Balance Sheet Analysis of Roopa, Deepa, and Kripa

Introduction:
Roopa, Deepa, and Kripa are partners in a business and share the profits and losses in the ratio of 2:1:1 respectively. The balance sheet of the partnership as on 31/3/2019 is provided below.

Balance Sheet as on 31/3/2019

Liabilities Amount (in Rs.) Assets Amount (in Rs.)

Capital Roopa 1,80,000 Goodwill 60,000
Capital Deepa 90,000 Plant and Machinery 2,70,000
Capital Kripa 90,000 Stock 1,20,000
Creditors 60,000 Debtors 1,20,000
Bills Payable 30,000 Cash at Bank 60,000
Bank Overdraft 30,000
Total 4,80,000 Total 4,80,000

Analysis:

Capital:
The partnership has three partners, Roopa, Deepa, and Kripa. The capital of Roopa is Rs. 1,80,000, while the capital of Deepa and Kripa is Rs. 90,000 each. The total capital of the partnership is Rs. 3,60,000.

Goodwill:
The value of goodwill is Rs. 60,000. Goodwill is an intangible asset that represents the reputation and brand value of the partnership. It is calculated as the excess of the purchase price over the fair market value of the net assets acquired.

Plant and Machinery:
The value of plant and machinery is Rs. 2,70,000. Plant and machinery are tangible assets used in the production of goods and services. They are depreciated over their useful life.

Stock:
The value of stock is Rs. 1,20,000. Stock represents the goods and materials held for sale or use in the production process. It is valued at the lower of cost or net realizable value.

Debtors:
The value of debtors is Rs. 1,20,000. Debtors are customers who owe money to the partnership for goods or services sold on credit. They are recorded at their net realizable value.

Cash at Bank:
The value of cash at bank is Rs. 60,000. Cash at bank represents the cash balance held in the partnership's bank account.

Creditors:
The value of creditors is Rs. 60,000. Creditors are suppliers who have provided goods or services to the partnership on credit. They are recorded at their purchase price.

Bills Payable:
The value of bills payable is Rs. 30,000. Bills payable are short-term borrowing instruments used by the partnership to finance its operations.

Bank Overdraft:
The value of bank overdraft is Rs. 30,000. A bank overdraft is a type of short-term loan provided by the bank to the partnership when its cash balance is negative.

Conclusion:
In conclusion, the balance sheet of Roopa, Deepa, and Kripa's partnership shows the financial position of the partnership as on 31/3/2019. The analysis of the balance sheet provides insights into the partnership's assets, liabilities, and capital structure.