Answered: The following was the Balance sheet of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Q2 The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Liabilities Amount (RO) Creditors Bills Payable General Reserves Capital Accounts A B с Assets 120,000 Cash at Bank 48,000 Stock 60,000 Debtors 240,000 Furniture 210,000 Land and Buildings 150,000 828,000 Goodwill already appears in the books Furniture is to be written down by Stock is to be depreciated by Land and Buildings is to be appreciated by They Admit D into Partnership giving him 1/5th share of profits on the following terms: D brings in his capital Provision is be made for outstanding expenses Creditors Bills Payable General Reserve Capital Accounts. X Y Z Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted. Amount (RO) Q3 X, Y and Z were partners sharing profits in the proportion of 3:2:1. Y Retires from the business. The Balance sheet of the firm on the date of retirement was as follows Liabilities 40,000 Cash at Bank 20,000 Stock 30,000 Debtors LESS Provision 80,000 RO 1000 60,000 Vehicle 40,000 Machinery 270,000 Amount (RO) 90,000 150,000 180,000 48,000 360,000 It was agreed among the partners Goodwill of the firm to be valued at 828,000 Assets Provision for Doubtful debts to be increased by Outstanding expenses to be brought into account 150,000 126,000 120,000 12.50% 7.50% 15.0% Amount (RO) 10,000 30,000 40,000 50,000 140,000 270,000 48,000 2,000 3,800 17.5% 12.5% 7.5% Vehicle is to be depreciated by Stock is to be depreciated by Machinery is to be appreciated by Record the necessary Journal Entries and Prepare the necessary accounts and New Balance sheet of X and Z.

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

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.

Similar questions