Ashish and Dutta were partners in a firm sharing profits in 3 : 2 rati

1.	Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan 1, 2007, they admitted Vimal for 15 share in the profits.The balance sheet of Ashish and Dutta as on Jan 1, 2007 was as follows. Balance Sheet of A and B as on 1.1.2007 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Creditors15,000Land and Building35,000Bills Payable10,000Plant45,000Ashish's Capital80,000Debtors 22,000Dutta's Capital35,000(-) Provisions (2,000)––––––––20,000Stock35,000Cash5,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,40,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,40,000–––––––––––––––––––– It was agreed that. (i) The value of land and building be increased by Rs. 15,000. (ii) The value of plant be increased by 10,000. (iii) Goodwill of the firm be valued at Rs 20,000. (vi) Vimal to bring in capital to the extent of 15 th of the total capital of the new firm. Record the necessary journal entries and prepare the balance sheet of the firm after Vimat's admission.
Answer» Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan 1, 2007, they admitted Vimal for $\frac{1}{5}$ share in the profits.The balance sheet of Ashish and Dutta as on Jan 1, 2007 was as follows. $Balance Sheet of A and B$ $as on 1.1.2007$ $\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Creditors & 15, 000 & Land and Building & 35, 000 Bills Payable & 10, 000 & Plant & 45, 000 Ashish's Capital & 80, 000 & Debtors 22, 000 Dutta's Capital & 35, 000 & (-) Provisions (2, 000) - ------ - & 20, 000 Stock & 35, 000 Cash & 5, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 40, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 40, 000 - -------- - - -------- - \end{matrix}$ It was agreed that. (i) The value of land and building be increased by Rs. 15,000. (ii) The value of plant be increased by 10,000. (iii) Goodwill of the firm be valued at Rs 20,000. (vi) Vimal to bring in capital to the extent of $\frac{1}{5}$ th of the total capital of the new firm. Record the necessary journal entries and prepare the balance sheet of the firm after Vimat's admission.

Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan 1, 2007, they admitted Vimal for 15 share in the profits.The balance sheet of Ashish and Dutta as on Jan 1, 2007 was as follows. Balance Sheet of A and B as on 1.1.2007 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Creditors15,000Land and Building35,000Bills Payable10,000Plant45,000Ashish's Capital80,000Debtors 22,000Dutta's Capital35,000(-) Provisions (2,000)––––––––20,000Stock35,000Cash5,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,40,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,40,000–––––––––––––––––––– It was agreed that. (i) The value of land and building be increased by Rs. 15,000. (ii) The value of plant be increased by 10,000. (iii) Goodwill of the firm be valued at Rs 20,000. (vi) Vimal to bring in capital to the extent of 15 th of the total capital of the new firm. Record the necessary journal entries and prepare the balance sheet of the firm after Vimat's admission.

Answer»

Ashish and Dutta were partners in a firm sharing profits in 3 : 2 ratio. On Jan 1, 2007, they admitted Vimal for $\frac{1}{5}$ share in the profits.The balance sheet of Ashish and Dutta as on Jan 1, 2007 was as follows.

$Balance Sheet of A and B$
$as on 1.1.2007$
$\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Creditors & 15, 000 & Land and Building & 35, 000 Bills Payable & 10, 000 & Plant & 45, 000 Ashish's Capital & 80, 000 & Debtors 22, 000 Dutta's Capital & 35, 000 & (-) Provisions (2, 000) - ------ - & 20, 000 Stock & 35, 000 Cash & 5, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 40, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 40, 000 - -------- - - -------- - \end{matrix}$

It was agreed that.

(i) The value of land and building be increased by Rs. 15,000.

(ii) The value of plant be increased by 10,000.

(iii) Goodwill of the firm be valued at Rs 20,000.

(vi) Vimal to bring in capital to the extent of $\frac{1}{5}$ th of the total capital of the new firm.

Record the necessary journal entries and prepare the balance sheet of the firm after Vimat's admission.

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