Particulars By Balance cld Rs. 20130 Particulars To Bilance 0/0 To C's Capital Mc To Premium Me (Goodwill) RS 5.000 12.000 3.000 20.000 20.000 To Balance bid (ii) JOURNAL LE Debit Rs. Credit Rs. Date Particulars 15.000 1.4.2010 12.000 3.000 3.000 1.4.2010 1.500 1.500 De Cash A/C To C's Capital A/C To Premium A/c (Goodwill) (Being Rs 15,000 brought in by C for his share of capital and goodwill Premium A/c (Goodwill) Dr. To A's Capital Alc To B's Capital A/C (Being amount of goodwill is distributed among A and B in their sacrificing ratio) A's Capital Alc Dr. B's Capital Alc Dr. To Goodwill AIC (Being old goodwill written off among old partners in old ratio) 1.4.2010 6.000 6.000 12.000 K2 Rs. ILLUSTRATION 39 (Preparation of Balance Sheet of the reconstituted firm). The following is the Balance Sheet of A and B who share profit and losses in the ratio of 3:2 BALANCE SHEET as at 31.3.2010 Liabilities Rs. Assets Bills Payable 15,000 Cash Creditors 30,000 Debtors General Reserve 10,000 Land Capitals: Machinery A 30.000 B 25.000 55.000 1.10.000 30.000 15.000 20.000 45,000 1.100.000 On the following conditions. C was admitted as the third partner (a) Machinery is to be decreased by 20% (b) A takes over land at Rs. 22.000 (c) B assumes to pay off bills payable at an agreed value of Rs. 14,000 (d) A Reserve of 4% is to be created on Debtors, Particulars By Balance cld Rs. 20130 Particulars To Bilance 0/0 To C's Capital Mc To Premium Me (Goodwill) RS 5.000 12.000 3.000 20.000 20.000 To Balance bid (ii) JOURNAL LE Debit Rs. Credit Rs. Date Particulars 15.000 1.4.2010 12.000 3.000 3.000 1.4.2010 1.500 1.500 De Cash A/C To C's Capital A/C To Premium A/c (Goodwill) (Being Rs 15,000 brought in by C for his share of capital and goodwill Premium A/c (Goodwill) Dr. To A's Capital Alc To B's Capital A/C (Being amount of goodwill is distributed among A and B in their sacrificing ratio) A's Capital Alc Dr. B's Capital Alc Dr. To Goodwill AIC (Being old goodwill written off among old partners in old ratio) 1.4.2010 6.000 6.000 12.000 K2 Rs. ILLUSTRATION 39 (Preparation of Balance Sheet of the reconstituted firm). The following is the Balance Sheet of A and B who share profit and losses in the ratio of 3:2 BALANCE SHEET as at 31.3.2010 Liabilities Rs. Assets Bills Payable 15,000 Cash Creditors 30,000 Debtors General Reserve 10,000 Land Capitals: Machinery A 30.000 B 25.000 55.000 1.10.000 30.000 15.000 20.000 45,000 1.100.000 On the following conditions. C was admitted as the third partner (a) Machinery is to be decreased by 20% (b) A takes over land at Rs. 22.000 (c) B assumes to pay off bills payable at an agreed value of Rs. 14,000 (d) A Reserve of 4% is to be created on Debtors