Question

242-4
:
Rs.
72,000
15,000
5,000
38,000
of 10% but issued at par.
4. The following is the Balance Sheet of Ashim as at 31.12.18 :
Liabilities
Rs. Assets
Capital
1,30,000 Premises
Reserve
8.000 Furniture
Creditors
18,000 Investment
Bank overdraft
2,000 Stock
Debtors
29,000
Less: Provision 1,000
1,58,000
He agrees to admit Akash as a partner for 1/3rd Share in the profits on the
basis of the above Balance Sheet, subject to the following modifications :
(1) Revaluation of assets: Premises
Rs. 1,00,000
Furniture
Rs. 12,000
Stock
Rs. 30,000
(11) Provision for doubtful is to be
increased to
Rs. 3,000
(iii) Akash is to introduce proportionate amount of Capital
Show Revaluation Account and Partner's Capital Account.
3+3=6
28,000
1,58,000

how to get the proportionate capital????​

Answer 1

Answer: 69200

Explanation:

1. Cash a/c...                                             Dr.                  10500

          To C's Capital a/c                                                          7500

           To Premium for goodwill a/c                                       3000

(Being capital and premium for goodwill brought in by C)

2. Premium for goodwill a/c...                Dr.                   3000

           To A's Capital a/c                                                         2000

           To B's Capital a/c                                                         1000

(Being premium for goodwill distributed among the partners in the ratio of 2:1)

3. Building a/c...                                      Dr.                    2500

           To Revaluation a/c                                                       2500

(Being increase in asset transferred to revaluation account)

4. Revaluation a/c....                              Dr.                     1750

           To Plant and Machinery a/c                                            875

           To Stock a/c                                                                     500

           To Provision for doubtful debts a/c                                375

(Being decrease in assets and increase in liabilities transferred to revaluation account)

5. Revaluation a/c...                               Dr.                     750

           To A's Capital a/c                                                       500

           To B's Capital a/c                                                       250

(Being profit on revaluation transferred to the partner's capital accounts)   Particulars  Amount  

(in Rs.)  Particulars  Amount

(in Rs.)

To Stock a/c  500  By Building a/c 2500

To Plant and Machinery a/c  875    

To Provision for doubtful debts a/c  375    

To Profit transferred to

- A's Capital a/c

- B's Capital a/c

 

500

250    

TOTAL  2500  TOTAL  2500

   

(iii)                                          PARTNER'S CAPITAL A/C

Particulars  A  B  C  Particulars  A  B C

        By Balance b/d  15000 10000  -

        By Cash a/c  -  -  7500

To Balance c/d  17500 11250 7500  By Premium for goodwill a/c  2000  1000 -  

        By Revaluation a/c   500 250 -  

(iv)                                        BALANCE SHEET  

                                       (after admission of C)

Liabilities  Amount

(in Rs.) Assets  Amount

(in Rs.)

    Building (25000+2500) 27500

Capital

- A

- B

- C  

17500

11250

7500  Plant and Machinery (17500-875)  16625

Sundry Creditors  32950  Stock (10000-500)  9500

   Debtors                                   4850

-- Provision for Doubtful debts (375)  4475

    Cash (600+10500)  11100

     

TOTAL 69200 TOTAL 69200