Balance Sheet as on 31st March, 2013.
Liabilities
|
Amount
(Rs.)
|
Assets
|
Amount
(Rs.)
| |
Capital Accounts
|
Plant and machinery
|
32,000
| ||
Sunil
|
36,000
|
Factory Building
|
40,000
| |
Pankaj
|
32,000
|
Stock
|
20,400
| |
Paresh
|
17,600
|
Debtors
|
16,800
| |
Creditors
|
21,200
|
Less: R.D.D.
|
|
16,00
|
General Reserve
|
14,000
|
Cash
|
12,400
| |
1,20,800
|
1,20,800
|
Pankaj retired from the business on 1st April, 2013 on the following terms:
(1) The assets were revalued as under .....
(i) Stock at Rs. 28,000.
(ii) Factory building is appreciated by 10%.
(iii) Reserve for doubtful debts is to be increased up to Rs. 1,000.
(iv) Plant and machinery is to be depreciated by 10%
(2) The goodwill of the retiring partner is to be valued at Rs. 8,000 and the remaining partners decided that goodwill be written back in their new profit sharing ratio which will be 5:3.
(3) Amount due to Pankaj is to be transferred to his loan account.
Prepare : (a) Profit and Loss adjustment account
(b) Capital account of partners.
(c) Balance sheet of new firm.
Answer:
In the books of Anand Traders, Wardha
Profit and Loss Adjustment A/c
Particulars
|
Amount Rs.
|
Amount Rs.
|
Particulars
|
Amount Rs.
|
Amount Rs.
|
To R.D.D. A/c
|
200
|
By Stock A/c
|
7600
| ||
To Plant & Machinery A/c
|
3200
|
By Factory Building A/c
|
4000
| ||
To Revaluation Profit :
| |||||
Sunil Capital A/c
|
4100
| ||||
Pankaj Caipital A/c
|
1640
| ||||
Paresh Capital A/c
|
2460
|
8200
| |||
11600
|
11600
|
Partners’ Capital Accounts
Particulars
|
Sunil
|
Pankaj
|
Paresh
|
Particulars
|
Sunil
|
Pankaj
|
Paresh
|
To Goodwill A/c
|
5000
|
-
|
3000
|
By Balance b/d
|
36000
|
32000
|
17600
|
To Loan A/c
|
44440
|
By General Reserve A/c
|
7000
|
2800
|
4200
| ||
To Balance C/d
|
42100
|
21260
|
By Profit and Loss Adjustment A/c
|
4100
|
1640
|
2460
| |
By Goodwill A/c
|
-
|
8000
|
-
| ||||
To Balance C/d
|
42100
|
21260
| |||||
47100
|
44440
|
24260
|
47100
|
44440
|
24260
|
Balance Sheet as on 1st April, 2013
Liabilities
|
Amount
Rs.
|
Amount
Rs.
|
Assets
|
Amount
Rs.
|
Amount
Rs.
|
Capital A/c:
|
Stock
|
20400
| |||
Sunil
|
42100
|
Add: Appreciation
|
7600
|
28000
| |
Paresh
|
21260
|
63360
|
Factory Building
|
40000
| |
Add: Appreciation
|
4000
|
44000
| |||
Creditors
|
21200
|
Debtors
|
16800
| ||
Pankaj’s Loan
|
44440
|
Less: R.D.D.
|
1000
|
15800
| |
Plant & Machinery
|
32000
| ||||
Less: Depreciation
|
3200
|
28800
| |||
Cash
|
12400
| ||||
129000
|
129000
|