Abdul, Ahmed and Amin were partners sharing profits and losses in the ratio 4:2:2. On December 31st, 2019, the balance Sheet of the firm stood as follow: Balance Sheet Liabilities RO Assets RO Creditors 45,000Bank 99,000 General Reserve 24,000Debtors 60,000 Capitals: Stock 120,000 Abdul 300,000 Building 375,000 Ahmed 180,000 Profit and Loss Account 45,000 Amin 150,000 630,000 TOTAL 699,000TOTAL 699,000 Amin retired on January 1st,2020 on the following terms: a. Building to be reduced by RO. 22,000. b. The appreciated value of inventory is RO. 181,000. c. Provision for doubtful debt to be made at 5% on debtors. d. Goodwill of the firm is valued at RO. 42,000. e. RO. 75,000 to be paid to Amin by transferring to his bank account immediately and the balance transferred to his loan account. Prepare Revaluation Account, Partners' Capital Account and the Balance Sheet. Based on the above information answer the following '5' questions. (D not upload any documents)
Abdul, Ahmed and Amin were partners sharing profits and losses in the ratio 4:2:2. On December 31st, 2019, the balance Sheet of the firm stood as follow: Balance Sheet Liabilities RO Assets RO Creditors 45,000Bank 99,000 General Reserve 24,000Debtors 60,000 Capitals: Stock 120,000 Abdul 300,000 Building 375,000 Ahmed 180,000 Profit and Loss Account 45,000 Amin 150,000 630,000 TOTAL 699,000TOTAL 699,000 Amin retired on January 1st,2020 on the following terms: a. Building to be reduced by RO. 22,000. b. The appreciated value of inventory is RO. 181,000. c. Provision for doubtful debt to be made at 5% on debtors. d. Goodwill of the firm is valued at RO. 42,000. e. RO. 75,000 to be paid to Amin by transferring to his bank account immediately and the balance transferred to his loan account. Prepare Revaluation Account, Partners' Capital Account and the Balance Sheet. Based on the above information answer the following '5' questions. (D not upload any documents)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 6 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education