Question

A, B and were partners in a firm sharing profits in the ratio of 2:2:1. Their Balance Sheet as at
31st March, 2016 was as follows:
Doubt
Balance Sheet
as at 31st March, 2016
Liabilities
(3) Assets
30.000 Land
85.000
Creditors
Bills Frayable
Outstanding Expenses
20,000 Building
50.000
25,000 Plant
1.000
General Reserve
50,000 Stock
40 000
Capilal
Delstors
A
50,000
Cash
5000
B.
60,000
70,000
1.80.000
3,05,000
3.05 00.

from April 1 2016 partner decided to share profits in the ratio 1:2:3 for this purpose it was agreed that the Goodwill of the firm should be valued at 60000 land should be revalued at 100000 and building should be depreciated by 6% craters amounting to rs 3000 when not to pay it was decided among the partners that general reserve has to be distributed among the partners where as Goodwill and wise value of assets and liabilities or not to be recorded in the books

you are required to:

1.) record the necessary journal entries to give effects of the

2.)prepare the capital account of the partners

3.)prepare the balance sheet of the reconstituted firm​

Answer 1

Answer:

Capital on 31st March 2018 = Total Assets – External Liabilities  

= Rs. 2,00,000 – Rs. 6,000 = Rs. 1,94,000 Capital on 01st April 2017  

= Capital on March 31, 2018 – Additional Capital + Drawings – Profit  

= Rs. 1,94,000 – Rs. 20,000 + Rs. 12,000 – Rs. 20,000  

= Rs. 1,66,000

Explanation: