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: - Book Keeping and Accountancy

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

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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

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Partnership Final Accounts

video tutorial01:23:03

संबंधित प्रश्‍न

Write a short note on E-Commerce ?

What do you mean by intangible asset?

Rokadimal of Rajkot and Gunjal of Pune, entered into a Joint Venture to purchase and sale goods and agreed to share profit and losses in the proportion of 4 : 1 respectively.

Rokadimal sent goods of Rs 4,00,000 to Gunjal for sale.

Rokadimal paid Rs 11,500 for carriage.

Rokadimal drew a bill of Rs 95,000 on Gunjal, which he accepts.

Rokadimal discounted this bill with the bank for Rs 92,000.

The amount of discount is to be treated as joint venture expenditure.

Gunjal paid Rs 13,500 got advertisement.

Gunjal sold all the goods for Rs 5,00,000.

Gunjal paid Rs 7,000 for selling expenses and he is entitled for a commission on sales at 5% Co-venturers settled their accounts.

Give Journal Entries in the books of Gunjal of Pune.

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

Credit balance of Profit and Loss Account.

Given below is the Trial Balance of M/s Roma and Mona partnership firm. Prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet as on that date

Trial Balance as on 31^st March, 2012

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Stock on 1^st April, 2011	52000	Provident fund	50000
Sundry Debtors	84000	Interest on P.F. Investment	2800
Bad debts	3000	Sundry Creditors	84000
Premises	78000	Rent received	9600
Salaries	28000	Reserve for Doubtful Debts	2000
Motor Vehicles	50000	Discount received	3600
Purchases	176000	Sales	320000
Provident Fund Investment	50,000	Capital A/c-
Provident Fund contribution	5500	Roma	50000
Wages	22000	Mona	50000
Rent (for 10 months)	16,000
Office Expenses	5,000
Discount allowed	2,500
	572000		572000

Adjustments:

1) Stock on 31st March, 2012 was valued at Rs 80,000.

2) Goods of Rs 6,000 were sold and despatched on 27th March, 2012, but no entry was made in the books of accounts.

3) Write off Bad debts of Rs 4,000 and provide for R.D.D. at 5% on sundry debtors.

4) Provide reserve for discount on debtors at 2% and on creditors at 3%.

5) Outstanding wages Rs 4,000 and outstanding salaries Rs 3,066.

6) Depreciate Motor Vehicle at 5% p.a.

Madhuri and Minakshi are in partnership sharing profits and losses in the ratio 3:2. From the following Trial Balance and adjustments given below, you are required to prepare Trading and Profit and Loss Account for the year ended 31st March, 2012 and Balance Sheet on that date.

Trial Balance as on 31st March, 2012
Debit Balance	Amount (₹)	Credit Balance	Amount (₹)
Building	4,00,000	Capital A/cs -
Plant and Machinery	1,20,000	Madhuri	3,00,000
Purchases	6,50,000	Minakshi	2,00,000
Carriage	7,000	Sales	8,10,000
Opening stock	90,000	Sundry Creditors	1,00,000
Wages	35,000	Outstanding salaries	4,200
Sundry Debtors	1,50,000	8% Bank loan (Taken on 1.10.2011)	1,00,000
Salaries	28,000
Postage and Telegram	4,000
Insurance	5,000
Bad debts	3,000
Rent	4,000
Discount	3,200
Drawing A/c-
Madhuri	10,000
Minakshi	5,000
	15,14,200		15,14,200

Adjustments:

Stock on hand on 31st March, 2010 was valued at Rs 1,10,000.
Depreciate Plant and Machinery at 10% p.a. and Building at 5% p.a.
Prepaid Insurance Rs 1,500.
Create R.D.D at 5% on Sundry Debtors.
Partners are allowed interest at 5% p.a. on their capitals.
Salaries include Rs 2,500 as advance to workers.

From the following Trial Balance of M/s Sanjay and Vijay, 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 after taking into consideration the adjustments given below.

Trial Balance as on 31^st March, 2013

Debit Balance	Amount Rs	Credit Balance	Amount Rs
Salaries and wages	12000	Sales	110000
Postage and Telegram	1,750	Sundry Creditors	72700
Opening Stock	23,500	Bills Payable	40000
Plant and Machinery	70,000	10% Bank loan (Taken on 1st Oct 2012)	60000
Advertisement	5,000	Outstanding Audit fees	5900
Import duty	2,100	Capital A/c-
Bad debts	1000	Sanjay	45000
Purchases	98500	Vijay	45000
Sundry Debtors	45800
Bills Receivable	16700
Carriage outward	1800
Wages and stationery (Note 2)	14000
Printing and stationery	4600
Cash in hand	1850
Leasehold Premises	80000
	378600		378600

Adjustments:
1) Closing stock was valued at Rs 30,000.

2) Postage stamps of Rs 250 and stationery of Rs 400 are unused.

3) Goods of Rs 2,500 distributed as free samples.

4) Leasehold property is to be run for 10 years w.e.f. 1st October, 2012.

5) Depreciate Plant and Machinery at 10% p.a.

6) Mr. Rajan, our customer become insolvent and could not pay his debts of Rs 1,500.

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 31^st 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	72000
		Profit and Loss A/c		15000
		Closing Stock		104500
		Cash in Hand		86000
	518500			518500

On 1^st 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.

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:

Write off Rs. 8,000 for bad debts and provide R.D.D. @ 5% on debtors.
Goods worth Rs. 16,000 were distributed as free samples.
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.
The salaries were outstanding at Rs. 8,000.
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.

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