L, M and N entered into partnership on 1st July 2012 sharing in the ra

1.	L, M and N entered into partnership on 1st July 2012 sharing in the ratio of 4 : 3 : 3. Their capitals were Rs. 60,000; Rs. 40,000 and Rs. 30,000 respectively. They decided to dissolve on 30th June 2013, on which date their position was: Bank Rs. 7,000; Debtors Rs. 40,000; B/R Rs. 5,500; Stock Rs. 43,000; Furniture Rs. 2,500; Creditors Rs. 15,000 and B/P Rs. 5,000. L took over Debtors at 25% discount and took over the liabilities of the payment to creditors. M took over stock at Rs 13,000. N takes B/R at Rs. 5,000 and furniture at 12% depreciation. B/P were due after 2 months; As such, a rebate of 18% p.a. was received on their payment. 10% p.a. interest to be credited to each partner on his capital. Prepare necessary accounts.
Answer» L, M and N entered into partnership on 1st July 2012 sharing in the ratio of 4 : 3 : 3. Their capitals were Rs. 60,000; Rs. 40,000 and Rs. 30,000 respectively. They decided to dissolve on 30th June 2013, on which date their position was: Bank Rs. 7,000; Debtors Rs. 40,000; B/R Rs. 5,500; Stock Rs. 43,000; Furniture Rs. 2,500; Creditors Rs. 15,000 and B/P Rs. 5,000. L took over Debtors at 25% discount and took over the liabilities of the payment to creditors. M took over stock at Rs 13,000. N takes B/R at Rs. 5,000 and furniture at 12% depreciation. B/P were due after 2 months; As such, a rebate of 18% p.a. was received on their payment. 10% p.a. interest to be credited to each partner on his capital. Prepare necessary accounts.

L, M and N entered into partnership on 1st July 2012 sharing in the ratio of 4 : 3 : 3. Their capitals were Rs. 60,000; Rs. 40,000 and Rs. 30,000 respectively. They decided to dissolve on 30th June 2013, on which date their position was: Bank Rs. 7,000; Debtors Rs. 40,000; B/R Rs. 5,500; Stock Rs. 43,000; Furniture Rs. 2,500; Creditors Rs. 15,000 and B/P Rs. 5,000. L took over Debtors at 25% discount and took over the liabilities of the payment to creditors. M took over stock at Rs 13,000. N takes B/R at Rs. 5,000 and furniture at 12% depreciation. B/P were due after 2 months; As such, a rebate of 18% p.a. was received on their payment. 10% p.a. interest to be credited to each partner on his capital. Prepare necessary accounts.

Answer»

L, M and N entered into partnership on 1st July 2012 sharing in the ratio of 4 : 3 : 3. Their capitals were Rs. 60,000; Rs. 40,000 and Rs. 30,000 respectively. They decided to dissolve on 30th June 2013, on which date their position was:

Bank Rs. 7,000; Debtors Rs. 40,000; B/R Rs. 5,500; Stock Rs. 43,000; Furniture Rs. 2,500; Creditors Rs. 15,000 and B/P Rs. 5,000.

L took over Debtors at 25% discount and took over the liabilities of the payment to creditors.
M took over stock at Rs 13,000.
N takes B/R at Rs. 5,000 and furniture at 12% depreciation.
B/P were due after 2 months; As such, a rebate of 18% p.a. was received on their payment.
10% p.a. interest to be credited to each partner on his capital. Prepare necessary accounts.

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