On 31st March, 2021 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3: 2 was as follows:

BALANCE SHEET OF RAM AND SHYAM as at 31st March, 2021 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Creditors70,000 Cash at Bank25,000General Reserve25,000Debtors - 1,62,500Employees' Provident Fund55,000Less: Provision for Doubtful debts - (12,500)1,50,000Capitals:Stock82,500 Ram -…

Continue ReadingOn 31st March, 2021 the Balance Sheet of Ram and Shyam who share profits and losses in the ratio of 3: 2 was as follows:

Leena and Rohit are partners in a firm sharing profits in the ratio of 3: 2. On 31st March, 2018, their Balance Sheet was as follows:

BALANCE SHEET OF LEENA AND ROHIT as at 31st March, 2018 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Sundry Creditors 80,000 Cash42,000Bills Payable38,000 Debtors -  1,32,000General Reserve50,000Less: Provision for Doubtful Debts - (2,000)1,30,000Capitals:Stock1,46,000Leena - 1,60,000 Plant and…

Continue ReadingLeena and Rohit are partners in a firm sharing profits in the ratio of 3: 2. On 31st March, 2018, their Balance Sheet was as follows:

Raman and Rohit were partners in a firm sharing profits and losses in the ratio of 2: 1. On 31st March, 2018, their Balance Sheet was as follows:

BALANCE SHEET OF RAMAN AND ROHIT as at 31st March, 2018 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capitals: Plant and Machinery1,75,000Raman - 1,40,000Furniture and Fixtures65,000Rohit - 1,00,0002,40,000Stock47,000  Workmen Compensation Fund40,000Debtors - 1,10,000Creditors  Less: Provision for…

Continue ReadingRaman and Rohit were partners in a firm sharing profits and losses in the ratio of 2: 1. On 31st March, 2018, their Balance Sheet was as follows:

A and B were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2018, was as follows:

BALANCE SHEET OF A AND B as at 31st March, 2018 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capitals:Cash8,000A - 1,04,000 Sundry Debtors - 37,600B - 52,0001,56,000Less: Provision for Doubtful Debts -(1,600)36,000Creditors1,54,000Stock 60,000Employees' Provident Fund16,000 Prepaid Insurance6,000Workmen…

Continue ReadingA and B were partners sharing profits and losses in the ratio of 3: 2. Their Balance Sheet as at 31st March, 2018, was as follows:

Kalpana and Kanika were partners in a firm sharing profits in 3: 1 ratio. They admitted Karuna as a partner for 1/4th share in the future profits. Karuna was to bring Rs. 60,000 for his capital. The Balance Sheet of Kalpana and Kanika as at 1st April, 2021, the date on which Karuna was admitted, was:

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital A/cs:Land and Building40,000 Kalpana - 50,000Plant ad Machinery70,000 Kanika - 80,000 1,30,000Stock30,000General Reserve 10,000Debtors - 35,000Creditors 70,000Less: Provision for Doubtful Debts - 1,00034,000 Investments26,000 Cash10,000    2,10,000 2,10,000 The other terms agreed upon were:(a) Goodwill of the firm was valued…

Continue ReadingKalpana and Kanika were partners in a firm sharing profits in 3: 1 ratio. They admitted Karuna as a partner for 1/4th share in the future profits. Karuna was to bring Rs. 60,000 for his capital. The Balance Sheet of Kalpana and Kanika as at 1st April, 2021, the date on which Karuna was admitted, was:

Gautam and Yashica are partners in a firm, sharing profits and losses in 3: 1 respectively. The Balance Sheet of the firm as on 31st March, 2018 was as follows:

BALANCE SHEET as at 31st March, 2018 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Sundry Creditors50,000Furniture 60,000 Bills Payable30,000 Stock1,40,000 Capitals: Debtors80,000Gautamn - 4,00,000Cash in Hand90,000Yashica - 1,00,0005,00,000Machinery2,10,0005,80,0005,80,000 Asma is admitted as a partner for 3/8th share…

Continue ReadingGautam and Yashica are partners in a firm, sharing profits and losses in 3: 1 respectively. The Balance Sheet of the firm as on 31st March, 2018 was as follows:

Badal and Bijli were partners in a firm sharing profits in the ratio of 3 2. Their Balance Sheet as at 31st March, 2019 was as follows:

BALANCE SHEET OF BADAL AND BIJLI as at 31st March, 2019 LiabilitiesAmount (Rs.)AssetsAmount (Rs.)Capital A/cs:Building1,50,000Badal -1,50,000 Investments73,000 Bijli - 90,0002,40,000Stock43,000Badal's Current A/c 12,000 Debtors 20,000   Investment Fluctuation Reserve24,000 Cash22,000Bills Payable 8,000Bijli's Current A/c…

Continue ReadingBadal and Bijli were partners in a firm sharing profits in the ratio of 3 2. Their Balance Sheet as at 31st March, 2019 was as follows:

On 31st March, 2019, the Balance Sheet of A and B, who were sharing profits in the ratio of 3: 2 was as follows:

LiabilitiesAmount(Rs.)AssetsAmount (Rs.)Creditors 30,000Cash at Bank20,000Investment Fluctuation Fund 12,000Debtors - 85,000 General Reserve25,000Less: Provision forBad Debts - (5,000)80,000Capitals A/cs:Stock 1,30,000A - 1,60,000Investments60,000B - 1,40,0003,00,000Furniture77,0003,67,0003,67,000 On 1st April, 2019, they decided to admit C…

Continue ReadingOn 31st March, 2019, the Balance Sheet of A and B, who were sharing profits in the ratio of 3: 2 was as follows:

Ram and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission.

SOLUTION

Continue ReadingRam and Shyam were partners in a firm sharing profits and losses in the ratio of 2: 1. Mohan was admitted for 1/3rd share in the profits. On the date of Mohan’s admission, the Balance Sheet of Ram and Shyam showed General Reserve of Rs. 2,50,000 and a credit balance of Rs. 50,000 in Profit and Loss Account. Pass necessary Journal entries on the treatment of these items on Mohan’s admission.