Question

PRACTICAL PROBLEM

Shailesh, Anil and Das were partners sharing profits and losses in the ratio at 3:3:2.
Their Balance Sheet as on 31.3.2012 is as below:

Balance Sheet as on 31st March, 2012
Liabilities	Amount Rs	Assets	Amount Rs
Capitals		Building	10,000
Shailesh	11,000	Machinery	10,700
Anil	15,000	Furniture	10,000
Das	8,000	Debtors	5,000
Bills Payable	1,900	Stock	6,600
Creditors	9,000	Cash	6,600
Reserve fund	4,000
	48,900		48,900

In 1^st April, 2012 Mr. Das retired from the firm on following terms:

1) Shailesh and Anil’s share in reserve fund should be continued in new firm.

2) Goodwill of the firm is to be valued at Rs 4,000 however only Das’s share in it is to be raised in the books and written off immediately

3) Assets to be revalued as under stock Rs 6,300 machinery Rs 10,000 furniture Rs 10,200

4) R.D.D. to be maintained at 10% on debtors

5) Rs 100 to be written off from creditors

6) The amount payable to Mr. Das is to be transferred to his loan account

Prepare:- Profit and Loss adjustment A/c, Partners capital A/c and Balance Sheet of New firm on 1/04/2012

Answer 1

Profit and Loss Adjustment Account
Dr.	Cr.
Particulars		Amount Rs	Particulars		Amount Rs
Stock		300	Furniture		200
Machinery		700	Creditors		100
Reserve for Doubtful Debts		500	Loss transferred to:
			Shailesh’s Capital	450
			Anil’s Capital	450
			Das’s Capital	300	1,200
		1,500			1,500

Partners’ Capital Accounts
Dr.	Cr.
Particulars		Shailesh	Anil	Das	Particulars	Shailesh	Anil	Das
Profit and Loss Adjustment A/c (Loss)		450	450	300	Balance b/d	11,000	15,000	8,000
Loan A/c				9,700	Reserve Fund			1,000
Goodwill (Written off)		500	500
Balance c/d		10,050	14,050		Goodwill			1,000
		11,000	15,000	10,000		11,000	15,000	10,000

Balance Sheet as on April 01, 2012 after Mr. Das’s retirement
Liabilities		Amount Rs	Assets		Amount Rs
Creditors		8,900	Cash		6,600
Reserve Fund		3,000	Machinery	10,700
Capital			Less: Depreciation	700	10,000
Shailesh	10,050		Stock	6,600
Anil	14,050	24,100	Less: Depreciation	300	6,300
Bills Payable		1,900	Debtors	5,000
Loan A/c of Mr. Das		9,700	Less: Reserve for Doubtful Debts	500	4,500
			Furniture		10,200
			Building		10,000
		47,600			47,600

Neha
Working Notes:
WN1: Calculation of Gaining Ratio


WN2: Calculation Share of Goodwill


WN3: Goodwill written off