PRACTICAL PROBLEM
Shedge, Mayekar and Raut were partners sharing profits and losses in the ratio of 4: 3: 3.
Their Balance Sheet on 31st March 2012 was as given below:-
Balance Sheet as on 31st March, 2012
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|||
Liabilities
|
Amount
Rs
|
Assets
|
Amount
Rs
|
Capitals
|
|
Furniture
|
4,200
|
Shedge
|
15,000
|
Stock
|
13,000
|
Mayekar
|
10,000
|
Debtors
|
10,000
|
Raut
|
10,000
|
Bill Receivable
|
18,000
|
Creditors
|
8,000
|
Cash/Bank
|
2,000
|
Bank Overdraft
|
10,000
|
Profit and Loss A/c (Loss)
|
5,800
|
|
53,000
|
|
53,000
|
|
|
|
|
Raut retired from the business on above date and it was agreed that the amount due to Raut to be paid immediately by availing overdraft facility
1) His share of goodwill was raised at Rs 3,500
2) Revalue furniture Rs 4,000 and stock Rs 16,000
3) Create R.D.D. at 5% on Debtors.
4) Make provision for outstanding printing bill Rs 6,000. Prepare profit and loss adjustment A/c, Capital A/c and Balance Sheet of continuing partners assuming that goodwill is written off by the continuing partners.