7.Jatin and Lalit are partners sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st
March 2018 was as follows.
Rs
8,000
1,20,000
20,000
Liabilities
Rs
Assets
Outstanding Expenses
20,000 Cash
Bills payable
76,000 Sundry Debtors
Creditors
70,000 Less Pro. For D/D
Workmen Compensation Fund
70,000 Stock
Investment Fluctuation Fund
20,000 Investments
General Reserve
40,000 Furniture
Capital Account:
Machinery
Jitin Rs 2,00,000
Lalit Rs 1,60,000 3,60,000
1,00,000
80,000
1,00,000
60,000
3,08,000
6,56,000
6,56,000
On 1st April 2018 they admitted Kishore as a partner for 1/10th share in profits which he acquired
equally from Jitin and Lalit on the following terms.
(1). Kishore is to bring Rs 50,000 as capital,
(l1). The Goodwill of the firm is valued at Rs 60,000 and Kishore will contribute his share of goodwill in cash.
(ili). Provision on Debtors was found to be excess by Rs 4,000.
(iv). Outstanding Expenses will be reduced to Rs 6,000.
(v). Depreciate stock by 5%.
(vi). Market value of Investment was Rs 70,000.
Answers
Answer:
Cost is the amount of resources sacrificed in order to obtain certain goods or services. Money or its equivalent stated in monetary units are the resources forfeited.
Explanation:
Cost, according to the Chartered Institute of Management Accountants, London, is "the sum of expenditure (real or hypothetical) made on or related to a certain item or activity.
This business activity could entail the creation of a good or the provision of a service, both of which need spending on a variety of things like labour, materials, and other costs.
A firm that produces goods is interested in finding out how much each unit of the product costs to produce, while a company that provides services, such a transportation company, canteen, electricity provider, municipality, etc., is keen in
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