Their position on 31. 3. 2013.
Balance sheet as on 31.03.2013
|
Liabilities
|
Amount
|
Assets
|
Amount
|
|
Capital A/c
|
Building
|
100000
|
|
|
Ganga
|
100000
|
Furniture
|
10000
|
|
Yamuna
|
75000
|
Stock
|
31000
|
|
Creditors
|
10000
|
Debtors 50000
|
|
|
Bills Payable
|
5000
|
Less: R.D.D. -1000
|
49000
|
|
General Reserve
|
15000
|
Bank
|
15000
|
|
205000
|
205000
|
On 1st April, 2013, they admitted Saraswati on the following terms:
(1) Saraswati should bring in cash Rs. 1,00,000 as capital for 1/5 share in future profit and Rs. 25,000, as goodwill.
(2) Building should be revalued for Rs. 1,25,000.
(3) Depreciate Furniture at 12 1/2 % p.a. And stock at 10%.
(4) R.D.D. should be maintained as it is.
(5) The capital accounts of partners should be adjusted in their new profit sharing ratio through bank account.
Prepare: (1) Profit and loss adjustment account. (2) Capital Account. (3) Balance sheet of new firm.
Solution: In the books of the Ganga, Yamuna and Saraswati.
Profit and Loss Adjustment Account.
|
Particulars
|
Amount
|
Amount
|
Particulars
|
Amount
|
Amount
|
|
To Furniture A/c
|
1250
|
By Building A/c
|
25000
|
||
|
To Stock A/c
|
3100
|
||||
|
To Profit on Revaluation Transferred to Partnes Capital A/c
|
|||||
|
Ganga’s Capital A/c
|
12390
|
||||
|
Yamuna’s Capital A/c
|
8260
|
20650
|
|||
|
25000
|
25000
|
Partners’ Capital A/c
|
Particulars
|
Ganga
|
Yamuna
|
Saraswati
|
Particulars
|
Ganga
|
Yamuna
|
Saraswati
|
|
By Balance b/d
|
100000
|
75000
|
|||||
|
By General Reserve A/c
|
9000
|
6000
|
|||||
|
By Bank A/c
|
-
|
-
|
100000
|
||||
|
By Goodwill A/c
|
15000
|
10000
|
-
|
||||
|
By P/L Adj. A/c
|
12390
|
8260
|
-
|
||||
|
To Balance C/d
|
240000
|
160000
|
100000
|
By Bank A/c
|
103610
|
60740
|
|
|
240000
|
16000
|
100000
|
24000
|
16000
|
100000
|
Balance Sheet as on 1st April, 2013.
|
Liabilities
|
Amount
|
Amount
|
Assets
|
Amount
|
Amount
|
|
Capitals:
|
Building
|
100000
|
|||
|
Ganga
|
240000
|
Add: Appreciation
|
25000
|
125000
|
|
|
Yamuna
|
160000
|
Furniture
|
10000
|
||
|
Saraswati
|
100000
|
500000
|
Less: Depreciation
|
1250
|
8750
|
|
Creditors
|
10000
|
Stock
|
31000
|
||
|
Bills Payable
|
5000
|
Less: Written off
|
3100
|
27900
|
|
|
Debtors
|
50000
|
||||
|
Less: R.D.D.
|
1000
|
49000
|
|||
|
Bank
|
304350
|
||||
|
515000
|
515000
|
