Saved Bookmarks
| 1. |
9. The Balance sheet of A, B and C as at 31" March 2016 is set out below, they share profitsand losses in the ratio of 2.1.1:LiabilitiesCreditors84,00035,000AssetsCash atBankDebtorsReserve26,0001,80,0007,00,000Stock2,15,000CapitalAccountsA3,00,000B2,00,000с2,00,000Profit for40,0004,20,000FixedAssetsthe year2015-168,50,0008,50,000The above balance sheet is wrong, since Chas retired with effect from 1 January, 2016. Noadjustments have been made in the books on C's retirement.You are required to make them and redraft the balance sheet. The goodwill of the firm wasvalued at 72,000 |
|
Answer» : Liabilities Creditors 84,000 35,000 Assets Cash at Bank Debtors Reserve 26,000 1,80,000 7,00,000 Stock 2,15,000 Capital Accounts A 3,00,000 B 2,00,000 с 2,00,000 Profit for 40,000 4,20,000 Fixed Assets the year 2015-16 8,50,000 8,50,000 The above BALANCE sheet is wrong, since Chas retired with effect from 1 JANUARY, 2016. No adjustments have been made in the BOOKS on C's retirement. You are required to make them and redraft the balance sheet. The goodwill of the firm was valued at 72,000 |
|