Maharashtra State BoardHSC Commerce 12th Board Exam

Ram and Krishna Were Partners Sharing Profits and Losses in the Proportion of 2/3 and 1/3 Respectively. Their Balance Sheet is as Follows : - Book Keeping and Accountancy

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Ledger

Ram and Krishna were partners sharing profits and losses in the proportion of 2/3 and 1/3 respectively. Their balance sheet is as follows :

Balance sheet as on 31st March , 2013

Liabilities Amount (₹) Assets Amount
(₹)
Capital A/c   Building 100000
Ram 96000 160000 Furniture 30000
Krishna 64000 Sundry Debtors 63000 60000
General Reserve 18000 Less : R.D.D (3000)
Profit and loss A/c 6000 Stock 84000
Sundry Creditors 80000 Cash 16000
Ram's loan  26000    
  290000   290000

On 1st April 2013 , Hari is admitted in the partnership on the following terms :

(1) Hari should bring in cash ₹ 48000 as capital for 1/5 share in future profit.

(2) Goodwill was raised in the books of the firm for ₹ 18000.

(3) Building is revalued at ₹ 112000 and the value of stock to be reduced by ₹ 6000.

(4) Reserve for doubtful debts be maintained at ₹ 1800.

(5) Ram's loan is to be repaid.

Prepaid : Revaluation account , Capital accounts of partners and Balance sheet of the new firm.

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Solution

In the books of Ram, Krishna and Hari.

Revaluation Account.

Particulars
Amount
Amount
Particulars
Amount
Amount
To Stock A/c
 
6000
By Building A/c
 
12000
To Profit on Revaluation A/c transferred to Partners Capital A/c    
By R.D.D. A/c
 
1200
Ram Capital A/c
4800
7200
     
Krishna Capital A/c
2400
 
13200
 
13200
 

Partners’ Capital A/c
Particulars
Ram
Krishna
Hari
Particulars
Ram
Krishna
Hari
       
By Balance b/d
96000
64000
-
       
By General Reserve A/c
12000
6000
-
       
By Profit & Loss A/c
4000
2000
 
       
By Revaluation A/c
4800
2400
-
       
By Cash A/c
   
48000
By Balance c/d 128800 80400 48000
By Goodwill A/c
12000
6000
-
 
128800
80400
48000
 
128800
80400
48000


Balance Sheet as on 1st April, 2013.

Liabilities
Amount
Amount
Assets
Amount
Amount
Capital A/c
   
Building
100000
 
Ram
128800
 
Add: Appreciation
12000
112000
Krishna
80400
 
Furniture
 
30000
Hari
48000
257200
Debtors
63000
 
Sundry Creditors
 
80000
Less: R.D.D.
1800
61200
     
Stock
84000
 
Less: Written off
6000
78000
Goodwill
 
18000
Cash
 
18000
Cash
16000
 
Add: Hari’s Capital
48000
 
Less: Ram’s Loan
26000
38000
 
337200
 
337200
Concept: Admission of a Partner - Adjustment of Accumulated Profits and Losses
  Is there an error in this question or solution?

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