question_answer
A, B and C are partners sharing profits equally. They decided that in future C will get l/5th share in profits. On the day of change, following is their balance sheet: Balance Sheet as at...... Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
Creditors | | 12,000 | Cash | | 5,400 |
Capital A/cs | | | Debtors | 14,400 | |
A | 9,000 | | (-) Reserve | (2,400) | 12,000 |
B | 9,000 | | Stock | | 7,500 |
C | 5,400 | 23,400 | Machinery | | 4,500 |
| | | Building | 6,000 | |
| | 35,400 | | | 35,400 |
On this date, building have been valued at Rs. 9,000, stock to be reduced by Rs. 300 and provision for doubtful debts to be reduced by Rs. 900. Prepare necessary ledger accounts and balance sheet.
Answer:
Dr Revaluation Account Cr Particulars | | Amt (Rs.) | Particulars | Amt (Rs.) |
To Stock A/c | | 300 | By Building A/c | 3,000 |
To Profit Transferred to Capital A/cs | | | By Provision for Doubtful Debts A/c | 900 |
A's Capital A/c | 1,200 | | | |
B's Capital A/c | 1,200 | | | |
C's Capital A/c | 1,200 | 3,600 | | |
| | 3,900 | | 3,900 |
Dr Partners' Capital Account Cr Particulars | A (Rs.) | B (Rs.) | C (Rs.) | Particulars | A (Rs.) | B (Rs.) | C (Rs.) |
To Balance c/d | 10,200 | 10,200 | 6,600 | By Balance b/d | 9,000 | 9,000 | 5,400 |
| | | | By Revaluation A/c (Profit) | 1,200 | 1,200 | 1,200 |
| 10,200 | 10,200 | 6,600 | | 10,200 | 10,200 | 6,600 |
Balance Sheet as at...... Liabilities | | Amt (Rs.) | Assets | | Amt (Rs.) |
Creditors | | 12,000 | Debtors | 14,400 | |
Capital A/cs | | | (-) Provision | (1,500) | 12,900 |
A | 10,200 | | Stock | | 7,200 |
B | 10,200 | | Machinery | | 4,500 |
C | 6,600 | 27,000 | Building | | 9,000 |
| | | Cash | | 5,400 |
| | 39,000 | | | 39,000 |