हिंदी

Keshav and Madhav Were Partners Sharing the Profits and Losses in the Ratio of 2:3. Their Balance Sheet is as Follows: - Book Keeping and Accountancy

Advertisements
Advertisements

प्रश्न

Keshav and Madhav were partners sharing the profits and losses in the ratio of 2:3. Their Balance Sheet is as follows:

                 Balance Sheet as on 31st March, 2011

Liabilities Amount (Rs) Assets Amount (Rs)
Capital Accounts :   Live stock 20000
Keshav 250000 Building 138000
Madhav 260000 Investment 45000
Creditors 8500 Loose Tools 38000
    Debtors 90000 72000
  (-)R.D.D 18000
  Profit and Loss A/c 15000
  Closing Stock 104500
  Cash in Hand 86000
  518500   518500

On 1st April, 2011 they admitted Uddhav on the following terms:

1) The new profit sharing ratio is equal.

2) Uddhav brings Rs 2,00,000 as his capital and Rs 80,000 as share of goodwill in cash.

3) Prepaid insurance of Rs 7,500 was not recorded in the books.

4) Loose tools were found undervalued by 5% and Building was found overvalued by 15% in the books.

5) All debtors are considered as good and out of creditors Rs 500 is no longer payable.

6) The market Value of Investment is 50% more than its book value.

Prepare, Profit and Loss Adjustment in A/c, Capital Accounts of partners and Balance Sheet of the new firm.

खाता बही
Advertisements

उत्तर

                     Profit and Loss Adjustment Account
Dr.                                                                                           Cr.

Particulars Amount (Rs) Particulars Amount (Rs)
Building 18000 Prepaid Insurance 7500
Profit transferred to:   Loose Tools 2000
Keshav's Capital 13000   Reserve for Debtors 18000
Madhav's
Capital
19500   Investments 22500
      Creditors 500
  50500   50500

                         

                        Partners' Capital Accounts
Dr.                                                                                        Cr.

Particulars Keshav Mashav Uddhav Particulars Keshav Mashav Uddhav
Profit and Loss A/c (Dr.) 6000 9000   Balance b/d 250000 260000  
Balance c/d 273000 334500 200000

Profit and Loss Adjustment (Profit)

13000 19500  
        Cash     200000
      Premium for Goodwill 16000 64000  
  279000 343500 200000   279000 343500 200000
 
Balance Sheet
as on April 01, 2011 after Uddhav’s admission 
Liabilities Amount (Rs) Assets Amount
(Rs)
Creditors 8000 Live Stock 20000
Capital:   Building 1,20,000
Keshav 273000 807500 Investments 67,500
Madhav 334500 Loose Tools 40,000
Uddhav 200000 Debtors 90,000
    Prepaid Insurance 7500
  Closing Stock 104500
  Cash 366000
  815500   815500

Working Notes:

New profit sharing ratio of keshav , Madhav and Uddhav = 1:1:1

Old ratio of Keshav and Madhav = 2 : 3

Sacrificing Ratio = Old Ratio - New Ratio

Keshav's Sacrifice = `2/5 - 1/3 = 1/15`

Madhav's Sacrifice = `3/5 - 1/3 = 4/15`

Sacrificing Ratio = 1 : 4

WN 1: Distribution of Profit and Loss A/c (Dr.) 

Keshav will get = `15000 xx 2/5 = "Rs." 6000`

Madhav's will get = `15000 xx 3/5 = "Rs." 9000`

WN 2: Distribution of Uddhav’s Share of Goodwill 

Keshav will get = `80000 xx 1/5 = "Rs." 16000`

Madhav will get = `80000 xx 4/5 = "Rs." 64000`

WN 3: Cash Account 

Cash Account
Dr.                                                                                         Cr.

Particulars Amount (Rs) Particulars Amount (Rs)
Balance b/d 86000 Balance c/d 366000
Premium for Goodwill 80000    
Uddhav’s Capital A/c 200000  
  366000   366000
shaalaa.com
  क्या इस प्रश्न या उत्तर में कोई त्रुटि है?
अध्याय 2: Partnership Final Accounts - Practical Problems [पृष्ठ ११०]

APPEARS IN

मायकल वाझ Book Keeping and Accountancy [English] 12 Standard HSC Maharashtra State Board
अध्याय 2 Partnership Final Accounts
Practical Problems | Q 5 | पृष्ठ ११०

वीडियो ट्यूटोरियलVIEW ALL [1]

संबंधित प्रश्न

Write a short note on E-Commerce ?


What do you mean by intangible asset?

Write the word/phrase/term, which can substitute the following sentence.

Debit balance of trading account.


Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

Trial Balance as on 31st March, 2010
Particulars Amount
(Rs.)
Particulars Amount
(Rs.)
Opening stock 20,000 Capital A/c's  
Purchases 30,000 Sanjay 40,000
Debtors 12,000 Sudhir 30,000
Wages 5,000 Sales 70,000
Salaries 10,000 Sundry Creditors 21,000
Land and building 30,000 Bills Payable 20,000
Plant and machinery 25,000 Discount 5,000
Furniture 16,000 Outstanding Rent 1,500
Advertisement (for 2 years) 6,000    
Bills Receivable 8,000    
Insurance 2,000    
Drawings:      
Sanjay 2,000    
Sudhir 3,000    
Cash in hand 5,500    
Rent 10,000    
Power and Fuel 3,000    
  1,87,500   1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

6) Provide interest on Partners Capital at 5% p.a.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.


From the following Trial Balance of M/s Mahesh and Umesh, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2013 and Balance Sheet as on that date. Profit sharing ratio of Mahesh and Umesh was 3/5th and 2/5th respectively.

Trial Balance as on 31st March, 2013
Debit Balance Amount (₹) Credit Balance Amount (₹)
Investments 56,000 Capital A/c:  
Carriage 7,000 Mahesh 1,62,000
Loose Tools 17,000 Umesh 1,08,000
Building 1,50,000 Current A/c:  
Salary 13,000 Mahesh 16,200
Audit fees 8,500 Umesh 10,800
Opening stock 83,000 Sundry Creditors 99,000
Wages 7,500 Sales 4,20,000
Purchases 1,97,000 Bank Overdraft 56,400
Motive Power 15,000    
Bad Debts 6,400  
Printing and Stationery
4000  
Debtors 96,000  
Cash at Bank 52,000  
Machinery 72,000  
Motor Van 88,000  
  8,72,400   8,72,400

Adjustments:

1) Stock on hand on 31st March, 2013 was valued at Rs 76,000.

2) Interest on partner’s capital at 5% p.a. was allowed.

3) Goods worth Rs 2,000 and Rs 1,500 withdrawn by Mahesh and Umesh respectively for their personal use.

4) Mahesh is entitled to get salary of Rs 6,500 and Umesh is to be given 20% commission on sales.

5) Rs. 2,500 due from customer is not recoverable.

6) Depreciate Motor Van at 8% p.a. and Building at 7% p.a.


Ashok and Sangmesh are in partnership sharing profit and losses in the ratio of 2 : 1. From the following trial balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended on 31st March 2016 and Balance sheet as on that date:

Trial Balance as on 31st March 2016
Particulars Debit Amount
(₹)
Credit Amount (₹)
Prepaid insurance 3,200  
Insurance 8,000  
R.D.D.   4,000
Discount 3,200  
Postage and telephone 12,800  
Debtors and creditors 2,64,000 2,72,000
Salaries 2,24,000  
Wages 96,000  
Opening stock 1,92,000  
Carriage 4,000  
Purchased and sales 7,72,800 12,06,400
Return inward/Outward 22,400 36,800
Bank Overdraft   4,83,200
Plant and Machinery 96,000  
Land and Building 7,04,000  
Partner's Capital accounts:    
Ashok   2,08,000
Sangmesh   1,92,000
  24,02,400 24,02,400

Adjustment:

  1. Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
  2. Goods worth Rs. 16,000 were distributed as free samples.
  3. Closing stock on 31st March 2016 was valued at the cost of Rs. 2,24,000 while its market price was Rs. 2,40,000.
  4. The salaries were outstanding at Rs. 8,000.
  5. Depreciation: Land and Building @ 5% p.a. and Plant and Machinery @ 10 % p.a.

Darshan and Amar were partners sharing profit and losses in the proportion of 2: 1. Their balance sheet is as follows:

Balance sheet as on 31st March 2016

Liabilities Amt(Rs) Amt(Rs) Assets Amt(Rs) Amt(Rs)
Capital A/cs:     Building   1,00,000
Darshan 96,000   Furniture   20,000
Amar 64,000 1,60,000 Equipments   10,000
General reserve   18,000 Debtors 63,000  
Profit and Loss A/c   6,000 Less: R.D.D 3,000 60,000
Creditors   80,000 Stock   84,000
Pawans loan A/c   26,000 Cash   16,000
    2,90,000     2,90,000

On 1st April, 2016 Ranjit is admitted in the partnership on the following terms.

(1) Ranjit should bring in cash Rs 48,000 as capital for 1/5th share in future profits.
(2) Goodwill was raised in the books of the firm for Rs 18,000
(3) Building is revalued st RS 1,12,000 and tghe value of stock to be reduced by Rs 6,000
(4) Reserve for doubtful debts be maintained at Rs 1,800.
(5) Pawans loand is to be repaid.

Prepare: 
(1) Revaluation A/c 
(2) Capital A/cs of partners and 
(3) Balance sheet of the new firm


A ______ is an intangible asset.


Write the word/phrase/term, which can substitute the following sentence.

Expenses which are paid before they are due.


Write the word/phrase/term, which can substitute the following sentence.

The accounts that are prepared at the end of each accounting year.


Write the word/phrase/term, which can substitute the following sentence.

The account in which selling expenses of the business are recorded.


State whether the following statement is True or False with reasons.

R.D.D. is created on Creditors.


State whether the following statement is True or False with reasons.

Net profit is a debit balance of Profit and Loss Account.


Find odd one.


The withdrawal by partner for personal use from the firm is ________ to his account.


Answer in one sentence only.

What do you mean by pre-received income?


Answer in one sentence only.

As per which principle of accounting, closing stock is valued at cost price or at market price whichever is less?


Current account always shows a debit balance.


Do you agree/disagree with the following statement:

Profit and Loss Account reflects the true Financial position.


Do you agree/disagree with the following statement:

Amount borrowed by partner from his business will be debited to Current Account.


Do you agree/disagree with the following statement:

Carriage Inward is a selling and distribution overhead.


Do you agree/disagree with the following statement:

Free distribution of goods is debited to the trading account.


Undervaluation of Closing Stock by 10%. Closing Stock was ₹30,000 find out the value of Closing Stock.


Calculate 12.5% P.A. depreciation on Furniture:

  1. on ₹ 2,20,000 for 1 year
  2. on ₹ 10,000 for 6 months

From the following Trial Balance of M/S Mitesh and Mangesh, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019, and Balance Sheet as on that date.

Trial Balance as on 31st March 2019

Debit Balance Amount (₹) Credit Balance Amount (₹)
Stock as on (1/4/2018) 25,000 Sundry Creditors 38,000
Building 48,500 Sales 1,75,000
Carriage 1,780 Capital:  
Factory Insurance 2,700 Mitesh 1,50,000
Postage 1,600 Mangesh 50,000
Bills Receivable 13,700 Outstanding Salaries 2,000
Sundry Debtors 52,200 Bills Payable 18,000
Return Inward 1,600 Return outword 1,800
Purchases 68,900    
Audit fees 1,800 Current A/c:  
Loose tools 32,000 Mitesh 3,000
Manufacturing Expenses 1,820 Mangesh 2,000
Electricity Charges 2,600    
General Expenses 3,400    
Export duty 1,000    
Cash in hand 75,000    
Bank Balance 29,000    
Conveyance 4,100    
Furniture 64,000    
Salaries 2,000    
Rent, Rate & Taxes 3,700    
Drawings:      
Mitesh 1,200    
Mangesh 2,200    
  4,39,800   4,39,800

Adjustments :

1) Mitesh and Mangesh are sharing Profit and losses in the ratio 3: 1.
2) Partners are entitled to get Commission @ 1% each on Gross Profit.
3) The closing stock is valued at ₹ 23,700.
4) Outstanding Expenses - Audit fees ₹ 400; carriage ₹ 600.
5) The building is valued at ₹ 46,500.
6) Furniture is depreciated by 5%.
7) Provide Interest on Partner's capital at 2.5% pa.
8) Goods of ₹ 900 were taken by Mangesh for his personal use.
9) Write off ₹ 1,000 as Bad Debts and maintain R.D.D at 3% on Sundry Debtors.


From the following Trial Balance of M/S Meera and Madhav. Prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date. 

Trial Balance as on 31st March 2019

Debit Balance

Amount ₹

Credit Balance

Amount ₹

Stock (1/4/2018)

25,000

Bank overdraft

5,000

Debtors

80,500

Bills Payable

12,500

Bills Receivable

10,000

Creditors

68,000

Purchases

2,08,500

Sales

3,25,000

Returns

1,000

Outstanding Rent

2,000

Carriage Inward

3,000

Unpaid Wages

1,500

Carriage Outwards

4,500

Capital :

 

Motor Vehicle

55,000

Meera

75,000

General Expenses

1,800

Madhav

75,000

Export Duty

900

Purchase Return

1000

Advertisement

4,800

   

(For 3 years from 1/10/2018)

     

Printing & Stationery

1,200

   

Drawings :

     

Meera

3,500

   

Madhav

2,000

   

Leasehold Premises

1,10,000

   

Cash at Bank

45,000

   

Furniture

8,300

   
 

5,65,000

 

5,65,000

Adjustments :

1) Closing Stock is valued at  ₹32,000.

2) Provide Provision for Doubtful Debts ₹ 2,000.

3) Create reserve for Discount on Debtors @ 3%.

4) Valued of Leasehold Premises on 31st March 2019 ₹1,00,000.

5) Outstanding Expenses Printing & Stationary ₹500.


Archana and Prerana are partners, sharing Profits and Losses in the ratio 2: 1 with the help of following Trial Balance and Adjustments given below. You are required to prepare Trading and Profit and Loss Account for the year ended 31st March 2019 and Balance Sheet as on that date.

Trial Balance as on 31st March 2019

Debit Balance

Amount ₹

Credit Balance

Amount ₹ 

Stock (1/4/2018)

8,560

Capital:

 

Patents

2,000

Archana

40,000

Sundry Debtors

18,500

Prerana

20,000

Stock of Stationary

3,000

Other Loans

3,000

Trade Mark

2,000

Reserve fund

1,000

Bills Receivable

6,300

Sundry Creditors

17,500

Electricity charges

1,450

Bills Payable

5,000

Wages

950

Purchase Return

1,000

Heating & Lighting

1,000

R.D.D

500

Trade Expenses

850

Sales

30,200

Sales Return

400

Interest

310

Land & Building

22,000

   

Furniture

13,000

   

Cash at Bank

5,000

   

Investments

7,500

   

Drawings :

     

Archana

1,200

   

Prerana

900

   

Bad debts

200

   

Purchases

23,700

   
 

1,18,510

 

1,18,510

Adjustments:

1) Stock on 31st March 2019 is valued at Cost Price ₹ 12,000 and Market Price ₹ 17,000.

2) Our customer Mr. Shekhar failed to pay his dues of ₹ 800.

3) 1/8th of Patents are to be written off.

4) A part of Furniture ₹ 5,000 is purchased on 1st Oct 2018.

5) Depreciation on Land & Building 10% and on Furniture 5%.

6) Outstanding Expenses Wages ₹ 300 and Electricity Charges ₹ 200.

7) Allow Interest on Capital 3%. 


Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give the effects of Adjustments with the help of the following information.

Trial Balance as on 31st March 2019

Debit Balance

Amount ₹

Credit Balance

Amount ₹

Land & Building

40,000

Capital A/C

 

Furniture

18,000

Sun

33,500

Machinery

40,000

Moon

33,500

(Purchased on 1/7/18)

 

Current A/c: Sun

6,000

Goodwill

2,000

Sundry Creditors

25,000

Wages

2,000

Bank Overdraft

10,000

Current A/c: Moon

4,000

Reserve Fund

5,000

8% Debentures

8,000

Providend Fund

5,000

(Purchased on 1/10/18)

     

Providend Fund Investment

3,500

   

Stock of Postal stamps

500

   
 

1,18,000

 

1,18,000

Adjustments:

1) Partners are entitled to get salary ₹ 6,000 p.a. in addition to their profit & loss sharing.

2) Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively.

3) Interest on Capital 5% p.a.

4) Closing Stock ₹ 60,743.

5) Wages included ₹ 1,000 as advance is given to workers.

6) Interest due but not paid ₹ 800.

7) Total Net Profit amounted to ₹ 38,113.


Borrowed loan from Bank of Maharashtra ₹ 2,00,000 on 1st October 2019 at a rate of 15% p.a. Calculate Interest on Bank Loan for the year 2019-20 assuming that the financial year ends on 31st March, every year.


Kavya and Bhavya are partners, sharing profits and losses in the ratio 3 : 2. From the following Trial Balance and adjustments, prepare: Trading and Profit and loss Account for the year ending and Balance Sheet as on that date.

Trial Balance as on 31st March, 2020
Particulars Debit Amount (₹) Credit Amount (₹)
Capital:    
   Kavya   7,50,000
   Bhavya   5,00,000
Sundry Debtors 2,25,000  
Sundry Creditors   1,50,000
Rent (10 Months) 5,000  
Opening Stock 2,67,750  
Building 4,25,000  
Salaries 25,000  
Commission 400 475
Vehicles 1,85,000  
Sales   4,20,250
Purchases 3,20,250  
Wages 5,000  
Office Expenses 10,000  
Bank Overdraft   75,000
Goods Returns 2,750 1,750
Provident Fund Investment 4,00,000  
Cash in Hand 20,000  
Provident Fund Contribution 50,000  
Provident Fund   1,40,000
Cash at Bank 1,00,000  
Interest on P.F. Investment   21,000
Drawing:    
   Kavya 10,000  
   Bhavya 7,500  
Bad-debts 1,675  
R.D.D.   1,850
Total 20,60,325 20,60,325

Adjustments :

  1. Closing Stock ₹ 1,80,000.
  2. Outstanding wages ₹ 1,500 and Salaries ₹ 1,000
  3. Depreciate Vehicles @ 5% p.a.
  4. Write off Bad debts of ₹ 2,500 and provide for R.D.D at 5% Sundry Debtors.
  5. Bhavya withdrew Goods of ₹ 3,000 for her personal use.

Returns outward are deducted from ______.


Asha and Nisha are partners sharing profits and losses in equal ratio. From the following Trial Balance and adjustments you are required to prepare Final Accounts:

Trial Balance as on 31st March, 2019
Debit Balance Amount (₹) Credit Balance Amount (₹)
Purchases 48,000 Capital accounts:  
Salaries 7,500 Asha 80,000
Wages 2,800 Nisha 40,000
Advertisement (2 years) 4,000 Bank Overdraft 34,000
Sales Return 8,000 Sales 1,48,000
Motor Van 63,000 R.D.D. 1,200
Stock (1. 4. 2018) 94,500 Purchase Return 6,000
Sundry Debtors 62,800    
Coal, Gas and Fuel 1,000    
Plant and Machinery 17,600    
  3,09,200   3,09,200

Adjustments:

  1. Closing stock is valued at cost ₹ 88,000 and market price ₹ 90,000.
  2. Asha and Nisha withdrew goods from business ₹ 3,000 and ₹ 2,000 respectively for their personal use.
  3. Depreciate Motor Van by 5% and Plant and Machinery by 7%.
  4. Reserve for Doubtful debts on Debtors at 5% is to be created.
  5. Outstanding Wages ₹ 800.

From the following Trial Balance of Riddhi and Siddhi, you are required to prepare Trading and Profit & Loss Account for the year ended 31st March, 2020 and Balance Sheet as on that date after considering the additional information given below.

Trial Balance as on 31st March, 2020
Debit Balance Debit (₹) Credit (₹)
Stock (1/4/2018) 48,000  
Capital - Riddhi   50,000
Siddhi   30,000
Purchases 22,500  
Wages 800  
Carriage Inward 1,000  
Sundry Creditors   27,600
Bills Payable   20,000
Cash in hand 2,850  
Insurance 1,200  
Sundry Debtors 32,000  
Bank Overdraft   18,000
Carriage outward 900  
Land and Building 42,500  
Furniture 38,700  
Sales   47,000
Purchase Return   500
Sales Return 400  
Rent   1,800
Bad-debts 300  
R.D.D   350
Discount 700 1,000
Travelling Expenses 250  
Advertisements 4,150  
  1,96,250 1,96,250

Adjustments:

  1. Closing stock ₹ 48,700.
  2. Outstanding Expenses - Wages ₹ 700 and Travelling Expenses ₹ 200.
  3. Depreciate Land and Building by 10% and Furniture by 5%.
  4. Insurance Paid in Advance ₹ 300.
  5. Goods of ₹ 3,000 destroyed by fire and Insurance Company rejected the claim fully.

From the following information, calculate Current Assets:

Debtors ₹ 60,000,  Creditors ₹ 30,000, Bills payable ₹ 20,000, Stock ₹ 30,000, Loose tools ₹ 10,000, Bank overdraft ₹ 10,000.


State whether the following statement is True or False with reason:

Profit and Loss Account is a Real Account.


To find out the Net Profit or Net Loss of the business ______ account is prepared.


A ______ is an Intangible Asset.


Find odd one.


Find odd one


Find odd one.


Complete the following Table:

Creditors Bills Payable Third-Party Liabilities
16,000 12,000 ?

Find odd one.


Find the odd one:


Find an odd one.


Find odd one.


Find odd one.


Find odd one.


Find odd one.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×