Can Any please Make the Capital Account..

Q19. Lokesh, Mansoor and Nihal  were partners in a firm sharing profit as 50%, 30% and 20% respectively. On 31st March, 2014, their Balance Sheet was as follows :
          
Liabilities   Rs.  Assets  Rs.
 Creditors
Provident Fund
Investment Fluctuation Fund
Capital A/c Lokesh                  1,40,000
                   Masoor                      80,000
                   Nihal                          50,000
  34,000
  10,000
  20,000


2,70,000
Cash
Stock
Debtors                   98,000
Less : Provision        6,000
Investment 
Goodwill
Profit and Loss
  68,000
  38,000

   88,000
   80,000
   40,000
   20,000
  3,34,000   3,34,000

     On the above date, Mansoor retired and Lokesh and Nihal agreed to continue on the following terms :

     (i) Firm's goodwill was valued at Rs. 1,02,000 and it was decided to adjust Mansoor's share of goodwill into the Capital Accounts of the continuing partners.

    (ii) There was a claim for Workmen's Compensation to the extent of Rs. 12,000 and  investments were brought down to Rs, 30,000.

    (iii) Provision for Bad Debts was to be reduced by Rs.2,000.

    (iv) Mansoor was to be paid Rs. 20,600 in cash and the balance will be transferred to his Loan Account which was paid in two equal instalments together with interest @10% per annum.

    (v) Lokes's and Nihal's capital were to be adjusted in their new profit-sharing ratio by bringing in or paying off cash as the case may be.

     Prepare Revaluation Account and Partners' Capital Accounts.
 

Dear Student,



Regards!!

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