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»

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



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