1.

X and Y are the partners sharing profits in the ratio 3:2. Their Balance Sheet as on 31st March, 2019 was as follows:Liabilities Amount Assets AmountCreditorsGeneral ReserveCapitals:X 40, 000Y 25, 000 24, 00014, 000 65, 0001, 03, 000 Cash at BankDebtors 40, 000Less: Provision (4, 000) StockPlant & Machinery 6, 000 36, 00035, 00026, 0001, 03, 000They decided to admit Z in the firm on the condition that he pays Rs. 14,000 for goodwill and sufficient capital for getting 1/3rd share in the profit of the new firm. It was also decided:To reduce the bad debts provision to Rs. 3, 000.To revalue the stock at Rs. 40, 000.To reduce the value of machinery by Rs. 1,100.The capital of the partners; were to be adjusted in profit sharing ratio based on Capital of Z by opening current accounts.Prepare Revaluation A/c, Partners’ Capital A/c and Balance Sheet of the new firm.

Answer»

Explanation:

Income and expenditure account for the year ended 31st March 2015 (3) and a BALANCE sheet as at that DATE. Debit balance:- stock in hand = 1170 , purchase =24660 , Dining room =32370,rent = 10470 , wages =18690 , repair and renewals = 5400, fuel and light =5280, miscellaneous expenses =4050, cash in hand Y 25, 000 24, 00014, 00..



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