Question

The Balance Sheet of Ram and Shyam, who were sharing profits in the ratio of 3 : 1 on 31^st March, 2009 was as follows: 

Liabilities		Amount Rs	Assets		Amount Rs
Creditors		2,800	Cash at bank		2,000
Employees’ provident fund		1,200	Debtors	6,500
General Reserve		2,000	Less: Reserve for bad debts	(500)	6,000
Capitals			Stock		3,000
Ram	6,000		Investments		5,000
Shyam	4,000	10,000
		16,000			16,000

 

Answer 1

Revaluation Account
Dr.			Cr.
Particulars	Amount Rs	Particulars	Amount Rs
Investments	500	Accrued Interest	100
		Cash A/c (Bad Debts Recovered)	400
	500		500

Partners' Capital Accounts
Dr.							Cr.
Particulars	Ram	Shyam	Mohan	Particulars	Ram	Shyam	Mohan
To Balance c/d	12,000	6,000	4,500	Balance b/d	6,000	4,000	-
				General Reserve	1,500	500	-
				Premium for Goodwill	4,500	1,500	-
				Cash A/c (WN 1)	-	-	4,500
	12,000	6,000	4,500		12,000	6,000	4,500

Balance Sheet                                    as on April 01, 2009
Liabilities		Amount Rs	Assets		Amount Rs
Creditors		2,800	Cash (Note)		12,900
Employees' Provident Fund		1,200	Accrued Interest		100
Capital A/cs:			Debtors	6,500
Ram	12,000		Less: Reserve for bad debts	(500)	6,000
Shyam	6,000		Stock		3,000
Mohan	4,500	22,500	Investments		4,500
		26,500			26,500