Question

1. The following was the balance sheet of Ram and Rahim, who were sharing profits and
losses in the ratio of 2:3. Their balance sheet as on 31 March 2015 was as under.
Liabilities
Assets
Amount
₹
Amount
₹
Bills payable
25,000
Bank
10,000
Trade creditors
50,000
Debtors
40,000
General Reserve
20,000
Stock
30,000
P&La/c
10,000
Investments
20,000
Capitals:
Furniture
25,000
60,000
Ram
Buildings
50,000
30,000
Rahim
1,85,000
1,85,000
On 1st April 2015, they agreed to admit Mr. Peter as new partner for 1/5th share in profits on the
following terms:
(a) Peter should bring 40,000 for capital and 720,000 for goodwill in cash.
(6) Depreciates furniture by 5% and stock by 10%.
(c) Appreciate buildings value by 15%.
(d) Provide for bad debts at 5% on debtors.
Give necessaryjournal entries and ledger accounts and opening balance sheet of new firm.
​

Answer 1

Answer:

2005

eptember 1. Started business with Rs. 100,000, paid into Bank Rs. 40,000,

2. Bought furniture for Rs. 10,000 and machinery for Rs. 20,000

3. Purchased goods for Rs. 28,000.

6. Sold goods for Rs. 16,000.

8. Purchased goods from Ishtiaq & Co. Rs. 22,000.

10. Paid telephone rent for the year by cheque Rs. 1,000.

11. Bought one typewriter for Rs. 4,200 from Universe

Typewriter Co. on credit.

15. Sold goods to Khurram for Rs. 24,000.

17. Sold goods to Ajmal for Rs. 4,000 for cash.

19. Amount withdrawn from bank for personal use Rs. 3,000.

20. Withdrew from bank for business use Rs. 7,000.

21. Received cash from Khurram Rs. 23,800, discount allowed Rs. 200.

22. Paid into bank Rs. 11,600.

25. Goods worth Rs. 2,000 found defective were returned to Ishta

& Co. and the balance of the amount due to them was settle

by issuing a cheque in their favour.

28. Bought goods worth Rs. 4,200 from Aslam and supplied then

to Akram at Rs. 6,000.

30. Akram returned goods worth Rs. 200, which in turn were se

to Aslam at Rs. 140.

30. Issued a cheque for Rs. 2,000 in favour