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प्रश्न
Vrushali and Leena are equal partners in the business. Their Balance sheet as on 31 March 2018 stood as under.
| Balance Sheet as on 31 March 2018 | |||||
| Liabilities | Amt. (₹) | Amt. (₹) | Assets | Amt. (₹) | Amt. (₹) |
| Sundry Creditors | 90,000 | 90,000 | Cash in Bank | 62,000 | |
| Capitals: | Debtors | 31,000 | |||
| Vrushali | 45,000 | 75,000 | Less: R.D.D | 1,000 | 30,000 |
| Leena | 30,000 | Building | 55,000 | ||
| General Reserves | 18,000 | Machinery | 24,000 | ||
| Bills Receivable | 12,000 | ||||
| 1,83,000 | 1,83,000 | ||||
They decided to admit Aparna on 1st April 2018 on the following terms:
1. The Machinery and Building be depreciated by 10%. Reserve for Doubtful Debts to be increased by ₹ 5,000
2. Bills Receivable are taken over by Vrushali at the discount of 10%
3. Aparna should bring Rs. 60,000 as capital for her 1/4th share in future profits.
4. The capital accounts of all the partners be adjusted in proportion to the new profit-sharing ratio by opening the current accounts of the partners.
Prepare Profit and Loss Adjustment A/c, Partner’s Capital A/c, Balance sheet of the new firm.
उत्तर
| Dr. | Profit and Loss Adjustment Account | Cr. | ||||
| Particulars | Amount (₹) | Particulars | Amount (₹) | |||
| To Machinery A/c | 2,400 | By Loss on Revaluation | ||||
| To Building A/c | 5,500 | Transferred to Partners’ Capital A/cs : | ||||
| To R.D.D. A/c | 5,000 |
Vrushali |
7,050 |
|||
|
Leena |
7,050 |
14,100 | ||||
| To Bills Receivable A/c (Discount) | 1,200 | |||||
| 14,100 | 14,100 | |||||
| Dr. | Partners’ Capital Accounts | Cr. | |||||||
| Particulars | Vrushali (₹) | Leena (₹) | Aparna (₹) | Particulars | Vrushali (₹) | Leena (₹) | Aparna (₹) | ||
| To Revaluation A/c (Loss) | 7,050 | 7,050 | By Balance b/d | 45,000 | 30,000 | ||||
|
To Bills Receivable A/c |
10,800 | By Bank A/c | 60,000 | ||||||
| To Balance c/d | 90,000 | 90,000 | 60,000 | By General Reserve A/c | 9,000 | 9,000 | |||
| By Partner’s Current A/c | 53,850 | 58,050 | |||||||
| 1,07,850 | 97,050 | 60,000 | 1,07,850 | 97,050 | 60,000 | ||||
| Balance Sheet as on 1st April 2018 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
|
Capital A/cs : |
Cash in Bank | 1,22,000 | |||
|
Vrushali |
90,000 |
|
Debtors |
31,000 |
|
|
Leena |
90,000 |
|
Less : R.D.D. (1000 + 5000) |
6,000 |
25,000 |
|
Aparna |
60,000 |
2,40,000 |
Building |
55,000 |
|
| Sundry Creditors | 90,000 |
Less: Depreciation |
5,500 |
49,500 |
|
|
Machinery |
24,000 |
|
|||
|
Less: Depreciation |
2,400 |
21,600 |
|||
|
Partners’ Current A/cs : |
|
||||
|
Vrushali |
53,850 |
|
|||
|
Leena |
58,050 |
1,11,900 |
|||
| 3,30,000 | 3,30,000 | ||||
Working Notes :
(1) R.D.D. to be increased by ₹ 5,000 means subtract 5,000 from Debtors.
(2) Bills receivable taken by Vrushali at 10 % discount i.e. 12,000 – 1,200 = ₹ 10,800. Write this amount in the debit side of partners Capital Account in Vrushali’s column.
(3) Calculation of new ratio = 1 – share of new partner
= `1 – 1/ 4`
= `3 /4` Remaining share
New ratio = Old ratio × Balance 1 (Remaining Share)
Vrushali’s new ratio = `1/2 xx3/4 = 3/8`
Leena’s new ratio = `1/2 xx3/ 4 = 3/8`
Aparna’s ratio = `1/4`
Partner’s new profit and loss ratio =` 3/8: 3/8: 1/4`
= 3: 3: 2
Now, capital amount to be adjusted in partners new profit and loss ratio.
Total capital of the firm = (Reciprocal of New Partner’s Share) × (New Partner’s Capital)
= (Reciprocal of `1/4` ) × 60,000 = 4 × 60,000 = ₹ 2,40,000
Vrushali’s capital balance =` 3/8 xx2,40,000 = ₹ 90,000`
Leela’s capital balance = `3/8xx2,40,000 = ₹ 90,000`
Deficit of these capital balance are to be adjusted through Current account.
To keep balance of Vrushali’s and Leena’s capital ₹ 90,000 each, deficit of ₹ 53,850 and ₹ 58,050 are incurred which is transferred to respective Partner’s Current A/cs and recorded on Asset side of Balance Sheet [As it is to be recovered from Partners].
APPEARS IN
संबंधित प्रश्न
Mrs Shehal and Mrs Meenal are equal partners in a business. Their balance sheet is as follows.
| Balance Sheet as on 31st March 2013 | |||
| Liabilities | Amount Rs. | Assets | Amount Rs. |
|
Capital A/c's Snehal 80,000 Meenal 45,000 Creditors General reserve
|
1,25,000 46,000 20,000
|
Premises Investments Equipments Bills Receivable Debtors 1,10,000 ( - ) R.D.D. 11,000 Bank Balance |
20,500 10,500 5,000 18,000
99,000 38,000 |
| 1,91,000 | 1,91,000 | ||
They agreed to admit Mr Komal on 1st April 2013 on the following terms:
(1) Komal should bring Rs. 50,000 towards her capital for one fourth (1/4th) Share in future profit.
(2) Goodwill to be raised in the books of the firm for Rs. 40,000.
(3) R.D.D. to be maintained at 5% on debtors.
(4) Premises to be valued at Rs. 30,000 and equipment to be written off fully.
(5) Creditors allowed a discount of Rs. 1,000 and they were paid off immediately.
Prepare Profit and Loss Adjustment Account, Partner's Capital Accounts and Balance Sheet of the new firm.
The gradual and permanent decrease in the value of fixed assets due to any cause.
Write the word/term or phrase which can substitute the following statement.
The account which shows change in the values of assets.
Write the word/term or phrase which can substitute the following statement.
Credit balance on revaluation account.
State 'True' or 'False'
Profit on revaluation account is distributed between the old partners on admission of a partner.
State 'True' or 'False'.
The credit balance of revaluation account means loss on revaluation account.
__________ is credited when an unrecorded asset is brought into the business.
If the asset is taken over by the partner ______ account is debited.
Write a word/phrase/term which can substitute the following statement.
An account opened to adjust the value of assets and liabilities at the time of admission of a partner.
Write a word/phrase/term which can substitute the following statement.
An account that is debited when the partner takes over the asset.
Write a word/phrase/term which can substitute the following statement.
Profit and Loss Account balance appearing on the liability side of the Balance Sheet.
Anika and Radhika are partners sharing profits in the ratio of 5:1. They decide to admit Sanika in the firm for `1/5`th share. calculate the sacrifice ratio of Anika and Radhika
Pramod and Vinod are partners sharing profits and losses in the ratio of 3:2. After the admission of Ramesh the new ratio of Pramod, Vinod and Ramesh is 4:3:2. Find out the sacrifice ratio.
What does the excess of debit over credits in the Profit and Loss Adjustment Account indicate?
The stock showed in Balance Sheet → Stock undervalued by 20% → Cost of Stock
₹1,60,000 → __________→ __________
Amalendu and Sameer share profits and losses in the ratio 3:2 respectively Their balance sheet as on 31st March 2017 was as under.
Balance Sheet as on 31st March 2017
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Sundry Creditors | 10,000 | Cash at bank | 12,000 |
| Amlendu capital | 60,000 | Sundry debtors | 24,000 |
| Sameer capital | 40,000 | Land & Building | 50,000 |
| General reserve | 20,000 | Stock | 16,000 |
| Plant and machinery | 20,000 | ||
| Furniture & fixture | 8,000 | ||
| 1,30,000 | 1,30,000 |
On 1st April 2017, they admit Paresh into partnership. The term being that:
- He shall pay ₹16,000 as his share of Goodwill 50% amount of Goodwill shall be withdrawn by the old partners.
- He shall have to bring in ₹ 20,000 as his Capital for 1/4 share in future profits.
- For the purpose of Paresh’s admission, it was agreed that the assets would be revalued as follows.
A) Land and Building is to be valued at ₹ 60,000
B) Plant and Machinery to be valued at ₹ 16,000
C) Stock valued at ₹ 20,000 and Furniture and Fixtures at ₹ 4,000.
D) A Provision of 5% on Debtors would be made for Doubtful Debts.
Pass the necessary Journal Entries in the Books of a New Firm.
Mr. Deep & Mr. Karan were in Partnership sharing Profits & Losses in the proportion of 3:1 respectively. Their Balance Sheet On 31st March 2018 Stood as follows.
| Balance Sheet as on 31st March, 2018 | |||||
| Liabilities | Amount (₹) | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Sundry Creditors | 40,000 | Cash | 40,000 | ||
| Bill Payable | 10,000 | Sundry debtors | 32,000 | ||
| Bank Overdraft | 11,000 | Land & Building | 16,000 | ||
| Capital A/c: | Stock | 20,000 | |||
| Deep | 60,000 | Plant and machinery | 30,000 | ||
| Karan | 20,000 | 80,000 | Furniture | 11,000 | |
| General Reserve | 8,000 | ||||
| 1,49,000 | 1,49,000 | ||||
They admit Shubham into Partnership on 1 April 2018 The term being that:
- He shall have to bring in ₹ 20,000 as his capital for 1/5 Share in future profits & 10,000 as his share of Goodwill.
- A Provision for 5% doubtful debts to be created on Sundry Debtors.
- Furniture to be depreciated by 20%
- Stock should be appreciated by 5% and Building be appreciated by 20%
- Capital A/c of all partners be adjusted in their new profit sharing ratio through cash account.
Prepare Profit and Loss Adjustment A/c, Partner’s Capital A/c, Balance sheet of the new firm.
Mr. Amit and Baban share profits and losses in the ratio 2:3 respectively. Their balance sheet as on 31st March 2018 was as under
| Balance Sheet as On 31st March 2018 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | 1,40,000 | Cash | 110,000 |
| Capital: | Land and Building | 50,000 | |
| Amit | 100,000 | Plant | 60,000 |
| Baban | 100,000 | Furniture | 4,000 |
| Stock | 100,000 | ||
| Debtors | 16,000 | ||
| 3,40,000 | 3,40,000 | ||
They agreed decided to admit Kamal on 1st April 2018 on the following terms:
1. Kamal shall have 1/4th share in future profits.
2. They agreed to admit Kamal as a partner on 1st April 2018 on the following terms:
3. She shall bring 50,000 as her capital and 40,000 as her share of goodwill.
4. Land and building to be valued at 60,000 and furniture to be depreciated by 10%
5. Provision for bad and doubtful debts is to be maintained at 5% on the sundry debtors.
6. Stocks to be valued 1,10,000 The capital A/c of all partners to be adjusted in their new profit and loss ratio and excess amount be transferred to their loan accounts.
Prepare profit and loss adjustment A/c, Capital A/cs, and New Balance Sheet.
The following is the Balance Sheet of Om and Jay on 31st March 2018, they share profits and losses in the ratio 3:2
| Balance Sheet As On 31st March 2018 |
|||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Creditors | 30,000 | Cash | 3,000 |
| Capital A/c | Building | 15,000 | |
| Om | 21,000 | Machinery | 21,000 |
| Jay | 21,000 | Furniture | 900 |
| Current A/c | Stock | 12,300 | |
| Om | 3,750 | Debtors | 27,000 |
| Jay | 3,450 | ||
| 79,200 | 79,200 | ||
They take Jagdish into partnership on 1st April 2018 the terms being
1. Jagdish should pay 3,000 as his share of Goodwill. 50% of goodwill withdrawn by partners in cash.
2. He should bring 9,000 as capital for 1/4th share in future profits.
3. Building to be valued at 18,000, Machinery and Furniture to be reduced by 10%
4. A Provision of 5% on debtors to be made for doubtful debts.
5. Stock is to be taken at a value of 15,000.
Prepare profit and loss A/c, Partner’s Current A/c, Balance Sheet of the new firm
On revaluation, the increase in the value of assets leads to _________.
At the time of admission, the goodwill brought by the new partner may be credited to the capital accounts of __________.
What is meant by the revaluation of assets and liabilities?
State whether the following will be debited or credited in the revaluation account.
- Depreciation on assets
- Unrecorded liability
- Provision for outstanding expenses
- Appreciation of assets
Seenu and Siva are partners sharing profits and losses in the ratio of 5 : 3. In view of Kowsalya admission, they decided
- To increase the value of building by ₹ 40,000.
- To bring into record investments at ₹ 10,000, which have not so far been brought into account.
- To decrease the value of machinery by ₹ 14,000 and furniture by ₹ 12,000.
- To write off sundry creditors by ₹ 16,000.
Pass journal entries and prepare a revaluation account.
Sai and Shankar are partners, sharing profits and losses in the ratio of 5 : 3. The firm’s balance sheet as on 31st December, 2017, was as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ | ₹ |
| Capital accounts: | Building | 34,000 | |||
| Sai | 48,000 | Furniture | 6,000 | ||
| Shankar | 40,000 | 88,000 | Investment | 20,000 | |
| Creditors | 37,000 | Debtors | 40,000 | ||
| Outstanding wages | 8,000 | Less: Provision for bad debts | 3,000 | 37,000 | |
| Bills receivable | 12,000 | ||||
| Stock | 16,000 | ||||
| Bank | 8,000 | ||||
| 1,33,000 | 1,33,000 |
On 31st December, 2017 Shanmugam was admitted into the partnership for 1/4 share of profit with ₹ 12,000 as capital subject to the following adjustments.
- Furniture is to be revalued at ₹ 5,000 and building is to be revalued at ₹ 50,000.
- Provision for doubtful debts is to be increased to ₹ 5,500
- An unrecorded investment of ₹ 6,000 is to be brought into account
- An unrecorded liability ₹ 2,500 has to be recorded now.
Pass journal entries and prepare the Revaluation Account and capital account of partners after admission.
The following is the balance sheet of James and Justina as on 1.1.2017. They share the profits and losses equally
| Liabilities | ₹ | ₹ | Assets | ₹ |
| Capital accounts: | Building | 70,000 | ||
| James | 40,000 | Stock | 30,000 | |
| Justina | 50,000 | 90,000 | Debtors | 20,000 |
| Creditors | 35,000 | Bank | 15,000 | |
| Reserve fund | 15,000 | Prepaid insurance | 5,000 | |
| 1,40,000 | 1,40,000 |
On the above date, Balan is admitted as a partner with a 1/5 share in future profits. Following are the terms for his admission:
- Balan brings ₹ 25,000 as capital.
- His share of goodwill is ₹ 10,000 and he brings cash for it.
- The assets are to be valued as under:
Building ₹ 80,000; Debtors ₹ 18,000; Stock ₹ 33,000
Prepare necessary ledger accounts and the balance sheet after admission.
Anbu and Shankar are partners in a business sharing profits and losses in the ratio of 7 : 5. The balance sheet of the partners on 31.03.2018 is as follows:
| Liabilities | ₹ | ₹ | Assets | ₹ |
| Capital accounts: | Computer | 40,000 | ||
| Anbu | 4,00,000 | Motor car | 1,60,000 | |
| Shankar | 3,00,000 | 7,00,000 | Stock | 4,00,000 |
| Profit and loss | 1,20,000 | Debtors | 3,60,000 | |
| Creditors | 1,20,000 | Bank | 40,000 | |
| Workmen compensation fund | 60,000 | |||
| 10,00,000 | 10,00,000 |
Rajesh is admitted for 1/5 share on the following terms:
- Goodwill of the firm is valued at ₹ 80,000 and Rajesh brought cash ₹ 6,000 for his share of goodwill.
- Rajesh is to bring ₹ 1,50,000 as his capital.
- Motor car is valued at ₹ 2,00,000; stock at ₹ 3,80,000 and debtors at ₹ 3,50,000.
- Anticipated claim on workmen compensation fund is ₹ 10,000
- Unrecorded investment of ₹ 5,000 has to be brought into account.
Prepare revaluation account, capital accounts and balance sheet after Rajesh’s admission.
At the time of admission of a partner, what will be the effect of the following information?
Balance in Workmen compensation reserve ₹40,000. Claim for workmen compensation ₹45,000.
A revaluation account is operated to find out the gain or loss at the time of ______
The account which is prepared to adjust the increase or decrease in the value of assets at the time of admission of a partner is called:
Balance in the Investment Fluctuation Reserve, after meeting the loss on revaluation of Investments, at the time of admission of a partner will be transferred to:
Which account will be prepared to record the adjusting amount of assets and liabilities?
Karan and Saran are partners in a partnership. They admitted Mohit as a new partner for `1/4`th share in profits.
| Balance Sheet [Extract] | |||
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
| Creditors | 25,000 | ||
If 5% of creditors are not likely to claim their dues, what amount of creditors will be shown in the Balance Sheet on Mohit's admission?
If at the time of admission, there is some unrecorded liability, it will be:
Assertion (A): At the time of admission of a partner if there is any General Reserve, Reserve Fund or the balance of Profit & Loss Account appearing in the balance sheet, it should be transferred to old partners' capital/current accounts in their old profit sharing ratio.
Reason (R): The General reserve, Reserve Fund or the Balance of Profit and Loss Account are the result of the past profits when the new partner was not admitted.
Navya and Radhey were partners sharing profits and losses in the ratio of 3 : 1. Shreya was admitted for 1/5th share in the profits. Shreya was unable to bring her share of goodwill premium in cash. The journal entry recorded for goodwill premium is given below:
| Date | Particulars | LF | Debit (₹) | Credit (₹) |
| Shreya’s Current A/c Dr. | 24,000 | |||
| To Navya’s Capital A/c | 8,000 | |||
| To Radhey’s Capital A/c | 16,000 | |||
| (Being entry for goodwill treatment passed) |
The new profit-sharing ratio of Navya, Radhey and Shreya will be ______.
Ganga and Jamuna are partners sharing profits in the ratio of 2 : 1. They admit Saraswati for 1/5th share in future profits. On the date of admission, Ganga’s capital was ₹ 1,02,000 and Jamuna’s capital was ₹ 73,000. Saraswati brings ₹ 25,000 as her share of goodwill and she agrees to contribute proportionate capital to the new firm. How much capital will be brought by Saraswati?
Following is the Balance Sheet of Mukesh and Anil sharing profit and losses in the ratio of 3:2 as on 31st March, 2019.
| Balance Sheet as on 31st March, 2019 | |||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
| Capital A/c: | Building | 72,000 | |||
| Mukesh | 80,000 | 1,80,000 | Plant & Machinery | 60,000 | |
| Anil | 1,00,000 | Stock | 48,000 | ||
| Sundry Creditors | 60,000 | Debtors | 42,000 | 40,000 | |
| Bills Payable | 10,000 | Less: RDD | 2,000 | ||
| Bank | 20,000 | ||||
| Furniture | 10,000 | ||||
| 2,50,000 | 2,50,000 | ||||
On 1st April, 2019 Neeta is admitted on the following terms:
- She will pay ₹ 1,00,000 of her capital and ₹ 40,000 as her share of Goodwill.
- The new profit sharing ratio is to be 5 : 3 : 2.
- The assets are to be revalued as under: Building ₹ 1,00,000, Plant & Machinery ₹ 48,000.
- RDD to be increased up to ₹ 4,000.
- The old partners decided to retain half of the amount of goodwill in the business.
- Sundry creditors should be revalued at ₹ 66,000.
Give Revaluation Account, Capitals Accounts and Balance Sheet of New firm.
Radhika and Vijay were in Partnership Sharing profits & Losses in proportion of 3:2 respectively. Their Balance Sheet as on 31st March, 2020 stood as follows.
| Balance Sheet as on 31st March, 2020 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | |
| Capital A/cs: | Premises | 2,80,000 | ||
| Radhika | 2,00,000 | 3,20,000 | Furniture and Fixture | 22,800 |
| Vijay | 1,20,000 | Stock | 54,000 | |
| Current A/cs: | Debtors | 18,200 | ||
| Radhika | 2,400 | 5,200 | Cash at bank | 2,200 |
| Vijay | 2,800 | |||
| Loan from Omkar Balu | 40,000 | |||
| Creditors | 12,000 | |||
| 3,77,200 | 3,77,200 | |||
On 1st April, 2019 Omkar was admitted to the firm on the following terms:
- Premises were to be valued at ₹ 3,40,000 and Furniture and Fixtures at ₹ 20,800. A provision for Bad debts on 2,000 was to be made. Stock should be revalued at ₹ 58,000.
- Omkar Should bring in ₹ 80,000 as Capital and ₹ 20,000 as his share of goodwill and it was retained in the business and he should be given one-fourth share in the future profits.
- The Loan from Omkar Balu was repaid through NEFT.
Prepare Revaluation Account, Partners Current Accounts and Balance sheet of the New firm.
A, B and C who were sharing profits and losses in the ratio of 4:3:2 decided to share the future profits and losses in the ratio to 2:3:4 with effect from 1st April 2023. An extract of their Balance Sheet as at 31st March 2023 is:
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Workmen Compensation Reserve | 65,000 |
At the time of reconstitution, a certain amount of Claim on workmen compensation was determined for which B’s share of loss amounted to ₹ 5,000. The Claim for workmen compensation would be:
X and Y are partners in a firm with capital of ₹ 18,000 and ₹ 20,000. Z brings ₹ 10,000 for his share of goodwill and he is required to bring proportionate capital for 1/3rd share in profits. The capital contribution of Z will be ______.
Hansa and Kavya share profits and losses in the ratio of 3: 2 respectively. Their Balance Sheet as on 31st March, 2023 was as under:
| Balance Sheet as on 31st March, 2023 | |||
| Liabilities | Amount (₹) | Assets | Amount (₹) |
| Bills Payable | 90,000 | Cash at Bank | 1,500 |
| Reserve fund | 60,000 | Sundry Debtors | 1,33,500 |
| Capital A/c: | Stock | 51,000 | |
| Hansa | 2,16,000 | Furniture | 72,000 |
| Kavya | 1,44,000 | Plant | 1,80,000 |
| Building | 72,000 | ||
| 5,10,000 | 5,10,000 | ||
They admit Munir into partnership on 1-4-2023. The terms being that:
(1) He shall have to bring in ₹ 1,20,000 as his Capital for 1/4th share in future profits.
(2) Value of Goodwill of the firm is to be fixed at the average profits for the last three years.
The Profits were:
| 2019-20 | ₹ 96,000 |
| 2020-21 | ₹ 1,62,000 |
| 2021-22 | ₹ 1,47,000 |
(3) Reserve for Doubtful debts is to be created at ₹ 3,000.
(4) Closing stock is valued at ₹ 45,000.
(5) Plant and Building is to be depreciated by 5%.
Prepare Profit and Loss Adjustment Alc, Capital Accounts of Partners and Balance Sheet of the new firm.
The following is the Balance Sheet of Vivaan and Vihaan sharing Profits and Losses in the ratio of 3 : 2 as on 31 March, 2023.
| Balance Sheet as on 31st March, 2023 | ||||
| Liabilities | Amount (₹) | Assets | Amount (₹) | Amount (₹) |
| Capital Accounts: | Building | 1,08,000 | ||
| Vivaan | 1,20,000 | Plant and Machinery | 90,000 | |
| Vihaan | 1,50,000 | Stock | 72,000 | |
| Sundry Creditors | 90,000 | Debtors | 63,000 | 60,000 |
| Bank Overdraft | 15,000 | Less: R.D .D. | 3,000 | |
| Bank | 30,000 | |||
| Investments | 15,000 | |||
| 3,75,000 | 3,75,000 | |||
On 1-4-2023, Prihaan is admitted on the following terms:
(1) He is to pay ₹ 1,50,000 as his capital and ₹ 60,000 as his share of Goodwill.
(2) The new profit sharing ratio is to be 5 : 3 : 2.
(3) The assets are to be revalued as under:
Building ₹ 1,50,000, Plant and Machinery ₹ 72,000.
(4) R.D.D. to be increased up to ₹ 6,000
(5) The old partners decided to keep half of the amount of goodwill in the business.
(6) Sundry creditors are to be revalued at ₹ 99,000.
Prepare Revaluation Account, Capital Accounts of Partners and Balance Sheet of new [um.
Seeta and Geeta share profits and losses in the ratio of 3:2 in Partnership Firm. Their Balance Sheet as on 31st March, 2020 was as under:
Balance Sheet as on 31st March, 2020
| Liabilities | Amount (₹) | Assets | Amount (₹) | ||
| Capitals: | 40,500 | Bank | 11,250 | ||
| Seeta | 22,500 | Bills Receivable | 5,700 | ||
| Geeta | 18,000 | Debtors | 31,200 | 30,000 | |
| Creditors | 18,750 | (-) R.D.D. | 1,200 | ||
| Biil Payable | 15,000 | Stock | 18,000 | ||
| Bank Loan | 24,000 | Furniture | 7,050 | ||
| General Reserve | 3,750 | Machinery | 7,500 | ||
| Building | 22,500 | ||||
| 1,02,000 | 1,02,000 |
On 1st April, 2020 they admitted Reeta on the following terms:
- For half (1/2) share in future profit Reeta should bring ₹ 15,000 as capital and ₹ 7,500 for goodwill in cash.
- Furniture should be appreciated up to ₹ 8,025 and building be appreciated by 20%.
- R.D.D. is to be maintained at ₹ 1,500.
- The stock is to be reduced by 10% and machinery depreciated by 5%.
- Half of amount of goodwill is withdrawn by old partners.
Pass the necessary Journal Entries in the books of the firm.
