Capital : A :1,80,000
B : 1,70,000 C : 20,000
Loan
Provident Fund
Creditors
3,70,000
18,000
15,000 20,000
4,25,000
Cash
Debtors 1,90,000
Less : Provision 10,000
Stock
Furniture
other sundry assets
25,000
1,80,000
32,000
28,000 1,60,000
4,25,000
Additional Inforntion :
(a) A was to take over furniture at Rs. 24,000 & debtors amounting to Rs. 1,50,000 at Rs. 1,40,000 . The
creditors of Rs. 22,000 were to be paid by him at this figure.
(b) B was to take over all the stock at Rs. 24,000 and some of the other sundry assets at Rs. 1,08,000 ( being 90% of the book value)
(c) C to assume the responsibility of discharge of loan together with outstanding interest of Rs. 2,000 and
to take over the remaining sundry assets at 20% less than their book value.
(d) The remaining debtors were sold to a debt collection agency at half value.
(e) Expenses of dissolution were Rs. 4,000 to be borne by A, but A used Firms's cash to pay the same.
Can we distribute employees provident fund and provident fund in case of dissolution of firm to the partners, and if partners are taking any assets lower than the book value of the particular assets would be its treatment in case of retirement of a partner
Regards,
Naveed
A, B C are partners in a firm sharing profits and losses in the ration of 2:2:1 . They decided to dissolve their partnership firm on 31st March 2016. The financial position of the firm on that date was as follows:
Balance Sheet of A,B & C as at 31st March 2016
B : 1,70,000
C : 20,000
Loan
Provident Fund
Creditors
3,70,000
18,000
15,000
20,000
4,25,000
Debtors 1,90,000
Less : Provision 10,000
Stock
Furniture
other sundry assets
1,80,000
32,000
28,000
1,60,000
4,25,000
Additional Inforntion :
(a) A was to take over furniture at Rs. 24,000 & debtors amounting to Rs. 1,50,000 at Rs. 1,40,000 . The
creditors of Rs. 22,000 were to be paid by him at this figure.
(b) B was to take over all the stock at Rs. 24,000 and some of the other sundry assets at Rs. 1,08,000 ( being 90% of the book value)
(c) C to assume the responsibility of discharge of loan together with outstanding interest of Rs. 2,000 and
to take over the remaining sundry assets at 20% less than their book value.
(d) The remaining debtors were sold to a debt collection agency at half value.
(e) Expenses of dissolution were Rs. 4,000 to be borne by A, but A used Firms's cash to pay the same.
Prepare accounts to close the books of the firm.
Can you please solve this question for me as i am not able to tally my bank A/C in this question #neha maam
Thank you
Naveed