Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below: Balance Sheet as on 31st March, 2013. Liabilities Amount (₹) Assets Amount (₹) Capital Accounts 11,000 Building 10,000 Anita 15,000 Machinery 10,700 Sunita 8,000 Furniture 10,000 Kavita 10,000 Debtors 5,000 Creditors 10,900 Stock 6,600 Reserve fund 4,000 Cash 6,600 On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms: Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately. Assets to be revalued as under:Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200. R.D.D. to be maintained at 10% on debtors. ₹100 to be written off from creditors. The amount payable to Mrs. Kavita is to be transferred to her loan account. Prepare: Profit and loss adjustment account. Partner’s capital account, and Balance Sheet of new firm as on 01.04.2013.

Profit & Loss Adjustment: Changes on 01-04-2013: Stock ↓ to ₹6,300 ⇒ Loss ₹300Machinery ↓ to ₹10,000 ⇒ Loss ₹700Furniture ↑ to ₹10,200 ⇒ Gain ₹200R.D.D. @ 10% on Debtors ₹5,000 ⇒ Provision ₹500 (Loss)Creditors: write off ₹100 ⇒ Gain ₹100 net revaluation loss = (300 + 700 + 500) − (200 + 100) = ₹1,200 Dr. Profit & Loss Adjustment A/c Cr. Particulars Amount (₹) Particulars Amount (₹) To Stock 300 By Furniture 200 To Machinery 700 By Creditors (write-back) 100 To R.D.D. 500 To Partners’ Capital A/cs (Reval loss): A 450; S 450; K 300 1,200 Total 2,700 Total 2,700 Partners’ Capital: Reserve Fund ₹4,000 in old ratio 3:3:2 ⇒ A ₹1,500; S ₹1,500; K ₹1,000. Goodwill of firm ₹4,000; only Kavita’s share (2/8) = ₹1,000 Debit Anita ₹500, Debit Sunita ₹500, Credit Kavita ₹1,000. Partners’ Capital A/c Particulars Anita (₹) Sunita (₹) Kavita (₹) To Revaluation A/c (loss) 450 450 300 To Goodwill A/c (Kavita’s share written off) 500 500 - To Kavita Loan A/c - - 11,700 By Balance b/d 15,000 8,000 10,000 By Reserve Fund 1,500 1,500 1,000 By Goodwill A/c - - 1,000 Balance c/d 15,550 8,550 - Total 17,550 9,550 12,000 Check (Kavita): 10,000 + 1,000 + 1,000 − 300 = ₹11,700 Balance Sheet of New Firm: Balance Sheet of New Firm as at 01-04-2013 Liabilities Amt. (₹) Amt. (₹) Assets Amt. (₹) Amt. (₹) Creditors (10,900 − 100) 10,800 Building 10,000 Bills Payable (assumed omitted item) 1,000 Machinery (revalued) 10,000 Kavita Loan A/c 11,700 Furniture (revalued) 10,200 Capital A/cs: Debtors 5,000 − R.D.D. 500 4,500 -Anita 15,550 Stock (revalued) 6,300 -Sunita 8,550 24,100 Cash 6,600 Total 47,600 Total 47,600

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:

प्रश्न

Anita, Sunita and Kavita were partners sharing profits and losses in the ratio 3:3:2. Their Balance Sheet as on 31st March 2013 is as below:

Balance Sheet as on 31st March, 2013.
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital Accounts	11,000	Building	10,000
Anita	15,000	Machinery	10,700
Sunita	8,000	Furniture	10,000
Kavita	10,000	Debtors	5,000
Creditors	10,900	Stock	6,600
Reserve fund	4,000	Cash	6,600

On 1st April, 2013, Mrs. Kavita retired from the firm on the following terms:

Goodwill of the firm is to be valued at ₹4,000, however, only Kavita’s share in it is to be raised in the books and written off immediately.
Assets to be revalued as under:
Stock ₹6,300; Machinery ₹10,000; Furniture ₹10,200.
R.D.D. to be maintained at 10% on debtors.
₹100 to be written off from creditors.
The amount payable to Mrs. Kavita is to be transferred to her loan account.

Prepare:

Profit and loss adjustment account.
Partner’s capital account, and
Balance Sheet of new firm as on 01.04.2013.

खातेवही

उत्तर

Profit & Loss Adjustment:

Changes on 01-04-2013:

Stock ↓ to ₹6,300 ⇒ Loss ₹300
Machinery ↓ to ₹10,000 ⇒ Loss ₹700
Furniture ↑ to ₹10,200 ⇒ Gain ₹200
R.D.D. @ 10% on Debtors ₹5,000 ⇒ Provision ₹500 (Loss)
Creditors: write off ₹100 ⇒ Gain ₹100

net revaluation loss = (300 + 700 + 500) − (200 + 100) = ₹1,200

Dr.	Profit & Loss Adjustment A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Stock	300	By Furniture	200
To Machinery	700	By Creditors (write-back)	100
To R.D.D.	500
To Partners’ Capital A/cs (Reval loss): A 450; S 450; K 300	1,200
Total	2,700	Total	2,700

Partners’ Capital:

Reserve Fund ₹4,000 in old ratio 3:3:2 ⇒ A ₹1,500; S ₹1,500; K ₹1,000.

Goodwill of firm ₹4,000; only Kavita’s share (2/8) = ₹1,000

Debit Anita ₹500, Debit Sunita ₹500, Credit Kavita ₹1,000.

Partners’ Capital A/c
Particulars	Anita (₹)	Sunita (₹)	Kavita (₹)
To Revaluation A/c (loss)	450	450	300
To Goodwill A/c (Kavita’s share written off)	500	500	-
To Kavita Loan A/c	-	-	11,700
By Balance b/d	15,000	8,000	10,000
By Reserve Fund	1,500	1,500	1,000
By Goodwill A/c	-	-	1,000
Balance c/d	15,550	8,550	-
Total	17,550	9,550	12,000

Check (Kavita): 10,000 + 1,000 + 1,000 − 300 = ₹11,700

Balance Sheet of New Firm:

Balance Sheet of New Firm as at 01-04-2013
Liabilities	Amt. (₹)	Amt. (₹)	Assets	Amt. (₹)	Amt. (₹)
Creditors (10,900 − 100)		10,800	Building		10,000
Bills Payable (assumed omitted item)		1,000	Machinery (revalued)		10,000
Kavita Loan A/c		11,700	Furniture (revalued)		10,200
Capital A/cs:			Debtors 5,000 − R.D.D. 500		4,500
-Anita	15,550		Stock (revalued)		6,300
-Sunita	8,550	24,100	Cash		6,600
Total		47,600	Total		47,600

shaalaa.com

Partnership Final Accounts

या प्रश्नात किंवा उत्तरात काही त्रुटी आहे का?

Q 3.B Q 3.A Q 4

2015-2016 (July)

APPEARS IN

2015-2016 (July) (with solutions)

Q 3.B | 10 marks

व्हिडिओ ट्यूटोरियलVIEW ALL [1]

view
व्हिडिओ ट्यूटोरियल For All Subjects
Partnership Final Accounts

video tutorial01:23:03

संबंधित प्रश्‍न

What do you mean by intangible asset?

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

Debit balance of trading account.

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

Credit balance of Profit and Loss Account.

From the following Trading Balance of M/s Ajay and Vijay you are required to prepared Trading and Profit and Loss Account for the year ended 31st March, 2009 and Balance Sheet as on that date

Trial Balance as on 31st March , 2009

Particulars	Debit Amount Rs.	Credit Amount Rs.
Capital A/c's Ajay Vijay		60000 35000
Purchases and Sales	46,700	85,000
Sundry Debtors and Creditors	28000	25000
Bills Receivable and payable	5000	6000
Commission	4600	1800
Opening stock	18000
Wages	9900
Investment	13500
Postage and Telegrams	3600
Insurance	1200
Plant and Machinery	40700
Furniture	18000
Cash in hand	2500
Carriage	3200
Bad debts	400
Prepaid Rent	7000
Salaries	10500

Adjustments:

1) The closing stock is valued at Rs 31,000.

2) Outstanding expenses were wages Rs. 1,400, salaries Rs 800.

3) Depreciate Plant and Machinery by 10%.

4) Insurance at Rs 500 is paid in advance.

5) Provide for further bad debts of Rs 1,500.

6) Commission due but not received Rs 1,200.

Given below is the Trial Balance of M/s Seeta and Geeta as on 31^st March, 2010. You are required to prepare Trading and Profit and Loss Account for the year ended 31^st March, 2010 and Balance Sheet on that date.

Trial Balance as on 31^st March, 2010

Debit Balance	Amount (Rs)	Credit Balance	Amount (Rs)
Current A/c-		Capital A/c-
Geeta	4000	Seeta	120000
Opening stock	88,000	Geeta	120000
Purchases	1,76,000	Current A/c- Seeta	5000
Wages	23,500	Sundry Creditors	103000
Salaries	15,000	Bank overdraft	60000
Office Expenses	8000	Sales	308000
Bank Charges	2600
Legal Charges	3000
Machinery	90000
Land and building	130000
Interest	3600
Export Duty	3800
Bad -Debts	4000
Sundry Debtors	82000
Travelling Expenses	3200
Electricity charges	2300
Furniture	37000
8% Debentures (Purchased on 1.10.2009)	40000
	716000		716000

Adjustments:

1) Stock on hand on 31st March, 2010 was valued at Rs 80,000.

2) Goods costing Rs 16,000 destroyed by fire and Insurance Company admitted a claim of Rs 13,000.

3) Provide for outstanding expenses: Salaries Rs 3,000, Wages Rs 2,400.

4) Depreciate Machinery at 10% p.a. Land and Building at 5% p.a.

5) Create Reserve for Bad and doubtful debts at 5% on Sundry Debtors.

6) Legal charges paid in advance Rs 1,200.

7) Provide interest on capital at 8% p.a.

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 31^st 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.

Following is the Balance sheet of Harsha and Versha’s firm on 31st March, 2016. They share profit and losses in the ratio of 3 : 2.

Balance sheet as on 31st March, 2016
Liabilities	Amount (₹)	Assets	Amount (₹)
Capital A/c:		Land & building	2,00,000
Harsha	2,80,000	Furniture	76,000
Varsha	2,80,000	Sundry debtors	3,00,000
Sundry creditors	4,00,000	Stock	1,60,000
		Cash at bank	2,24,000
	9,60,000		9,60,000

They decided to admit Asha on 1st April, 2016, into partnership on the following terms:

Asha should bring Rs. 80,000 as her share of goodwill, which is to be retained in the business.
She should bring Rs. 1,00,000 as her capital for 1/4th share in future profits.
land and building to be valued at Rs. 2,40,000 and furniture be reduced by 10%.
A provision of 5% on debtors to be made for doubtful debts.
The stock is to be taken at a value of Rs. 2,00,000.
The excess of capital of Harsha and Varsha over their due proportion of sharing profits in the firm is to be transferred to their respective loan accounts.

Prepare:

Profit and Loss Adjustment Account, Partner’s Capital Account and new Balance Sheet of the firm.

Dhiraj and Suraj are partners sharing profits and losses in the ratio of 2 : 1. From the following Trial Balance and adjustments, prepare Trading and Profit and Loss account for the year ended 31st March, 2013 and balance sheet as on that date :
Trial Balance as on 31.03.2013

Particulars	Amount Rs.	Particulars	Amount Rs.
Opening Stock	32,000	Sales	1,93,500
Purchases	64,000	Sundry Creditors	16,500
Plant and Machinery	30,000	Return Outward	2,500
Furniture	18,500	Capital Accounts
Carriage	1,500	Dhiraj	90,000
Wages	30,000	Suraj	50,000
Bills Receivable	5,000
Sundry Debtors	32,000
Conveyance	4,000
Salaries	10,500
Cash in hand	14,750
Land and Building	83,500
Bad debts	1,750
Patents	25,000
	352,500		352,500

Adjustments :

(1) Closing stock : Cost price RS. 25,000 and market price Rs. 30,000.

(2) An amount of Rs. 3,500 spent for repairs to building is debited to building account.

(3) Depreciate plant and machinery and building at 5% p.a.

(4) Included in wages in advance given to workers Rs. 3,000.

(5) Provide Rs. 1,500 for bad and doubtful debts on debtors.

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

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

The account to which all adjustments are made when capital is fixed.

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

An asset which can be converted into cash easily.

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

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