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el, Ere and Inie are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The ement of financial position for the partnership as at December 31, 2020 is as follows: n-current assets emises unt hicles tures GHe GH¢ 90,000 37,000 15,000 2.000 144,000 rrent assets entory 62,379 Counts receivable 35.740 98,119

el, Ere and Inie are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The ement of financial position for the partnership as at December 31, 2020 is as follows: n-current assets emises unt hicles tures GHe GH¢ 90,000 37,000 15,000 2.000 144,000 rrent assets entory 62,379 Counts receivable 35.740 98,119

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...
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Оuestion One Apel, Ere and Inie are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The statement of financial position for the partnership as at December 31, 2020 is as follows: GH¢ 90,000 Non-current assets GH¢ Premises Plant 37,000 Vehicles 15,000 2.000 144,000 Fixtures Current assets In ventory 62,379 Accounts receivable 35,740 98,119 Current liabilities Accounts payable 19,036 Loan - Inie 28,000 Bank overdraft 4.200 47.456 46,883 Net assets 190.883 Capitals Apel Ere Inie Total capital 88,714 62,491 39.678 190,883 Additional information Inie decided to retire from the business on 31 December, 2020 and Pee is admitted as a partner on that date. The following matters are agreed: i. Apel and Ere are to share profits in the same ratio as before, and Pee is to have the same share of profits as Ere. The following assets were revalued: Premises for GH¢120,000 11. Plant for GH¢35,000 Inveniory for GHe54,179 Provision is to be made for doubtful debts in the sum of GH¢3,000. iii. iv. Goodwill is to be recorded in the books on the day Inie retires in the sum of GHe42,000. The partners in the new firm do not wish to maintain a goodwill account so that amount is to be written back agains the new partners' capital accounts. Inie is to take his car at its book value of GH¢3,900 in part payment, and the balance of all he is owed by the firm in cash except GH¢20,000 which he is willing to leave as a loan account. vi. The partners in the new firm are to start on an equal footing so far as capital accounts are concerned. Pee is to contribute cash of GH¢82.091. vii. The oxiginal partuer in the old firm who has the higher investnent will draw out cash so that his capital accoum balances equal those of his new partners. Required: prepare a Revaluation account b. Goodwill accourt c. Retiring purtner's (Inie) account d. Bank account e. Partners' capital account
Transcribed Image Text:Оuestion One Apel, Ere and Inie are in partnership sharing profits and losses in the ratio 3:2:1 respectively. The statement of financial position for the partnership as at December 31, 2020 is as follows: GH¢ 90,000 Non-current assets GH¢ Premises Plant 37,000 Vehicles 15,000 2.000 144,000 Fixtures Current assets In ventory 62,379 Accounts receivable 35,740 98,119 Current liabilities Accounts payable 19,036 Loan - Inie 28,000 Bank overdraft 4.200 47.456 46,883 Net assets 190.883 Capitals Apel Ere Inie Total capital 88,714 62,491 39.678 190,883 Additional information Inie decided to retire from the business on 31 December, 2020 and Pee is admitted as a partner on that date. The following matters are agreed: i. Apel and Ere are to share profits in the same ratio as before, and Pee is to have the same share of profits as Ere. The following assets were revalued: Premises for GH¢120,000 11. Plant for GH¢35,000 Inveniory for GHe54,179 Provision is to be made for doubtful debts in the sum of GH¢3,000. iii. iv. Goodwill is to be recorded in the books on the day Inie retires in the sum of GHe42,000. The partners in the new firm do not wish to maintain a goodwill account so that amount is to be written back agains the new partners' capital accounts. Inie is to take his car at its book value of GH¢3,900 in part payment, and the balance of all he is owed by the firm in cash except GH¢20,000 which he is willing to leave as a loan account. vi. The partners in the new firm are to start on an equal footing so far as capital accounts are concerned. Pee is to contribute cash of GH¢82.091. vii. The oxiginal partuer in the old firm who has the higher investnent will draw out cash so that his capital accoum balances equal those of his new partners. Required: prepare a Revaluation account b. Goodwill accourt c. Retiring purtner's (Inie) account d. Bank account e. Partners' capital account
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