Question 2: PRACTICAL PROBLEM Pai, Amba and Manoj are partners in a firm sharing profits and losses in proportion to their capitals.

Question 2:

PRACTICAL PROBLEM
Pai, Amba and Manoj are partners in a firm sharing profits and losses in proportion to their capitals. Their Balance Sheet as on 31.3.2012 is as follows:
Balance Sheet as on 31st March, 2012
On the above date Pai retired and the following adjustments have been agreed upon
1) Goodwill was revalued at Rs 15,000
2) Assets and Liabilities were revalued as under debtors Rs 17,000 stock at 90% of book value Building Rs 35,000 Plant Rs 11,500 Motor Van Rs 29, 500, Outstanding expenses Rs 18,000
3) Amba and Manoj contributed additional capital of Rs 20,000 and Rs 10,000 respectively
4) Balance due to Mr. Pai is transferred to his loan account after paying him Rs 1,000/-
Prepare:- Profit and Loss adjustment A/c,. Partner’s Capital A/c’s and Balance Sheet of new firm