Accountancy, asked by imranhossainih2021, 5 months ago

A and B carrying on business in partnership share profits and losses in the proportion of two-thirds and one-third. They file their petition in bankruptcy on September 30, 2002. when their Balance Sheet showed the following balances:

Liabilities:

Bank overdraft secured by a charge on machinery----Tk 30,000
Sundry Creditors----Tk 64,500
Bills payable-----Tk 5,000
A’s Capital-----Tk 12,400
B’s Capital-----Tk 4,200
Assets:

Machinery----Tk 18,000
Furniture----Tk 2,500
Stock----Tk 14,200
Debtors (including Tk 3,000 for dishonored bill and Tk 2,000 doubtful of recovery)-29,500
Investments----Tk 12,800
A’s Drawings----Tk 6,200
B’s Drawings----Tk 3,000
Speculation losses carried forward----Tk 20,300
Cash----Tk 1,400
The assets of the firm are estimated to realize as under: machinery Tk 12,000; furniture Tk 2,000; investments Tk 16,500; and stock Tk 12,000. Some goods left for safe custody with the firm by X, of the book value of Tk 4,000, were estimated to be worth Tk 1,000.

The Bank overdraft was further secured by a charge on B's cottage. Creditors include Tk 1,200 due to Preferential Creditors and Tk 5,400 in respect of a claim against the firm which is not expected to rank.

It is expected that A's private estate would show a deficit of Tk 4,100. B had no personal property other than the cottage which is expected to realize Tk 8,000.

From the above information, you are required to find out the following answers:

The amount of Unsecured Creditors:
Choose...

The amount of Expected to Rank:
Choose...

The amount of Deficiency:
Choose...

The amount of Net Estimated to Produce:
Choose...

Answers

Answered by sharmaranjanr
1

Answer:

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Explanation:

A and B, carrying on business in partnership and sharing profits and losses in the ratio of 3:2, require a partner, when their Balance Sheet stood as:

Liabilities (Rs.) Assets (Rs.)

Creditors

A's Capital 51,450

B's Capital 36,750 11,800

88,200 Cash

Stock

Debtors

Furniture

Machinery 1,500

28,000

19,500

2,500

48,500

1,00,000 1,00,000

They admit C into partnership and give him 1/8

th

share in the future profits on the following terms:

(a) Goodwill of the firm be valued at twice the average of the last three years profits which amounted to Rs.21,000;Rs.24,000 and Rs.25,560.

(b) C is to bring in cash for the amount of his share of goodwill.

(c) C is to bring in cash Rs.15,000 as his capital.

Pass Journal entries recording these transactions, draw out the Balance sheet of the new firm and state new profit sharing ratio

Answered by sairashi1656
0

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