The balance sheet of Rajesh, Pramod and Nishant who were sharing profi

1.	The balance sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on Marc h 31.2007 Balance Sheet as on March 31,2007 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Bills Payble6,250Factory Building12,000Sundry Creditors10,000Debtors 10,500Reserve Fund2,750(-) Reserve (500)––––––10,000Capital AccountsBills Receivable7,000Rajesh 20,000Stock 15,500Pramod 15,000Plant and Machinery11,500Nishant 15,000––––––––50,000Bank Balance13,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯69,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯69,000–––––––––––––––– Pramod retired on the date of Balance Sheet and the follo wing adjustments were made (a) Stock was valued at 10% less than the book value. (b) Factory buildings were appreciated by 12%. (c) Reserve for doubtful debts be created up to 5%. (d) Reserve for legal charges to be made at 7 265. (e) The goodwill of the firm be fixed at t 10,000. (f) The capital of the new firm be fixed at 30,000. The conti nuing partners decide to keep their capitals in the new pro fit sharing ratio of 3 : 2. Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod's capital account to his loan account.
Answer» The balance sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on Marc h 31.2007 $Balance Sheet$ $as on March 31,2007$ $\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Bills Payble & 6, 250 & Factory Building & 12, 000 Sundry Creditors & 10, 000 & Debtors 10, 500 Reserve Fund & 2, 750 & (-) Reserve (500) - ---- - & 10, 000 Capital Accounts & Bills Receivable & 7, 000 Rajesh 20, 000 & Stock & 15, 500 Pramod 15, 000 & Plant and Machinery & 11, 500 Nishant 15, 000 - ------ - & 50, 000 & Bank Balance & 13, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - - ------ - \end{matrix}$ Pramod retired on the date of Balance Sheet and the follo wing adjustments were made (a) Stock was valued at 10% less than the book value. (b) Factory buildings were appreciated by 12%. (c) Reserve for doubtful debts be created up to 5%. (d) Reserve for legal charges to be made at 7 265. (e) The goodwill of the firm be fixed at t 10,000. (f) The capital of the new firm be fixed at 30,000. The conti nuing partners decide to keep their capitals in the new pro fit sharing ratio of 3 : 2. Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod's capital account to his loan account.

The balance sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on Marc h 31.2007 Balance Sheet as on March 31,2007 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Bills Payble6,250Factory Building12,000Sundry Creditors10,000Debtors 10,500Reserve Fund2,750(-) Reserve (500)––––––10,000Capital AccountsBills Receivable7,000Rajesh 20,000Stock 15,500Pramod 15,000Plant and Machinery11,500Nishant 15,000––––––––50,000Bank Balance13,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯69,000––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯69,000–––––––––––––––– Pramod retired on the date of Balance Sheet and the follo wing adjustments were made (a) Stock was valued at 10% less than the book value. (b) Factory buildings were appreciated by 12%. (c) Reserve for doubtful debts be created up to 5%. (d) Reserve for legal charges to be made at 7 265. (e) The goodwill of the firm be fixed at t 10,000. (f) The capital of the new firm be fixed at 30,000. The conti nuing partners decide to keep their capitals in the new pro fit sharing ratio of 3 : 2. Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod's capital account to his loan account.

Answer»

The balance sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on Marc h 31.2007

$Balance Sheet$
$as on March 31,2007$
$\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Bills Payble & 6, 250 & Factory Building & 12, 000 Sundry Creditors & 10, 000 & Debtors 10, 500 Reserve Fund & 2, 750 & (-) Reserve (500) - ---- - & 10, 000 Capital Accounts & Bills Receivable & 7, 000 Rajesh 20, 000 & Stock & 15, 500 Pramod 15, 000 & Plant and Machinery & 11, 500 Nishant 15, 000 - ------ - & 50, 000 & Bank Balance & 13, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - - ------ - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 69, 000 - ------ - - ------ - \end{matrix}$

Pramod retired on the date of Balance Sheet and the follo wing adjustments were made

(a) Stock was valued at 10% less than the book value.

(b) Factory buildings were appreciated by 12%.

(d) Reserve for legal charges to be made at 7 265.

(e) The goodwill of the firm be fixed at t 10,000.

(f) The capital of the new firm be fixed at 30,000. The conti nuing partners decide to keep their capitals in the new pro fit sharing ratio of 3 : 2.

Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod's capital account to his loan account.

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