Given below is the Balance Sheet of A and B, who axe carrying on part

1.	Given below is the Balance Sheet of A and B, who axe carrying on partnership business on 31.12.2006. A and B share profits and losses in the ratio of 2 :1. Balance Sheet of A and B as on December 31, 2016 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Bills payable10,000Cash in hand10,000Creditors58,000Cash at bank40,000Outstanding2,000Sundry Debtors60,000ExpensesStock40,000CapitalsPlant1,00,000-Building1,50,000A 1,80,000B 1,50,000––––––––––3,30,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,00,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,00,000–––––––––––––––––––– C is admitted as a partner on the date of the balance sheet on the following terms. (i) C will bring Rs. 1,00,000 as his capital and Rs. 60, 000 as his share of goodwill for 14 share in the profits. (ii) Plant is to be appreciated to Rs. 1,20,000 and the value of buildings is to be appreciated by 10%. (iii) Stock is found over valued by Rs. 4,000. (iv) A provision for bad and doubtful debts is to be created at 5% of debtors. (v) Creditors were unrecorded to the extent of Rs.1,000. Pass the necessary, journal entries, prepare the Revaluation account, and Partners Capital account and show the balance sheet after the admission of C.
Answer» Given below is the Balance Sheet of A and B, who axe carrying on partnership business on 31.12.2006. A and B share profits and losses in the ratio of 2 :1. $Balance Sheet of A and B$ $as on December 31, 2016$ $\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Bills payable & 10, 000 & Cash in hand & 10, 000 Creditors & 58, 000 & Cash at bank & 40, 000 Outstanding & 2, 000 & Sundry Debtors & 60, 000 Expenses & Stock & 40, 000 Capitals & Plant & 1, 00, 000 - & Building & 1, 50, 000 A 1, 80, 000 B 1, 50, 000 - -------- - & 3, 30, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 00, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 00, 000 - -------- - - -------- - \end{matrix}$ C is admitted as a partner on the date of the balance sheet on the following terms. (i) C will bring Rs. 1,00,000 as his capital and Rs. 60, 000 as his share of goodwill for $\frac{1}{4}$ share in the profits. (ii) Plant is to be appreciated to Rs. 1,20,000 and the value of buildings is to be appreciated by 10%. (iii) Stock is found over valued by Rs. 4,000. (iv) A provision for bad and doubtful debts is to be created at 5% of debtors. (v) Creditors were unrecorded to the extent of Rs.1,000. Pass the necessary, journal entries, prepare the Revaluation account, and Partners Capital account and show the balance sheet after the admission of C.

Given below is the Balance Sheet of A and B, who axe carrying on partnership business on 31.12.2006. A and B share profits and losses in the ratio of 2 :1. Balance Sheet of A and B as on December 31, 2016 Capital and LiabilitiesAmt. (Rs)AssetsAmt. (Rs)Bills payable10,000Cash in hand10,000Creditors58,000Cash at bank40,000Outstanding2,000Sundry Debtors60,000ExpensesStock40,000CapitalsPlant1,00,000-Building1,50,000A 1,80,000B 1,50,000––––––––––3,30,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,00,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯4,00,000–––––––––––––––––––– C is admitted as a partner on the date of the balance sheet on the following terms. (i) C will bring Rs. 1,00,000 as his capital and Rs. 60, 000 as his share of goodwill for 14 share in the profits. (ii) Plant is to be appreciated to Rs. 1,20,000 and the value of buildings is to be appreciated by 10%. (iii) Stock is found over valued by Rs. 4,000. (iv) A provision for bad and doubtful debts is to be created at 5% of debtors. (v) Creditors were unrecorded to the extent of Rs.1,000. Pass the necessary, journal entries, prepare the Revaluation account, and Partners Capital account and show the balance sheet after the admission of C.

Answer»

Given below is the Balance Sheet of A and B, who axe carrying on partnership business on 31.12.2006. A and B share profits and losses in the ratio of 2 :1.
$Balance Sheet of A and B$
$as on December 31, 2016$
$\begin{matrix} Capital and Liabilities & Amt. (Rs) & Assets & Amt. (Rs) Bills payable & 10, 000 & Cash in hand & 10, 000 Creditors & 58, 000 & Cash at bank & 40, 000 Outstanding & 2, 000 & Sundry Debtors & 60, 000 Expenses & Stock & 40, 000 Capitals & Plant & 1, 00, 000 - & Building & 1, 50, 000 A 1, 80, 000 B 1, 50, 000 - -------- - & 3, 30, 000 ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 00, 000 - -------- - - -------- - & ¯ ¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯ ¯ 4, 00, 000 - -------- - - -------- - \end{matrix}$

C is admitted as a partner on the date of the balance sheet on the following terms.

(i) C will bring Rs. 1,00,000 as his capital and Rs. 60, 000 as his share of goodwill for $\frac{1}{4}$ share in the profits.

(ii) Plant is to be appreciated to Rs. 1,20,000 and the value of buildings is to be appreciated by 10%.

(iii) Stock is found over valued by Rs. 4,000.

(iv) A provision for bad and doubtful debts is to be created at 5% of debtors.

(v) Creditors were unrecorded to the extent of Rs.1,000.

Pass the necessary, journal entries, prepare the Revaluation account, and Partners Capital account and show the balance sheet after the admission of C.

Discussion

No Comment Found

Related InterviewSolutions

Reply to Comment