Select Board & Class

Login
Keta asked a question
Subject: Accountancy, asked on on 21/12/13
Ravi Kumar asked a question
Subject: Accountancy, asked on on 27/6/10
Ananya Singh asked a question
Subject: Accountancy, asked on on 31/8/13
Mansi Sharma asked a question
Subject: Accountancy, asked on on 15/8/15
Drama Diva asked a question
Subject: Accountancy, asked on on 10/2/15
A, B & C are in partnership sharing profits in the ratio 5:3:2. The balance sheet of the firm as on 31st march 2014 was as follows:

Liabilities Rs. Assets Rs
Capital accounts bills receivables 15,000
A 40,000 machinery 82,000
B 61,000 furniture 4,000
C 24,000 debtors 70,000
Reserve 40,000 less: provision 3,000 67,000
Sundry creditors 50,000 stock 20,000
Profit and loss A/c 28,000 cash at bank 50,000
Bills payable 5,000 Advertisement suspense A/c 10,000
2,48,000 2,48,000



on 1st april 2014, B retires & A & C continued in partnership sharing profits and losses in the ratio 3:2. it was agreed that following adjustments were to be made on retirement of B:
A) The machinery was to be revalued at Rs.85,000
b) The stock was to be reduced by Rs.1,000
c) The furniture was to be reduced to Rs.1,600.
d) The provision for doubtful debts would be ^%
e) A provision of Rs.800 was to be made to outstanding expenses.
f) A liability n account of damages of Rs.7,000 included in creditors is settled at Rs.12,000.
The partnership agreement provides that in case of retirement of partner goodwill was to be valued at 3yrs purchase of a average profits which wRs.10,000but no goodwill is to be raised.
B was paid in full. A & C were to deposit such an amount in bank so as to make their capitals proportionate to the new profit sharing ratio, subject to the condition that a bank balance of Rs.40,000 was to be maintained as working capital.
Required: prepare revaluation account, partners capital account and balance sheet after retirement.
Wt Hrthkr & 5 others asked a question
Subject: Accountancy, asked on on 23/8/15
Chetan asked a question
Subject: Accountancy, asked on on 18/1/19
A & 5 others asked a question
Subject: Accountancy, asked on on 20/8/15
Nithin Ravindran asked a question
Subject: Accountancy, asked on on 11/8/16
Viral asked a question
Subject: Accountancy, asked on on 7/1/16
Jaidev asked a question
Subject: Accountancy, asked on on 6/3/17
Harry Sharma asked a question
Subject: Accountancy, asked on on 6/2/18
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.
 
Shubham Jayswal asked a question
Subject: Accountancy, asked on on 28/6/10
Ritika Godara asked a question
Subject: Accountancy, asked on on 25/1/17
Thahseen asked a question
Subject: Accountancy, asked on on 13/8/18
Giselle Maria Castelino asked a question
Subject: Accountancy, asked on on 18/8/17
Sharn Garg asked a question
Subject: Accountancy, asked on on 21/1/17
P C asked a question
Subject: Accountancy, asked on on 9/7/19
Shrusti Nanda asked a question
Subject: Accountancy, asked on on 15/6/10
Sid asked a question
Subject: Accountancy, asked on on 27/11/15
Ayush Chandraa asked a question
Subject: Accountancy, asked on on 14/10/14

Example: Gaurav, Rahul and Saurav were carrying on a business in partnership sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at March 31, 2012 was as follows:

Balance Sheet

as on March 31, 2012

Liabilities

Amount

(Rs)

Assets

Amount

(Rs)

Capital A/cs:

Land and Building

40,000

Gaurav

56,500

Goodwill

12,000

Rahul

29,000

Plant and Machinery

30,000

Saurav

22,500

1,08,000

Stock

10,000

Investment Fluctuation Fund

18,000

Debtors

30,000

Sundry Creditors

25,000

Less: Provision for Doubtful Debts

(2,000)

28,000

Investments (Market Value Rs 18,000)

21,000

Cash

10,000

1,51,000

1,51,000

Saurav desired to retire from the firm. Remaining partners decided to continue the business on following terms:

  1. Goodwill of firm valued at Rs 30,000.
  2. Stock is overvalued by Rs 4,000 and all debtors were considered to be good.
  3. Land and Building appreciated by 5% and Plant and Machinery depreciated by 20%.
  4. Capital of the new firm was fixed at Rs 80,000. It is decided to adjust capital of the remaining partners as per their new profit-sharing ratio.

Prepare Revaluation Account, Partners Capital Accounts, Cash Account and Balance Sheet of the new firm.


WN2Adjustment of Capital

Total Capital of New Firm (after Sauravs retirement) =Rs 80,000

Particulars

Gaurav

Rahul

New Capital Balance

48,000

32,000

Adjusted Old Capital Balance

(52,000)

(26,000)

Cash brought in by/paid to the partner

4,000

(Dr.)

6,000

(Cr.)

pleaase correct it the oepning balances are different according to the question given

gaurav old capital is 56500

rahul old capital is 29000

as in ur solution set it is represented as 52000 and 26000 as old capital

PLEASE EXPLAIN ME HOW DID IT HAPPEN ??

Saif Khan asked a question
Subject: Accountancy, asked on on 21/6/10
What are you looking for?

Syllabus