021. The Balance Sheet of Madan and Mohan who share profits and losses

1.	021. The Balance Sheet of Madan and Mohan who share profits and losses in the ratio of 32 on31" March, 2018 was as follows:787(Rs.)TO,000Balance Sheet of Madan and Mohanas on 31" March, 2018Liabilities(Rs.) AssetsCreditors28000 Cash at BankWorkmen's compensation fund 12,000 DebtorsGeneral Reserve20,000 Less: Provision for D/DCapitalsStockMadan60,000InvestmentsMohan40,000 1,00,000 Patents1.60,00065.00015.000)60,00030,00050,00010,0001.60.000They decide to admit Gopal on 1" April, 2018 for 1/4 share on the following terms:(0) Gopal shall bring Rs. 25,000 as his share of premium for goodwill.(10) That unaccounted accrued income of Rs. 500 be provided for.Gii) The market value of investments was Rs. 45,000.(iv) A debtor whose dues of Rs. 1,000 were written off as bad debt paid Rs. 800 in fullsettlementA claim of Rs. 2,000 on account of workmen compensation to be provided for.(vi) Patents are undervalued by Rs. 5,000.(vii) Gopal to bring in capital equal to 1/4th of the total capital of a new fimm after alladjustments.
Answer» ANSWER: Explanation: Revaluation Account To investment 5000 By Accrued income 1000 To patent 2000 By BD recovered 4000 By capital Madan 1200 Mohan 800 2000 7000 7000 Partners Account A/c To revaluation A/c 1200 800 By Bal c/d 60000 40000 To Bal c/d 88200 58800 By Reserve 12000 8000 By workmen 5400 3600 By PREMIUM 12000 8000 89400 59600 89400 59600

021. The Balance Sheet of Madan and Mohan who share profits and losses in the ratio of 32 on31" March, 2018 was as follows:787(Rs.)TO,000Balance Sheet of Madan and Mohanas on 31" March, 2018Liabilities(Rs.) AssetsCreditors28000 Cash at BankWorkmen's compensation fund 12,000 DebtorsGeneral Reserve20,000 Less: Provision for D/DCapitalsStockMadan60,000InvestmentsMohan40,000 1,00,000 Patents1.60,00065.00015.000)60,00030,00050,00010,0001.60.000They decide to admit Gopal on 1" April, 2018 for 1/4 share on the following terms:(0) Gopal shall bring Rs. 25,000 as his share of premium for goodwill.(10) That unaccounted accrued income of Rs. 500 be provided for.Gii) The market value of investments was Rs. 45,000.(iv) A debtor whose dues of Rs. 1,000 were written off as bad debt paid Rs. 800 in fullsettlementA claim of Rs. 2,000 on account of workmen compensation to be provided for.(vi) Patents are undervalued by Rs. 5,000.(vii) Gopal to bring in capital equal to 1/4th of the total capital of a new fimm after alladjustments.

Answer»

Explanation:

Revaluation Account

To investment 5000 By Accrued income 1000

To patent 2000 By BD recovered 4000

By capital

Madan 1200

Mohan 800 2000

7000 7000

Partners Account A/c

To revaluation A/c 1200 800 By Bal c/d 60000 40000

To Bal c/d 88200 58800 By Reserve 12000 8000

By workmen 5400 3600

By PREMIUM 12000 8000

89400 59600 89400 59600