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प्रश्न
A and B are partners sharing profits in the ratio of 4 : 3. Their Balance Sheet as at 31st March, 2019 stood as:
| Liabilities | Amount (₹) |
Assets | Amount (₹) |
|
| Sundry Creditors | 28,000 | Cash | 20,000 | |
| Reserve | 42,000 | Sundry Debtors | 1,20,000 | |
| Capital A/cs: | Stock | 1,40,000 | ||
| A | 2,40,000 | Fixed Assets | 1,50,000 | |
| B | 1,20,000 | 3,60,000 | ||
| 4,30,000 | 4,30,000 | |||
They decided that with effect from 1st April, 2019, they will share profits and losses in the ratio of 2 : 1. For this purpose they decided that:
(i) Fixed Assets are to be reduced by 10%.
(ii) A Provision for Doubtful Debts of 6% be made on Sundry Debtors.
(iii) Stock be valued at ₹ 1,90,000.
(iv) An amount of ₹ 3,700 included in Creditors is not likely to be claimed .
Partners decided to record the revised values in the books. However, they do not want to disturb the Reserve. You are required to pass Journal entries, prepare Capital Accounts of Partners and the revised Balance Sheet.
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उत्तर
Journal
|
Date |
Particulars |
L.F. |
Debit Amount (₹) |
Credit Amount (₹) |
|
|
2019 |
|
|
|
|
|
|
|
To B’s Capital A/c |
|
|
|
4,000 |
|
|
(Adjustment of General Reserve on change in profit sharing ratio) |
|
|
|
|
|
|
|
|
|
|
|
Partners’ Capital Accounts
|
Dr. |
Cr. |
|||||
|
Particulars |
A |
B |
Particulars |
A |
B |
|
|
B’s Capital A/c |
4,000 |
– |
Balance b/d |
2,40,000 |
1,20,000 |
|
|
(Adjustment of General Reserve) |
|
|
Revaluation (Profit) |
18,000 |
13,500 |
|
|
Balance c/d |
2,54,000 |
1,37,500 |
A’s Capital A/c |
– |
4,000 |
|
|
|
|
|
(Adjustment of General Reserve) |
|
|
|
|
|
2,58,000 |
1,37,500 |
|
2,58,000 |
1,37,500 |
|
Balance Sheet
as on 01st April, 2019
|
Liabilities |
Amount (₹) |
Assets |
Amount (₹) |
||
|
Sunday Creditors (28,000 –3,700) |
24,300 |
Cash |
20,000 |
||
|
General Reserve |
42,000 |
Sundry Debtors |
1,20,000 |
|
|
|
Capital Account |
|
Less: Provision for Doubtful Debts |
(7,200) |
1,12,800 |
|
|
A |
2,54,000 |
|
Stock |
1,90,000 |
|
|
B |
1,37,500 |
3,91,500 |
Fixed Assets (1,50,000 – 15,000) |
1,35,000 |
|
|
|
4,57,800 |
|
4,57,800 |
||
Working Notes:
WN 1 Calculation of Sacrificing (or Gaining) Ratio
Old Ratio (A and B) = 4 : 3
New Ratio (A and B) = 2 : 1
Sacrificing (or Gaining) Ratio = Old Ratio − New Ratio
A's share = `4/7 -2/3 = (12-14)/21= -2/21`(gain)
B's share = `3/7 -1/3 = (9-7)/21= -2/21`(Sacrifice)
WN 2 Adjustment of General Reserve
Amount to be debited to A's capital = `42,000 xx 2/21 = "Rs" 4,000`
Amount to be credited to B's capital = `42,000 xx 2/21 = "Rs" 4,000`
WN 3
Revaluation Account
|
Dr. |
|
Cr. |
||
|
Particulars |
Amount (₹) |
Particulars |
Amount (₹) |
|
|
Fixed Assets |
15,000 |
Stock |
50,000 |
|
|
Provision for Doubtful Debts (1,20,000 × 6%) |
7,200 |
Creditors |
3,700 |
|
|
Profit transferred to: |
|
|
|
|
|
A’s Capital A/c |
18,000 |
|
|
|
|
B’s Capital A/c |
13,500 |
31,500 |
|
|
|
|
53,700 |
|
53,700 |
|
