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18.The following is the Balance Sheet of X and Y sharing profits and losses in the ratio of 2:1: Liabilities Sundry Creditors Capitals: X Y 25,000 20,000 Rs 10,000 45,000 55,000 Assets Cash Stock Debtors Furniture property They agreed to admit Z into Partnership on the following conditions: a. Z to pay Rs 4,500 as goodwill. b. Z to bring Rs 5,500 as his Capital for 1/4th share of profits in the business. c. Property and furniture to be depreciated at 55. Stock to be reduced by Rs 800 and a Bad Debt Reserve of Rs 6,000 to be provided for. Assuming the above terms to have been given effect show the necessary Journal entries and prepare the initial Balance Sheet. Rs 6,000 6,000 30,000 3,000 10,000 55,000 |
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Answer» Answer:7,500 Explanation:) Dissolution expenses amounted to ₹ 10,000 were paid by Amit, a partner, ... They accepted Building valued at ₹ 1,20,000 and paid CASH to the firm ₹ 30,000. ... X, Y and Z are partners in a firm sharing profits in the ratio of 3 : 2 : 1 ... 55,000. (Assets realized). B. Profit & Loss A/c. Dr. 15,000. To Aman's Capital A/c. 7,500.
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