Anil and Sunil are partners in a firm sharing profit and losses in the ratio of 21. Their Balance
Sheet as on 31-3-2016 was as follows:
Balance Sheet as on 31-3-2016
Liabilities
Rs. Assets
Rs.
BP
16,000 Cash
4.000
Sundry Creditors
5,000 Sundry Debtors
30.000
Reserve Fund
9.000 Stock
32.000
Capitals
Furniture
8.000
Ani
60.000 Buildings
56,000
Sunil
50.000 Motor Car
10.000
1,40,000
1,40,000
4
On 1-4-2016, they admitted Vimal for share in future profits under the following terms
He should bring cash for capital Rs.40,000 and Rs 30,000 for goodwill.
b) Half of the goodwill amount withdrawn by the old partners.
c) Buildings are revalued at Rs.66,000 and make a provision for legal charges Rs.700
d) Slock and Motor car can be depreciated by 10% each.
e) Provide provision for doubtful debts at 5% on debtors.
Answers
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As on 1st April 2010, Ram has been admitted into the partnership on the following conditions:
Explanation:
As on 1st April 2010, Ram has been admitted into the partnership on the following conditions:
(1) Ram should be bringing in cash of Rs. 12,000 as capital for 1/5th share in future profits.
(2) The goodwill account is raised in the books of the firm for Rs. 4,500.
(3) Revaluation of a building for Rs. 28,000 and the value of the stock is Rs. 1,500.
(4) Reserve is provided for doubtful burden at 5% on debtors.
Make it ready:
(a) Profit and Loss Adjustment Account.
(b) Capital accounts of the partners.
(c) Balance sheet of the new firm.
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