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3.8 Double Entry Book Keeping (Section A)—ISC XII

Dr. D’S CAPITAL ACCOUNT Cr.
Particulars ` Particulars `

To Balance c/d 50,000 By Bank A/c 40,000
By Creditors A/c 10,000
50,000 50,000

Dr. BANK ACCOUNT Cr.
Particulars ` Particulars `
To Balance b/d 10,000 By Debtors A/c (B/R Dishonoured) 4,000
To D’s Capital A/c 40,000 By Balance c/d 46,000
50,000 50,000

BALANCE SHEET AFTER D’S ADMISSION
as at 31st March, 2019
Liabilities ` Assets `
Capital A/cs: Land and Building 50,000
A 61,800 Plant and Machinery 40,000
B 57,800 Furniture 30,000
C 39,900 Stock 20,000
D 50,000 2,09,500 Debtors 30,000
Creditors (` 30,000 – ` 10,000) 20,000 Add: B/R Dishonoured 4,000
Bills Payable 10,000 34,000
Less: Provision for Doubtful Debts 1,700 32,300
Bills Receivable 20,000
Bank 46,000
Prepaid Advertisement Expenses 1,200
2,39,500 2,39,500

Illustration 5.
A and B are partners in a firm. The net profit of the firm is divided
as follows: 1/2 to A, 1/3 to B and 1/6 carried to Reserve. They admit C as a partner for
1/5th share in the firm on 1st April, 2019 on which date, the Balance Sheet of the firm
was as follows:

Liabilities ` Assets `
Capital A/cs: Building 5,00,000
A 5,00,000 Plant and Machinery 3,00,000
B 4,00,000 9,00,000 Stock 1,80,000
Reserve 1,00,000 Debtors 2,20,000
Creditors 2,00,000 Bank 50,000
Outstanding Expenses 50,000
12,50,000 12,50,000