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Neha Chopra ma'am can you please send me the partners capital account for this questions.Plz ma'am its urgent.

Neha Chopra ma'am can you please send me the partners capital account for this questions.Plz ma'am its urgent. Q14. A and B were partners sharing profits and losses in the ratio 3/6, 2/6 and trans er reserve. Their Balance Sheet as at 31.03.13 was as follows: Balance Sheet Liabilities Capital Account: 80,000 40 ooo Employees Provident Fund Reserve Fund Sundry Creditors Profit and Loss A/c Amount 1 8,000 12,000 I O,OOO 24,000 Assets Goodwill Plant Patents Stock Investments Debtors 20,000 Less: Provision 400 Cash Amount 15,000 90,000 4,400 30,000 20,000 19,600 5,000 B retires on 01.04.13. The terms were: (i) Goodwill is to be valued at Rs.50,000. (ii) Value of patents is to be increased by Rs.3,000 but plant was found over-valued by Rs. 15,000. (iii) Provision for doubtful debts should be 5% on Debtors and provision for discount should also be made on Debtors and Creditors @ 3%. (iv) Out of insurance which was entirely debited to profit & loss account Rs.870 be carried forward as unexpired insurance. (v) Investments were valued at Rs.16,000. halfofthese investments were taken over by B. (vi)There is a claim for Workmen's Compensation to the extent of Rs.5,000. B was paid off in full. A borrowed the necessary money from the bank on the security of plant and stock to pay off B. Prepare revaluation account, capital account and the Balance sheet of A.

Dear Student



As required by you please find partners capital account : 
Partner's Capital A/c
Particulars A's Capital A/c B's Capital A/c Particulars A's Capital A/c B's Capital A/c
Investment   8,000 Balance b/d 80,000 40,000
Revaluation A/c 12,600 8,400 Reserve Fund 7,200 4,800
Revaluation A/c     A's Capital A/c   20,000
B's Capital A/c 20,000   Profit and Loss A/c 14,400 9,600
Goodwill 9,000 6,000      
Cash A/c   52,000      
           
To Bal C/d 60,000 0      
           
           
           
  101,600 74,400   101,600 74,400

Please note that A has brought bank loan and paid B , Therefore Bank loan would appear in balancesheet .

 
Revalution A/c
Date Particulars Amount (in Rs) Date   Particulars Amount (in Rs)
  Plant 15,000   Patents 3,000
  Provision for Doubtful debt 600   Provision for Discount on Creditor (10,000 x 3%) 300
  Discount on debtor 570   Unexpired Insurance 870
  Investment 4,000   Capital A/cs  
  Workmen Compensation Liability 5,000   A (21,000 x 3/5) 12,600
        B (21,000 x 3/5) 8,400
           
           
    25,170     25,170



 
Gaining Ratio   A is gaining
Goodwill Adjustment    
Total Value of Goodwill   50,000
B's share of Goodwill  (50,000 x 2/5) 20,000
Distribution in Gaining Ratio     
TO Be Adjusted from A's Capital A/c   20,000



 
Calculation of Provision for Doubtful debt and Discount on debtor    
Debtors   20,000
Less : Provision for doubtful debt @ 5% (20,000 x 5%) 1,000
Balance   19,000
Less :  Discount @ 3%   570
Balance   18,430



Regards

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