Maharashtra State BoardHSC Commerce 12th Board Exam
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Akash and Suraj Are Partners in a Firm Sharing Profits and Losses in the Ratio 3 : 2. Their Balance Sheet as on 31st March, 2013 Was as Follows - Book Keeping and Accountancy

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Akash and Suraj are partners in a firm sharing profits and losses in the ratio 3 : 2. Their balance sheet as on 31st March, 2013 was as follows:

                       Balance Sheet as on 31st March, 2013

Liabilities Amount (Rs.) Assets Amount (Rs.)

Capital A/c

          Akash

          Suraj

 

50000

50000

Furniture 2100

General Reserve

10000 Stock 28700
Sundry creditors 60000 Land and building 35000
Bills payable 17000 Plant and machinery 49000
    Sundry debtors 63000
    Cash 9200
  187000   187000

They agreed to admit Sanjay in their partnership on 1st April, 2013, on the following terms :

  1. Sanjay should bring Rs. 1,500, as his share of goodwill in the firm, and Rs. 2,000 as his capital.
  2. Reserve for doubtful debts is to be provided @ 5% on debtors.
  3. Land and building be depreciated at 10% p. a.
  4. Plant and machinery to be depreciated @ 5% and stock to be depreciated @ 10% p. a.
  5. The new profit sharing ratio will be 2: 1: 1.

Prepare :

  1. Revaluation Account.
  2. Partners’ Capital Accounts.
  3. New Balance Sheet of the firm.
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Solution

                                  Revaluation Account

Particulars

Amount

Particulars

Amount

To Stock

2870

 

 

To Land and Building

3500

 

 

To Plant and Machinery

2450

To Loss of Revaluation A/c

 

To R.D.D.

3150

Akash’s Capital A/c

7182

 

 

Suraj’s Capital A/c

4788

 

11970

 

11970

 

                                               Partners’ Capital Account

Particulars

Akash

Suraj

Sanjay

Particulars

Akash

Suraj

Sanjay

By Loss on Revaluation A/c

7182

4788

-

By Balance b/d

50,000

50,000

-

 

 

 

 

By General Reserve

(3:2)

6,000

4,000

-

 

 

 

 

By Cash A/c

-

-

2,000

 

 

 

 

By Goodwill A/c

600

900

 

To Balance c/d

49,418 50,112 2,000

 

 

 

 

 

56,600

54,900

2,000

 

56,600

54,900

2,000

                              New Balance Sheet as on 1 April 2013

Liabilities

Amount

Amount

Assets

Amount

Amount

Capital A/c

 

 

Furniture

 

2100

Akash

49,418

 

Stock

28,700

 

Suraj

50,112

 

(-) Depreciation @ 10%

-2870

25,830

Sanjay

2000

101,530

Land and Building

35,000

 

Sundry Creditors

 

60,000

(-) Depreciation @ 10%

-3,500

31,500

Bills Payable

 

17,000

Plant and Machinery

49,000

 

 

 

 

(-) Depreciation @ 5%

-2450

46,550

 

 

 

Sundry debtors

63,000

 

 

 

 

(-) R.D.D. @ 5%

-3150

59,850

 

 

 

Cash( 9,200 + 1,500 + 2,000)

 

12700

 

 

178,530

 

 

178,530

Working Notes:
WN 1: Calculation of sacrificing Ratio
Akash's Sacrifice = `3/5 - 2/4 = ( 12 - 10 )/20 = 2/20`
 
Suraj's Sacrifice = `2/5 - 1/4 = ( 8 - 5)/20 = 3/20`
 
WN 2: Calculation of share of Goodwill
Akash's share = 1,500 x `2/5` = Rs. 600
Suraj's share = 1,500 x `3/5` = Rs. 900
 
WN 3: Calculation of Depreciation
Land and Building = 35,000 x `10/100` = Rs. 3,500
Plant and Machinery = 49,000 x `5/100` = Rs. 2,450
Stock = 28,700 x `10/100` = Rs. 2,870
 
WN 4: Calculation of Reserve for Doubtful Debts
Debtors = 63,000 x `5/100` = Rs. 3,150
 
WN5: Calculation of share in Revaluation Loss
Akash's share = 11,970 x `3/5` = Rs. 7,182
Suraj's share = 11,970 x `2/5` = Rs. 4,788
 
WN6: Calculation of share in general Reserve
Akash's share = 10,000 x `3/5` = Rs. 6,000
Suraj's share = 10,000 x `2/5` = Rs. 4,000
Concept: Reconstitution of Partnership
  Is there an error in this question or solution?

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