(C40,000 Dr.) 295.0000.34 A, B and C are partners in a firm sharing pr

1.	(C40,000 Dr.) 295.0000.34 A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. TheirSheet as at 31st March, 2017 is as under:Balance Sheet as at 32,00,000 Premises1,20,000 Machineryshare profitm was valueand profits.revised balTotal of BalBarLiabilitiesSundry CreditorsGeneral ReserveCapitals :3,00,0001,80,000Stock3,00,0001.20,000Debtors1,50,000Bank1,00,0002,50.0005,50,00020,0008,70,0008.70,000From 1st April, 2017, the partners agreed to share future profits in the ratio of4:3 :3 and make the following adjustments :(i) Premises will be appreciated by 10% and stock by 10,000.(ii) A provision for doubtful debts is to be made on debtors @4%.(iii) Sundry Creditors be reduced by 315,000.(iv) Machinery will be depreciated by 5%.(v) Goodwill of the firm is valued at 348,000.Repor revalvation Account Partners Capital& change ininthe ratioAccountand balance sheet ofthe reconstituted
Answer» ANSWER: There is a TIME to CAPITAL in a WAY to the is a capital ISSUE and

(C40,000 Dr.) 295.0000.34 A, B and C are partners in a firm sharing profits in the ratio of 3:2:1. TheirSheet as at 31st March, 2017 is as under:Balance Sheet as at 32,00,000 Premises1,20,000 Machineryshare profitm was valueand profits.revised balTotal of BalBarLiabilitiesSundry CreditorsGeneral ReserveCapitals :3,00,0001,80,000Stock3,00,0001.20,000Debtors1,50,000Bank1,00,0002,50.0005,50,00020,0008,70,0008.70,000From 1st April, 2017, the partners agreed to share future profits in the ratio of4:3 :3 and make the following adjustments :(i) Premises will be appreciated by 10% and stock by 10,000.(ii) A provision for doubtful debts is to be made on debtors @4%.(iii) Sundry Creditors be reduced by 315,000.(iv) Machinery will be depreciated by 5%.(v) Goodwill of the firm is valued at 348,000.Repor revalvation Account Partners Capital& change ininthe ratioAccountand balance sheet ofthe reconstituted

Answer»

There is a TIME to CAPITAL in a WAY to the is a capital ISSUE and