Partnership and LLP AccountsQ-5 | Partnership and LLP AccountsQuestion 5157 of 108
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Following are the details of Assets and Liabilities of Mr. Sarthak for the year ended 31 March, 2023 and 31 March, 2024: 31.03.2023 31.03.2024 Assets Buildings Furniture Inventory Sundry debtors Cash at bank Cash in hand Liabilities: Loans Sundry Creditors 2,00,000 75,000 1,05,000 68,000 72,500 2,400 1,50,000 58,400 ? ? 1,95,000 94,000 86,800 3,800 1,25,000 79,500 It was decided to depreciate Building by 5% p.a. and Furniture by 10% p.a. On 1st June, 2023 an additional capital of 40,000 was brought in the business. Proprietor has withdrawn @ ₹ 2,500 p.m. for meeting the family expenses. Prepare Statement of Affairs as on 31 March, 2023 and 31 March, 2024. Find the profit or loss earned by Mr. Sarthak for the year ended 31st March, 2024. [Jan. 2025, 5 Marks]

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Detailed Solution & Explanation

In the books of Mr. Sarthak Statement of Affairs as on 31.03.2023 Liabilities Amount Assets Amount Loans Sundry Creditors 1,50,000 58,400 Building Furniture 2,00,000 75,000 Capital (Bal. fig.) 3,14,500 Inventory Sundry Debtors Cash at Bank Cash in Hand 1,05,000 68,000 72,500 2,400 5,22,900 5,22,900 In the books of Mr. Sarthak Statement of Affairs as on 31.03.2024 Liabilities Amount Assets Amount Loans Sundry Creditors Capital (Bal. fig.) 1,25,000 79,500 4,32,600 Building Furniture Inventory Sundry Debtors Cash at Bank Cash in Hand 1,90,000 67,500 1,95,000 94,000 86,800 3,800 6,37,100 6,37,100 Value of building & Furniture is after charging depreciation of the year Statement of Profit & Loss for the year ended 31st March, 2024 Particulars Amount Capital at the end of the year 4,32,600 Add: Drawings of the year [2500 x 12] 30,000 Less: Additional Capital introduced during the year (40,000) Adjusted Capital 4,22,600 Less: Capital at the beginning of the year (3,14,500) Profit of the year 1,08,100 UNIT – 1 To UNIT - 6 DESCRIPTIVE QUESTIONS

About This Chapter: Partnership & Companies

Paper

Paper 1: Accounting

Weightage

15-20%

Key Topics

Admission, Retirement, Death, Shares, Debentures

This chapter covers Admission, Retirement, Death, Shares, Debentures and is part of Paper 1: Accounting in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 15-20% weightage. Focus on understanding core concepts rather than memorizing.

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More Questions from Partnership and LLP Accounts

Following are the details of Assets and Liabilities of Mr. Sarthak for the year ended 31 March, 2023 and 31 March, 2024: 31.03.2023 31.03.2024 Assets Buildings Furniture Inventory Sundry debtors Cash at bank Cash in hand Liabilities: Loans Sundry Creditors 2,00,000 75,000 1,05,000 68,000 72,500 2,400 1,50,000 58,400 ? ? 1,95,000 94,000 86,800 3,800 1,25,000 79,500 It was decided to depreciate Building by 5% p.a. and Furniture by 10% p.a. On 1st June, 2023 an additional capital of 40,000 was brought in the business. Proprietor has withdrawn @ ₹ 2,500 p.m. for meeting the family expenses. Prepare Statement of Affairs as on 31 March, 2023 and 31 March, 2024. Find the profit or loss earned by Mr. Sarthak for the year ended 31st March, 2024. [Jan. 2025, 5 Marks]

What is Piecemeal payments method under Partnership Dissolution? Briefly explain the two methods followed for determining the order in which the payments are made? [CA Inter May 2010, 2 Marks]

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