Page 161 - VIRANSH COACHING CLASSES

11: Tara, Chandra and Surya are partners in a firm of Accountants sharing profits and losses
in the ratio of 2:3:1. Their Balance Sheet as on 31 st March 2018 on which date Akash is
admitted as a partner as follows.
st
Balance Sheet As on 31 March 2018
Liabilities Amount (`) Assets Amount (`)
Chandra’s Capital 1,05,000 Furniture 30,000
Surya’s Capital 66,000 Motor Car 60,000
Cash 54,000
Tara’s Capital 27,000

1,71,000 1,71,000

Akash is given 1/4 share of the profits and losses in the firm and the profit and loss
th
sharing ratio among other partners to remain same as before. The following adjustments are to
be made prior to Akash’s admission:
1 The Motor Car is taken over by Chandra at a value of ` 75,000.
2 The Furniture is revalued at ` 54,000.

3. Goodwill account is raised in the books at ` 1,50,000.
4. Unrecorded debtors are ` 33,000.
5. Expenses incurred but not paid ` 9,000 are to be provided for.
6. Akash brings in ` 60,000 in cash as his capital contribution.
Pass necessary journal entries and prepare Balance Sheet of the firm after Akash’s
admission.

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