Note : Good balánce sheet. Nlustration 13 Miwthy, Naveen and Preethi are equal partners in a firm. The Balance sheet as on 31.12.2008 is Liabilities Rs. Assets Rs. Capital Accounts: Murthy Machinery 26100 9000 Furniture 900 7200 Debtors 10800 Stock Naveen 18000 Preethi 9000 General Reserve Creditors 2700 24300 54000 54000 Preethi retired on 31.12.2008 and assets were valued as under. Machinery was valued at Rs. 30600 Furniture was valued at Rs. 720 Debtors was valued at Rs. 17100 Stock was valued at Rs. Goodwill of the firm was valued at Rs. 8820 5400 Preethi's share of goodwill is to be adjusted to the continuing partners capital without raising the goodwill account. Prepare necessary edger accounts and a new balance sheet.

Note : Good balánce sheet. Nlustration 13 Miwthy, Naveen and Preethi are equal partners in a firm. The Balance sheet as on 31.12.2008 is Liabilities Rs. Assets Rs. Capital Accounts: Murthy Machinery 26100 9000 Furniture 900 7200 Debtors 10800 Stock Naveen 18000 Preethi 9000 General Reserve Creditors 2700 24300 54000 54000 Preethi retired on 31.12.2008 and assets were valued as under. Machinery was valued at Rs. 30600 Furniture was valued at Rs. 720 Debtors was valued at Rs. 17100 Stock was valued at Rs. Goodwill of the firm was valued at Rs. 8820 5400 Preethi's share of goodwill is to be adjusted to the continuing partners capital without raising the goodwill account. Prepare necessary edger accounts and a new balance sheet.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Capital 0Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac. Bank Overdraft 315000 Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: 2) Building s revalued at 630000 b) Stock is revalued at 112875 l Goodwill i raised at 210000 di Provuion for bad debts sto be made at 5% e) Khalid has to bring in a Lapital 262500 n Khalid war onable to brina the amount of goodwill: Pass Journal Lntries and Prepare Revaluation Account, Capiital Accounts and the Dalance Sheet of the reconstituted firm.
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Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount (RO) Creditors 315000 Cash 26250 Bills Payable 105000 Debtors 367500 General Reserve 210000 Stock 157500 Сapital: Plant 131250 Ahmed 420000 Buildings 525000 Wahid 210000 Profit & Loss Ac 52500 Bank Overdraft 315000 | Equipment 315000 Total 1575000 Total 1575000 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on the following terms: a) Building is revalued at 630000 b) Stock is revalued at 112875 c) Goodwill is raised at 210000 d) Provision for bad debts is to be made at 5% e) Khalid has to bring in a Capital 262500 f) Khalid was unable to bring the amount of goodwill Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the reconstituted firm.