ROY
TES
Bengai Caat mite Ltd., gbtained a-icese of Ctai fnines t n " 13,009 Royathy of Rs.4/-per tonne of coal raised subjcct to a minir n rent of P.a. The saortworkings can be recouped in the first 4 years oí the lease. E.nm ihs following preparc Royathy Alc., shortworkings A/c, and "A" Alc in the books of Company
a 11
a.
e
19YO
199N
1992
1993
1994
Saies (Tcnncs)
1100
1750
2.303
2900
3500
Closing Stock
150
A2.50
200
300
400
Sudhecr tock lease of a Coal ficid from Shanker at a Royathy of Rs.2/- per one of Coal raized. he minimum rent and coal raized during 1991 to 1995 are as
ollowsS
(Rs
Cos razea (Tonne
1991
3,500
1,500
1992
4,000
,,800
1993
4,500
,908
1994
5,000
2,750
5,0C0
250o
The shortworkings of anyiyear is recoverabie oUÉ of he Royathy of aext two years. Buddha Coal Lid., took a piece of land on minimum rent of Rs.600 in the îrst year, Rs.1,200 in ihe econd year, and Rs.1,800 per annurn in the subsequent years aegng ito z royaihy of 30 paise per toune with power o zecoup shortworKings over the just tiree ycars oaly. The figures of annual output for four years upto 31st Dec., 995 were i000, 3000, 6000 and 8030 tonnes respectively.
Show the necessary ledger Accounts
irn
tne Books of Budha Coal Ltd.
The outpu of Ore of a micing Co., in the rst 5 yeærs was as follows -00 tornes ; 2 20,0U0 LUIMLCB * 1uyU tUu:vh y,meses » 1",0u0 ioutios 2.0,c00 tonnes. The company holds iease of a mirne et 2 Royalty of Rs.24,000 nnurn, with the right to recoup shortworkings out of tae subsequent surplus royalties with in a period of 5 years. All the payments were made when due. Show the Deacd RetAlc; Royaly Ale; Short workings Ale; and Lard Lord A/c for five years in the
,
*
*
sooks of he Co.,
aty
Sun td. patentees.of
»}S
and
anew type o CasHarn,
MR A iSiuci
xe
a
as icence to Flarne. t.td.,
for the Bumer manufacture and sale for 5 years on tenns Flame Ltd., to pay a Royalty of Rs. 1 00 for every buner manufactured, wish e
miniu
Tet
of Rs.50,000 P
b)
In any ycar ifRoyalties arc lessthan minimum rent, Flame Ltd., may recoup the shortworkings in the following ycar.
c)
Payment have to be made on
3
Ist March every ycar.
Sales and Closing Stock
ofBurners for 5 ycars eles in mita Closing 8toc%
Yearz 1990-91
200
50
1991-92
400
1G0
1992-93
6C0
70
1993-94
550
150
1994-95
230
20
YOur arc requircd to show
necessary accounts in the books of Flame
L1c.
A Co., !eased a colliery on i-1-91 at a
minimum rent of Rs.20,000 merging cf Rs.1-50 per ton, with power to recoup shortworkings over the irs 4 years of the lease. The output of Colliery, in tonnes, was as follows: into a Royalty
1990 -9,000;
1991
12,000; 1992 16,000;
1993
-
20,000;
1994- 13,000
Show necessary aceounts. in the books of Company. 1
Vikas Publishers published a book written by Swarmy on the tems that he get a Royaly of Rs.3 per copy sold, subject to a minimum of Rs.5000 Pa. and shortworkings of each year could be recovered in next 3 years. Tne copies
were:
:990 800;
1991
1500 ; 1992 2000;
Show necessary accounts in the
1993 2000;
1994 3C00
books of Swamy.
The Andhra Coal Company lease ofa mine on a Royalty of 50 paise pe tonne of coal raised with a Dead Rent of Rs.30,000 p.a. and power to recover shortworkings of any year in the next year only. In the event of strike, the dead rent of that year shail be reduced by 10%. The out output was as follows:
year 3
20,0CC tons;
year 70,000 tons;
I
year 40,000 tons -
4th year (Strike - 50,0000
Sth year 60,000 tons.
Show Dead Rent Account Accounts. 9.
;
Royalities
;
Short workings; and Land Lorc
Murthy took a lease mines from Avinash with effect of from Jan. 1st, 1989 a period 20 years. The terms of agreement provided for the payment of Royalty at Rs.0.60 paise per tone raized, subject to a minimum rent of Rs.24,000 p.a., right to recoup shortworkings, with period of 3 years immediately suceeding year in which the shortworkings arises. It vwas further agreed should be reduced proportionately, that the minimur? in case of strikes or lockouts in any year.
3
-
-
Your are furnished the following details:
Years
Tonnes raised
1993
46,000
1994
37,400
1995
30,800
1996
38,000
1997
41,200
1998
45,200
There was a strike in the year 1995 from October to December. The balance in shortworkings Account, as on 1-1-93, was Rs.9,800 of whichRs.4,40arose in 1990 and the balance in 1991.
Prepare ledger in the books of Murthy. 10.
Mishra Mining Co., takes a lease of a Coal mine for the period of 8 years from 1-1-90 on a Minimum rent of Rs.i2,000 Pa. The Royalty is 75 paise per tonne of coal raised and it is payable half yearly cn 30th June and 3ist December of each year. Shortworkings can be recouped during the first three years of lease only. on The Co., closes books 31st Dec., each year. Coal raised as follows
is
Helf year ending on 30-06-90
6,000 Tons
Haif year ending on 31-12-90 Haif year ending on 30-06-91
8,000 Tons 10,000 Tons
Haif year ending on 31-12-91
6,000 Tons
Half year ending on 30-06-92
7,000 Tons
Half year ending on 31-12-92
9,000 Tons
Prepare Royalty Account, Land Lord Account, Shortworkings Account in tihe books of Mishra Mining Company.
1i.
A Coal Co., took a coal mine for lease on a Royalty of Rs.1-50 per ton coal raisewith minimum rent Rs.15,000 P.a. Shortworkings can be recovered out of the Royalty of next two years oniy. In the year of strike the minimum rent is to se reduced to 60%. The output for the six years was as follows:
Years: Tonmes
:
1992
1993
1994
1995
1996
1997
5,000
6,000.
14,000
12,500
25,000
7,500
(Strike) Write up necessary A/c.s in the books of Coal Co.
Mr. Pradeep who is an author ofa book on philosophy got published with MSN printers on the terms that Royalties will be paid at Rs.S per copy sold, subicct to minimum rent of Rs.15,000 per year, with a right to recoup the shortworkings Ver the first three years of the Royalty agreement. The detaiis are as under:
Years
No.of copies primted
No.of Cpies olf closimg stock
1990
,000
100
1991
3,000
200
1992
4,000
400
1993
5,000
500
Prepare necessary A/c in the books MSN printers. 13. A Colliery acquired lease of Coal mine for 20 years, with a clause that the defficiency of any one year to be set off against Royalty payable with in the next two years. The particulars are:
Year
MEminuua
Rent
Royalty (IRs)
750
500
1,000.
800
1,250
IV
900
1,500
1,750
1,500
1,600 Give journal entries in the books of Colliery Co., and show the shortowrkings Account.
14.
Jaya Sankar leased coal fields from Narendra at a Royalty of 25 paise per Ton of Coal raised. Minimum rent was Rs.24,000 P.a. Shortworkings was to berecouped during the first four year. The Coal raised in the first four years ia as follows Neas Tommeg 1990
80,000
1991
90,000
1992
60,000
1993
1,20,000
(Strike for 3 months)
There was provision for proportionate reduction stoppage of work by strike, in Minimum Rent in case of lockout, accident etc. Show the relevant ledge Accounts in the books of Jayasankar. 15. Assam Coal Co., took a coal mine for a lease on Royalty tonne raised with a dead rent ofRs.15,000 per year. Shortworkingsof0-75 paise per out of the Royalty of the next two years can be recovered only. In the year be reduced to 60%. of the output for the strike the dead rent is to years
a
six
was as follows
1
ToMMes: 10,000
2 12,000
28,000
25,000
5
6
50,000
15,000
(Strike) Writeup necessary ledge Acounts in the books of Coal Company. A Colliery workcd coal under lense 16. which provided for the at 50 paise per tonine with a payment of royalties miniimum rent of Rs. 17,000 P.a. Each year's minimum rent over the actual royaltics excess of were recovcred during the subsequcnt years. threc The lease however, stipulated that in any ycar the norma rent was not attained due to strikc, the minimum rent was to be regardcd as having becn reduced proportionately having regard to the length of the stoppage. The cutpul was as follows: omimesS
For the year ended 31-12-85
4,000
For the year ended 31-12-86 For the year ended 31-12-87
30,000
For the year ended 31-12-88
46,000
For the year ended 31-12,89
30,000
For the year ended 31-12-90
50,000
28,000
During the year 1989 there was a stoppage the to strike lasting 3 months. Frepare reievant Accounts in the books of Colliery Company. 17. A Coal Co., has taken on lease Coal field from the landlord as the following terms : 2
Lease is for 99 years.
ease rent is to be S0 paise 2.
c)
for every tonne of Coai raised. Minimun rent is to be Rs.30,000 P.a. the lessee has a right to recoup any shortwozkings with in a period years 3 of for which the excess payment was made. In the case of strike and there was no raisings the minimum rent payable would be proportionate.
The foilowing were the raisings: 1985
20,000 Tonnes
1986
35,000 Tonnes
1987
30,000 Tonnes
1988
70,000 Tonnes
(Strike for 3 months)
-6 1989
80,000 Tonnes
1990
1,00,000 Tonnes
Show the necessary ledger in the books of Conl Company 18.
x
Colliery Company lensed a property from Z at a Royalty of 50 paise per ton with n dead rent of Rs.l0,000 P.a. Ench years excess of dead rent over royalty is recoverable ont of the Royalty of next three years. In thc event of strike and the dend rent is not reached the lense provided that the actual royalty eorned for the year discharged nll the rental obligations for that yenr.
Untout (Irn Tons) 1981
15,000
1982
21,000
1983
12,000 (Strikc)
1984
16,000
1985
22,000
Writcup necessary ledgc Accounts in the books of Colliery Company Ltd. 19.
Enginner had patented a safety lock and gave the Scth & Co., the right to produce and sell locks for 7 years on the following terms A royalty of Rs.4 to paid on each lock sold A right to recoupment of shortworkings during the two foliowing
showorkinge. Year ended 31st Dec., 1980
4,C00
Year ended 31st Dec., 1981
4,500
Year ended 31st Dec., 1982
5,400
Year ended 31st Dec., 1983
6,500
e as
Give ledger Accounts as they would appear in the books of Seth & Co:npany.
20
Rance Ltd. leased a property from Mr. Akbar at a royalty of Rs. 1-50 per tonne with a minimum rent of Rs.4,000 P.a. Each year's excess of minimum rent over royalty, recoverable out of the royalties of the next five years. In the event of strike minimum rent should be reduced proportionately. The results of working:
Yenr
Actul Rayalty
1986
-Nil-
1987
1,300
1988
3,700
1989
4,500
1990
7,000
1991
2,400 (Strike for
1992
6,000
3
months)
Writeup minimum rent, Royalty and shortworkings Accounts.
Dinesh Ltd. patented to manufacture water filters, granted the licence to Prakash Lid. for 10 yeas to producc and seli them on the following terms Prakash Lid. to pay a royalty of Rs.10/- for everjwater filter sold with a minirnum rent ofRs.40,000 P.a. A/cs are to be settled annuaily on 31st December. 2) The
Shortworkings in any year may be recouped from any excess of royalties over the minimum rent in the next 2 years subject to a maximum of R.16,000 P.a.
No.of water filiers Year
sold was as follows:
Water filter sold
31st Dec., 1991
800
3Ist Dec., 1992
,400
31st Dec., 1993
10,400
31st Dec., 1994
1,600
31st Dec., 1995
8,800
New Sieel Ltd. obtained a lease from old Coal Ltd. for a coai mine on ist Je:, 1991, on the following terms 1)
Royalty at Rs.1/- per tonne raised1
2)
Minimum rent Rs.24,000 P.a.
3)
Recoupment of shortworkings of each year during three years following subject to a mieism of Rs.5000 P.a. 4) In the event of strike the minimum rent would be taken pro-rata on the basis of actual workings day,but in the event of lockout, the lease would ejnoy a concession in respect of minimurn rent for 50% of the pericd of lockout. Besides the above New Steel Ltd., have been granted a cash subsidy equai to 25% of theunrecoverable shortworkings by the central govt. upto the firsi five years of the lease. Workingup to first six years is as follows: RS. 1991 Actual Royalty
14,000
1992 Actual Royalty
20,400
1993 Actual Royalty
32,200
-
1994 Actual Royalty 1995 Actual Royalty
1996 Actual Royaltyy
8
27,200
21,600 (Strike 2 months) 19,400 (Lockout 4 months)
Show the ledger Accounts in the books of New Steel Ltd. D" Coal Co., acquired on lease coal mines on a Royalty of Rs.5 per tonne of Coal brought on the surface with a minimum rent of Rs.56,000 a year with no right to recover shortworkings except in case of strike, shortworkings of strike period are recoverable in next year.
10% ofthe Coal taken out from the Csal tane mine is lost in weight in bringing the coai on surface.
year
D" Coal Co., tookout coal from the mine: 2000 tonnes; II year 8000 tonnes ; III year 12000 tonnes
IV yeer 17,000 tonnes; and Vyear 8000 tonnes (Strike) Show ledge Accounts in the books of D" Coal Company.
SINGLE ENTRY SYSTEM (o7)
ACCOUNTS FROMINCOMPLETE RECORDS Problem No. 1 Jawahar kept his books on singlc cntry system. His position is
Lisbilitiea
93
Reserve Fund
Creditors
31-3-94
Agaeta
-93
Stock
20,000
19,000
8,500
14,000
31-3-94
4,000
5,000
22,000
29,000
Dcbtors
****
Cash in hand
200
300
Cash at bank
3,000
2,000
Fixtues & Fittings
1,800
,500
Employccs P.F.
1,000
29,00C Plant & Machinery 15,000 Ascertain profit for the year 1993-94 and show his financial position at the beginning and end of the year.
Problen No.2 Calculate the profit under Single entry systern for the year 1989
Particulare
Balamce
Balamce s13
m 3-12-89
15,000
16,000
4,000
3,000
Plant
10,000
15,000
Machincry
30,000
28,000
Stock
10,000
11,000
Debtors
15,000
14,000
1,000
1,500
Creditors
Bills payable
Cash
:
Problem No.3 Madhav keeps his books under single entry system. On 1st May 1990 is financial position was is follows: Cash in hand Rs.150; cesh at bank Rs.3,000; Stock in trade Rs.7,500; Fixhrs &Fittings Rs.350; Sundry éebtors 9,800; Plant& Machinery Rs.15,100 Sundy Creditors Rs.9,000; During the ycar M adhav withdrew from the business vario sums amocunting to Rs.5,900. On 30th April 1991, his financial osition was as follows
10
Sundry Creditors Rs.7,500; Plant& Machinery Rs.18,100; Rs.320;Sundry debtors Rs. 13,300; Fixtures & Fittings Stock in Trade Rs.14,000 ; Bank OD Rs.2,600. Cash in hand Rs.150; You are required to prepare a statement of profit and a closing statenment affairs. of Probelm No.4
Calcuiate the profit eaned by trader follows Single-Entry System:
Particlars
a
trader from the following particulars. The
1--1990
31-12-90
1,50,000
1,60,000
40,000
Plant
30,000
1,00,000
Machinery
1,50,000
3,00,000
Stock
2,80,000
1,00,000
Sundry Debtors
1,10,000
1,59,000
E,40,000
10,000
15,000
Sundry Creditors Bills Payable
Cash in hand
o'3
Provide depreciation on Fixed Asets at 5% and on stock and debtors at 10%. Problem No.5 Mr. Sanjeev maintains books on Single Entry. He gives iníormation:
Particmlars
31-3-92 1,200
2,000
Cash in hand
200
Stock of goods
300
10,000
12,000
Sundry Debtors
12,000
8,000
4,000
Buildings
20,000
Sundry Creditors
7,000
he
íoiiowng
31-R-93
Bank balance
Furniture
yoi.
8,000 Sanjeev introduces a fresh capital of Rs.10,000 on lst July 1992 and withdrawn Rs.5,000during the year. You are required to ndout the profit sy Sanjeev after providding 5% made Depreciation on Buiidings, 10% on Furniture for the year ended 31-03-93.
Problem No.6 Anil keeps his books by single entry. He gives you the following information Erom which he requires you to ascertain his Profit/ Loss uring'88.
Pariemilare Bank balance
ct
Jam. 1988 740 (Cr)
31st Dec19E2 400 ( 10
Cash in hand Sundry Debtors
5,300
8,800
Sundry Creditors
i,950
Stock
1,500 ,700
Piant
2,000
2,000
140
140
Furniture
1,900
introduced capital of Rs.600
Hhad withdrawn Rs.3000 during the year but had in necessary. Weiteoti on Ist Y988. A provision of 5% on Sundry Debtors P.a. Depreciation on Plant at 5%%. Interest on capital is allowed at 5% Ssoo 0: o60
Problem No.7
Rs.12,000. he beught Gopal comnenced business on 1-1-1986 with a capital of withdrawn @Rs.200 furniture Rs.1,200 and machinery Rs.200. During the year he On 30-6-86 he borrCWed per month for private use, he introduced capital ofRs.1,600. that amount. Rs.4,000 from his wife Smt. Padma at 10% P.a. interest on 3112-86 his financial position was: ; Rs.5,300 ; Stock-inCash in hand Rs.30O; Cash at bank Rs.3,200 Sundry debtors Creditors Rs.800 ; Outstanding trade Rs.5,600 ; Bills receivable Rs.2,400; Sundry Om
rent Rs.100. / loss made by Depreciate furniture and machinery by 10%. Ascertain profit 3.380 Po Gopal during 1986. 9 s&0
Problem No.8 following Aretail trader kept his Accounts in single entry system. But he has the year details of his Accounts. You are requested to ascertain the profit or loss for the ended 31st Dec., 1983:
--1983
31-12-1933
Stock-in-trade
16,700
18,500
Sundry Creditors
15,400
14,000
Sundry Debtors
11,200
10,500
Particulars
Cash in hand Bank O.D.
250
1,200
20,200
19,400
12
Bills receivable
15,050
14,200
500
1,500
1,900
1,900
Fixtures & Fittings
Motor Van
The withdrawing during the year amounting to Rs.2,600 ; Depreciate Fixiures by 10% and write Rs.300 off Motor Van. As regards the debtor, it is ascertained that Rs.500 are irrecoverable and further reserve of 5% should be made. Also reserve Rs.700 in respect of bils receivable.
Problem No.9 Ram & Shyam are partners sharing profits & losses in the.ratio of 3:2 after charging interest on capital at 5% P.a. Interest on drawings is to be ignored. On 3ist Dec., 1979 their position was as follows:
Liabilities
Rs.
Assets:
TRS.
Sundry Creditors
15,000
Cash at Bank
6,C00
Ram's Capital
30,000
Cash in hand
500
Shyam's Capital
25,000
Prepaid Insurance
500
Stock
20,000
Sundry Debtors
i2,000
Furniture Machinery 70,000
1,000
30,000 70,C00
During the year ended 31st Dec., 1980 Ram had withdrawn Rs.!0,000 are Shyam Rs.5,000 for their private purpose. On31st Dec., 1980 the assets and liabilities
were Sundry Debtors Rs.16,000; Stock Rs.28,000 ; Csh at Bank Rs.5,000 ; Prepaid Insurance Rs.500 ; Sundry Creditors Rs.I5,100; Expenses owing Rs.300. Machinery end Furniture were to be depreciated at 10% Pa. Prepare a statement showing the profit/loss made by Ram and Shyam for the year ended 3 1st Dec.,1980 and a statement of Affairs as on that date.
Problem No.10 Kumar keeps his books by Single Eniry method. His position on 31st March 1994 was as follows: Cash in hand Rs.2,400; Cash at bank Rs.25,500; Debtors Rs.18,400; Stock Rs.28,600; Furniture Rs.5,000 ; Creditors for goods Rs.18,700 ; Expenses outstanding Rs.2,000 On 1st Oct., 1994, Kumar introduced Rs.10,000 as further capital in the business and withdraw on the same date Rs.7,000 out of which he spent Rs.5,000 on purchase of a Machiner for the business.
as follows On 31st March 1995 his position was Rs.27,500; Stock KS.31,500 ; Debtors Cash in hand Rs.2,100; Cash at bank Prepaid Insurance Rs.200 Rs.24,200; Furniturc Rs.6,000: Creditors Rs.25,200: profit or loss made by him durino ing P'repare the necessary statemcnt showing the making thc following adjustments the year ended 31st March 1995 aftcr Writeoff debls Rs.1,200; and Depreciate Furniture and Machinc @ 10% Pa. to Rs.1,500 for personal use amounted takcn Goods debts. doubtful for provide 5% Also provide intcrest on capital 10%% P.a.
Problem No.ll
X
Rs,. 10,000 on 1-4.95 with a capital of busincss cloth his commenced Sarath Rs.3,000. His books are kept under for furniturc purchascd On the same day hc : are avaibale Single Entry Systemn. Foilowing particulars Rs.
Saies (including cash sales Rs.7,000) Rs.4,000) Purchases (including cash purchases of
Expenses paid in cash
Bad debts Drawings by Sarath in cash Salaries paid in cash
17,000 15,000
700 500 1,200
2,000
personal use and gave Rs.200 Sarath took cloth of Rs.500 fom his shop for his recordedé in and these transactions were not to his son out of the cash of the firm creditors were Rs.3,600 and stock books. On 31-3-96 debtors were Rs.5,200 and Rs.6,500. trading and profit and Prepare cash account, debtors and creditors accounts, ioss account and the balance sheet.
Prolem No.12
7
Rs.25,000. Out ct Mr. Babu commenced business on 1-1-90 with a capital of his wie this he purchased furmiture for Rs.4,000. During the year he borrowed from particulars Rs.5,000 and introduced a further capital ofRs.3,000. From the following to taken from his books which are kept under single entry system you are reeuired prepare Trading & Profit & Loss Account for the year eneded 31-12-90 and a Balan Sheet as on that date.
Rs. Receipts from Debtors
46,700
Cash sales
30,000
Cash purchases
10,000
-45
PARTNERSHIP ACCOUNTS Problem No.1 Akram, Bakram & Chakram were partners sharing in 4:3 :2 with capitals of Rs.18,000, Rs. 14,000 and Rs.12,000. The profits for the just concluded year amounte to Rs.7,600 before allowing interest on Capital, which is to be calculated at 5%. was decided that the capital of the whole firm be Rs.54,000 and the partners shouid bring in or withdraw cash to make their capital in profit sharing ratio.
I
Prepare the Profit and Loss Adjustment A/c and Partners Capital Accounts.
Problem No.2 P &E were partners in a firm. On lst jan., 1S89 their capital accounts showed
balance of Rs. 1,00,000 each. P' introduced additional Capital Rs.50,000 on 30 to Sept., They were sharing profits and losses in the ratio of 3 :2 "B" was entitled monthly drawings of Rs.1,000 subject to interest at 6% per annum. he drew the amounts on that last working day of each month. a
During the year 1989 the firm earned a profit of Rs.24,000. Prepare the necessary ledger accounts.
Problern No.3 contributing Rs.2,50,000 On ist Jan., 1989, A, B and C entered into partnership profit in the ratic of5 : 3 :2. ;Rs.i,30,000 and Rs. 1,20,000 respectively and sharing Rs.14,500 respectively per year. B and c are entitled to a Salary of Rs. 16,000 and 5%% p.a. during the year A withdrevw Rs.40,000; Interest on Capitals is to be allowed at being A Rs.2,250; B Rs.1,125 and C "B" Rs.25,000 and "C" Rs.15,000. Interest was Rs.7i,400. in 1989 before the above mentioned adjustments
Rs.725. profit
Capital Accounts (a) ifthey Show how the profit is distributed and also prepare are fluctueting and (b) if they are fixed.
Problem No.4 and losses in proportion to their capitals A,B andCare partners sharing profits are entitled annually to draw Rs.6,000, Rs.5,000 at the beginning of the year. They anticipated share of Profits. Any drawings in their of out respectively Rs.4,0C0 and as advances taken from the firm and one excess of these amounts are to be regarded p.a. The Capitals as at the beginning of subjected to interest at an average rate of 6% average rate of 5% p.a. The Capitals of the the year to be allowed interest at an partners as at the beginning of the year were:
46
The Credit Balances of their current accounts were A.
Rs.2,304
;
B Rs.3,723
;
C Rs.1,152.
Their drawings during the ycar were A Rs.10,000; B Rs.12,000; CRs.5,000
The profits for the ycar were Rs.30,096 before making ay adjustmeats for interes as above. Drawup capitul and current accounts of the partners.
Eroblem No.5 A and B are to contributc capitals of Rs.50,000 and Rs.30.000 respectively when they entered into a partnership on 1st Jan., 1989. Profits are to be shared in
the
of3 :2. Interest on Capitals are to bc allowed 5% p.a. Interest on drawings is to be charged at 2% p.a. A is to get a salary of Rs.500 p.m. B is to get commision at 2% on the net Profits of the fîm before charging any of the above. ratio
Cn 31st Bc., 1979 heir trading profits, before giving cffect to above te was Rs.60,000. During the year A has withdrawin Rs.i,000 and B Rs.500 from the firm on which interest is to be charged for the whole year. You are required to prepare profit and loss appropriation Account for the yeaended 3.st Dec., 1989 end pariner's capitai accounts in cEses wier. (a)
Their Capitais are îiuctuating
(b)
Their Capitals are fixed.
ADMISSION OF PARTNER Frobiem No.l The following is the balence sheet of A &3 on 31-12-96. They share profts and losses in the ratio of 3/5 : 2/5.
Balance Slhcct ASsets
62,000
Creditors
Capital Accounts: 35,000
35.000
70,000
1,32,000
Cash at Bark
5,000
Land & Buildings
25,000
Plant & Machinery
35,CC
Furniture & Fittings
2,000
Stock
20,000
Debtors
,v
,32,000
-47They take
'C' into Partnership on 1-1-97. He should bring Rs.5,000
as goodwil! which is to be retained inthe firm and that he shall bring Rs.15,000 as Capital for a i/ 4 share in the future profits. For the purpose of C admission, the firms asse!s ere agreed to be revalued as under. Land & Buildings to be valucd at Rs.30,000, Plant 2 Machinery to be reduced by 10% and a provision of 5% on dcbtors to be made fo doubtful dcbts. The stock is to be taken at Rs.25,000.
Prcpare necessary ledger accounts and the balance sheet of the C" admission.
nevw
fim after
Problem No.2 A and B are the partners in a firm sharing profits and losses in the ratio of2
The Balance Sheet of the fim as on 31-3-96 was as follows: E3mlamce
: 1.
Sheet
RS Creditors
9,000
Cash
Workmen compensation fund
6,000
Bills receivable
5,0CC
12,50C
General Reserve
10,500
Debiors
20,000
Capital
30,000
Less provision
2.500
24,500
Stock
20,00
Investments
25,C00
B
80,000
17,50u
80,000
On the above date 'C' is admitted for2/5 share and the following adjustments
are made:
.
Accrued income not appearing in the books Rs.500
3.
X, an old customer whose account was writtenoff as bad, has promised to pay Rs.350 in full settlement of Debt.
4.
Market value of Investments is Rs.22,500.
5.
Cis required to bring Rs.40,000 as Capital and Rs.10,000 as govdwill.
1.
Claim on account of workmen compensation is estimated at Rs.750
Prepare necessary Leger Accounts and New Balance Sheet.
Problem No.3 A and B are the partners sharing profits in the ratio of their capitals. Their Baiance Sheet as on 31-3-93
48 Eallamce Flheet
Aggets
Liabilities
Aoha
Creditors
9,000
Freehold Property
Bilis Payable
6,000
Plant & Machinery
3,500
General Reserve
2,100
Furniture
1,750
A
Capitals:
Office Equipment
20,000
35,000
B15,000
10,000
Stock
350
14,100
Bills receivable
3,060
Cash
1,590
Bank
50 52,1CC
52,100
On 1-4-94 they admit 'C' on the following terrms C is to bring Rs.10,000 Capital and to pay Rs.3,500 for goodwili and he wi: get 1/4 share of profits. 2.
Reserve for Bad debts to be raised to 2%.
3.
Stock to be writtenoff by 5%
Freehoid premises to be revaiued at Rs.11,400;Plant &Machinery ai * 2,800, Furniture Rs.1,540 and Ofice Equiprnent Rs.495.
4.
You are required to prepare Accounts and ihe Balance Sheet of the New Firm.
Problea No4 A & B are partners sharing profits in the ratio of 3 :2 'C' is admitted and the New Profit sharing ratio is 2 :2: i. C brings in cast Rs.8000 for Capital and Rs.2,000 for Goodwil1. The Balance Sheet of A and B at the time f admitting C' is as follows
aigmce Slheet
aIies Capital
heir
AGSeis
A
8,000
Land
B
8,000
Other assets
Reserve Fund
4,000
Creditors
5,000
25,000
2,500
22,500
25,000
Partners decided to writtenoff 2% on land and 5% from other assets. Cive entries and Balance Shect.
Problem No.5 E and F are in Partnership sharing profits and losses in the ratio of3 : I. Oni1-90 they agree to admit 'G' giving him 1/8th share in the future profits. G brings irn Rs.25,000 as his capital and Rs.4,000 as his sharc of Goodwill. Goodwili does not appear in the books but the partners agrec to show it at Rs.16,000. On the date of 'G' admission, the balance shect of the firm was as follows.
Liabilitiea
Aaseia
Creditors
10,000
Cash
5,000
Reserve und
20,000
Eank
20,CC0
Debtors
15,000
Stock
20,000
Capitais 30,000
25.000
55,000
Furniture
5,000
Buildings
20,C00
85,000
85,CC0
Pass Journa! Entries and Prepare revalued Balance Sheet.
Problem No.6 Kishore and Kumar share profits and losses in the ratio of 3/5 and 2/5. The Balance Sheet on 31st March 1987 as follows:
Libilities
ASsets
Sundry Creditors
20,000
Cash at Bank
General reserve
20,000
Bills receivable
5,000
&LAccount
10,000
Sundry Debtors
15,000
Stock
20,000
Capitals:
i0,C00
Kishore
30,000
Furniture
Kumar
20,000
Plant
20,000
Buildings
25,00C
1,00,000
5,000
1,00,000
50
On 1st April, 1987, Krishna admitted into Partnership on the following terms: a)
That Krishna pays Rs.20,000 as his capital for a fifth sharc.
b)
He brings Rs.5,000 for goodwill, half of this surn was to be withdrawn by
partners.
c)
That Stock and Furniture be reduced by 10% and 5% Provision be created for doubtful dcbts on debtors and Biils reccivable.
d)
There is an outstanding liabilities for rent Rs.500
)
An item included in Sundry Creditors is not likely to be claimed is Rs.1,500. Show necessary Accounts and prepare new Balance Sheet.
Problem No.7 The following was the balance sheet of A, B and C on 1st June 199. |
Linitie2
AGgets
Bills Payable
3,300
Cash
Creditors
6,000
Debtors
10,800
Stock
I1,4C0
Capitals: À
C
60C
16,800
Furniture
2,40C
12,600
Buildings
19,5CC
5,000
35,400 44,700
444,700
They agreed to take X' into Partnership on the following terms: 1.
That
X should bring Rs.15,000 as Capital and Rs.9,000 as goodwill.
That Goodwill arnount should not be left in the business. 3.
The Stock and Furniture be depreciated by 10%.
4.
That a reieue of 5% on debtors be created for doubtful debts.
5.
That the value of Buildings should be raised to Rs.27,000.
Problem No.8 ABC are partners in a firm sharing profits and loss irn the ratio respectively. The following is the Balance Sheet as on 31-12-96. Agsets
Lianiicieg
Capitais
of 3 : 2:
A
30,000
Buildings
50,000
B
20,000
Furniture
15,CCC
-51 C Reserve Fund
10,000
Stock
29,800
Bills reccivable
5,000
20,C00
Creditors
6,200
Dcbtors
7,500
Bills Payable
4,000
Cash
2,500
"D" is admitted as a Partner with effect from 1-1-97 on the following terms : 'D' wili bring Rs.15,000 as Capitai and Rs.12,000 as Goodwill. half
.
of the
goodwill will be withdrawn by the partners. 2.
'D' will be given 1/6th share in the profit.
3.
The assets will be revalued as: Buildings Rs.56,000; Furniture Rs.12,000; Stock Rs.16,000 ; Debtors Rs.7,000. The Claim of a Creditor for Rs.2,300 is reduced to Rs.2,000 Half of the Reserve to be withdrawn by the partners.
4.
5.
Prepare necessary accounts and the Balance Sheet of the New Firm.
Problem No.9 A and B share profits in the ratio of 3/4 and 1/4 respectively. Balance sheet as on 31st Dec., 1987
Balance Sheet Lialbilities
Rs
Assets
RS
Sundry Creditors
41,500
Cash at Bank
Capitals
30,000
Bills receivable
3,000
16,000
Sundry Debtors
16,000
Stock in trade
20,000
B
Fixtures
Land & Buildings 87,500
22,500
1,000
25,000 87,500
On 1st Jan., 1998 'C' was admitted into Partnership on the following terms
.
2.
The 'C' pays Rs.10,000 as his capital for 1/S share. That 'C' p[ays Rs.5,000 for goodwill. half of this is to be withdrawn by 'A' and
"B 3.
The Stock and Fixtures to be depreciated by 10%and 5%, Provision for doubtful debts to be created on Sundry debtors and Bills receivable.
Vaiue of Lands and Buildings be appreciated by 200.
repairs The provisin of Rs.1,000 be made for outstanding
5.
6. Show
bill.
likely to be claimed and nen An item of Rs.650 included in creditors is not shows be written back. New Fi. necessary ledger accounts and prepare the Balance Sheer oi
Problem No.10 ratio AB and C are sharing profits and loss in the
of 2:2:
. Their Bala
lianc
Sheet as on 31-3-98:
R
Lialbilitie
12,850
Sundry Creditors
Ascets Land & Buildings
Outstanding Liabilities
1,500
Furniture
General Reserve
6,500
Stock in Trede
Capitals:
25,000 6,500
11,750
A
12,000
Debiors
S,500
B
12,000
Cash in hand
1,100
C
5,000
29,000 49,850
49,850 They agreed to take 'D' as Partner from i-4-98 on the folowing terms 1.
C
shall bring in Rs.5,000 as his Capital.
2.
Value of Stock shall be increased by Rs.2,500.
3.
Rs.550 shall be writtenoff as Bad debts.
4.
Furniture to be depreciated by 10%.
5.
Value of Buildings shall be increased by 20%.
6.
Value of the Goodwill of the firm is Rs.15,000.
7.
New profit skaring ratio of A,B,C.D is S :5:3:2
3.
After admission Goodwill Acocount is to be writtenoff. Cutstanding liabilities include Rs.1,000 due to "X vwhich is not recorded in the Books.
respectively.
has been paid by A.
Prepare necessary Accounts and New Balance Sheet.
Problem No.11
tfu!
Xand Y are partners sharing proîits in the ratio of i:1. Their Balance SneeetE on 31-3-99:
53
lBalamce Zlheet
Linbilitie Crcditors
1,00,000
Cast
50,000
Capitals
2,00,000
Sundry Debtors
50,CC0
2,00,000
Stock on hand
1,00,000
Plant &&Machinery
2,00,000
Land & Buildings
1,00,000
Y
5,00,000
S,00,003
Z is admitted as partner with effect from 1-4-99 on the following tersms 1.
Plant & Machinery shall be valued at Rs.2,50,000.
2.
The valuc of Land & Buildings shal be increased by 50%.
3.
Goodwil! has been valued at Rs.60,000 and Z shali bring in Rs.18,C00 as his share of Goodwill.
A.
The value of Stock shall be reduced to 80%.
.
Z shall bring Rs.80,000 as his Capital.
6.
The whole amount brought in by Z sha!i remain the business.
New Profit sharing ratio X 4/10; Y 3/10;Z -3/10. Writeup necessary accounts and show the opening balance sheet. -
-
Problem No.12 A and B are partners sharing profit and losses in the ratio of 3 Balance Sheet as on 31-3-96.
:
1.
Their
Balamce Shect
Liabilities
Rs
Creditors
37,500
Generai Reserve
Capitals:
4,000
Assets Cash
Bills Receivable
22,500
3,000
A
30,000
Stock
20,000
B
16,000
Sundry Debtors
16,000
Furniture Buildings 87,500
1,000
25,000 87,500
-54On i-4-96 they admit "C on he following terms: The
C
pays Rs.10,000 as his capital for 1/5 share.
2.
That
3.
Lhe Stock
Goodwill account be raised in the books at Rs.20,000. and Furniture be reduced by 10% and a provision
of 5% be made fo
doubtful debts. 4.
5.
That valuc of Buildings appreciated by 20%. the Capital accounts of all partners be rcadjusted on the basis of new ratio proiit sharing and for this purpose current accounts are to be opened.
hat OI
Prepare necessary accounts and New Balance Sheet.
ProbiemNo.13 The ollowing is the Balance Sheetof X, Y and Z sharing profits and iosses in
the ratio of 6:5 3. Creditors
Bills Payable
18,900
6,300
Cash
1,890
Debtors
26,46C
29,4C0
General Reserve
10,500
Stock
Capitals:
35,400
Furniture
29,850
Land & Buildings
14,550
Goodwill
1,15,500
7,350 45,15C 5,75
1,15,500
They agreed to take "A" as partner and give him 1/8 share on the terms
a)
The furniture be depreciated by Rs.920. The Stock to be depreciated by 10%.
ofRs.1,320 be made for outstanding repair bills.
c)
That a Provision
d)
That the vaue of Land and Buildings be brought upto Rs.59,850.
e
That the vaue of Gcodwill be brought upto Rs.14,070. That 'A' shouid bring in Rs.i4,700 as Capital.
That after making the above adjustrnents, the Capitals of oid partners be adjuste on the proportion of 'A's Capitel. Show the necessary accounts and New Balance Sheet.
Nitish and Satish are cqual partners in a busincss. On 30th June, 1992 thsir balance shect stood ns follows Crcditors 3,559 Cash 150 Bank O.DD 4,841 Investmcnts 3.000 Capitals: Nitish 3,000 Dcbtors 5.700 Satish 2,000 Stock 4,i950
Furniture 13,400
400
13,400
It is
arranged to admit Mukesh into partnership and, as a resuit of ncgotiations it is agrced to make the following adjustments: To create goodwil Rs.2,000.
2. 3.
To crcate provision of 10% on Debtors. To write down kxtures to Rs.300.
4.
To depreciate Stock by 10%.
5.
To increase the valuc of Investments to Rs.3,500.
Mukesh tesir introduced Rs.2,500 as his third share of capital to which amct it has ben agreed that the capitals of other partners are to be adjusted. Make necessary entries, leger accounts and Balance Sheet of the New Fim.
Problem No.15 Ramesh, Kumar and Raju are sharing profits in the ratio of 3 5: 2. Their balance sheet as on 31st Dec., 1987:
Ligblitie
Capitals:
Asgets
Ramesh
44,000
Cash
18,000
Kumar
52,000
Bills receivable
24,000
Raju
36,000
Furniture
28,000
Creditors
64,000
Debtors
42,000
Bills Payable
32,000
Investmients
32,000
Profit & Loss A/c.
14,000
Stock
44,000
Machinery
34,000
Goodwill
20,C00
2,42,000
2,42,000
56 They admit Prasad into partnership on the following terms
a)
Furniture, Investrnents and Machincry to be reduced by 15%. Stock to be taken as Rs.48,000.
c)
Prasad tobring Rs.32,000 as his Capital for 1/6th share and old partners to adjust thcir capitals accordingiy.
d)
Goodwill to be valued at Rs.26,000.
Outstanding rent amountod to Rs.1,800. Prepaid salaries Rs.800. Adjustment of Capitals to be made by Cash.
Prepare necssary accounts and Balance Shect of the New Firm.
ProblemNo.16 A &B are the partners in a firm sharing profits and loss in
thec
31-3-97 their Balance sheet was as follows
Libilitie Capitals
ratio of 3:
2.
t.
Asgei
20,000
Buildings
2,000
10,000
Furniture
2,000 15,50%
Reserve Fund
7,800
Stock
Sundry Creditors
5,000
Sundry Debtors
5,00C
Cash
3,300
Profit & Loss A/c.
2,50C
42,800
42,800
On the same date they admit 'C' as a partner and the new profit sharing ratio is Goodwill of the firm is valued at Rs.10,400, and C is to bring his share of 6:4:3. Goodwill. He has to bring Rs.11,310 as Capital. The Capital of A and B shall be adjusted on the basis of C's Capital (i.e. less cash is to be brought and if more cash is to be taken).
Prepare necessary Accounts and New Balance Sheet.
Problem No.17 The following is the balance sheet admitted as partner on the date
00
of A and
B as on 31st March 1995. C5
-57JRalamceSheot
A's Capital B's Capital
Creditors Gencral reserve Workmen's Compensation fund
20,000
Debtors
22,000
16,000
Land &Buildings
16,000
24,000
Plant & Machincry
20,000
32,000
Stock of goods
24,C00
8,000
Cash and Bank
8,CCC
1,00,000o
A &B shared profits in the ratio of3
agrced upon: 1.
1,00,000 :
2. Thc following terms of admission are
Land & Buildings have been revalued at Rs.36,000 and the Stock at Rs.32,000 The liability on workmen's compensation fund is dctermined at Rs.4,000. C' bring in as his share of goodwill Rs.20,000. C was to bring further cash as would make his capital equal to 20% of combined capital of partners A and B after the above revaiuation and adjustments are carriedout.
2.
3. 4.
5.
The further Profir sharing ratio are as under 2:2:
1.
Problem No.13 C and D sharing profits in the ratio of 5/8 and 3/8, their balance sheet is as
follows
Liabilites
ASSets
Creditors
10,000
Cash at Bank
Reserve Fund
20,000
Debtors
20,000
40,000
Stock
10,000
20,000
Investments
Capitals:
C
Plant
2,400
7,600 50,000 90,8U0
They adnit
.
2.
E
into partnership giving him 1/8 share on the following terms:
Stock to be depreciated by 20%, provision of 5% on debtors is to made for doubtful debts, Investments are to be brought into the business at an agreed value of Rs.6,000 and plant to be appreciated by 20%. Goodwill is created at one year's average prolit of last three years which amnounts to Rs.12,000, Rs.16,000 and Rs.20,000 and the capitals of old partners to be increased in proportions to their shares.
-
58
EBrings in Cash as capital to the extent of 1/8th of the combined capitals of partners at the above adjustments.
3.
Problem No.19 Ram & Murthy
are partners
in a firm sharing profits & losses
in
3:I
ratio.
Their balance sheet on 1-1-88 was as follows:
Lsbilities
Assets 1,00,000
Plant
80,C00
Murthy Capital
60,000
Stock
20,00C
Creditors
40,000
Debtors
60,000
Cash
40,000
Ram Capital
2,00,0000
2,00,000
Chandra is now join in the fim. He agrees to pay Rs.40,000 for Goodwi! ard introduce one-half of the combined capital of two partners. Depreciation on pla and stock at 20% and 10% respectively and raise a Reserve for bad debts 10%% o Debtors. Chandra is given a fouth share on firm. Show necessary iedger accounts and Balance Sheet.
Problem No.20 usha and Nisha are partners in a firm sharing profits in the ratio of 1S% 2nd 25%. Their balance sheet as on 1-1-1989
ASseis
Liabilities Creditors
40,000
Plant
80,CCC
Reserve fund
S0,000
Debtors
60,000
Usha
50,000
Stock
35,000
Nisha
40,000
Cash
5,000
Capitals:
1,80,000
1,30,030
They agree to admit Sandhya as a new partner.
Terng
.
Plant to be depreciated by 5%.
2.
Stock to be increased to Rs.40,000.
3.
Reserve for doubtful debts to remain at 10% on debtors. A liability towards a creditors for Rs.500 is not recorded which is to broughi i= the books.
.
59Sandhya is to get 1/3 share ofprofit for which she has to pay an arnount eouai to her share in thnew firmßgoodwill valued at 3 years purchasc of the average profits of the st four years which were
Rs.25,000 1986 -Rs.40,000; 1987 5,000 (loss); 1988 Rs.20,000. Sandhya 1985
-
6.
is also has to bring in capital cqual to her share in the total capital of the newly constituted firm.
Problem No.21 & B are the partners in the ratio of3 :2. Theirbalance sheet as on i -4-1992 follows Á
inas
Libilktic
Assets
Capitais
B Genera! Reserve
21,000
Goodwil
10,0C0
14,000
Plant& Machinery
15,0C0
14,000
Patents
Profit&Loss A/c.
7,000
Sundry Creditors
14,000
5,00C
Sundry Debtors
12,C00
Stock
18,000
Cash
10,C00
70,000
70,0CC
C admitted as partner on the following terms:.
a)
He is to be given 2/9 share in profits.
b)
He cannot bring his share of goodwill, the total goodwill of the firm is valued at Rs.24,000.
c)
The asseis are to be revalued at:
Plant at 20% less to the book value, Patents at Rs.4,000 and Stock at Rs.16,500. A provision for doubtful debts is to be made at 5% on debtors.
e)
A liability of Rs. 1,000 is not likely to arise. The firm has to pay an amount of Rs.1,900 as compensation to a worker.
)
C has to contribute sufficient cash to make his capital 2/9th of the total capital of the firm.
The capitals of the ober partners are to be adjusted in the profit sharing proportions. Any difference being withårawn or brought in.
and Dec., 1980.
Cash in hand Cnsh at bank
Partners Capitals G
20,000
S
16,000
Sundry Creditors
Bills Payable
36,000 15,000
4,000
Bills receivnble Sundry debtors
A,900
1,882
21,000 4,200
Stock
Plant
152
&.
Machinery
Furniture Frechold Prcmises
1,060 1,700
13,560
55,000
55,000
terme "T' into partnership on the admit to agreed On 1st Jan., 1981, it was Rs.2,400 (less a provicio debtors Sundry busincss That he should bring into to Rs.500 and also goodwill r amounting Crcditors Sundry of 10% for bed debts). in the new firm is to be Rs.5.0on capital His Rs.1,500. of his business ofa valuation receives ore. and in conmsideration thereof, he cash in pays he which the balance of
firm. fifth share of the profits of the the foiiowing adjustments It was mutually agrced to make
; Plant & Machinery to be increased b Stock was to be reduced by Rs.800 that after the agreed further It was writtenoff. completely Rs.300 Furniture to be introduce sufficient cash should k "S" effected, been had adjustments above make his capital equal to that of "G".
ta
Prcblem No.23 The balance sheet of P
&as
on 31st Dec., 1995.
Assets
Liabilitieg
10,00
P's Capital
10,000
Goodwill
Q's Capital
20,000
Land & Buildings
P's Current A/c.
12,000
Furniture
Q's Current A/c.
8,000
Stock
Sundry Creditors
5,000
Sundry Debtors
3,5
Bank O.D.
2,500
Q's Loan Alc.
0,
57,500
12,00
I,00
21,0
57,50
Therew=Hat interest on Capital allowed. P ratio of :2. They ugreed to admit as partner &arc sharing profits in the into the firm. Besore that they 1
makc adjustments to the assets, as Land and Buildings are valued at Rs.24,000; Furniturc at Rs.2,000 and Goldwill at Rs.15,000. Rwill bring furniturc Rs.1,500 Goodwill Rs.5,000 and Stock Rs.9,500 from his soletradership. As per the above agreement as want to share the profits equally in futurc and maintain their capitals and currents A/c.s with the cqual amounts. Adjustments should be made in cash Transfcr the Q's loan to his currcnt accounts. Problem No.24 The balance shect ofP & Q as on 31st Dec., 1980:
Limbilities
Aaoeta
Sundry Creditors
6,000
Stock
Bank O.D.
3,000
Sundry Dcbtors
Capitals
:
P
12,000
Q
24.000
Bank 36,000
Current A/cs.
Furniture Land & Buildings
P
14,400
Q
9.600
Goodwill
25,200 4,200
12,000
I,000 14,600
12,C00
24,000 69,000
69,000
P & Q are partners in the ratio of1:2. They agreed to admit 'R' as new pariner from 1-1-1981. After "s admission, a ll partners came to a decission that the total capital should be Rs.60,000 and total amount of current a/c. at Rs.30,000 in the new firm, and to share the profits equally.
Adjustments made in the assets ofP & Q
Goodwill Rs. 18,000; Land, Buildings Rs.20,000 ; Furniture Rs.1,600 were
will bring
in as his capital
:
revalued.
Goodwill Rs.6,000 ; Furniture Rs.1,800 and Stock
Rs.I3,800.
Froblem No.25 The Balance sheet
of A & B as on 31-12-86 is as follows:
Linbilitie
Assets
Sundry Creditors
25,000
Plant & machinery
Capitals:
A
15,000
Fumiture
2,500
B
10,000
Sundry Debtors
8,000
10,000
Balance in Bank
9,500
50,000
50,000
They agreed to admit 'C' under the following terms 1.
was given C'is to bring Rs.10,000 as goodwill in cash for which he
2..
i.e. Goodwil! The assets brought in by 'C' should be credited to his Acs.
1/3 share.
Rs.2,500; Furniture Rs.500 ; Stock Rs.5,000; Debtors Rs.4,500 3.
A&B revalued Plant & Machinery as Rs.13,000.
4.
Adjust the Capitals of A & B according their new ratioes i.c. less cash is to be brought and it more cash is to be taken.
Joumal, Ledger and Balance Sheet of New firm.
Problem No.26 The Balance Sheet of A & B as on 31st March 1982 who are sharing profñts in the ratio of 3:2.
Assets
Liabilnties
Outstanding
Cash in hand
12,000
Debtors
40,000
A
40,000
Less: Reserve
4.000
B
38,000
Bills receivable
15,000
Stock
18,000
Investments
14,000
Salaries
Capitals A/cs.
10,000
38,000
Creditors
36,000
Furniture
5,000
Buildings
30,C00
1,28,000
1,28,000
Cis admitting as new partner taking 1/4 share on the following terms: Cis to bring Rs.10,000 as his capital.
.
2.
3.
Furniture at Rs.4,500: Buildings Rs.45,000 are revalued. It is agreed to show| Investments in the books at
RsA,300.
4.
The amount due on workmen's Compensation
5.
And agreed to show the Assets and Liabilities on their old values in the neve balance sheet except cash.
was Rs.1,200
Problem No.27 D.E,F are the partners in a partnership firm sharing Their balance sheet as on 1st June, 1984.
Linbilitieg
profit and losses equaly.
Assets
Bills Payable
4,800
Cash
Sundry Creditors
7,500
Dcbtors
12.300
Stock
12,9C0
Capitals:
2,100
D
18,300
Furniture
3,9C0
E
14,100
Buildings
21,000
7,500
39,900
52,200
the I.
2
52,200
They want to adnit "H' as a new partner giving him 1/4th share in the future on terma H
is to bring in Rs.10,500 as Goodwil1, and Rs.16,500 as Capital.
That old partners withdraw half of the goodwill from the firm.
3.
That Stock and Furniture be reduced by 10%.
4.
Provision at 5% on debtors for bad debts.
5.
A contingent liability on bills discounted to Rs.2,580.
Buildings to be raised to Rs.28,500 1.
As per the agreement there should be no changes in assets and cash) in the new balance sheet.
Liabilities (excep:
Problem No.28 A and B share profits in the ratio of 3/4 and 1/4 respectively. Their balance sheet on March 31st 1990:
Liabilities
ASsets
Sundry Creditors
Capitals
41,500
A
80,000
B
66,000
1,46,000
1,87,500)
Cash at bank
12,500
Bills receivable
13,000
Debtors
16,000
Stock
60,C0C
Fixtures
11,000
Land & Buildings
75,000
1,87,500
fifth sharc That C pays Rs.40,000 as his capitnl for a sum is to of the half hat pnys Rs.20,000 for Goodwill.
1.
2.
be
viturarawn by A
and B
sion lor doubtful debte Provision a and That Stock and Fixtures be reduced by 10% Bills receivaO1C. and Debtors amounting to Rs.950 be creatcd on 20% appreciated by 200 bc Buildings Land and Tha tthe value of a liabilty to the exlent of darnages, for firm nere being a claim against the
. 4.
.
. 7.
Rs.1,000 should be created.
an not likely to be claimed is Creditors An item of Rs.650 includcd in Sundry hence should be writtenoff. Liabilities are not 1o be aftered excer off Assets and values the that That agrced,
cash.
Problem No.29 partners in a firm sharing the profits in the ratio of9:7 Slow and Shine are the 1-1-72 giving him 1/4 share in the Trey decided to admit Steady as new partner from and Shine respectively, and profits, which he acquire in 3/16th and 1/16th from Slow Rs.20,000. All the amozit pays Rs.60,000 in cash to the fimm, in which Goodwill was contributed by Steady kept in an A/c. opened on his name. The trial balance shows the foilowing A/c. prepared for he year ended Dec., 1972.
2,00,000
Sundry Assets
DrawingS
Slow's Capital
Shine's Capital
31s-
50,000 50,000
Slow
12,000
Steady's Alc.
60,000
Shine
10,000
Creditors
20,00
Steady
8,000
Profits in 1972
40,00
30,000
2,30,000
2,30,00
The profit of the year should be distributed after allowing interest on Cap all p.a. partners. to the 6% Prepare P/L adjustment A/c. and balance Sheet 31-12-1972.
Problem No.30 The baiancc shect
of x, Y and Z as on 31-3-89 A.gaets
LimbiNities
Sandry Creditors
4,000
Plant
40,0CC
Bank O.D.
8,000
Buildings
20,000
Debtors
13,000
40,000
Stock
10,000
20,000
Cash at bank
7,00C
Cash on hand
2,000
Capitals: X
20,000
80,000
92,0C0
92,000 They agreed to admit "A" from 1-4-90 on
theterms
futtve..
i.
All are agreed to share the profits equally in fuges.
2.
Depreciate Plant by 10% and appreciate Buildings by 15%.
3.
Z will take Sundry Debtors for Rs.12,000
4.
Stock was valued at Rs.12,000.
5.
X will take the responsibility of Creditors at their bock value.
. 7.
Bank O.D. was taken over by "Y". The firms Goodwill is Calculated as 3 years purchasing price of the average of past 4 years profits and losses.
Rs.20,000 Rs.40,000. I year
;
II Year Rs. 30,000;
l
Prepare necessary Alcs. and New Balance Sheet.
year Rs.10,000 (loss); IV year