The Balance Sheet of Meena and Heena who shared the profits and losses in the ratio of 2 : 1 is as under :
Balance Sheet as on 31st March, 2016
|Capital :||Leasehold property||20,000|
|Rent outstanding||10,000||Debtors 48,000|
|Reserve fund||7,200||Less : R.D.D. 2,000||46,000|
On 1st April, 2016 Seema was admitted as `1/4` th partner on the following terms :
1. Seema should bring in `Rs 1,20,000 towarsds her capital.
2.Firm's goodwill is valued at `Rs 1,44,000 and Seema agreed to bring her share in the firm's goodwill by a cheque.
3.Reserve for doubtful bebts should be maintained at 7.5% on debtors.
4.Increase live stock by `Rs 4,400 and write off loose tools by 20%.
5.Outstanding rent Rs 9,040 is paid in full settlement.
1. Profit and Loss Adjustment Account.
2. Partners' Capital Account .
3. Balance Sheet of the new firm
Ram and Madan were partners in a firm sharing profits and losses equally. Following was their balance sheet as on 31.03.2012:
Balance Sheet as on 31.03.2012
|Capital:||Plant and machinery||90,000|
|Madan||1,00,000||Sundry debtors 92,600|
|General reserve||40,000||Less: R.D.D. 1,600||91,000|
|Cash in hand||4,200|
|Cash at bank||27,100|
On 1st April, 2012, Soham was admitted as a partner in the firm on the following terms:
(1) Soham is to bring in Rs. 1,00,000 as his capital. He is to be given 1/3rd share in future profits.
(2) Goodwill of the firm to be raised at Rs. 30,000. It was decided that ‘goodwill’ should not appear in the books of the new firm.
(3) Furniture to be depreciated by 10%. Stock was valued at `Rs . 70,500.
(1) Profit and Loss Adjustment Account.
(2) Partners’ Capital Accounts.
(3) Balance Sheet of the new firm.
Following is the Trial Balance of Jitesh and Pritesh. The partners share profits and losses equally.
Trial Balance as on 31st March, 2010
Capital - Jitesh
Bills Receivable and Bills Payable
Purchases and Sales
Land and Building
Shares in Bajaj Ltd.
Cash in hand
Sundry Debtors and Creditors
(1) Closing stock was valued at Rs. 75,000.
(2) Depreciate land and building and motor van at 5% p. a.
(3) Insurance is paid for the year ended 31st May, 2010.
(4) Jitesh has taken goods of Rs. 3,000 for his personal use.
(5) Books of Rs. 8,000 were destroyed by fire and the Insurance Company admitted a claim of Rs. 6,400 only.
(6) Commission due but not received Rs. 1,600.
Prepare after taking into account the adjustments: