Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March, 2017 their Balance Sheet was as follows:
Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March, 2017 their Balance Sheet was as follows:
Balance Sheet of Chander and Damini as at 31.3.2017
| Liabilities | ₹ | Assets | ₹ |
| Sundry Creditors | 1,04,000 | Cash at Bank | 30,000 |
|
Capitals: Chander Damini |
2,50,000 2,16,000 |
Bills Receivable | 45,000 |
| Â | Â | Debtors | 75,000 |
| Â | Â | Furniture | 1,10,000 |
| Â | Â | Land and Building | 3,10,000 |
| Â | 5,70,000 | Â | 5,70,000 |
On 1.4.2017, they admitted Elina as a new partner for 1/3rd share in the profits on the following conditions:
(i) Elina will bring ₹ 3,00,000 as her capitl and ₹ 50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
(ii) Debtors to the extent of ₹ 5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doutful debts will be created on bills receivables and debtors.
(iv) Value of land and Building will be appreciated by 20%.
(v) There being a claim against the firm for damages, a liability to the extent of ₹ 8,000 will be created for the same.
Prepare Revaluation Account and Partner’s Capital Accounts:
[Ans. Gain on Revaluation ₹ 41,750; Capital Accounts : Chander ₹ 2,83,375; Damini ₹ 2,49,375 and Elina ₹ 3,00,000.]
Anurag Pathak Changed status to publish
