Aryan and Adya were partners in a firm sharing profits and losses in the ratio of 3 : 1. Their Balance Sheet on 31st March, 2024 was as follows :
Balance Sheet (Before Dev's Admission)
Liabilities | Amount (₹) | Assets | Amount (₹) |
---|---|---|---|
Capital: Aryan | 3,20,000 | Machinery | 3,90,000 |
Capital: Adya | 2,40,000 | Furniture | 80,000 |
Workmen’s Compensation Reserve | 20,000 | Debtors | 90,000 |
Bank Loan | 60,000 | Less: Provision for Doubtful Debts | (1,000) |
Creditors | 48,000 | Net Debtors | 89,000 |
Stock | 77,000 | ||
Cash | 32,000 | ||
Profit and Loss A/c | 20,000 | ||
Total | ₹6,88,000 | Total | ₹6,88,000 |
Dr. | Amount (₹) | Cr. | Amount (₹) |
---|---|---|---|
To Provision for Doubtful Debts (5% of 90,000) | 4,500 | By Machinery A/c (Revalued ₹4,50,000 – ₹3,90,000) | 60,000 |
To Creditors A/c (Liability not to arise) | 3,500 | ||
Total | 8,000 | Total | 60,000 |
Profit on Revaluation = ₹60,000 − ₹8,000 = ₹52,000
To be distributed among partners in old ratio (Aryan : Adya = 3 : 1):
\[ \text{Aryan’s Share} = ₹52,000 × \frac{3}{4} = ₹39,000 \\ \text{Adya’s Share} = ₹52,000 × \frac{1}{4} = ₹13,000 \]
\[ \text{Goodwill of firm} = ₹2,00,000 \\ \text{Dev’s Share} = \frac{1}{5} × ₹2,00,000 = ₹40,000 \]
To be distributed in sacrificing ratio (Aryan : Adya = 3 : 1):
\[ \text{Aryan} = ₹40,000 × \frac{3}{4} = ₹30,000 \\ \text{Adya} = ₹40,000 × \frac{1}{4} = ₹10,000 \]
\[ \text{Aryan’s Capital (after revaluation and goodwill)} = ₹3,20,000 + ₹39,000 + ₹30,000 = ₹3,89,000 \\ \text{Adya’s Capital (after revaluation and goodwill)} = ₹2,40,000 + ₹13,000 + ₹10,000 = ₹2,63,000 \]
\[ \text{Total capital of firm} = ₹3,89,000 + ₹2,63,000 = ₹6,52,000 \\ \text{Dev’s 1/5 share} = \frac{1}{5} × ₹6,52,000 = ₹1,63,000 \]
Dev brings:
Liabilities | Amount (₹) | Assets | Amount (₹) |
---|---|---|---|
Sundry Creditors | 1,80,000 | Cash in hand | 30,000 |
General Reserve | 20,000 | Debtors | 1,20,000 |
Capitals: | Kishore – 6,00,000 | Stock | 1,50,000 |
Ranjan – 4,00,000 | Furniture | 1,00,000 | |
Land and Building | 8,00,000 | ||
Total | 12,00,000 | Total | 12,00,000 |
On $31^{\text {st }}$ March, 2024, following is the Balance Sheet of Bhavik Limited :
Bhavik Ltd.
Balance Sheet as at $31^{\text {st }}$ March 2024
I. Equity and Liabilities :
Particulars | Note No. | $31-3-2024$ (₹) | $31-3-2023$ (₹) |
1. Shareholders funds | |||
(a) Share Capital | 12,00,000 | 10,00,000 | |
(b) Reserves and Surplus | 1 | 4,00,000 | 3,00,000 |
2. Non-current liabilities | |||
Long-term borrowings | 2 | 6,00,000 | 10,00,000 |
3. Current Liabilities | 5,00,000 | 1,00,000 | |
(a) Trade Payables | 3 | 3,00,000 | 4,00,000 |
(b) Short-term provisions | |||
Total | 30,00,000 | 28,00,000 |
II. Assets :
1. Non-current Assets | |||
(a) Property, Plant and Equipment and Intangible Assets | |||
Property plant and equipment | 4 | 19,00,000 | 15,00,000 |
(b) Non-current Investments | 3,00,000 | 4,00,000 | |
2. Current Assets | |||
(a) Inventories | 4,50,000 | 3,50,000 | |
(b) Trade Receivables | 2,50,000 | 4,50,000 | |
(c) Cash and Cash Equivalents | 1,00,000 | 1,00,000 | |
Total | 30,00,000 | 28,00,000 |
Notes to Accounts :
Note | Particulars | $31-3-2024$ (₹) | $31-3-2023$ (₹) |
No. | |||
1. | Reserves and Surplus i.e. Balance in Statement of Profit and Loss | 4,00,000 | 3,00,000 |
2. | Long-term borrowings | ||
10% Debentures | 6,00,000 | 10,00,000 | |
3. | Short-term provisions | ||
Provision for tax | 3,00,000 | 4,00,000 | |
4. | Property plant and equipment | ||
Plant and Machinery | 21,50,000 | 16,00,000 | |
Less : Accumulated Depreciation | 2,50,000 | 1,00,000 | |
19,00,000 | 15,00,000 |
Additional Information :
Calculate :