Can Any please Make the Capital Account..
Q19. Lokesh, Mansoor and Nihal were partners in a firm sharing profit as 50%, 30% and 20% respectively. On 31st March, 2014, their Balance Sheet was as follows :
Liabilities | Rs. | Assets | Rs. |
Creditors Provident Fund Investment Fluctuation Fund Capital A/c Lokesh 1,40,000 Masoor 80,000 Nihal 50,000 |
34,000 10,000 20,000 2,70,000 |
Cash Stock Debtors 98,000 Less : Provision 6,000 Investment Goodwill Profit and Loss |
68,000 38,000 88,000 80,000 40,000 20,000 |
3,34,000 | 3,34,000 |
On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :
(i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.
(ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and investments were brought down to Rs, 30,000.
(iii) Provision for Bad Debts was to be reduced by Rs.2,000.
(iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.
(v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.
Prepare Revaluation Account and Partners' Capital Accounts.