Accountancy, asked by Swati03, 9 months ago

A and B are partners sharing 3:2.They decided to share in future equally. On that date, Reserve Rs. 50,000, Workmen Compensation Fund Rs. 40,000, Profit and Loss Account (Credit) Rs. 20,000, Investment Fluctuation Reserve Rs. 1,00,000 was shown in book. Pass a Single Adjustment Entry for it.

Answers

Answered by poonammudgil78
0

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tX and Y are partners sharing profits and losses equally. Their Balance Sheet as on 31st March, 2018 is given below:

Liabilities

Assets

Capital A/cs:

Land and Building

1,50,000

X

1,50,000

Plant and Machinery 1,00,000

Y

1,00,000

2,50,000

Furniture and Fittings 25,000

Current A/cs: Stock

75,000

X

40,000

Debtors

75,000

Y 30,000 70,000 Less: 5% Reserve for D. Debts 5,000 70,000

Creditors

1,30,000 Bill Receivalbe

30,000

Bill Payable

50,000

Bank

50,000

5,00,000

5,00,000

Z is admitted as a new partner for 1/4th share under the following terms :

(a) Z is to introduce ₹ 1,25,000 as capital .

(b) Goodwill of the firm was valued at nil.

(c) It is found that the creditors included a sum of ₹ 7,500 which was not to be paid . But it was also found that there was a liability for compensation to Workmen amounting to ₹ 10,000.

(d) Provision for Doubtful Debts is to be created @ 10% on debtors.

(e) In regard to the Partners' Capital Accounts present fixed capital method is to be converted into fluctuating capital method .

(f) Bills of ₹ 20,000 accepted from creditors were not recorded in the books.

(g) X provides ₹ 50,000 loan to the business carrying interest @ 10% p.a.

You are required to prepare Revaluation Account , Partners' Capital Accounts, Bank Account and the Balance Sheet of the new firm.

ANSWER:

Revaluation Account

Dr.

Cr.

Particulars

Amount

Rs

Particulars

Amount

Rs

Reserve for D. Debts

2,500

Creditors

7,500

Liability for WCF 10,000

Loss transferred to

X’s Current A/c

2,500

Y’s Current A/c

2,500

12,500

12,500

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