Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Setout below was their balance sheet as onMarch 31, 2021.Liabilities & EquityBills PayableSundry CreditorsOutstanding ExpensesCapital:ROAssetsRO80000 Cash in Hand156250 Cash at Bank1250 DebtorsO Stock1875511250222500278750Lalitha500000 Furniture43750Jothi312500 Plant and Machinery121875Kanaga375000 Building300000Profits & Loss A/c5500014800001480000Lalitha retired from the partnership on April 01, 2021 under the following terms:The assets are to be valued as under:Stock250000Furniture37500Plant & MachineryBuilding112500250000A provision for doubtful debt to be created at10625Goodwill of the firm was to be valued at75000The gaining ratio is 2:3.Lalitha was to be paid off immediately.Record the necessary journal entries, prepare Revaluation Account, Capital Accounts and BalanceSheet of the reconstituted partnership.

Revolution Account -: Revaluation account is a type of nominal account, which is formulated for the…

Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity Bills Payable RO Assets RO 80000 Cash in Hand 156250 Cash at Bank 1250 Debtors 0 Stock 500000 Furniture 312500 Plant and Machinery 375000 Building 1875 Sundry Creditors 511250 Outstanding Expenses Capital: 222500 278750 Lalitha 43750 Jothi 121875 Kanaga Profits & Loss A/c 300000 55000

Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity Bills Payable RO Assets RO 80000 Cash in Hand 156250 Cash at Bank 1250 Debtors 0 Stock 500000 Furniture 312500 Plant and Machinery 375000 Building 1875 Sundry Creditors 511250 Outstanding Expenses Capital: 222500 278750 Lalitha 43750 Jothi 121875 Kanaga Profits & Loss A/c 300000 55000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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