Admission Solution March 2019 Board Paper. Harsha Varsha HSC Accounts.

Q. 3. In the books of Harsha and Varsha

Profit and Loss Adjustment Account.
Particulars
Amount
Rs.
Particulars
Amount
Rs.
To Furniture
7600
By Land and Building
40000
To R.D.D.
15000
By Stock
40000




To Profit on Revaluation A/c is transferred to Partners Capital A./c



Harsha's Capital A/c 34440



Varsha/s Capital A/c  22960
57400



80000

80000

Partners' Capital A/c

Particulars
Harsha
Varsha
Asha
Particulars
Harsha
Varsha
Asha




By Balance b/d
280000
280000





By Goodwill A/c
48000
32000

Varsha's Loan A/c
[Balancing Fig.]

214960

By Bank A/c


100000
Harsha's Loan A/c
[Balancing Fig.]
182440


By Profit Or Loss Adjustment A/c
[Profit]
34440
22960

To Balance c/d [Working Note]
180000
120000
10000













362440
344960
100000

362440
344960
100000

Balance Sheet of New Firm.

Liabilities
Amount
Amount
Assets
Amount
Amount
Sundry Creditors

400000
Land & Building
200000

Harsha's Loan A/c

182440
(+) Appreciation
40000
240000
Varsha's Loan A/c

214960
Furniture
76000




(-) Depreciation @ 10%
- 7600
68400
Capital A/c [Working Note]


Sundry Debtors
300000

Harsha
180000

(-) R.D.D. @ 5%
-15000
285000
Varsha
120000

Stock
160000

Asha
100000
400000
(+) Appreciation
40000
200000



Bank Balance

404000








1197400


1197400

Bank A/c
Particulars
Amount
Rs.
Amount
Rs.
Particulars
Amount
Rs.
Amount
Rs.
To Balance b/d

224000



To Goodwill A/c

80000



To Asha's Capital A/c

100000
By Balance c/d

404000








404000


404000

Goodwill A/c


Particulars
Amount
Rs.
Amount
Rs.
Particulars
Amount
Rs.
Amount
Rs.
To Harsha's Capital A/c
48000

By Bank A/c

80000
To Varsha's Capital A/c
32000
80000











80000


80000

Working Note: Calculation of New Ratio and Proportionate Capital.

Balance Ratio = 1 - Share Given to New Partner.
Therefore, Balance Ratio = 1 - 1/4 = 3/4

Harsha's New Ratio = B.R. x O.R. = 3/4 x 3/5 = 9/20
Varsha's New Ratio = B.R. x O.R. = 3/4 x 2/5 = 6/20
Asha's New Ratio = 1/4 x 5/5 = 5/20

Therefore their New Ratio = 9 : 6 : 5

New Partner brought Rs. 1,00,000 as her new capital

Therefore, their proportionate capital are
Harsha's Capital  = Rs. 1,80,000
Varsha's Capital = Rs. 1,20,000

Asha's Capital = Rs. 1,00.000