21 ending March 31st 2020- Gautam and Yashica are partners in a firm- sharing profits and losses in 3-1 respectively- The balance sheet of the firm as on 31st March 2018 was as follows- Balance Sheet As 31-3-2018 Liabilities Amt- Assets Amt- Sundry creditors 50-000 Furniture 60-000 Bills payable 30-000 Stock 1-40-000 Capitals Debtors 80-000 Gautam 4-00-000 Cash in hand 90-000 Yashica 1-00-000 Machinery 2-10-000 5-00-000 5-80-000 5-80-000 Asma is admitted as a partner 3-8- share in the profits with a capital of 2-10-000 and 50-000 her share of goodwill- It was decided that- i- New profit sharing ratio will be 3-2-3 V Machinery will depreciated by 10- and Furniture by -5-000- Stock was re-valued 2-10-000- Provision doubtful debts is to be created 10- of debtors- V- The capitals of all the partners were to be in the new profit sharing ratio on basis of capital of new partner any adjustment to be done through current accounts- Prepare Revaluation Account- Partners Capital Account and the Balance Sheet of the new firm- iv-

Solve

Guides

You visited us 0 times! Enjoying our articles? Unlock Full Access!

Question

21 ending March 31st 2020. Gautam and Yashica are partners in a firm, sharing profits and losses in 3:1 respectively. The balance sheet of the firm as on 31st March 2018 was as follows: Balance Sheet As at 31.3.2018 Liabilities Amt) Assets Amt() Sundry creditors 50,000 Furniture 60,000 Bills payable 30,000 Stock 1,40,000 Capitals Debtors 80,000 Gautam 4,00,000 Cash in hand 90,000 Yashica 1,00,000 Machinery 2,10,000 5,00,000 5,80,000 5,80,000 Asma is admitted as a partner for 3/8" share in the profits with a capital of 2,10,000 and 50,000 for her share of goodwill. It was decided that: i. New profit sharing ratio will be 3:2:3 V Machinery will depreciated by 10% and Furniture by *5,000. Stock was re-valued at 2,10,000. Provision for doubtful debts is to be created at 10% of debtors. V. The capitals of all the partners were to be in the new profit sharing ratio on basis of capital of new partner any adjustment to be done through current accounts. Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the new firm. iv.

Open in App

Solution

Verified by Toppr

Was this answer helpful?

Similar Questions

Rajesh and Ravi are partners sharing profits in the ratio of 3: 2 . Their Balance Sheet at 31st March , 2018 stood as:

BALANCE SHEET as at 31st March, 2018
Liabilities		₹	Assets		₹
Creditors		38,500	Cash		2,000
Outstanding Rent		4,000	Stock		15,000
Capital A/cs:			Prepaid Insurance		1,500
			Debtors	9,400
			Less : Provision for D.D.	400	9,000
Rajesh	29,000
Ravi	15,000	44,000
			Machinery		19,000
			Building		35,000
			Furniture		5,000
		86,500			86,500

Raman is admitted as a new partner introducing a capital of ₹ 16,000. The new profit-sharing ratio is decided as 5 : 3 : 2 . Raman is unable to bring in any cash for goodwill . So it is decided to value the goodwill on the basis of Raman's share in the profits and the capital contributed by him. Following revaluation s are made
(a) Stock to depreciate by 5% ;
(b) Provision for Doubtful Debts is to be ₹ 500;
(c) Furniture to depreciate by 10% ;
(d) Building is valued at ₹ 40,000.
Show necessary Ledger Accounts and Balance Sheet of new firm.

View Solution

X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4 . Their Balance Sheet as at 31st March, 2018 is:


Liabilities		₹	Assets	₹
Capital A/cs:			Land and Building	1,25,000
X	1,50,000		Furniture	5,000
Y	80,000	2,30,000	Stock	1,00,000
Workmen Compensation Reserve		20,000	Sundry Debtors	80,000
Sundry Creditors		1,50,000	Bills Receivable	15,000
Bills Payable		37,500	Cash at Bank	1,00,000
			Cash in Hand	12,500
		4,37,500		4,37,500

They admit Z into partnership on 1st April, 2018 on the following terms:
(a) Goodwill is to be valued at ₹ 1,00,000.
(b) Stock and Furniture to be reduced by 10%.
(c) A Provision for Doubtful Debts is to be created @ 5% on Sundry Debtors .
(d) The value of Land and Building is to be appreciated by 20%.
(e) Z pays ₹ 50,000 as his capital for 1/5th share in the future profits.
You are required to show Revaluation Account , Partners' Capital Accounts and Balance Sheet of the new firm.

Note: Z's Share of Goodwill ₹ 20,000 (i.e, ₹ 1,00,000

\times

1/5 ) can be adjusted through Z's Current A/c. In that situation, Partners' Capital A/cs: X

—

₹ 1,87,875; Y

—

₹ 92,625; Z

—

₹ 50,000; Z's Current A/c (Dr.)

—

₹ 20,000; Balance Sheet Total

—

₹ 5,18,000.

View Solution

Rajesh and Ravi are partners sharing profits in the ratio of 3 : 2. Their Balance Sheet at 31st March, 2019 stood as:

BALANCE SHEET as at 31st March, 2019
Liabilities		₹	Assets		₹
Creditors		38,500	Cash		2,000
Outstanding Rent		4,000	Stock		15,000
Capital A/cs:			Prepaid Insurance		1,500
Rajesh	29,000		Debtors	9,400
Ravi	15,000		Less : Provision for Doubtful Debts	400	9,000
			Machinery		19,000
			Building		35,000
			Furniture		5,000
		86,500			86,500

Raman is admitted as a new partner introducing a capital of ₹ 16,000. The new profit-sharing ratio is decided as 5 : 3 : 2. Raman is unable to bring in any cash for goodwill. So, it is decided to value the goodwill on the basis of Raman's share in the profits and the capital contributed by him. Following revaluations are made:
(a) Stock to decrease by 5%;
(b) Provision for Doubtful Debts is to be ₹ 500;
(c) Furniture to decrease by 10%;
(d) Building is valued at ₹ 40,000.
Show necessary Ledger Accounts and Balance Sheet of new firm.

View Solution

Raghu and Rishu are partners sharing profits in the ratio 3 : 2. Their Balance Sheet as at 31st March, 2009 was as follows:

BALANCE SHEET OF RAGHU AND RISHU
as at 31st March, 2009
Liabilities		₹	Assets		₹
Creditors		86,000	Cash in Hand		77,000
Employees' Provident Fund		10,000	Debtors	42,000
Investments Fluctuation Reserve		4,000	Less: Provision for Doubtful Debts	7,000	35,000
Capital A/cs:			Investments		21,000
Raghu	1,19,000		Buildings		98,000
Rishu	1,12,000	2,31,000	Plant and Machinery		1,00,000

		3,31,000			3,31,000

Rishabh was admitted on that date for 1/4th share of profit on the following terms:
(a) Rishabh will bring ₹ 50,000 as his share of capital.
(b) Goodwill of the firm is valued at ₹ 42,000 and Rishabh will bring his share of goodwill in cash.
(c) Buildings were appreciated by 20%.
(d) All Debtors were good.
(e) There was a liability of ₹ 10,800 included in Creditors which was not likely to arise.
(f) New profit-sharing ratio will be 2 : 1 : 1.
(g) Capital of Raghu and Rishu will be adjusted on the basis of Rishabh's share of capital and any excess or deficiency will be made by withdrawing or bringing in cash by the concerned partners as the case may be.
Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm.

View Solution

Q. 28. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2015 they admitted Chintu into partnership for 1/5th share in the profits Of the firm.
On that date their Balance Sheet stood as under:

Liabilities	Amount	Assets	Amount
Abha Capital A/c:	120000	Plant and Machinery	130000
Bimal Capital A/c:	100000	Furniture	25000
General Reserve	20000	Investment	100000
Sundry Creditors	100000	Sundry Debtors	50000
		Bank	35000
	340000		340000

Chintu was admitted on the following terms:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.

Prepare the Capital Accounts of the partners and Bank Account.

View Solution