The following is the Balance Sheet of A and B as at 31st March, 2014 w

1.	The following is the Balance Sheet of A and B as at 31st March, 2014 who share profits in the ratio of 2:1. Capital and LiabilitiesRsAssetsRsBank Overdraft15,000Sundry Debtors 40,000Reserve Fund12,000Less:Provision 3,600––––––36,400Sundry Creditors20,000Stock20,000Capitals: A40,000Building25,000 B30,000Patents2,000Machinery33,600¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,17,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,17,000–––––––––– They admitted C into partnership on 1st April, 2014. New profit sharing ratio is agreed as 32:26:16. C brings in proportionate capital after the following adjustments: (1) C brings in Rs 10,000 in cash as his share of Goodwill. (2) Provision for doubtful debts is to reduced by Rs 2,000 (3) There is an old typewriter valued Rs 2,600. It does not appear in the books of the firm. It is now to be recorded. (4) Patents are valueless. (5) 2% discount is to be received from creditors. Prepare Revaluation A/c, Capital A/cs and the opening Balance Sheet.
Answer» The following is the Balance Sheet of A and B as at 31st March, 2014 who share profits in the ratio of 2:1. $\begin{matrix} Capital and Liabilities & Rs & Assets & Rs Bank Overdraft & 15, 000 & Sundry Debtors 40, 000 Reserve Fund & 12, 000 & Less:Provision 3, 600 - ---- - & 36, 400 Sundry Creditors & 20, 000 & Stock & 20, 000 Capitals: A & 40, 000 & Building & 25, 000 B & 30, 000 & Patents & 2, 000 Machinery & 33, 600 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 17, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 17, 000 - -------- - \end{matrix}$ They admitted C into partnership on 1st April, 2014. New profit sharing ratio is agreed as $\frac{3}{2} : \frac{2}{6} : \frac{1}{6}$ . C brings in proportionate capital after the following adjustments: (1) C brings in Rs 10,000 in cash as his share of Goodwill. (2) Provision for doubtful debts is to reduced by Rs 2,000 (3) There is an old typewriter valued Rs 2,600. It does not appear in the books of the firm. It is now to be recorded. (4) Patents are valueless. (5) 2% discount is to be received from creditors. Prepare Revaluation A/c, Capital A/cs and the opening Balance Sheet.

The following is the Balance Sheet of A and B as at 31st March, 2014 who share profits in the ratio of 2:1. Capital and LiabilitiesRsAssetsRsBank Overdraft15,000Sundry Debtors 40,000Reserve Fund12,000Less:Provision 3,600––––––36,400Sundry Creditors20,000Stock20,000Capitals: A40,000Building25,000 B30,000Patents2,000Machinery33,600¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,17,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,17,000–––––––––– They admitted C into partnership on 1st April, 2014. New profit sharing ratio is agreed as 32:26:16. C brings in proportionate capital after the following adjustments: (1) C brings in Rs 10,000 in cash as his share of Goodwill. (2) Provision for doubtful debts is to reduced by Rs 2,000 (3) There is an old typewriter valued Rs 2,600. It does not appear in the books of the firm. It is now to be recorded. (4) Patents are valueless. (5) 2% discount is to be received from creditors. Prepare Revaluation A/c, Capital A/cs and the opening Balance Sheet.

Answer»

The following is the Balance Sheet of A and B as at 31st March, 2014 who share profits in the ratio of 2:1.

$\begin{matrix} Capital and Liabilities & Rs & Assets & Rs Bank Overdraft & 15, 000 & Sundry Debtors 40, 000 Reserve Fund & 12, 000 & Less:Provision 3, 600 - ---- - & 36, 400 Sundry Creditors & 20, 000 & Stock & 20, 000 Capitals: A & 40, 000 & Building & 25, 000 B & 30, 000 & Patents & 2, 000 Machinery & 33, 600 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 17, 000 - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 1, 17, 000 - -------- - \end{matrix}$

They admitted C into partnership on 1st April, 2014. New profit sharing ratio is agreed as $\frac{3}{2} : \frac{2}{6} : \frac{1}{6}$ . C brings in proportionate capital after the following adjustments:

(1) C brings in Rs 10,000 in cash as his share of Goodwill.

(2) Provision for doubtful debts is to reduced by Rs 2,000

(3) There is an old typewriter valued Rs 2,600. It does not appear in the books of the firm. It is now to be recorded.

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