Question

Q23. Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20%. On
March 31st, 2019 their Balance Sheet was as follows:
(8)
Liabilities
Amount
Creditors
28.000
Employee Provident 10,000
Fund
10,000
Investment
1.15,000
fluctuation Fund
Capital
Lalit 50.000
Madhur 40,000
Neena 25,000
Assets
Amount
Cash
34.000
Debtors
47.000
Less Provision for Doubtful
Debts
3,000 44,000
Stock in Trade
15,000
Investment
40.000
Goodwill
20,000
Profit and Loss Alc
10.000
1,63,000
1,63,000
On this date, Madhur retired and Lalit and Neena agreed to continue on the following
terms:
(a) The goodwill of the firm was valued at 51,000.
(b) There was a claim for workmen's compensation to the extent of 6,000.
(c) Investment were brought down to 15,000.
(d) Provision for bad debts was reduced by 1,000.
(e) Madhur was paid 10,300 in cash and the balance was transferred to his loan account.
Prepare Revaluation A/C, Partner's capital Accounts​

Answer 1

Answer:

Q23. Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20%. On

March 31st, 2019 their Balance Sheet was as follows:

(8)

Liabilities

Amount

Creditors

28.000

Employee Provident 10,000

Fund

10,000

Investment

1.15,000

fluctuation Fund

Capital

Lalit 50.000

Madhur 40,000

Neena 25,000

Assets

Amount

Cash

34.000

Debtors

47.000

Less Provision for Doubtful

Debts

3,000 44,000

Stock in Trade

15,000

Investment

40.000

Goodwill

20,000

Profit and Loss Alc

10.000

1,63,000

1,63,000

On this date, Madhur retired and Lalit and Neena agreed to continue on the following

terms:

(a) The goodwill of the firm was valued at 51,000.

(b) There was a claim for workmen's compensation to the extent of 6,000.

(c) Investment were brought down to 15,000.

(d) Provision for bad debts was reduced by 1,000.

(e) Madhur was paid 10,300 in cash and the balance was transferred to his loan account.

Prepare Revaluation A/C, Partner's capital Accounts

Answer 2

Answer:

Explanation:

  Madhur's loan Account

        Particulars           Amount                Particulars                          Amount

To Bank A/c                                             By Madhur's A/c               30000

(15000 + 3600)       18600                      By Interest A/c                     3600

To bal c/d                 15000

                                                                                                                                   

                               33600                                                                     33600      

To Bank A/c          16800                             By Bal b/d                     15000

                                                                      By Interest A./c               1800

                                                                                                                                   

\                            16800                                                                        16800