HSC Commerce (Marketing and Salesmanship) 12th Board ExamMaharashtra State Board
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Solution for 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 - HSC Commerce (Marketing and Salesmanship) 12th Board Exam - Book Keeping and Accountancy

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Question

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.

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

50000

50000

 

 

 

 

 

By General Reserve

(3:2)

6000

4000

 

 

 

 

 

By Cash A/c

 

 

2000

 

 

 

 

By Goodwill A/c

1167

333

 

To Balance c/d

49985

49545

2000

 

 

 

 

 

57167

54333

2000

 

57167

54333

2000

 

                              New Balance Sheet as on 1 April, 2013

Liabilities

Amount

Amount

Assets

Amount

Amount

Capital A/c

 

 

Furniture

 

2100

Akash

49985

 

Stock

28700

 

Suraj

49545

 

(-) Depreciation @ 10%

-2870

25830

Sanjay

2000

101530

Land and Building

35,000

 

Sundry Creditors

 

60000

(-) Depreciation @ 10%

-3500

31500

Bills Payable

 

17000

Plant and Machinery

49000

 

 

 

 

(-) Depreciation @ 5%

-2450

46550

 

 

 

Sundry debtors

63,000

 

 

 

 

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

-3150

59850

 

 

 

Cash

 

12700

 

 

178530

 

 

178530

 

W.N. 1.Cash Account

Particulars

Amount

Particulars

Amount

To Balance b/d

9200

 

 

To Sanjay’s Capital A/c

2000

 

 

To Goodwill A/c

1500

By Balance c/d

12700

 

12700

 

12700

 

W.N. 2. Goodwill Account

Particulars

Amount

Particulars

Amount

To Akash’ Capital A/c

1167

By Cash A/c

1500

To Suraj’s Capital

333

 

 

 

1500

 

1500

 

W.N. 3. Calculation of Sacrifice Ratio

S.R. = O.R. – N.R.

∴ Akash’s S.R. =

∴ Suraj’s S.R. =

∴ The Sacrifice Ratio of Old Partners is 2 : 7.

  Is there an error in this question or solution?

APPEARS IN

 2014-2015 (March) (with solutions)
Question 3.1 | 10.00 marks

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Solution 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 Concept: Reconstitution of Partnership Examples and Solutions.
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