A, B and C Partners Sharing ratio 5:3:2Balance sheet
31-3-11 as follows
liabilities
creditors 10000
EPF 5000
general reserve 6000
WCR 2000
A's capital 50000
b's capital 35000
C's capital 25000
total.133000
Assets
Building
60000
cash 2000
debtors 8000
stock40000
furniture 13000
patents 4000
goodwill 6000
C retires...
* Provision is made on debtors
appreciated by 10%.
*Patents are valueless
*Building appreciated by 20%
*Creditors to be paid 2000 more than book value
Goodwill is to is to be valued 20000
*stock appreciated by 10%
Prepare Revaluation Alc, capital accounts and
Balance sheet
Answers
Explanation:
i) REVALUATION A/C
Dr. Cr.
Particulars Amount Particulars Amount
To Provision for Doubtful Debts 1700 By Prepaid advertisement Expenses 1200
To A's Capital
(revenue expense) 2100 By B's Capital
(personal expenses) 2000
By Loss transferred to:
- A's Capital a/c
- B's Capital a/c
- C's Capital a/c
300
200
100
3800 3800
(ii) PARTNER'S CAPITAL A/C
Dr. Cr.
Particulars A B C D Particulars A B C D
To Revaluation a/c
(personal) 2000 By Balance b/d 60000 40000 40000
To Revaluation a/c
(loss) 300 200 100 By Cash a/c 40000
To Balance c/d 61800 37800 39900 50000 By Creditors 10000
By revaluation expenses 2100
62100 40000 40000 50000 62100 40000 40000 50000
(iii) BALANCE SHEET
Dr. Cr.
Liabilities Amount Assets Amount
Capital a/cs:
- A
- B
- C
- D
61800
57800
39900
50000 Land and Building 50000
Bills Payable 10000 Plant and Machinery 40000
Creditors 30000
(-) D's Capital (10000) 20000 Furniture 30000
Stock 20000
Prepaid Advertisement
Expenses 1200
Debtors 30000
(-) Provision for (1700)
Doubtful debts
(+) Bills receivable 4000
dishonoured 32300
Bills receivable 20000
Bank (10000+40000-4000)
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