(Part-1)4. A and B are partners in a firm sharing profits in the ratio

1.	(Part-1)4. A and B are partners in a firm sharing profits in the ratio of 3 : 2. On 1st January, 2020, theposition of the business is as follows:BALANCE SHEET6Tiety is3200intoLlabilitiesAssets₹Goodwill5,00030,000 Stock19,00025,000 Plant and Machinery25,000Sindy Creditors10,000 Debtors20,000General Reserve5.000 Less : Provision for Doubtfuldebts1,000 19,000Cash2,00070,00070,000On this date, C agrees to join the business on the following conditions:(1) He will introduce *20,000 as his capital and pay 10,000 to the partners as premiumfor goodwill. The new profit sharing ratio is 2:1:1 for A, B and C respectively.(i) A revaluation of the assets of the firm will be made by reducing plant and machineryto 22,000 ; Stock is to be reduced by 2.000 and create a provision for bad anddoubtful debts at 6% on debtors.Prepare revaluation A/c, capital accounts and give the new Balance Sheet.lance4:3aring
Answer» Answer: A and B are partners in a firm sharing profits in the ratio of 3 : 2. On 1st JANUARY, 2020, the position of the business is as follows: BALANCE SHEET 6 Tiety is 3200 into Llabilities Assets ₹ GOODWILL 5,000 30,000 Stock 19,000 25,000 Plant and Machinery 25,000 Sindy Creditors 10,000 Debtors 20,000 General Reserve 5.000 Less : Provision for Doubtful debts 1,000 19,000 Cash 2,000 70,000 70,000 On this date, C AGREES to join the business on the following conditions: (1) He will introduce *20,000 as his capital and pay 10,000 to the partners as premium for goodwill. The new profit sharing ratio is 2:1:1 for A, B and C respectively. (i) A REVALUATION of the assets of the firm will be made by reducing plant and machinery to 22,000 ; Stock is to be reduced by 2.000 and create a provision for bad and doubtful debts at 6% on debtors. Prepare revaluation A/c, capital accounts and give the new Balance Sheet. lance 4:3 aring

(Part-1)4. A and B are partners in a firm sharing profits in the ratio of 3 : 2. On 1st January, 2020, theposition of the business is as follows:BALANCE SHEET6Tiety is3200intoLlabilitiesAssets₹Goodwill5,00030,000 Stock19,00025,000 Plant and Machinery25,000Sindy Creditors10,000 Debtors20,000General Reserve5.000 Less : Provision for Doubtfuldebts1,000 19,000Cash2,00070,00070,000On this date, C agrees to join the business on the following conditions:(1) He will introduce *20,000 as his capital and pay 10,000 to the partners as premiumfor goodwill. The new profit sharing ratio is 2:1:1 for A, B and C respectively.(i) A revaluation of the assets of the firm will be made by reducing plant and machineryto 22,000 ; Stock is to be reduced by 2.000 and create a provision for bad anddoubtful debts at 6% on debtors.Prepare revaluation A/c, capital accounts and give the new Balance Sheet.lance4:3aring

Answer»

Answer:

A and B are partners in a firm sharing profits in the ratio of 3 : 2. On 1st JANUARY, 2020, the

position of the business is as follows:

BALANCE SHEET

Tiety is

3200

into

Llabilities

Assets

₹

GOODWILL

5,000

30,000 Stock

19,000

25,000 Plant and Machinery

25,000

Sindy Creditors

10,000 Debtors

20,000

General Reserve

5.000 Less : Provision for Doubtful

debts

1,000 19,000

Cash

2,000

70,000

On this date, C AGREES to join the business on the following conditions:

(1) He will introduce *20,000 as his capital and pay 10,000 to the partners as premium

for goodwill. The new profit sharing ratio is 2:1:1 for A, B and C respectively.

(i) A REVALUATION of the assets of the firm will be made by reducing plant and machinery

to 22,000 ; Stock is to be reduced by 2.000 and create a provision for bad and

doubtful debts at 6% on debtors.

Prepare revaluation A/c, capital accounts and give the new Balance Sheet.

lance

4:3

aring

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment