
Balance Sheet of N, S and G as on 31.3.2016 |
|||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Creditors |
1,65,000 |
Cash |
1,20,000 |
||
|
General Reserve |
90,000 |
Debtors |
1,35,000 |
|
|
|
Capitals: |
Less Provision |
15,000 |
1,20,000 |
||
|
N |
2,25,000 |
Stock |
1,50,000 | ||
|
S |
3,75,000 |
Machinery |
4,50,000 | ||
|
G |
4,50,000 | 10,50,000 |
Patents |
90,000 | |
|
|
Building |
3,00,000 | |||
|
|
Profit & Loss Account |
75,000 | |||
|
|
13,05,000 |
|
13,05,000 | ||
|
|
|
|
|||
G retired on the above date and it was agreed that:
(i) Debtors of Rs 6,000 will be written off as bad debts and a provision of 5% on debtors for bad and doubtful debts will be maintained.
(ii) Patents will be completely written off and stock, machinery and building will be depreciated by 5%.
(iii) An unrecorded creditor of Rs 30,000 will be taken into account.
(iv) N and S will share the future profits in the ratio of 2 : 3 ratio.
(v) Goodwill of the firm on G’s retirement was valued at Rs 90,000.
Pass necessary journal entries for the above transactions in the books of the firm on G’s retirement.
A, B and C were partners in a firm sharing profits in the ratio of 5 : 3 : 2. On 31-3-2015 their Balance Sheet was as follows:
|
Balance Sheet of A, B and C as on 31-3-2015 |
|||||
|
Liabilities |
Amount (Rs) |
Assets |
Amount (Rs) |
||
|
Creditors |
63,000 |
Land and Building |
1,86,000 |
||
|
Investment |
|
Motor Vans |
60,000 |
||
|
Fluctuation Fund |
30,000 |
Investments |
57,000 |
||
|
P & L Account |
1,20,000 |
Machinery |
36,000 |
||
|
Capitals: |
|
Stock |
45,000 |
||
|
A |
1,50,000 |
|
Debtors |
1,20,000 |
|
|
B |
1,20,000 |
|
Less: Provision |
9,000 |
1,11,000 |
|
C |
60,000 |
3,30,000 |
Cash |
48,000 |
|
|
|
5,43,000 |
|
5,43,000 |
||
|
|
|
|
|||
On the above date B retired and A and C agreed to continue the business on the following terms :
(1) Goodwill of the firm was valued at Rs 1,53,000.
(2) Provision for bad debts was to be reduced by Rs 3,000.
(3) There was a claim of Rs 12,000 for workmen compensation.
(4) B will be paid Rs 24,600 in cash and the balance will be transferred to his loan account which will be paid in four equal yearly instalments together with interest @ 10% p.a.
(5) The new profit sharing ratio between A and C will be 3:2 and their capital will be in their new profit sharing ratio. The capital adjustments will be done by opening current accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.
A, B and C were partners sharing profits in the ratio of 3 : 1 : 1. Their Balance-Sheet as on March 31st 2009, the date on which they dissolve their firm, was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
Capitals: |
|
Sundry Assets |
17,000 |
||
|
A |
27,500 |
|
Stock |
7,800 |
|
|
B |
10,000 |
|
Debtors |
24,200 |
|
|
C |
7,000 |
44,500 |
Less: Provision for doubtful debts |
1,200 |
23,000 |
|
Loan |
1,500 |
Bills Receivable |
1,000 |
||
|
Creditors |
6,000 |
Cash |
3,200 |
||
|
|
52,000 |
|
52,000 |
||
|
|
|
|
|||
It was agreed that:
(a) A to take over Bills Receivable at Rs 800, debtors amounting to Rs 20,000 at 17,200 and the creditors of Rs 6,000 were to be paid by him at this figure.
(b) B is to take over all stock for Rs 7,000 and some sundry assets at Rs 7,200 (being 10% less than the book value)
(c) C to take over remaining sundry assets at 90% of the book value and assume the responsibility of discharge of loan together with accrued interest of Rs 300.
(d) The expenses of realization were Rs 270
The remaining debtors were sold to a debt collecting agency at 50% of the book value. Prepare Realisation A/c, Partners Capital A/c and Cash A/c
The Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 on 31st March, 2009 was as follows:
|
Liabilities |
Amount Rs |
Assets |
Amount Rs |
||
|
Creditors |
2,800 |
Cash at bank |
2,000 |
||
|
Employees’ provident fund |
1,200 |
Debtors |
6,500 |
|
|
|
General Reserve |
2,000 |
Less: Reserve for bad debts |
(500) |
6,000 |
|
|
Capitals |
|
Stock |
3,000 |
||
|
Ram |
6,000 |
|
Investments |
5,000 |
|
|
Shyam |
4,000 |
10,000 |
|
|
|
|
|
16,000 |
|
16,000 |
||
|
|
|
|
|||
Susan, Geeta and Rashi are partners sharing profits and losses in the ratio of 5:3:2. Their Balance Sheet as at 31st March, 2017, is as under:
Balance Sheet of Susan, Geeta and Rashi As at 31st March, 2017
| Liabilities | Amount | Assets | Amount |
| Sundry Creditors | 50,000 | Cash at Bank | 70,000 |
| Workmen Compensation Reserve | 25,000 |
Sundry Debtor 65,000 Less Provision for Doubtful Debts (5,000 |
60,000 |
| Employees Provident Fund | 5,000 | Goodwill | 50,000 |
| Bank Loan | 55,000 | Furniture | 1,00,000 |
|
Capital A/C Susan 2,20,000 Geeta 1,70,000 Rashi 1,35,000 |
5,25,000 |
Building | 3,80,000 |
| 6,60,000 | 6,60,000 |
The partners decided to dissolve their partnership on 31st March, 2017. The following transactions took place at the time of dissolution :
(a) Realization expenses of 2,000 were paid by Susan on behalf of the firm.
(b) Geeta took over the goodwill for her own business at 40,000.
(c) Building was taken over by Rashi at 3,00,000.
(d) Only 80% of the debtors paid their dues.
(e) Furniture was sold for 97,000.
(f) Bank Loan was settled along with interest of 5,000. You are required to prepare the Realization Account.
Achla and Bobby were partners in a firm sharing profits and losses in the ratio of 3: 1. On 31st March 2019, their balance sheet was as follows:
Balance Sheet of Achla and Bobby as on 31st March 2019
| Liabilities |
Amount(₹) |
Assets |
Amount(₹) |
| Creditors |
1,10,000 |
Cash at bank |
60,000 |
| General Reserve |
40,000 |
Debtors |
40,000 |
| Workmen's compensation reserve |
50,000 |
Stock |
45,000 |
| Capitals : |
|
Furniture |
1,55,000 |
| Achla - 4,00,000 |
|
Land & Building |
5,00,000 |
| Bobby - 2,00,000 |
6,00,000 |
|
|
|
8,00,000 |
8,00,000 |
On 1st April 2019, they admitted Vihaan as a new partner for 1/5th share in the profits of the firm on the following terms:
(a) Vihaan brought ₹ 1,00,000 as his capital and the capitals of Achla and Bobby were to be adjusted on the basis of Vihaan's capital; any surplus or deficiency was to be adjusted by opening current accounts.
(b) Goodwill of the firm was valued at ₹ 4,00,000. Vihaan brought the necessary amount in cash for his share of goodwill premium, half of which was withdrawn by the old partners.
(c) Liability on account of workmen's compensation amounted to ₹ 80,000.
(d) Achla took overstock at ₹ 35,000.
(e) Land and building was to be appreciated by 20%.
Prepare Revaluation Account, Partner's Capital Accounts, and the Balance Sheet of the reconstituted firm on Vihaan's admission.
