Reconstitution of Partnership (Admission of Partner) — Book Keeping & Accountancy STD 12 Commerce / Arts — Question

The following are the details of Subscription, as per Receipts and Payments Account. Subscription received during the year 2018 - 19 ₹ 50,000 Subscription outstanding on 31st March 2018 ₹ 10,000. Subscription outstanding on 31st March 2019 ₹ 20,000. Subscription received in advance as on 31st March 2018 ₹ 15,000. Subscription received in advance as on31st March 2019 ₹ 10,000
You are required to show its presentation in Income and Expenditure Account for the year
ended 31st March 2019 and a Balance Sheet as on that date.

The following is the Receipts and Payments Account of Young Pensior's Association. Leh for the year ended 31st March 2020.

Dr.	Receipts & Payments Account for the year ended 31st March 2020				Cr.
Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Bal b/d		7,000	By Stationery		8,000
To Subscriptions			By Postage		1,000
2018-19	5,000		By Picnic Exp		8,000
2019-20	83,000		By Salaries		8,000
2020-21	2,000	90,000	By Annual		4,500
To Entrance fees		13,000	General meeting
(Capital Receipt)			Expenses
To Donations		60,000	By Traveling Exp		7,500
To Legacies		40,000	By Rent		12,000
To Interest on			By charity		7,800
Deposit		7,000	By Sundry Exp.		3,200
To Picnic Receipts		10,000	By Fixed Deposit		1,10,000
			By Furniture		50,000
			By Balance c/d		7,000
		2,27,000			2,27,000

Adjustment :
1) Outstanding subscription for current year ₹ 7,000.
2) Furniture was purchased on 1st Oct, 2019 and it is to be depreciated by 10 % p.a.
3) Outstanding picnic receipts ₹ 7,500.
4) Stock of stationery on 1-4-2019 was ₹ 350 and on 31st March, 2020 was ₹ 1,700.
5) 50 % of legacies and full amount of donations are to be capitalised.
With the above information, you are required to prepare Income and Expenditure Account for the year ended 31st March 2020.

A, B, and C are partners of a firm sharing profit and loss in the 3 : 3 : 2 ratio. Their firm’s Balance Sheet as of 31st March, 2020 is as under:
Balance Sheet as of 31st March 2020

Liabilities		Amt.(₹)	Assets	Amt.(₹)
Bills Payable		11,500	Cash	27,000
General Reserve		20,000	Debtors	62,500
Creditors		43,000	Investments	60,000
Capital Accounts :			Machinery	43,500
A	60,000		Furniture	31,500
B	65,000		Equipments	20,000
C	45,000	1,70,000
		2,44,500		2,44,500

On 1st April 2020, C retired from the firm on the following terms:
1. Outstanding amount of retiring partner C be transferred to his loan account.
2. Write off ₹ 2,500 as bad debts.
3. ₹ 500 is now not payable to creditors.
4. Assets are revalued as under:
Furniture ₹ 30,000, Machinery ₹ 40,000, Equipments ₹ 21,000.
Pass necessary journal entries in the books of a firm.

Outstanding Expenses and Prepaid Expenses of the current year and previous year Balance Sheet as on 31st March 2018

Dr.	Balance Sheet as on 31st March 2018				Cr.
Liabilities	Amount ₹	Amount ₹	Assets	Amount ₹	Amount ₹
			Prepaid Salaries (for 2018-19)		2,000

Dr.	Receipts & Payments Account for the year ended 31st March 2019				Cr.
Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
			By Salaries
			2018-19	30,000
			2019-20	1,000	31,000

Adjustment : Outstanding Salaries for the current year was ₹ 5,500, show the presentation of Salaries in the Final Accounts of a concern for the year 2018 - 19.

Prem, Verma, Sharma were partners sharing profits and losses in the ratio 2 : 1 : 1 Their Balance sheet as on 31st March 2019 is as follows.

Balance Sheet as on 31st March 2019
Liabilities	Amt ₹	Assets	Amt ₹
Creditors	20,000	Premises	2,40,000
Bank Loan	90,000	Debtors	2,00,000
Bill Payable	10,000	Furniture	60,000
General Reserve	64,000	Stock	1,00,000
Capital Account :		Cash	2,00,000
Prem	2,40,000
Verma	2,00,000
Sharma	1,76,000
	8,00,000		8,00,000

1. Prem died on 30th June 2019 and the following adjustments were made Prem’s share of profit is to be calculated on the average profit of the last two years.
2. Prem’s share in the Goodwill of the firm be given him. Goodwill will be valued at three times of the average profits of the last four years. The profits were.
2015-16 ₹ 1,60,000
2016-17 ₹ 1,20,000
2017-18 ₹ 80,000
2018-19 ₹ 40,000
3. Premises be valued at ₹ 2,80,000 and R.D.D. of ₹ 8,000 be created on debtors.
4. Drawing of Prem up to the date of his death were ₹ 15000 per month.
5. Interest on capital is allowed at 10% p.a. and to be charged on drawing at ₹ 4000
6. The amount due to Prem be transferred to his executors loan account.
Prepare : Prem’s Capital Account, Give working of Prem’s share in Goodwill, and Interest on capital.