Question

Anikesh and Bhavesh are partners in a firm sharing profits in the ratio of 7:3. Their Balance Sheet as on 31st March, 2023 was as follows: Balance Sheet of Anikesh and Bhavesh as on 31st March, 2023 \begin{center} \begin{tabular}{|l|r|l|r|} Liabilities & Amount (\rupee) & Assets & Amount (\rupee)
Creditors & 60,000 & Cash & 36,000
Outstanding Wages & 9,000 & Debtors & 54,000
General Reserve & 15,000 & Less: Provision for Doubtful Debts & (6,000)
Capitals: & & & 48,000
Anikesh & 1,20,000 & Stock & 60,000
Bhavesh & 1,80,000 & Furniture & 1,20,000
Total & 3,84,000 & Machinery & 1,20,000
& & Total & 3,84,000
\end{tabular} \end{center} Adjustments: Chahat will bring \rupee 90,000 as her capital and \rupee 30,000 as her share of goodwill premium. Outstanding wages will be paid. Stock will be reduced by 10\%. A creditor of \rupee 6,300, not recorded in the books, was to be taken into account.

Hint:

Adjust revaluation losses and unrecorded liabilities before admitting a new partner. Ensure goodwill is shared among old partners in their profit-sharing ratio.

Answer 1

Journal Entries: \begin{center} \begin{tabular}{|l|p{8cm}|r|r|} Date & Particulars & Debit (\rupee) & Credit (\rupee)
1st April, 2023 & Bank A/c & 90,000 & --
& To Chahat’s Capital A/c & -- & 90,000
& \textit{(Capital brought in by Chahat)} & &
1st April, 2023 & Bank A/c & 30,000 & --
& To Anikesh’s Capital A/c & -- & 21,000
& To Bhavesh’s Capital A/c & -- & 9,000
& \textit{(Goodwill premium brought by Chahat credited in the old ratio 7:3)} & &
1st April, 2023 & Outstanding Wages A/c & 9,000 & --
& To Bank A/c & -- & 9,000
& \textit{(Outstanding wages paid)} & &
1st April, 2023 & Revaluation A/c & 6,000 & --
& To Stock A/c & -- & 6,000
& \textit{(Stock reduced by 10\%)} & &
1st April, 2023 & Revaluation A/c & 6,300 & --
& To Creditors A/c & -- & 6,300
& \textit{(Unrecorded creditor accounted for)} & &
1st April, 2023 & Anikesh’s Capital A/c & 1,260 & --
& Bhavesh’s Capital A/c & 540 & --
& To Revaluation A/c & -- & 1,800
& \textit{(Revaluation loss transferred to partners’ capital accounts in the ratio 7:3)} & &
\end{tabular} \end{center}