Following is the balance sheet of X, Y and Z sharing profits and losses in the ratio 3 : 3 : 2. BALANCE SHEET as at 31.3.2015 Liabilities Assets $ Creditors 30,000 Cash 20,000 Bills payable 40,000 Debtors 50,000 Capitals : Stock 25,000 X 50,000 Y 30,000 Buildings 75,000 20.000 1,00,000 1,70,000 1,70,000 On 1st April, 2015, the partners decided to share future profits in the ratio 5:3:2 and following revaluations were to be made :- (i) Building was to be appreciated by 20% (ii) 10% of debtors were bad. (iii) A provision for discount on creditors was to be made @ 2%. Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the re-constituted firm.
Following is the balance sheet of X, Y and Z sharing profits and losses in the ratio 3 : 3 : 2. BALANCE SHEET as at 31.3.2015 Liabilities Assets $ Creditors 30,000 Cash 20,000 Bills payable 40,000 Debtors 50,000 Capitals : Stock 25,000 X 50,000 Y 30,000 Buildings 75,000 20.000 1,00,000 1,70,000 1,70,000 On 1st April, 2015, the partners decided to share future profits in the ratio 5:3:2 and following revaluations were to be made :- (i) Building was to be appreciated by 20% (ii) 10% of debtors were bad. (iii) A provision for discount on creditors was to be made @ 2%. Prepare Revaluation Account, Partners' Capital Accounts and Balance Sheet of the re-constituted firm.
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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