Question

Sanil, Nitish, Sapna were partners in a firm sharing profits and losses in the proportion of 1/2, 1/3 and 1/6 respectively. Their Balance Sheet as on 31^st March, 2012 was as follows:

              Balance Sheet as on 31-03-2012

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Bills Payable	30000	Machinery	40000
Capitals:		Furniture	5000
Sanil	80000	Sundry Assets	60000
Nitish	50000	Stock	30000
Sapna	30000	Debtors	32000
		Bank	23000
	190000		190000

Sapna decided to retire on 1^st April 2012 on following terms:-

1) Goodwill of the firm will be valued at Rs 30,000/-

2) Furniture was taken over by Sanil for Rs 4,700/-

3) Make a provision for unpaid expenses Rs 1,700/-

4) Out of the amount due to Sapna Rs 7,500/- to be paid by cheque and the remaining amount to be transferred to her loan account.

Answer 1

                    Profit and Loss Adjustment Account
Dr.                                                                               Cr.

Particulars	Amount (Rs)	Particulars		Amount (Rs)
Furniture	300	Loss transferred to :
Provision for Unpaid Expenses	1700	Sanil’s Capital	1000	2000
		Nitish’s Capital	667
		Sapna’s Capital	333
	2000			2000

                   Partners’ Capital Accounts 
Dr.                                                                                Cr.

Particulars	Sanil	Nitish	Sapna	Particulars	Sanil	Nitish	Sapna
Profit and Loss Adjustment A/c (Loss)	1000	667	333	Balance b/d	80000	50000	30000
Furniture A/c	4700			Goodwill	15000	10000	5000
Bank A/c			7500
Loan A/c			27167
Balance c/d	89,300	59,333
	95000	60000	35000		95000	60000	35000

 

Balance Sheet

as on April 01, 2012 after Sapna’s retirement

Liabilities		Amount (Rs)	Assets	Amount (Rs)
Bills Payable		30,000	Machinery	40,000
Capital A/cs :			Sundry Assets	60,000
Sanil	89,300	1,48,633	Stock	30,000
Nitish	59,333		Debtors	32,000
Provision for Unpaid Expenses		1,700	Bank  (23,000 - 7,500)	15500
Loan A/c of Sapna		27,167	Goodwill	30,000
		2,07,500		2,07,500

Note : As per the book the Total of Balance Sheet is Rs 2,12,200 but as per our solution it should be
Rs 2,07,500.