1. Prepare Accounting equations from the followings -Started business with cash 5, 00,000 and Machinery of Rs 1, 00,000. -Purchase Goods for cash Rs2, 00, 000 and on credit Rs 3, 00,000. -Sold Goods worth Rs 2, 50,000 at 10% Profit to Naresh on Credit. - Salary outstanding Rs 30,000. -Paid Rent in Advance Rs 50, 000, charge Depreciation @10%P.a on Machinery
Answers
Answer:
A,B and C are partners sharing profits and losses in the ratio of 3:2:1 respectively. Their Balance Sheet as at 31
st
March,2018 is as follows:
Liabilities (Rs.) Assets (Rs.)
Capital A/cs:
A 60,000
B 60,000
C 40,000
Creditors
Bills Payable
1,60,000
30,000
10,000 Land and Building
Plant and Machinery
Furniture
Stock
Debtors
Bills Receivable
Bank 50,000
40,000
30,000
20,000
30,000
20,000
10,000
2,00,000 2,00,000
D is admitted as a new partners on 1
st
April,2018 for an equal share and is to pay Rs.50,000 as capital. Following are the adjustment required on D
′
s admission:
(a) Out of the Creditors, a sum of Rs.10,000 is due to D which will be transferred to his capital Account.
(b) Advertisement Expenses of Rs.1,200 are to be carried forward to next accounting period as Prepaid Expenses.
(c) Expenses debited in the Profit and Loss Account includes a sum of Rs.2,000 paid for B
′
s personal expenses.
(d) A Bill of Exchange of Rs.4,000 which was previously discounted with the banker, was dishonoured on 31
st
March,2018 but no entry has been passed for that.
(e) A Provision for Doubtful Debts @ 5% is to be created against Debtors.
(f) Expenses on Revaluation amounted to Rs.2,100 is paid by A.
Prepare necessary Ledger Accounts and Balance Sheet after D
′
s admission.