Amar tarun and akhil were the partners. psr-5:3:2. Balance sheet as at 31 st march 2017 was as follows ASSETS Cash in Hand 25000 Bank Balance 125000 Bills Receivable 10000 Sundry Debtor 100000 less pfd 10000 ______ 90000 stock 200000 furniture 50000 computers 300000 AC s 100000 LIABILITIES sundry creditors 1,60,000 salaries payble 30000 Reserves 80000 p&l ac 30000 capital a/cs: Amar 300000 Tarun 1,80,000 Akhil 1,20,000 Profit-sharing ratio among the partners was agreed to be 2 : 2 : 1 w.e.f 1st April, 2017 .They agreed to the following (i)I Stock to bc increased to 2.20,000. (ii) provision for Doubtful Debts lo be reduced by 2,000. (iii) Furniture to be reduced by 20%. (iv) Computers lo be reduced to rs 2.70,000. (v) Goodwill of the firm is valued at rs 1,00,000. the partners decided to carry the assets and liabilities at their existing values. 'l'hey also decided that reserves and Profit and Loss Account balance be carried at the same values. (i)Pass an ' Adjustme
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Answer:
1. Calculation of gain and sacrifice:
A: 1/3 -5/10 = (5/30)
B: 1/3 – 3/10 = 1/30
C: 1/3 – 2/10 = 4/30
2. Goodwill = [(50000) + 250000+ 250000] / 3
= 150000 x 2 = 300000
Explanation:
Revaluation A/c Dr. 29500
To Land and Building A/c 17500
To Machinery A/c 12000
(being decrease in assets)
2. Motor cycle A/c Dr. 20000
To Revaluation A/c 20000
(being motor cycle now recorded in books
3. Sundry creditors A/c Dr. 10000
To Revaluation A/c 10000
(being decrease in value of creditors)
4. Revaluation A/c Dr. 5000
To Cash A/c (expenses) 3000
To C’s Capital A/c 2000
(being revaluation expenses and C’s remuneration recorded)
5. Revaluation A/c Dr. 2500
To Provision for debtors A/c 2500
(being provision on debtors created)
6. A’s Capital A/c Dr.
B’s Capital A/c Dr.
C’s Capital A/c Dr.
To Revaluation A/c
(being transfer of loss on revaluation in old ratio)
7. A’s Capital A/c Dr. 2500
B’s Capital A/c Dr. 1500
C’s Capital A/c Dr. 1000
To Advertisement Suspense A/c 5000
(being advertisement suspense written off)
8. B’s Capital A/c Dr. 13000
C’s Capital A/c Dr. 52000
To A’s Capital A/c 65,000
(being adjustment for goodwill, general reserve and investment fluctuation reserve)
Revaluation A/c
Particulars Amount Particulars Amount
To Land and Buildings A/c 17500 By Motor cycle A/c 20000
To Machinery A/c 12000 By Sundry creditors A/c 10000
To Cash A/c 3000 By Partner’s Capital A/c: 7000
To C’s Capital A/c 2000 A (5/10) : 3500
To Provision for debtors A/c 2500 B (3/10) : 2100
C (2/10) : 1400
37000 37000
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