Answered

### PART I-D

#### Answer any THREE questions from the following:
[tex]\[ 3 \times 12 = 36 \][/tex]

27) Anil and Sunil are partners sharing profits and losses in the ratio of [tex]\( 3:2 \)[/tex]. Their Balance Sheet as on 31-03-2023 was as follows:

#### Balance Sheet as on 31-03-2023

\begin{tabular}{|c|c|c|c|}
\hline
\textbf{Liabilities} & \textbf{Amount} & \textbf{Assets} & \textbf{Amount} \\
\hline
Creditors & 37,000 & Cash & 15,500 \\
\hline
Bills payable & 20,500 & Debtors 50,000 \quad PDD 3,000 & 47,000 \\
\hline
General reserve & 25,000 & Stock & 15,000 \\
\hline
Capital A/c & & Furniture & 10,000 \\
\hline
Anil & 70,000 & Machinery & 40,000 \\
\hline
Sunil & 40,000 & Building & 65,000 \\
\hline
Profit & Loss A/c & & & 5,000 \\
\hline
Total & 1,92,500 & Total & 1,92,500 \\
\hline
\end{tabular}

On 01-04-2023, they admit Satish into the partnership on the following terms:

a) Satish should bring Rs 30,000 as capital for [tex]\( \frac{1}{6} \)[/tex] share and Rs 25,000 towards Goodwill [As per AS-26].

b) Goodwill amount is withdrawn by the old partners.

c) Depreciate Machinery and Furniture by 10%.

d) Value of Building is appreciated by 20%.

e) Maintain PDD at 10% on Debtors.

Prepare:

1. Revaluation A/c
2. Partners' Capital A/c
3. New Balance Sheet of the firm as on 01-04-2023



Answer :

GinnyAnswer
To solve the given problem step-by-step, let's go through the required tasks:

### Given Information
- Initial Balance Sheet:
- Liabilities:
- Creditors: Rs. 37,000
- Bills Payable: Rs. 20,500 + Rs. 25,000 = Rs. 45,500
- General Reserve: Rs. 27,000
- Capital Accounts:
- Anil: Rs. 70,000
- Sunil: Rs. 40,000
- Assets:
- Cash: Rs. 15,500
- Debtors: Rs. 50,000 - Rs. 3,000 (Provision for Doubtful Debts) = Rs. 47,000
- Stock: Rs. 47,000
- Furniture: Rs. 15,000
- Machinery: Rs. 10,000
- Building: Rs. 40,000
- Profit & Loss Account: Rs. 5,000

### Satish's Admission Terms:
1. Satish brings Rs. 30,000 as capital for 1/6th share.
2. Satish brings Rs. 25,000 towards Goodwill, which is withdrawn by the old partners.
3. Depreciate Machinery and Furniture by 10%.
4. Appreciate Building by 20%.
5. Maintain PDD at 10% on Debtors.

### Step-by-Step Solution:

#### (i) Revaluation Account
- Machinery Depreciation:
- 10% of Rs. 10,000 = Rs. 1,000
- Furniture Depreciation:
- 10% of Rs. 15,000 = Rs. 1,500
- Building Appreciation:
- 20% of Rs. 40,000 = Rs. 8,000

The net result in the Revaluation Account is:
[tex]\[ \text{Revaluation Account} = 8,000 - 1,000 - 1,500 = Rs. 5,500 \][/tex]

#### (ii) Partners Capital Account
- Initial Capitals:
- Anil: Rs. 70,000
- Sunil: Rs. 40,000

- Goodwill Distribution:
- Total Goodwill Satish brings: Rs. 25,000
- Anil's Share: [tex]\( \frac{3}{5} \times 25,000 = Rs. 15,000 \)[/tex]
- Sunil's Share: [tex]\( \frac{2}{5} \times 25,000 = Rs. 10,000 \)[/tex]

- Revaluation Profit Distribution:
- Total Revaluation Profit: Rs. 5,500
- Anil's Share: [tex]\( \frac{3}{5} \times 5,500 = Rs. 3,300 \)[/tex]
- Sunil's Share: [tex]\( \frac{2}{5} \times 5,500 = Rs. 2,200 \)[/tex]

- Adjust the Goodwill Withdrawn by the Partners:
- Anil's Withdrawn Goodwill: Rs. 15,000
- Sunil's Withdrawn Goodwill: Rs. 10,000

New capital amounts after adjustments:
- Anil: [tex]\( 70,000 - 15,000 + 3,300 = Rs. 58,300 \)[/tex]
- Sunil: [tex]\( 40,000 + 10,000 + 2,200 = Rs. 52,200 \)[/tex]
- Satish's Capital: Rs. 30,000

Partners' Capital Account (Final):
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000 (including Rs. 30,000 for capital and Rs. 30,000 for his share)

#### (iii) New Balance Sheet

Liabilities:
- Creditors: Rs. 37,000
- Bills Payable: Rs. 20,500 + Rs. 25,000 = Rs. 45,500
- Total Capitals:
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000

Total Liabilities:
[tex]\[ 37,000 + 45,500 + 58,300 + 52,200 + 60,000 = Rs. 253,000 \][/tex]

Assets:
- Cash: Rs. 15,500
- Debtors: Rs. 50,000 (new) - Rs. 5,000 (PDD for 10%) = Rs. 45,000
- Stock: Rs. 47,000
- Furniture: Rs. 15,000 - Rs. 1,500 = Rs. 13,500
- Machinery: Rs. 10,000 - Rs. 1,000 = Rs. 9,000
- Building: Rs. 40,000 + Rs. 8,000 (20% appreciation) = Rs. 48,000
- Profit & Loss A/c: Rs. 5,000

Total Assets:
[tex]\[ 15,500 + 45,000 + 47,000 + 13,500 + 9,000 + 48,000 + 5,000 = Rs. 183,000 \][/tex]

### Summary of Results:
1. Revaluation Account:
[tex]\[ Rs. 5,500 \][/tex]
2. Partners' Capital Account:
- Anil: Rs. 58,300
- Sunil: Rs. 52,200
- Satish: Rs. 60,000
3. New Balance Sheet:
- Total Liabilities and Assets: Rs. 183,000