akhil and bimal are partners sharing in the ratio of 3:2 .Akhil gave loan to the firm of ₹100000 on 1st October 2019.On the same date,firm gave loan to Bimal of ₹100000.They do not have an agreement as to interest. Akhil had also given his personal property for firm's godown at a monthly rent of ₹5000.Firm earns profit of ₹103000(before above adjustments) for the year ended 31st march,2020.Show the distribution of profit for the year.
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Answer:
. 28. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2015 they admitted Chintu into partnership for 1/5th share in the profits Of the firm.
On that date their Balance Sheet stood as under:
Liabilities Amount Assets Amount
Abha Capital A/c: 120000 Plant and Machinery 130000
Bimal Capital A/c: 100000 Furniture 25000
General Reserve 20000 Investment 100000
Sundry Creditors 100000 Sundry Debtors 50000
Bank 35000
340000 340000Chintu was admitted on the following terms:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.
Prepare the Capital Accounts of the partners and Bank Account.
ANSWER
Partners’ Capital Accounts
Dr. Cr.
Particulars Abha Bimal Chintu Particulars Abha Bimal Chintu
Bank A/c 5,800 Balance b/d 1,20,000 1,00,000
Balance c/d 2,00,000 1,20,000 80,000 Bank A/c 80,000
Premium for Goodwill A/c 15,000 15,000
General Reserve 12,000 8,000
Revaluation A/c 4,200 2,800
Bank A/c 48,800
2,00,000 1,25,800 80,000 2,00,000 1,25,800 80,000
Bank Account
Dr. Cr.
Particulars Amount
Rs Particulars Amount
Rs
Balance b/d 35,000 B’s Capital A/c 5,800
Chintu’s Capital A/c 80,000 Balance c/d 1,88,000
Premium for Goodwill A/c 30,000
A’s Capital A/c 48,800
1,93,800 1,93,800
Working Notes:
Calculation of Sacrificing Ratio
Abha's sacrifice=35−510=110Bimal's sacrifice=25−310=110Sacrificing Rtaio=1:1Abha's sacrifice=35-510=110Bimal's sacrifice=25-310=110Sacrificing Rtaio=1:1
Calculation of New Capitals of the Partners
Total Capital of thw Firm=80,000×102=4,00,0004,00,000 in 5:3:2Abha's New Capital=4,00,000×510=2,00,000Bimal's New Capital=4,00,000×310=1,20,000Chintu's New Capital=4,00,000×210=80,000Total Capital of thw Firm=80,000×102=4,00,0004,00,000 in 5:3:2Abha's New Capital=4,00,000×510=2,00,000Bimal's New Capital=4,00,000×310=1,20,000Chintu's New Capital=4,00,000×210=80,000
Adjustment of Capitals
Abha's New Capital (2,00,000) > Abha's Existing Capital (1,51,200) - Abha will bring in 48,800
Bimal's New Capital (1,20,000) < Bimal's Existing Capital (1,25,800) - Bimal will withdraw 5,800
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