Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2 : 1. On 31st March, 2018, their Balance Sheet was as follows :

Balance Sheet of Raman and Rohit as at 31st March, 2018

Liabilities

Amount (Rs.)

Assets

Amount (Rs.)

Capital:

 

Plant and Machinery

1,75,000

     Raman        1,40,000

 

Furniture and Fixtures

65,000

     Rohit           1,00,000

2,40,000

Stock

47,000

Workmen Compensation Fund

40,000

Debtor                                                            1,10,000

 

Creditors

1,60,000

Less: provision for doubtful debts               (7,000)

1,03,000

  

Bank Balance

50,000

Total

4,40,000

Total

4,40,000

On the above date, Saloni was admitted in the partnership firm. Raman surrendered 2/5th of his share and Rohit surrendered 1/5th of his share in favour of Saloni. It was agreed that:

(i) Plant and machinery will be reduced by Rs.  35,000 and furniture and fixtures will be reduced to Rs.  58,500.

(ii) Provision for bad and doubtful debts will be increased by Rs.  3,000.

(iii) A claim for Rs.  16,000 for workmen’s compensation was admitted.

(iv) A liability of Rs.  2,500 included in creditors is not likely to arise.

(v) Saloni will bring Rs.  42,000 as her share of goodwill premium and proportionate capital.

Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm.

Marks-8, CBSE:2018-19/Main/03/Q-17*

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