@Neha Maam please give solution to question number 16
Q.16 Lalit, Madhur and Neena were partners sharing profits as 50%, 30% and 20% respectively. On March 31st, 2013 their Balance Sheet was as follows :
| Liabilities | Rs. | Assets | Rs. |
| Creditors | 28,000 | Cash | 34,000 |
| Provident Fund | 10,000 | Debtors 47,000 | |
| Investment Fluctuation Fund | 10,000 | Less: Prov, for bad & doubtful debts 3,000 | 44,000 |
| Capital: | Stock | 15,000 | |
| Lalit 50,000 | Investment | 40,000 | |
| Madhur 40,000 | Goodwill | 20,000 | |
| Neena 25,000 | 1,15,000 | Profit & Loss A/c | 10,000 |
| 1,63,000 | 1,63,000 |
On this date, Madhur retired and Lait and Neena agreed to continure on the following terns :
(a) The goodwill of the firm was valued at Rs. 51,000.
(b) there was a claim for workmen's compensation to the extent of Rs. 6,000.
(c) Investment were brought down to Rs. 15,000.
(d) Provision for bad debts was reduced by Rs.1,000.
(e) Madhur was paid Rs. 10,300 in cash and the balance was transferred to his loan account payable in two equal instalments together with interest% p.a.
prepare Revaluation A/C, partner's capital Accounts & Madhur's loan A/c till the loan is finally paid off.
Dear Student
It has been assumed that Payments are made annually.
Regards
| Revalution A/c | |||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
| Claim for Workmen's Compensation | 6,000 | Investment Fluctuation Fund A/c | 10,000 | ||
| Investment A/c | 25,000 | Provision for Bad and Doubt ful Debt A/c | 1,000 | ||
| Capital A/c | |||||
| Lalit | 10,000 | ||||
| Madhur | 6,000 | ||||
| Neena | 4,000 | ||||
| 31,000 | 31,000 | ||||
| Partner's Capital A/c | |||||||
| Particulars | Lalit's Capital A/c | Madhur's Capital A/c | Neena's Capital A/c | Particulars | Lalit's Capital A/c | Madhur's Capital A/c | Neena's Capital A/c |
| Goodwill A/c | 10,000 | 6,000 | 4,000 | Balance b/d | 50,000 | 40,000 | 25,000 |
| P/L A/c | 5,000 | 3,000 | 2,000 | Lalit's Capital A/c | 10,929 | ||
| Madhur's Capital A/c | 10,929 | 4,371 | Neena's Capital A/c | 4,371 | |||
| Cash A/c | 10,300 | Revaluation A/c | 10,000 | 6,000 | 4,000 | ||
| Madhur's Loan A/c | 42,000 | ||||||
| To Bal C/d | 34,071 | 0 | 18,629 | ||||
| 60,000 | 61,300 | 29,000 | 60,000 | 61,300 | 29,000 | ||
| Madhur's Loan A/c | |||||
| Date | Particulars | Amount (in Rs) | Date | Particulars | Amount (in Rs) |
| Cash A/c | 26,040 | Madhur's Capital A/c | 42,000 | ||
| Bal C/d | 21,000 | Interest on Madhur's Loan | 5,040 | ||
| (42,000 x 12%) | |||||
| 47,040 | 47,040 | ||||
| Cash A/c | 23,520 | Bal B/d | 21,000 | ||
| Interest on Madhur's Loan | 2,520 | ||||
| (21,000 x 12%) | |||||
| 23,520 | 23,520 | ||||
It has been assumed that Payments are made annually.
| Working for Goodwill | ||
| Gaining Ratio | 5:2 | |
| Goodwill Adjustment | ||
| Total Value of Goodwill | 51000 | |
| Madhur's share of Goodwill | (51,000 x 3/10) | 15,300 |
| Distribution in Gaining Ratio | ||
| TO Be Adjusted from Lalit's Capital A/c | (15,300 x 5/7) | 10,929 |
| TO Be Adjusted from Neena's Capital A/c | (15,300 x 2/7) | 4,371 |
Regards