Question

Q 7.The Balance Sheet of Madhu and Vidhi who are sharing profits in the ratio of 2 : 3 as at 31st March, 2016 is given below:

Answer 1

Answer:

The Revaluation Account, Partners Capital Accounts and the Balance Sheet of the reconstituted firm are calculated below:

Explanation:

(i)                                REVALUATION A/C

Dr.                                                                                                                       Cr.

ParticularsAmount Particulars Amount To Provision for

Doubtful Debts a/c5000 By Land and Building a/c 26000 To Workmen Compensation a/c6000   To Profit transferred to:

- Madhu's Capital a/c

- Vidhi's Capital a/c 

6000

9000   26000 26000 (ii)                                     PARTNER'S CAPITAL A/C

Dr.                                                                                                                      Cr.

Particulars Madhu Vidhi Gayatri Particulars Madhu Vidhi Gayatri     By Balance b/d520000 300000      By General Reserve a/c12000 18000      By Cash a/c    400000     By Premium for

Goodwill a/c 60000 90000  To Balance b/d 598000 417000 400000 By Revaluation a/c6000 9000   598000417000 400000  598000 417000 400000 

(iii)                                           BALANCE SHEET

LiabilitiesAmount Assets Amount Capital a/cs:

- Madhu

- Vidhi

- Gayatri

598000

417000

400000  Land and Building326000 Bills Payable150000  Machinery280000 Workmen Compensation

Reserve6000 Stock80000    Debtors            300000

(-) Provision         (15000)

for doubtful debts285000   Bank (50000+400000+150000)600000 1571000 1571000

Working Note:

Calculation of sacrificing ratio:

Madhu's sacrifice= 2/5-2/10

                             = 2/10

Vidhi's sacrifice= 3/5-3/10

                          = 3/10

Sacrificing ratio= 2:3

Answer 2

Answer:

https://www.sarthaks.com/468629/the-balance-sheet-madhu-and-vidhi-who-are-sharing-profits-ratio-31st-march-2016-given-below

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