Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Creditors | 86,000 | Cash in Hand | 77,000 | ||
Employees Provident Fund | 10,000 | Debtors | 42,000 | ||
Investment Fluctuation Fund | 4,000 | (-) Provision for Doubtful Debts | (7,000) | 35,000 | |
Capital A/cs | Investments | 21,000 | |||
Shiva | 1,19,000 | Buildings | 98,000 | ||
Anshita | 1,12,000 | 2,31,000 | Plant and Machinery | 1,00,000 | |
3,31,000 | 3,31,000 |
(i) Manav will bring Rs. 50,000 as his share of capital. |
(ii) Goodwill of the firm is valued at Rs. 42,000 and Manav will bring his share of goodwill in cash. |
(iii) Buildings were appreciated by 20%. |
(iv) All debtors were good. |
(v) There was a liability of Rs. 10,800 included in creditors which was not likely to arise. |
(vi) New profit sharing ratio will be 2 : 1 : 1. |
(vii) Capital of Shiva and Anshita will be adjusted on the basis of Manav's share of capital and any excess or deficiency will be adjusted by withdrawing or bringing in cash by the concerned partners as the case may be. |
Liabilities | Amt (Rs.) | Assets | Amt (Rs.) | ||
Employees Provident Fund | 70,000 | Land and Building | 4,00,000 | ||
Workmen Compensation Fund | 30,000 | Machinery | 6,00,000 | ||
Sundry Creditors | 1,00,000 | Closing Stock | 2,00,000 | ||
Capital A/cs | Sundry Debtors | 2,20,000 | |||
Harsh | 4,00,000 | (-) Provision for | |||
Mahima | 6,00,000 | Doubtful Debts | (20,000) | 2,00,000 | |
Karan | 4,00,000 | 14,00,000 | Cash at Bank | 2,00,000 | |
16,00,000 | 16,00,000 |
(i) Land and building be appreciated by 30%. |
(ii) Machinery be depreciated by 30%. |
(iii) There were bad debts of Rs. 35,000. |
(iv) The claim on account of workmen compensation fund was estimated at Rs. 15,000. |
(v) Goodwill of the firm was valued at? 28,000 and Karan's share of goodwill was adjusted against the capital accounts of the continuing partners Harsh and Mamma who have decided to share future profits in the ratio 3 : 4 respectively. |
(vi) Capital of the new firm in total will be the same as before the retirement of Karan and will be in the new profit sharing ratio of the continuing partners. |
(vii) Amount due to Karan be settled by paying Rs. 1,00,000 in cash and balance by transferring to his loan account which will be paid later on. |
Answer:
Revaluation account (profit) = Rs. 37,400 Partners' capital account (balance) Shiva= Rs. 1,00,000, Anshita =Rs. 50,000, Manav =Rs. 50,000 and total of balance sheet = Rs. 2,85,200 Or Revaluation account (loss) = Rs. 75,000 and Partner's capital account (balance) Harsh = Rs. 6,00,000 Mahima = Rs. 8,00,000 Karan's loan A/c = Rs. 2,89,333.3 and total of balance sheet = Rs. 18,74,333.3
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