Chintu was admitted on the following terms:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.
Prepare the Capital Accounts of the partners and Bank Account.
It was decided that:
(i) Part of the stock which has been included at a cost of Rs. 8,000 had been badly damaged in storage and could realise only Rs. 2,000
(ii) A bill for Rs. 7,000 for electric charges has been omitted to be recorded.
(iii) Plant & Machinery was found overvalued by Rs. 20,000. Premises be appreciated to Rs. 3,00,000.
(iv) Prepaid expenses be brought down to 40%.
(v) R's share of goodwill is valued at Rs. 20,000 but he is unable to bring it in cash.
(vi) R brings in capital proportionate to his share of profit in the firm
Prepare Revaluation A/c, Capital A/cs and the opening Balance Sheet.
(i) A and C were entitled to a salary of Rs 1,500 p.a.
(ii) B was entitled to a salary of Rs4,500
(iii) B and C had guaranteed a minimum profit of Rs 35000 p.a. to A
(iv) Profits were to be shared in the ratio of 3:3:2
Pass necessary journal entry for the above adjustment in the books of the firm.
(a) C was entitled for a salary of Rs 10,000 p.m.
(b) Partners were entitled to interest on capital at 5% p.a.
(c) Profits were to be shared in the ratio of capitals.
The net profit for the year ended 31.3.2016 of Rs 3,30,000 was divided equally without providing for the above terms.
Pass an adjustment entry to rectify the above error.
A,B and C were partners in a firm having capitals of Rs 60,000 Rs 60,000 and Rs 80,000 respectively. There current account balance were A-10,000 , B-5000 and C-2000 (Dr.).According to the partnership deed the partners were entitled to an intt. on capital @ 5% p.a. C being the working partner was also entitled to a salary of Rs 6,000 p.a. The profits were to be divided as follows:
(i)The first Rs 20,000 in proportion to their capitals.
(ii)next Rs 30,000 in the ratio of 5:3:2.
(iii)remaining profits to be shared equally.
During the year the firm made a profit of Rs 1,56,000 before charging any of the above items. prepare the profit and loss appropriation on A/C.
A and B are in a partnership sharing profits and losses in the ratio of 3:2. on 1st april 2012,they admitted C into partnership.he paid 50000 as his capital but nothing for goodwill which was valued at 40000 for the firm.he acquired 1/5th share in the profits , equally from both partners.it was also decided that......
a) land and building be written off by 20000.
b) stock be written down by 3200.
c) a provision of 1000 be created for doubtful debts.
d) an amount of 1200 included in the sundry creditors be written back as it is no longer payable.
balance sheet is as follows...
LIABILITIES
AMOUNT
ASSETS
AMOUNT
Capital a/cs
A
B
General reserve
Sundry creditors
------------
86000
64000
20000
31200
goodwill
land and building
plant and machinery
stock
sundry debtors
cash
cash in bank
10000
60000
70000
36000
20000
4000
1200
201200
201200
Prepare the revaluation a/c partners capital a/cs and the balance sheet and pass the journal entries of the new firm.
1. Profits: in 2013, Rs 40,000; in 2014, Rs 50,000; in 2015, Rs 60,000;
2. Non-recurring income of Rs 1,000 is included in the profits of 2014;
3. Profits of 2013 have been reduced by Rs 6,000 because goods were destroyed by fire;
4. Goods haven't been insured but it is thought to insure them in future. The insurance premium is estimated at Rs 400 per year;
5. Reasonable remuneration of the proprietor of business is Rs 6,000 per year, but is hasn't been taken into account for calculation of above mentioned profits;
6. Profits of 2015 include Rs 5,000 income on investment.
Goodwill is agreed to be valued at 2 year's purchase of weighted average profits of the past 3 years. The appropriate weights to be used are:
2013- 1
2014- 2
2015- 3
Calculate the value of goodwill.
Balance Sheet As at 31.3.2018
Liabilities Amt(₹) Assets Amt(₹)
Sundry creditors 50,000 Furniture 60,000
Bills payable 30,000 Stock 1,40,000
Capitals: Debtors 80,000
Gautam 4,00,000 Cash in hand 90,000
Yashica 1,00,000 5,00,000 Machinery 2,10,000
5,80,000 5,80,000
Asma is admitted as a partner for 3/8th share in the profits with a capital of ₹2,10,000 and ₹50,000 for her share of goodwill. It was decided that:
i. New profit sharing ratio will be 3:2:3
ii. Machinery will depreciated by 10% and Furniture by ₹5,000.
iii. Stock was re-valued at ₹ 2,10,000.
iv. Provision for doubtful debts is to be created at 10% of debtors.
v. The capitals of all the partners were to be in the new profit sharing ratio on basis of capital of new partner any adjustment to be done through current accounts.
Prepare Revaluation Account, Partners Capital Account and the Balance Sheet of the new firm.
Q. 28. Abha and Bimal are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st
March, 2015 they admitted Chintu into partnership for 1/5th share in the profits Of the firm.
On that date their Balance Sheet stood as under:
(i) He will bring 80,000 as capital and 30,000 for his share of goodwill premium.
(ii) Partners will share future profits in the ratio of 5 : 3 : 2.
(iii) Profit on revaluation of assets and reassessment of liabilities was 7,000.
(iv) After making adjustments, the Capital Accounts of the partners will be in proportion
to Chintu's capital. Balance to be paid off or brought in by the old partners by cheque
as the case may be.
Prepare the Capital Accounts of the partners and Bank Account.
(i) Part of the stock which has been included at a cost of Rs. 8,000 had been badly damaged in storage and could realise only Rs. 2,000
(ii) A bill for Rs. 7,000 for electric charges has been omitted to be recorded.
(iii) Plant & Machinery was found overvalued by Rs. 20,000. Premises be appreciated to Rs. 3,00,000.
(iv) Prepaid expenses be brought down to 40%.
(v) R's share of goodwill is valued at Rs. 20,000 but he is unable to bring it in cash.
(vi) R brings in capital proportionate to his share of profit in the firm
Prepare Revaluation A/c, Capital A/cs and the opening Balance Sheet.
Liabilities
Creditors =50000
Provident fund=15000
Workmen's compensation reserve=40000
Capital account
X = 2,60,000
Y = 1,35,000
Assets
Bank =29000
Debtors =180000
Stock =125000
premises =150000
advertisement expenses=16000
on 1st April 2018 z is admitted as a partner .x surrenders one upon fourth of his share and Y one upon three of his share in favour of Z .Goodwill is valued at 160000 z brings in only 2 upon 5 of his share of goodwill in cash and 150000 as his capital following terms are agreed upon :
1. Premises is to be increased to rupees 200000 and stock by 5000
2. Creditors prove at rupees 60000 one bill for goods purchased having been omitted for the book
3. Outstanding rent amounted to rupees 12000 and prepaid salaries rupees 2000
4. Liability on account of provident fund was only rupees 10,000
5. liability for workmen's compensation claim was rupees 16000
prepare revaluation account capital account and the opening balance sheet also calculate the new profit sharing ratio
lata and mamta are partners with capitals of Rs 300000 and Rs 200000 respectively sharing profits as lata 70% and mamta 30% during the year ended 31 march 2005 they earned a profit of Rs 226440 before allowing interest on partner's loan. the terms of partnership are as follows:
1. interest on capital is to be allowed @ 7% p.a
2. lata to get a salary of Rs 2500 per month.
3. interest on mamta's loan account of Rs 80000 for the whole yr.
4. interest on drawings of partner's at 8% per annum . drawings being lata Rs 36000 and mamta Rs 48000.
5. 1/10 of the distributable profit should be transferred to general reserve. prepare the profit and loss appropriation account.
rply me the solution to this ques. in detail.
y and z are partners with capital of rs 25000 and 15000 each partner is entitled to 9% intrest on capital z is entitled to a salary of rs 6000 p.a together with a commision of 6% of net profit remaining after deducting intrest on capitals and salary and after charging his commision the profit for the year before making any of the above adjstment amount to rs 30800 prepare partners capital acc
Give the necessary adjusting journal entry with working notes.
pls give the solution that who the ammunt come