31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission. Answer: Revaluation Account Amount RO
31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - 1. The value of computer reduced by 10% 2. A part of value of Patents for RO 1000 became useless and it has to be reduced. 3. Buildings to be revalued at RO 55,000 4. Furniture was depreciated by 10% 5. S shall bring RO 25,000 as capital for ¼ share of future profits a) Calculate New Profit Sharing Ratio and Sacrificing Ratio b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission. Answer: Revaluation Account Amount RO
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 9.17E: Profitability metrics The following selected data were taken from the financial statements of The...
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The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010
Liabilities
RO
Assets
RO
Creditors
Outstanding Expenses
Bills Payable
Capitals:
P 28,000
Q 20,000
R 30,000
25,800
200
6,000
78,000
110,000
Cash
Debtor and Stock
Furniture
Computer
Building
Patents
8,000
42,000
15,000
10,000
30,000
5,000
110,000
They admit S into the partnership on the following terms: -
1. The value of computer reduced by 10%
2. A part of value of Patents for RO 1000 became useless and it has to be reduced.
3. Buildings to be revalued at RO 55,000
4. Furniture was depreciated by 10%
5. S shall bring RO 25,000 as capital for ¼ share of future profits
a) Calculate New Profit Sharing Ratio and Sacrificing Ratio
b) Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
Answer:
Revaluation Account
Amount RO
Amount RO
Partners’ Capital Account
P
Q
R
S
P
Q
R
S
Statement of Financial Position
Amount RO
Amount RO
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