InterviewSolution
Saved Bookmarks
| 1. |
A and B are partners sharing profits in the ratio of 2:1. C is admitted as a new partner and the new ratio is decided as 5:3:2. The assets and liabilities are revalued as: (i) Building was appreciated by 25% (Book value of Building Rs 4,00,000). (ii)The provision for doubtful debts was reduced from Rs 5,000 to Rs 3,000. (iii) A provision for Rs 4,000 was to be made for an outstanding bill for repairs. (iv) Unrecorded investments were worth Rs 10,000 (v) Unrecorded liability towards suppliers was Rs 12,000 Pass the necessary journal entries. |
|
Answer» A and B are partners sharing profits in the ratio of 2:1. C is admitted as a new partner and the new ratio is decided as 5:3:2. The assets and liabilities are revalued as: (i) Building was appreciated by 25% (Book value of Building Rs 4,00,000). (ii)The provision for doubtful debts was reduced from Rs 5,000 to Rs 3,000. (iii) A provision for Rs 4,000 was to be made for an outstanding bill for repairs. (iv) Unrecorded investments were worth Rs 10,000 Pass the necessary journal entries. |
|