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Solution - Rani and Geeta Are Partners Sharing Profits and Losses 3:2 Respectively. Their Position on 31st March, 2013 Was as Follows - Reconstitution of Partnership Examples and Solutions

Question

Rani and Geeta are partners sharing profits and losses 3:2 respectively. Their position on 31st March, 2013 was as follows

Balance sheet as on 31st March, 2013.

Liabilities
Amount (Rs.)
Assets
Amount (Rs.)
Amount (Rs.)
Capital Accounts
 
Building
 
100000
Rani
100000
Furniture
 
10000
Geeta
75000
Stock
 
31000
Creditors
10000
Debtors
50000
 
Bills Payable
5000
Less: R.D.D.
-1000
49000
General Reserve
15000
Bank Balance
 
15000
 
205000
   
205000
On 1st April, 2013 hey admitted suvarna on the following terms:

(1) Suvarna should bring in cash Rs. 1,00,000 as capital for 1/5 th share in future profit and Rs. 25,000 as goodwill.

(2) Building should be revalued at Rs. 1,25,000.

(3) Depreciate furniture @ 12.5 % and stock @ 10% p.a.

(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: Profit and loss adjustment account, capital account and balance sheet of the new firm.

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Solution for question: Rani and Geeta Are Partners Sharing Profits and Losses 3:2 Respectively. Their Position on 31st March, 2013 Was as Follows concept: Reconstitution of Partnership Examples and Solutions. For the courses HSC Arts, HSC Commerce, HSC Commerce (Marketing and Salesmanship)
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