Mohan, Vinay and Nitya were partners in a firm sharing profits and losses in the proportion of ½, 1/3 and 1/6 respectively. On 31st March, 2018, their Balance Sheet was as follows:

Balance Sheet of Mohan, Vinay and Nitya as at 31st March, 2018

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Creditors48,000Cash at Bank31,000
Employees’ Provident Fund1,70,000Bills Receivables54,000
Contingency Reserve30,000Book Debts            63,000 
Capital: Less: Provision for doubtful Debts         2,000

 

61,000

Mohan           1,20,000 Plant and Machinery1,20,000
Vinay             1,00,000 Land and Building2,92,000
Nitya                 90,0003,10,000  
 5,58,000 5,58,000

 

Mohan retired on the above date and it was agreed that:

(i) Plant and machinery will be depreciated by 5%.

(ii) An old computer previously written off was sold for Rs.  4,000.

(iii) Bad debts amounting to Rs.  3,000 will be written off and a provision of 5% on debtors for bad and doubtful debts will be maintained.

(iv) Goodwill of the firm was valued at Rs.  1,80,000 and Mohan’s share of the same was credited in his account by debiting Vinay’s and Nitya’s accounts.

(v) The capital of the new firm was to be fixed at Rs.  90,000 and necessary adjustments were to be made by bringing in or paying off cash as the case may be.

(vi) Vinay and Nitya will share future profits in the ratio of 3 : 2.

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

Marks-8, CBSE:2018-19/Main/02/Q-17*

Attention Students!!!


banner for app

 

 

 

This will close in 0 seconds

error: Content is protected !!