Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Experience the convenience of getting reliable answers to your questions from a vast network of knowledgeable experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

### PART I-D

#### Answer any THREE questions from the following:
[tex]\[ 3 \times 12 = 36 \][/tex]

27) Anil and Sunil are partners sharing profits and losses in the ratio of [tex]\( 3:2 \)[/tex]. Their Balance Sheet as on 31-03-2023 was as follows:

#### Balance Sheet as on 31-03-2023

\begin{tabular}{|c|c|c|c|}
\hline
\textbf{Liabilities} & \textbf{Amount} & \textbf{Assets} & \textbf{Amount} \\
\hline
Creditors & 37,000 & Cash & 15,500 \\
\hline
Bills payable & 20,500 & Debtors 50,000 \quad PDD 3,000 & 47,000 \\
\hline
General reserve & 25,000 & Stock & 15,000 \\
\hline
Capital A/c & & Furniture & 10,000 \\
\hline
Anil & 70,000 & Machinery & 40,000 \\
\hline
Sunil & 40,000 & Building & 65,000 \\
\hline
Profit & Loss A/c & & & 5,000 \\
\hline
Total & 1,92,500 & Total & 1,92,500 \\
\hline
\end{tabular}

On 01-04-2023, they admit Satish into the partnership on the following terms:

a) Satish should bring Rs 30,000 as capital for [tex]\( \frac{1}{6} \)[/tex] share and Rs 25,000 towards Goodwill [As per AS-26].

b) Goodwill amount is withdrawn by the old partners.

c) Depreciate Machinery and Furniture by 10%.

d) Value of Building is appreciated by 20%.

e) Maintain PDD at 10% on Debtors.

Prepare:

1. Revaluation A/c
2. Partners' Capital A/c
3. New Balance Sheet of the firm as on 01-04-2023

Sagot :

GinnyAnswer
To solve the given problem step-by-step, let's go through the required tasks:

### Given Information
- Initial Balance Sheet:
- Liabilities:
- Creditors: Rs. 37,000
- Bills Payable: Rs. 20,500 + Rs. 25,000 = Rs. 45,500
- General Reserve: Rs. 27,000
- Capital Accounts:
- Anil: Rs. 70,000
- Sunil: Rs. 40,000
- Assets:
- Cash: Rs. 15,500
- Debtors: Rs. 50,000 - Rs. 3,000 (Provision for Doubtful Debts) = Rs. 47,000
- Stock: Rs. 47,000
- Furniture: Rs. 15,000
- Machinery: Rs. 10,000
- Building: Rs. 40,000
- Profit & Loss Account: Rs. 5,000

### Satish's Admission Terms:
1. Satish brings Rs. 30,000 as capital for 1/6th share.
2. Satish brings Rs. 25,000 towards Goodwill, which is withdrawn by the old partners.
3. Depreciate Machinery and Furniture by 10%.
4. Appreciate Building by 20%.
5. Maintain PDD at 10% on Debtors.

### Step-by-Step Solution:

#### (i) Revaluation Account
- Machinery Depreciation:
- 10% of Rs. 10,000 = Rs. 1,000
- Furniture Depreciation:
- 10% of Rs. 15,000 = Rs. 1,500
- Building Appreciation:
- 20% of Rs. 40,000 = Rs. 8,000

The net result in the Revaluation Account is:
[tex]\[ \text{Revaluation Account} = 8,000 - 1,000 - 1,500 = Rs. 5,500 \][/tex]

#### (ii) Partners Capital Account
- Initial Capitals:
- Anil: Rs. 70,000
- Sunil: Rs. 40,000

- Goodwill Distribution:
- Total Goodwill Satish brings: Rs. 25,000
- Anil's Share: [tex]\( \frac{3}{5} \times 25,000 = Rs. 15,000 \)[/tex]
- Sunil's Share: [tex]\( \frac{2}{5} \times 25,000 = Rs. 10,000 \)[/tex]

- Revaluation Profit Distribution:
- Total Revaluation Profit: Rs. 5,500
- Anil's Share: [tex]\( \frac{3}{5} \times 5,500 = Rs. 3,300 \)[/tex]
- Sunil's Share: [tex]\( \frac{2}{5} \times 5,500 = Rs. 2,200 \)[/tex]

- Adjust the Goodwill Withdrawn by the Partners:
- Anil's Withdrawn Goodwill: Rs. 15,000
- Sunil's Withdrawn Goodwill: Rs. 10,000

New capital amounts after adjustments:
- Anil: [tex]\( 70,000 - 15,000 + 3,300 = Rs. 58,300 \)[/tex]
- Sunil: [tex]\( 40,000 + 10,000 + 2,200 = Rs. 52,200 \)[/tex]
- Satish's Capital: Rs. 30,000

Partners' Capital Account (Final):
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000 (including Rs. 30,000 for capital and Rs. 30,000 for his share)

#### (iii) New Balance Sheet

Liabilities:
- Creditors: Rs. 37,000
- Bills Payable: Rs. 20,500 + Rs. 25,000 = Rs. 45,500
- Total Capitals:
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000

Total Liabilities:
[tex]\[ 37,000 + 45,500 + 58,300 + 52,200 + 60,000 = Rs. 253,000 \][/tex]

Assets:
- Cash: Rs. 15,500
- Debtors: Rs. 50,000 (new) - Rs. 5,000 (PDD for 10%) = Rs. 45,000
- Stock: Rs. 47,000
- Furniture: Rs. 15,000 - Rs. 1,500 = Rs. 13,500
- Machinery: Rs. 10,000 - Rs. 1,000 = Rs. 9,000
- Building: Rs. 40,000 + Rs. 8,000 (20% appreciation) = Rs. 48,000
- Profit & Loss A/c: Rs. 5,000

Total Assets:
[tex]\[ 15,500 + 45,000 + 47,000 + 13,500 + 9,000 + 48,000 + 5,000 = Rs. 183,000 \][/tex]

### Summary of Results:
1. Revaluation Account:
[tex]\[ Rs. 5,500 \][/tex]
2. Partners' Capital Account:
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000
3. New Balance Sheet:
- Total Liabilities and Assets: Rs. 183,000
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.