Murari and Vohra wer partners in a firm with capitals of Rs.120000 and Rs.160000 respectively.on 1.4.11 they admitted Yadav as a partner for one fourth share in profits on his payement of Rs.200000 as his capital and Rs.90000 for his one fourth share of goodwill.
On that date the creditors of Murari and Vohra were Rs.60000 and the bank overdraft was Rs.16000.Their assets apart from cash included stock Rs.10000,debtors Rs.40000,plant and machinery Rs.80000.land and building Rs.200000.It was agreed that stock should be depreciated by Rs.2000,plant and machinery by 20%,Rs.5000 should be written off as bad debts and land and building should be appreciated by 25%.
Prepare revaluationa/c,capital a/c of Murari,Vohra and Yadav and the balance sheet of the new firm..
Balance Sheet of Old Firm as on April 01, 2011 | |||
Liabilities | Amount | Assets | Amount |
Creditors | 60,000 | Stock | 10,000 |
Bank Overdraft | 16,000 | Debtors | 40,000 |
Capital A/cs: |
| Plant and Machinery | 80,000 |
Murari | 1,20,000 | Land and Building | 2,00,000 |
Vohra | 1,60,000 | Cash (Balancing Figure) | 26,000 |
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| 3,56,000 |
| 3,56,000 |
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Thumbs Up to Janine for such a wonderful attempt. However, Balance Sheet of the Old Firm is provided in order to ascertain the Cash Balance.