021. The Balance Sheet of Madan and Mohan who share profits and losses in the ratio of 32 on
31" March, 2018 was as follows:
787
(Rs.)
TO,000
Balance Sheet of Madan and Mohan
as on 31" March, 2018
Liabilities
(Rs.) Assets
Creditors
28000 Cash at Bank
Workmen's compensation fund 12,000 Debtors
General Reserve
20,000 Less: Provision for D/D
Capitals
Stock
Madan
60,000
Investments
Mohan
40,000 1,00,000 Patents
1.60,000
65.000
15.000)
60,000
30,000
50,000
10,000
1.60.000
They decide to admit Gopal on 1" April, 2018 for 1/4 share on the following terms:
(0) Gopal shall bring Rs. 25,000 as his share of premium for goodwill.
(10) That unaccounted accrued income of Rs. 500 be provided for.
Gii) The market value of investments was Rs. 45,000.
(iv) A debtor whose dues of Rs. 1,000 were written off as bad debt paid Rs. 800 in full
settlement
A claim of Rs. 2,000 on account of workmen compensation to be provided for.
(vi) Patents are undervalued by Rs. 5,000.
(vii) Gopal to bring in capital equal to 1/4th of the total capital of a new fimm after all
adjustments.
Answers
Answer:
Explanation:
Revaluation Account
To investment 5000 By Accrued income 1000
To patent 2000 By BD recovered 4000
By capital
Madan 1200
Mohan 800 2000
7000 7000
Partners Account A/c
To revaluation A/c 1200 800 By Bal c/d 60000 40000
To Bal c/d 88200 58800 By Reserve 12000 8000
By workmen 5400 3600
By premium 12000 8000
89400 59600 89400 59600
Answer:
revaluation account
partners capital account
balance sheet