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P, Q and R are partners in a firm sharing profits in the ratio of 2 : 2 : 1. R retires and the Balance Sheet of the firm as at that date was as under : BALANCE SHEET As at ................. Capital and LiabilitiesAmountAssetsAmountRsRsCreditors30,000Cash8,000General Reserve60,000Debtors75,000Profit & Loss Account15,000Stock90,000Workmen's CompensationPlant1,40,000Reserve10,000Patents22,000Capital Accounts :P1,00,000Q 80,000R 40,000––––––––2,20,000––––––––––3,35,000––––––––––––––––––––3,35,000–––––––––––––––––––– It was agreed that stock is to be brought down to Rs 82,000 and plant is reduced by Rs 20,000. Patents were found valueless. There was no liability on account of workmen's compensation reserve. Record necessary entries at the time of retirement. |
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Answer» P, Q and R are partners in a firm sharing profits in the ratio of 2 : 2 : 1. R retires and the Balance Sheet of the firm as at that date was as under : BALANCE SHEET As at ................. Capital and LiabilitiesAmountAssetsAmountRsRsCreditors30,000Cash8,000General Reserve60,000Debtors75,000Profit & Loss Account15,000Stock90,000Workmen's CompensationPlant1,40,000Reserve10,000Patents22,000Capital Accounts :P1,00,000Q 80,000R 40,000––––––––2,20,000––––––––––3,35,000––––––––––––––––––––3,35,000–––––––––––––––––––– It was agreed that stock is to be brought down to Rs 82,000 and plant is reduced by Rs 20,000. Patents were found valueless. There was no liability on account of workmen's compensation reserve. Record necessary entries at the time of retirement. |
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