Page 203 - VIRANSH COACHING CLASSES

Solution:
Dr. Partner’s Capital Account Cr.
Particular Anita Sunita Kavita Particulars Anita Sunita Kavita
(`) (`) (`) (`) (`) (`)
To Kavita’s By Balance b/d 40,000 40,000 20,000
Executor’s 21,700 By Revaluation A/c 400 400 200
Loan A/c (Profit)
To Balance c/d 42,400 42,400 By Goodwill A/c 2,000 2,000 1,000
By Profit and Loss
Suspense A/c 500
42,400 42,400 21,700 42,400 42,400 21,700

st
Balance Sheet as on 1 July 2019
Liabilities Amt ` Amt ` Assets Amt ` Amt `
Capital Account : Land & Building 55,000
Anita 42,400 Debtors 20,800
Sunita 42,400 Furniture 14,900
Creditors 30,000 Bank 11,500
Bills Payable 2,000 Goodwill 15,000
Contingent Liability 900 Profit and Loss Suspense A/c 500
1,17,700 1,17,700

Working Note :
1. Calculation of Kavita’s share in the profit till the date of her death. Kavita died on 1st July
2019. Profit for 2019-20 is estimated at ` 10,000
3 1
Kavita’s share in it for 3 months is `10,000 × × = ` 500
12 5
2. Kavita’s Executors loan account was fully paid, hence it is not transferred to liability side.

4 Rohit, Sachin and Virat were sharing profits and losses in the ratio of 7 : 5 : 4 respectively.
st
Their Balance sheet as on 31 March 2017 was as follows.
st
Dr. Balance Sheet as on 31 March 2017 Cr.
Liabilities Amt ` Assets Amt `
Capital Accounts: Stock 17,000
Rohit 23,000 Furniture 18,000

Sachin 15,000 Land & Building 16,000
Virat 12,000 Bank 37,000
Bills Payable 2,000
Creditors 8,000
Bank Loan 12,000
General Reserve 16,000

88,000 88,000

194