Ashish and Nimish w
vere partners in a firm sharing profits and losses in
the ratio of 3:2. On 31st M
ch, 2019 their Balance Sheet was as follows:
Balance Sheet of Ashish and Nimish as at.
sh and Nimish as at 31 March, 2019
Amount
Liabilities
Amount
Assote
Capitals
Plant and Machinery
2,90,000
Ashish 3,10.000
2,20,000
Furniture
Nimish 2,90,000
6,00,000
90,000
General Reserve
Less provision for
" doubtful debts 1,000
89,000
Workmen's
Compensation Fund 20,000 Stock
1,40,000
Creditors
1,10,000 Cash
41.000
7,80,000
7,80,000
(v)
On 1 April, 2019, Geeta was admitted into the partnership for
share in the profits on the following terms:
(i) Goodwill of the firm was valued at 2,00,000.
(11) Geeta brought 3,00,000 as her capital and her share of goodwill
premium in cash,
(i) Bad debts amounted to 32,000. Create a provision for doubtful
debts @ 5% on debtors.
(iv) Furniture was found undervalued by 65.400.
Stock was taken over by Nimish for 3 1,30,000.
(vi) The liability against workmen's compensation fund was
determined at 30,000.
(vii) After the above adjustments, the capitals of Ashish and Nimish
were to be adjusted taking Geeta's capital as the base. Excess or
shortage was to be adjusted by opening current accounts.
Prepare Revaluation Account, Partners' Capital Accounts and the
Balance Sheet of the firm after Geeta's admission.
OR
-67/3/2
P.TO
21
Answers
Answer:
the answer is as follows..
Answer:
Revaluation account balance = 65,400
Partner's capital account= 5,40,000 ; 4,90,000 ; 3,00,000
Balance sheet = 13,40,000
Explanation:
Revaluation account
- Debit side items:
- To bade debts 1,000
- To provision for bad and doubtful debts 4,400
- To WCR 10,000
- To stock a/c (loss) 10,000
- To gain on revaluation transferred to
Ashish 24000
Nimish16000 40,000
TOTAL 65,400
2. Credit side items:
- By furniture a/c 65,400
TOTAL 65,400
Partner's capital account ( AHSISH ; NIMISH ; GEETA)
- Debit side items:
- To stock a/c 130,000 (nimish)
- To balance c/d 540,000 ; 490,000 ; 300,000
TOTAL 5,40,000 ; 490,000 ; 300,000
2. Credit side items:
- By balance b/d 310,000 ; 290,000 ; 0
- by cash a/c ; 300,000
- by premium
for goodwill 30,000. ; 20,000;
- by general reserve 30,000 . ; 20,000;
- By revaluation a/c (gain) 24,000 ; 160000;
- by ashish current a/c 1,45,000
- by nimish current a/c ; 144000 ;
TOTAL 5,40,000 ; 490,000 ; 300,000
Balance sheet of reconstituted firm (as on 1 April )
- Liabilities side:
- capital a/c 12,00,000
(540,000 + 360000 + 300000)
- WCR 30000
- Creditors 110000
TOTAL 13,40,000
2. Assets side:
- plant and machinery 290000
- furniture 285000
- debtors 87600
- cash 391000
- current a/c
( 146000+144000) 290000
TOTAL 13,40,000
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