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 E
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 E
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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