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

From the following Receipts and Payments Account and additional information prepare Income and Expenditure Account for the year ended 31st March 2019 and Balance Sheet as on that date.

Dr.	Receipts and Payments Account for the year ended 31st March 2019		Cr.
Receipts	Amount ₹	Payments	Amount ₹
To Balance b/d	3,000	By Salaries	4,000
To Subscription	5,000	By Printing & Stationery	1,000
To Donations (Revenue)	5,000	By Commission	500
To Entrance fees	4,000	By Rent	2,000
To Interest	1,000	By Electric Charges	1,500
		By Furniture	8,000
		By Balance c/d	1,000
	18,000		18,000

Additional Information :
1) Outstanding Rent was ₹ 200
2) Subscription includes ₹ 1,000 as Subscription received in advance and subscription outstanding for current year was ₹ 500.
3) Depreciate Furniture @ 8 % p.a.
4) 50 % Entrance fees should be capitalised
5) Capital Fund was ₹ 3,000

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.

Given below is the balance Sheet of Jaya, Maya and Mamta, who were sharing Profit and losses as 3 : 3 : 2

Balance Sheet as on 31st March 2019
Liabilities	Amt ₹	Assets	Amt ₹
Creditors	34,400	Bank	21,600
Bills payable	9,200	Plant and Machinery	34,800
Capital Account :		Debtors	50,000
Jaya	48,000	Live Stock	25,200
Maya	52,000	Equipments	16,000
Mamta	36,000	Investment	48,000
General Reserve	16,000
	1,95,600		1,95,600

On 1st April 2019 Mamta retired from the firm on the following terms.
1. Assets to be revalued as under Live Stock ₹ 24,000; Plant and Machinery ₹ 32,000, Equipments ₹ 16,800
2. An item of ₹ 400 from Creditors is no longer a liability and hence should be properly adjusted.
3. Mr. Ram, our customer may or may not be able to pay his debts of ₹ 2000
4. The amount due to Mamta be transferred to her Loan Account.
Pass necessary Journal Entries in the books of the firm.

For considering adjustments relating to subscription only

Receipts and Payments Account
for the year ended 31st March 2018

Dr.					Cr.
Receipts	Amount ₹	Amount ₹	Payments	Amount ₹	Amount ₹
To Subscription
2016-17	1,500
2017-18	80,000
2018-19	3,500	85,000

Adjustments :
1) Subscription outstanding for current year was ₹ 7,000
2) Outstanding subscription for 2016 - 17 was ₹ 2,000 Subscription received in advance during
last year was ₹ 8,000.
With the help of above information show the effects in final account.

From the following Receipts and Payments Account of Bahurao Patil Polytechnic College, Nagpur for the year ending 31st March 2019 and additional information. Prepare Income and Expenditure Account for the year ended 31st March 2019 and a Balance Sheet as on that date.

Dr.	Receipts & Payments Account for the year ended 31st March 2019		Cr.
Receipts	Amount ₹	Payments	Amount ₹
To Balance b/d		By Salaries to teaching staff	15,00,000
Cash	12,000	Office Staff	8,55,000
Bank	2,00,000	By Printing & Stationery	27,000
To Interest	60,000	By Books	88,000
To Donations	7,00,000	By Furniture	78,000
To Tution fees	15,00,000	(Purchased on 1-1-2019)
To Admission fees	65,000	By Drama Expenses	90,000
To Term fees	4,00,000	By Postage	7,000
To Drama Receipts	1,00,000	By Telephone Charges	6,000
To Rent from use of hall	6,000	By Electricity	61,000
To Legacies (capital)	60,000	By Magazines and Newspaper	6,000
		By Balance c/d
		Cash	62,000
		Bank	3,23,000
	31,03,000		31,03,000

Additional Information :
1)

Particulars	1/4/2018(₹)	31/3/2019(₹)
Books	9,00,000	8,88,000
Furniture	3,26,000	3,00,000
Building Fund	8,27,000	?
Capital Fund	6,11,000	?

2) 60 % Donations are for Building Fund and balance is to be treated as revenue income.
3) Outstanding office staff Salaries ₹ 70,000.

Ajay, Sanjay and Vijay were partners sharing profits and losses in the proportion to their capital. Their Balance Sheet as on 31st March 2019 was as follows.

Balance Sheet as on 31st March 2019
Liabilities	Amt ₹	Assets		Amt ₹
Capital Account :		Land & Building		80,000
Ajay	60,000	Motor Lorry		40,000
Sanjay	40,000	Debtors	32,000
Vijay	20,000	Less: R. D. D.	4,000	28,000
Creditors	50,000	Furniture		36,000
Outstanding Salary	6,000	Bank		28,000
Reserve Fund	36,000
	2,12,000			2,12,000

Vijay died on 1 st August 2019 and the following adjustments were made.
1. Assets to be revalued as under Land & Building ₹ 88,000, Motor Lorry ₹ 36,000 and Furniture ₹ 34,000
2. All Debtors were good.
3. Goodwill of the firm valued at two times the average profit of the last 4 years profit.
4. Vijay’s share of profit to be calculated on the basis of average profit of last three years.
5. Profit for 4 years were 1st year ₹ 12,000, 2nd year ₹ 24,000, 3rd year ₹ 14,000, 4th year ₹ 22,000
Prepare : 1. Vijay’s Capital Account, showing amount payable to his executor.
2. Give working of Vijay’s share of Goodwill and profit upto the date of his death.