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सिमा स्टार्टड बिजनेस विद कैश 20000 एंड प्लांट 50000​

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ACCOUNTANCY

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Asked on December 26, 2019 by

Tanish Sherab

A,B and C are partners sharing profits and losses in the ratio of 3:2:1 respectively. Their Balance Sheet as at 31

st

March,2018 is as follows:

Liabilities (Rs.) Assets (Rs.)

Capital A/cs:

A 60,000

B 60,000

C 40,000

Creditors

Bills Payable

1,60,000

30,000

10,000 Land and Building

Plant and Machinery

Furniture

Stock

Debtors

Bills Receivable

Bank 50,000

40,000

30,000

20,000

30,000

20,000

10,000

2,00,000 2,00,000

D is admitted as a new partners on 1

st

April,2018 for an equal share and is to pay Rs.50,000 as capital. Following are the adjustment required on D

s admission:

(a) Out of the Creditors, a sum of Rs.10,000 is due to D which will be transferred to his capital Account.

(b) Advertisement Expenses of Rs.1,200 are to be carried forward to next accounting period as Prepaid Expenses.

(c) Expenses debited in the Profit and Loss Account includes a sum of Rs.2,000 paid for B

s personal expenses.

(d) A Bill of Exchange of Rs.4,000 which was previously discounted with the banker, was dishonoured on 31

st

March,2018 but no entry has been passed for that.

(e) A Provision for Doubtful Debts @ 5% is to be created against Debtors.

(f) Expenses on Revaluation amounted to Rs.2,100 is paid by A.

Prepare necessary Ledger Accounts and Balance Sheet after D

s admission.

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ANSWER

(i) REVALUATION A/C

Dr. Cr.

Particulars Amount Particulars Amount

To Provision for Doubtful Debts 1700 By Prepaid advertisement Expenses 1200

To A's Capital

(revenue expense) 2100 By B's Capital

(personal expenses) 2000

By Loss transferred to:

- A's Capital a/c

- B's Capital a/c

- C's Capital a/c

300

200

100

3800 3800

(ii) PARTNER'S CAPITAL A/C

Dr. Cr.

Particulars A B C D Particulars A B C D

To Revaluation a/c

(personal) 2000 By Balance b/d 60000 40000 40000

To Revaluation a/c

(loss) 300 200 100 By Cash a/c 40000

To Balance c/d 61800 37800 39900 50000 By Creditors 10000

By revaluation expenses 2100

62100 40000 40000 50000 62100 40000 40000 50000

(iii) BALANCE SHEET

Dr. Cr.

Liabilities Amount Assets Amount

Capital a/cs:

- A

- B

- C

- D

61800

57800

39900

50000 Land and Building 50000

Bills Payable 10000 Plant and Machinery 40000

Creditors 30000

(-) D's Capital (10000) 20000 Furniture 30000

Stock 20000

Prepaid Advertisement

Expenses 1200

Debtors 30000

(-) Provision for (1700)

Doubtful debts

(+) Bills receivable 4000

dishonoured 32300

Bills receivable 20000

Bank (10000+40000-4000) 46000

239500 239500

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