27. Chandran and Rajesh are partners sharing profits and losses equally. Their balance sheet at 31.03.2017
stood as follows.
Liabilities
Creditors
Bank Loan
Capitals:
Chandran 80000
Rajesh
40000
Balance Sheet as on 31.03.2017
Amount
40000 Stock
8000
Assets
Debtors
32000
Less:PDD 1000
Land & Buildings
31000
40000
36000
8000
14000
168000
168000
On 01.04.2017, Kishore is admitted into partnership for 1\6 th share in profits on the following terms:
a. He has to bring Rs.26000 as capital.
b. Goodwill of the firm is valued at Rs.14000 and it is to be retained in business.
120000 Machinery
Amount
Motor Car
Cash at bank
39000
c. Motor car and Machinery are to be depreciated by 20% and Rs.3800 respectively.
d. Provision for doubtful debts is to be maintained at 10%.
e. The capital accounts of all the partners are to be adjusted in their new profit sharing ratio of 3:2:1,
based on Kishore's capital and adjustments to be made in cash.
Prepare all necessary ledger accounts.
charing profits and losses in the ratio of 2:2:1. Their Balance
27.
Chandran
and
Rajesh
are
partners
sharing
profits
and
losses
equally
.
Their
balance
sheet
at
31.03.2017
stood
as
follows
.
Liabilities
Creditors
Bank
Loan
Capitals
:
Chandran
80000
Rajesh
40000
Balance
Sheet
as
on
31.03.2017
Amount
40000
Stock
8000
Assets
Debtors
32000
Less
:
PDD
1000
Land
&
Buildings
31000
40000
36000
8000
14000
168000
168000
On
01.04.2017
,
Kishore
is
admitted
into
partnership
for
1
\
6
th
share
in
profits
on
the
following
terms
:
a
.
He
has
to
bring
Rs.26000
as
capital
.
b
.
Goodwill
of
the
firm
is
valued
at
Rs.14000
and
it
is
to
be
retained
in
business
.
120000
Machinery
Amount
Motor
Car
Cash
at
bank
39000
c
.
Motor
car
and
Machinery
are
to
be
depreciated
by
20
%
and
Rs.3800
respectively
.
d
.
Provision
for
doubtful
debts
is
to
be
maintained
at
10
%
.
