Question

3) Red and Yellcw are in partnership as Orango Co. and Violet and Blug as Indigo c

mutualy egreed

eed that as on January 1, 2014 the partnership be amaiganated into one frn, Ra

artsn

eprofit-shaing ratios in the various firms were and are to be as toio

Red | Yellow Violet Blug

O'd Fim New Firm

on December 31, 2013, the Balance Stheets of the firns were as follivrs:

Liabilities Orange Capital ACCounts Red Yellow Violet Elue Creditors Bank Overdraft

Orange

Indigo

Indigo

Assots Property

10,000

15.300

1,800| 3,000 8,300 800 6,800 3,400

-Fixtures -Vehicles

1,400 1,800 6,600

11.000 5,2001 31,50

11.300 Stock 7,400 Investment 6,000 Debtors

5,800

900 Bank

Balance

25,600|

25,500

31,500

The agreement to amalgamate contains the following provisions: (a) (b)

Provision for doubtful debts at the rate of 5% be made in respect of debtors. Rainbow Co. to take over the old patnership assets at the following values: ASsets Stock Vehicles Fixtures Property Goodwill

Orange Co. (Rs.)

Indigo Co. (Rs.)

8,450 ,800 1,600 10,000 6,300

6,390 1,300

4,500

The property and fixtures of Indigo Co. not to be taken over by Rainbow Co. These assets were taken over by Partner Blue for Rs. 10,0001- Yellow to take over his frm's investments at a value of Rs. 800.

Prepare the necessary accounls and the new balance sheet. (15 marks)

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Answer 1

Answer:

i don't know ..........

sorry....