i have a presentation to make on structure of liquids just a 3 slide one but I'm stuck over how to put in properly in those 3 slides itself
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Answer:
Mohan, Vinay and Nitya were partners in a firm sharing profits and losses in the proportion of respectively. On 31st March, 2018, their Balance Sheet was as follows:
Balance Sheet of Mohan, Vinay and Nitya as at 31st March, 2018
Liabilities Amount (₹) Assets Amount (₹)
Creditors 48,000 Cash at Bank 31,000
Employees' Provident Fund 1,70,000 Bills Receivable 54,000
Contingency Reserve 30,000 Book Debts 63,000
Capital : Less: Provision for doubtful debts 2,000 61,000
Mohan 1,20,000 Plant and Machinery 1,20,000
Vinay 1,00,000 Land and Building 2,92,000
Nitya 90,000 3,10,000
5,58,000 5,58,000 Mohan retired on the above date and it was agreed that: (i) Plant and machinery will be depreciated by 5%. (ii) An old computer previously written off was sold for ₹4,000. (iii) Bad debts amounting to ₹3,000 will be written off and a provision of 5 % on debtors for bad and doubtful debts will be maintained. (iv) Goodwill of the firm was valued at ₹1,80,000 and Mohan's share of the same was credited in his account by debiting Vinay's and Nitya's accounts. (v) The capital of the new firm was to be fixed at ₹90,000 and necessary adjustments were to be made by bringing in or paying off cash as the case may be. (vi) Vinay and Nitya will share future profits in the ratio of 3:2. Prepare Revaluation Account, Partners' Capital accounts and the Balance Sheet of the reconstituted firm.
Marks:8
Expert's answer
In the books of Mohan, Vinay & Nitya
Revaluation Account
Dr.
Cr.
Particulars
(₹)
Particulars
(₹)
To Plant & Machinery A/c
6,000
By Bank A/c (Old Computer)
4,000
To Book Debts A/c
1,000
By Loss transferred to:
To Provision for bad & doubtful debts A/c
3,000
Mohan’s Capital
3,000
Vinay’s Capital
2,000
Nitya’s Capital
1,000
6,000
10,000
10,000
Partner’s Capital Account
Dr.
Cr.
Particulars
Mohan ₹
Vinay ₹
Nitya ₹
Particulars
Mohan ₹
Vinay ₹
Nitya ₹
To Revaluation A/c
3,000
2,000
1,000
By Balance b/d
1,20,000
1,00,000
90,000
To Mohan’s Capital A/c
48,000
42,000
By Contingency Reserve
15,000
10,000
5,000
To Mohan’s Loan A/c
2,22,000
By Vinay’s Capital A/c
48,000
To Bank A/c
6,000
16,000
By Nitya’s Capital A/c
42,000
To Balance c/d
54,000
36,000
2,25,000
1,10,000
95,000
2,25,000
1,10,000
95,000
Calculation of Gaining & Sacrificing Share:
Vinay's Gain = New Share − Old Share = 35−13=9−515=415Nitya's Gain = New Share − Old Share = 25−16=12−530=730Goodwill of the firm = ₹1,80,000Mohan's Share of Goodwill = ₹1,80,000 × 12= ₹90,000Vinay's Share of Goodwill = ₹1,80,000 × 415= ₹48,000Nitya's Share of Goodwill = ₹1,80,000 × 730= ₹42,000
Bank Account
Dr.
Cr.
Particulars
(₹)
Particulars
(₹)
To Balance b/d
31,000
By Vinay’s Capital A/c
6,000
To Revaluation A/c (old computer)
4,000
By Nitya’s Capital A/c
16,000
By Balance c/d
13,000
35,000
35,000
Liabilities
(₹)
Assets
(₹)
Creditors
48,000
Cash at bank
13,000
Employees provident Fund
1,70,000
Bills receivable
54,000
Mohan’s Loan
2,22,000
Book debts
60,000
Capital:
Less: provision for bad & doubtful debts
(3,000)
57,000
Vinay
54,000
Plant & Machinery
1,14,000
Nitya
36,000
90,000
Land & building
2,92,000
5,30,000
5,30,000