Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively.


5. Mr. Kishor & Mr. Lal were in partnership sharing profits & losses in the proportion of 3/4 and 1/4 respectively. 

Balance Sheet as on 31 March 2018

Liabilities 

Amount 

Amount 

Assets 

Amount 

Amount 

Sundry creditors 

 

1,20,000 

Land & Building 

 

75,000 

General reserve 

 

12,000 

Furniture 

 

6,000 

Capital A/c: 

 

 

Stock 

 

60,000 

Kishor 

90,000 

 

Debtors 

 

60,000 

Lal 

48,000 

1,38,000 

Bills Receivable 

 

39,000 

 

 

 

Cash at Bank 

 

30,000 

 

 

1,49,000 

 

 

1,49,000 


They decided to admit Ram on 1st April 2018 on following terms:

1. He Should be given 1/5th share in profit and for that he brought in 460,000 as capital through RTGS.
2. Goodwill should be raised at 460,000.
3. Appreciate Land & building by 20%
4. Furniture and Stock are to be depreciated by 10%
5. The capitals of all partners should be adjusted in their new profit sharing ration through Bank A/c.

Pass necessary Journal Entries in the books of the partnershi firm and a Balance sheet of new firm.

Solution:

In the Books of Mr. Kishor, Mr. Laland Mr. Ram Partnership Firm


Date 

Particulars 

L/F 

Debit ₹ 

Credit ₹ 

1. 

General reserve A/c Dr. 

To Kishor A/c 

  To Lal A/c 

[Being undistributed profit distributed among the Partner] 

 

20,000 

 

20,000 

2. 

bank A/c Dr. 

To ram Capital A/c 

[Being capital bought by new partner in cash] 

 

60,000 

 

60,000 

3. 

Goodwill A/c Dr. 

To Kishor A/c 

To Lal A/c 

[being goodwill raised] 

 

60,000 

 

45,000 

15,000 

4. 

Revaluation A/c Dr. 

To Furniture A/c 

To Stock A/c 

[Being Assets are revalued] 

 

6,600 

 

600 

6,000 

5. 

Land & Building A/c Dr. 

To Revaluation A/c 

[Being Assets are revalued] 

 

15,000 

 

15,000 

6.  

Revaluation A/c Dr. 

To Kishor 

To Lal  

[Being  

 

8,400 

 

6,300 

2,000 

7. 

Bank A/c Dr. 

To Kishor Capital A/c 

[Being deficit in capital A/c settled in cash by Kishor] 

 

29,700 

 

29,700 

8. 

Lal Capital A/c Dr. 

To Bank A/c 

[Being surplus of Mr. Lal capital A/c] 

 

8,100 

 

8,100 


Balance Sheet as on 1.04.2018

 

Cr. Dr. 

Liabilities 

Amount 

Amount 

Assets 

Amount 

Amount 

Capital A/c: 

 

 

Land & Building 

75,000 

 

Mr. Kishor 

1,80,000 

 

(+) Appreciation 

15,000 

90,000 

Mr. Lal 

60,000 

 

Furniture 

6,000 

 

Mr. Ram 

60,000 

3,00,000 

(-) Depreciation 

600 

5,400 

 

 

 

Stock 

60,000 

 

Creditors 

 

1,20,000 

(-) Depreciation 

6,000 

54,000 

 

 

 

Debtors 

 

60,000 

 

 

 

Bills receivable 

 

39,000 

 

 

 

 

 

 

 

 

 

Cash at bank 

 

1,11,600 

 

 

 

 

 

 

 

 

4,20,000 

 

 

4,20,000 

 

 

 

 

 

 




✱Total capital = Capital of New Partner * Reciprocal of his Share
= 60,000 * 5/1 = 3.00,000

Distribution of capital
Kishor = 3,00,000 * 3/5 = 1,80,000
Lal = 3,00,000 * 1/5 = 60,000
Ram = 3,00,000 * 1/5 = 60,000

Popular posts from this blog

Sun and Moon are Partners in Partnership Firm sharing Profits and Losses equally. You are required to give effects of Adjustments with the help of following information

Trial Balance as on 31st March, 2019   Debit Balance   Amount   Credit Balance   Amount   Land & Building   40,000  Capital A/c Sun  33,500   Moon  33,500  Furniture  18,000  Current A/c: Sun   6,000  Machinery  40,000  Sundry Creditors  25,000  (Purchased on 01/07/18)    Bank Overdraft   10,000  Goodwill  2,000  Reserve Fund  5,000  Wages  2,000  Provident Fund  5,000  Current A/c: Moon  4,000      8% Debentures  8,000      (Purchased on (01/10/18)        Providend Fund Investment  3,500      Stock of Postal stamps  500        1,18,000     1,18,000               Adjustments:   1. Partners are entitled to get salary 6,000 p.a. in additional to their profit & loss sharing.   2. Depreciation on Land & Building, Furniture & Machinery @10%, 5% and 3% respectively.    3. Interest on Capital 5% p.a.     4. Closing stock 60,743   5. Wages included 1,000 as advance given to workers.   6. Interest due but not paid 800.   7. Total Net Profit amounted to 38,113.           Solutio
Read more

CLASS 11th BOOK KEEPING & ACCOUNTANCY

Class 11 Chapter 3 - Journal Entry Solution     Class 11 Chapter 4 - Ledger Accounts   Class 11 Chapter 5 - Subsidiary Book Solution   Class 11 Chapter 6 - Bank Reconciliation Statement     Class 11 Chapter 7 - Depreciation       Class 11 Chapter 8 - Rectification of Errors Solution in Accounting Journal Entry   Class 11 Chapter 9 - Final Account of Proprietary Concern         Maharashtra board Class 11th chapter 3 Journal Entry Solutions
Read more

Class 11th Chapter 4 Ledger Solutions | Class 11 Ledger Practical Problems Solutions

Image
PRACTICAL PROBLEMS   Q.1 Give Journal entries of the following posting from the ledger account.   Q.2 Prepare necessary ledger account from the following Subsidiary Books.   Q.3 From the following Transactions prepare necessary Ledger accounts in the Books of Vinay and balance the same. Q.4 Journalise the following transactions and prepare cash account only. Q.5 Prepare Aparna's account in the books of Suparna.   Q.6. Prepare Cash A/c, Bank A/c, Purchase A/c, sales A/c and Capital A/c, and balance the same in the books of Mandanlal.   Q.7. Journalise the following transactions; post them into Ledger for February 2019.   Q.8 Journalise the following transactions and prepare ledger accounts in the books of Sanjeev.   EXERCISE   Q.6 Complete the following table.     Image by- Edaccountancy   Q.7 Put ✔️ mark for the nature of balance for the following. Image by- Edaccountancy   The practical problems presented above aim to reinforce students' understanding of ledger accounts, subsi
Read more

Student Reviews

Very helpful for getting a solution. Thank you!

I like all your posts. You have done really good work. Thank you for the information you provide; it helped me a lot.

The answers are so perfect and proper 🌝

Nice explanation in full detail is very helpful.

It's very easy to learn.

Privacy Statement: We respect student privacy and do not share any personal information. Reviews are voluntarily provided to showcase genuine appreciation for our content.