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.

In the books of Harsha and Varsha Dr. Profit and Loss Adjustment A/c Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) To Furniture A/c 7,600 By Land and Building A/c 40,000 To R.D.D A/c 15,000 By Stock A/c 40,000 To Profit on Revaluation transferred to partners capital A/c Harsha 34,440 Varsha 22,960 57,400 80,000 80,000 Dr. Partner's Capital A/c Cr. Particulars Harsha Varsha Asha Particulars Harsha Varsha Asha Varsha's Loan A/c[Balancing Fig] 214,960 By Balance b/d 280,000 280,000 Harsha's Loan A/c[Balancing Fig.] 182,440 By Goodwill A/c 48,000 32,000 To Balance c/d[Working Note] 180,000 120,000 100,000 By Bank A/c 100,000 By Profit or Loss Adjustment A/c [Profit] 34,440 22,960 362,440 334,960 100,000 362,440 334,960 100,000 Balance Sheet of New Firm Liabilities Amount (₹) Amount (₹) Assets Amount (₹) Amount (₹) Sundry Creditors 4,00,000 Land & Building 2,00,000 Harsha’s Loan A/c 1,82,240 (+) Appreciation 40,000 2,40,000 Varsha’s Loan A/c 2,14,960 Furniture 76,000 Capital A/c[Working Note] (-) Depreciation @ 10% (7,600) 68,400 Harsha 1,80,000 Sundry Debtors 3,00,000 Varsha 1,20,000 (-) R.D.D. @ 5% (15,000) 2,85,000 Asha 1,00,000 4,00,000 Stock 1,60,000 (+) Appreciation 40,000 2,00,000 Bank Balance 4,04,000 11,97,400 11,97,400 Dr. Bank A/c Cr. Particulars Amount (₹) Particulars Amount (₹) To Balance b/d 2,24,000 By Balance c/d 4,04,000 To Goodwill A/c 80,000 To Asha’s Capital A/c 1,00,000 4,04,000 4,04,000 Dr. Goodwill A/c Cr. Particulars Amount (₹) Amount (₹) Particulars Amount (₹) To Harsha’s Capital A/c 48,000 By Bank A/c 80,000 To Varsha’s Capital A/c 32,000 80,000 80,000 80,000 Working Note: Calculation of New Ratio and Proportionate Capital Balance Ratio = 1 – Share Given to New Partner Therefore, Balance Ratio = 1 – 1/4 = 3/4 Harsha’s New Ratio = B.R. – O.R. = `3/4 xx 3/5 = 9/20` Varsha’s New Ratio = B.R. × O.R. = `3/4 xx 2/5 = 6/20` Asha’s New Ratio = `1/4 xx 5/5 = 5/20` Therefore, their New Ratio = 9 : 6 : 5 New Partner brought Rs. 1,00,000 as her new capital Therefore, their proportionate capital are Harsha’s Capital = Rs. 1,80,000 Varsha’s Capital = Rs. 1,20,000 Asha’s Capital = Rs. 1,00,000

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. They Decided to Admit Asha on 1st April, 2016,

प्रश्न

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.

खातेवही

उत्तर

In the books of Harsha and Varsha
Dr.	Profit and Loss Adjustment A/c			Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
To Furniture A/c		7,600	By Land and Building A/c	40,000
To R.D.D A/c		15,000	By Stock A/c	40,000
To Profit on Revaluation transferred to partners capital A/c
Harsha	34,440
Varsha	22,960	57,400
		80,000		80,000

Dr.	Partner's Capital A/c						Cr.
Particulars	Harsha	Varsha	Asha	Particulars	Harsha	Varsha	Asha
Varsha's Loan A/c [Balancing Fig]		214,960		By Balance b/d	280,000	280,000
Harsha's Loan A/c [Balancing Fig.]	182,440			By Goodwill A/c	48,000	32,000
To Balance c/d [Working Note]	180,000	120,000	100,000	By Bank A/c			100,000
				By Profit or Loss Adjustment A/c [Profit]	34,440	22,960
	362,440	334,960	100,000		362,440	334,960	100,000

Balance Sheet of New Firm
Liabilities	Amount (₹)	Amount (₹)	Assets	Amount (₹)	Amount (₹)
Sundry Creditors		4,00,000	Land & Building	2,00,000
Harsha’s Loan A/c		1,82,240	(+) Appreciation	40,000	2,40,000
Varsha’s Loan A/c		2,14,960	Furniture	76,000
Capital A/c [Working Note]			(-) Depreciation @ 10%	(7,600)	68,400
Harsha	1,80,000		Sundry Debtors	3,00,000
Varsha	1,20,000		(-) R.D.D. @ 5%	(15,000)	2,85,000
Asha	1,00,000	4,00,000	Stock	1,60,000
			(+) Appreciation	40,000	2,00,000
			Bank Balance		4,04,000
		11,97,400			11,97,400

Dr.	Bank A/c		Cr.
Particulars	Amount (₹)	Particulars	Amount (₹)
To Balance b/d	2,24,000	By Balance c/d	4,04,000
To Goodwill A/c	80,000
To Asha’s Capital A/c	1,00,000
	4,04,000		4,04,000

Dr.	Goodwill A/c			Cr.
Particulars	Amount (₹)	Amount (₹)	Particulars	Amount (₹)
To Harsha’s Capital A/c	48,000		By Bank A/c	80,000
To Varsha’s Capital A/c	32,000	80,000
		80,000		80,000

Working Note:

Calculation of New Ratio and Proportionate Capital

Balance Ratio = 1 – Share Given to New Partner

Therefore, Balance Ratio = 1 – 1/4 = 3/4

Harsha’s New Ratio = B.R. – O.R. = `3/4 xx 3/5 = 9/20`

Varsha’s New Ratio = B.R. × O.R. = `3/4 xx 2/5 = 6/20`

Asha’s New Ratio = `1/4 xx 5/5 = 5/20`

Therefore, their New Ratio = 9 : 6 : 5

New Partner brought Rs. 1,00,000 as her new capital

Therefore, their proportionate capital are

Harsha’s Capital = Rs. 1,80,000

Varsha’s Capital = Rs. 1,20,000

Asha’s Capital = Rs. 1,00,000

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Partnership Final Accounts

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Q 3.A Q 2.B Q 3.B

2018-2019 (March) Set 1

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2018-2019 (March) Set 1 (with solutions)

Q 3.A | 10 marks

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Partnership Final Accounts

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संबंधित प्रश्‍न

Surekha and Sangita decided to undertake a venture jointly. They agreed to share profits and losses in the ratio of 3 : 2. Surekha supplied from her own stock goods worth Rs. 4,00,000 and paid Rs. 9,900 for freight and Rs. 2,400 for insurance. Sangita purchased goods of Rs. 3,90,000 for the venture and paid Rs 14,000 for selling expenses. Sangita accepted a bill for 3 months of Rs. 1,90,000 drawn by Surekha as an advance. The bill was discounted immediately by Surekha for Rs. 1,84,000 and the amount of discount was charged to Joint Venture Account. Sangita sold all the goods for Rs. 10,00,000. At end of the venture, the accounts were settled. Give journal entries in the books of Surekha.

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.

Sanjay and Sudhir are partners sharing profit and losses in the ratio 3: 2. The Trial Balance of the firm on 31st March, 2010 was follows:

Trial Balance as on 31st March, 2010
Particulars	Amount (Rs.)	Particulars	Amount (Rs.)
Opening stock	20,000	Capital A/c's
Purchases	30,000	Sanjay	40,000
Debtors	12,000	Sudhir	30,000
Wages	5,000	Sales	70,000
Salaries	10,000	Sundry Creditors	21,000
Land and building	30,000	Bills Payable	20,000
Plant and machinery	25,000	Discount	5,000
Furniture	16,000	Outstanding Rent	1,500
Advertisement (for 2 years)	6,000
Bills Receivable	8,000
Insurance	2,000
Drawings:
Sanjay	2,000
Sudhir	3,000
Cash in hand	5,500
Rent	10,000
Power and Fuel	3,000
	1,87,500		1,87,500

Adjustments:

1) Stock on hand on 31st March, 2010 was at Rs. 35,000.

2) Write off Rs. 2,000, for further Bad debts and maintain R.D.D. at 5% on debtors.

3) Depreciate Land and Building at 5% and Machinery at 10%.

4) Outstanding expenses were wages Rs 2,000 and salary Rs 1,000.

5) Credit purchases amounted to Rs 4,000 were not recorded in the books of accounts.

6) Provide interest on Partners Capital at 5% p.a.

From the above Trial Balance and adjustments prepare Trading and Profit and Loss Account for the year ended 31st March, 2010 and Balance Sheet as on that data.

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.

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 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.

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

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.

A ______ is an intangible asset.

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

Expenses which are paid before they are due.