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, - Book Keeping and Accountancy

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

Select the most appropriate alternative from those given below and rewrite the statement.

Return outward are deducted from __________________.

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.

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.

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.

Mohini and Rohini are in partnership firm sharing profits and losses equally. 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, 2010 and Balance Sheet as on that date.

Trial Balance as on 31^st March, 2010

Particulars	Debit Amount Rs.	Credit Amount Rs
Partner’s Capital A/c-
Mohini		120000
Rohini		90000
Purchases and Sales	220000	430000
Sundry Debtors and Creditors	45000	35000
Bills Receivable and Bills Payable	45000	50000
Discount	4000	3500
Opening stock	25000
Wages and Salaries	23000
Manufacturing Expenses	9,000
Factory Insurances	5,000
Factory Building	1,40,000
Plant and Machinery	75,000
Advertisement (for 2years w.e.f. 1^st Jan. 2010)	10,000
Salaries and Wages	45,000
Warehouse rent	6,000
Import duty	11,500
Cash in hand	5,000
10% Government Bond (Purchased on 1st July 2009)	60000
	728500	728500

Adjustments:

1) Closing stock was valued at market price Rs 92,000 which is 15% above its cost price.

2) Goods costing Rs 3,000 purchased and received on 31st March, 2010 were not recorded in purchase book.

3) Depreciate Machinery at 10% p.a.

4) Outstanding Wages were Rs 2,500.

5) Goods of Rs 2,000 were taken by Mohini for personal use but no entry was made in the books of account.

6) Maintain R.D.D at 5% on Sundry Debtors.

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

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

The accounts that are prepared at the end of each accounting year.

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

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