Question

Shailesh, Anil and Das were partners sharing profits and losses in the ratio at 3:3:2. Their Balance Sheet as on 31.3.2012 is as below:

             Balance Sheet as on 31^st March, 2012

 

Liabilities	Amount (Rs)	Assets	Amount (Rs)
Capitals		Building	10,000
Shailesh	11,000	Machinery	10,700
Anil	15,000	Furniture	10,000
Das	8,000	Debtors	5,000
Bills Payable	1,900	Stock	6,600
Creditors	9,000	Cash	6,600
Reserve fund	4,000
	48,900		48,900

In 1^st April, 2012 Mr. Das retired from the firm on following terms:

1) Shailesh and Anil’s share in reserve fund should be continued in new firm.

2) Goodwill of the firm is to be valued at Rs 4,000 however only Das’s share in it is to be raised in the books and written off immediately

3) Assets to be revalued as under stock Rs 6,300 machinery Rs 10,000 furniture Rs 10,200

4) R.D.D. to be maintained at 10% on debtors

5) Rs 100 to be written off from creditors

6) The amount payable to Mr. Das is to be transferred to his loan account

Prepare:- Profit and Loss adjustment A/c, Partners capital A/c and Balance Sheet of New firm on 1/04/2012

Answer 1

              Profit and Loss Adjustment Account
Dr.                                                                                 Cr.

 

Particulars	Amount (Rs)	Particulars		Amount (Rs)
Stock	300	Furniture		200
Machinery	700	Creditors		100
Reserve for Doubtful Debts	500	Loss transferred to:
		Shailesh's Capital	450	1,200
		Anil's Capital	450
		Das's Capital	300
	1,500			1,500

                   Partners’ Capital Accounts

Particulars	Shailesh	Anil	Das	Particulars	Shailesh	Anil	Das
Profit and Loss Adjustment A/c (Loss)	450	450	300	Balance b/d	11,000	15,000	8,000
Loan A/c			9,700	Reserve Fund			1.000
Goodwill (Written off)	500	500		Goodwill			1,000
Balance c/d	10,050	14,050
	11,000	15,000	10,000		11,000	15,000	10,000

Balance Sheet

as on April 01, 2012 after Mr. Das’s retirement 

Liabilities		Amount (Rs)	Assets		Amount (Rs)
Creditors		8,900	Cash		6,600
Reserve Fund		3,000	Machinery	10,700	10,000
Capital			Less : Depreciation	700
Shailesh	10,050	24,100	Stock	6,600	6,300
Anil	14,050		Less : Depreciation	300
Bills Payable		1,900	Debtors	5,000	4,500
Loan A/c of Mr. Das		9,700	Less : Reserve for Doubtful Debts	500
			Furniture		10,200
			Building		10,000
		47,600			47,600

Working Notes: 
WN 1: Calculation of Gaining Ratio

New profit sharing ratio of shailesh and Anil = 3 : 3 = 1 : 1

Gaining Ratio = New Ratio - old Ratio

Shailesh's Gain = `1/2 - 3/8 = 1/8`

Anil's Gain = `1/2 - 3/8 = 1/8`

Gaining Ratio = 1 : 1

WN 2: Calculation Share of Goodwill 

Share of goodwill of Mr. Das = `4000 xx 2/8 = "Rs" 1000`

WN 3: Goodwill written off 

Shailesh's Gain = `"Rs" 1000 xx 1/2 = "Rs" 500`

Anil's Gain = `"Rs" 1000 xx 1/2 = "Rs" 500`