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Question
Amit and Viney are partners in a firm sharing profits and losses in 3:1 ratio. On 1.1.2017 they admitted Ranjan as a partner. On Ranjan’s admission the profit and loss account of Amit and Viney showed a debit balance of Rs 40,000. Record necessary journal entry for the treatment of the same.
Solution
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Books of Amit, Viney and Ranjan Journal |
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Date |
Particulars |
L.F. |
Amount Rs |
Amount Rs |
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2017 |
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Jan 1 |
Amit’s Capital A/c |
Dr. |
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30,000 |
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Viney’s Capital A/c |
Dr. |
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10,000 |
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To Profit and Loss A/c |
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|
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40,000 |
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(Debit Balance in Profit and Loss Account written off) |
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Balance Sheet of A and B as on March 31, 2016 |
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|
Liabilites |
Amount (Rs) |
Assets |
Amount (Rs) |
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Sundry creditors |
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Reserve fund |
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Capital Accounts |
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|
Land & Building |
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|
Balance Sheet of A and B as on 1.1.2016 |
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|
Liabilites |
Amount Rs |
Assets |
Amount Rs |
|
|
Creditors |
15,000 |
Land & Building |
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|
|
Bills Payable |
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|
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|
|
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|
|
|
Stock |
35,000 |
|
|
|
|
Cash |
5,000 |
|
|
|
1,40,000 |
|
1,40,000 |
|
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