Question

is credited, les
(55) The Balance Sheet of A and B as at 31st March, 2016 is:
X
Assets
Liabilities
Capital A/cs:
60,000
30,000
А.
B
General Reserve
Creditors
90,000
24,000
16,000
Freehold Property
Furniture
Stock
Debtors
Cash
20,000
6,000
12,000
80,000
12,000
1,30,000
1,30,000
A and B share profits and losses in the ratio of 2:1. They agree to admit P into the firm with effect from
1st April, 2016 subject to the following terms and conditions:
(a) P will bring in 21,000 of which 9,000 will be treated as his share of goodwill to be retained in
the business.
(b) P will be entitled to 1/4th share of profits of the firm.
(c) A Reserve for Doubtful Debts is to be created @ 3% of the Debtors.
(d) Furniture is to be depreciated by 5%.
(e) Stock is to be revalued at * 10,500.
Prepare Revaluation Account, Capital Accounts and Opening Balance Sheet of the new firm.
(Ans.: Loss on Revaluation --- 4,200; Closing Balance: A's Capital 79,200;
20600 ple Canital
Rc Capital
12
0001​

Answer 1

Explanation:

loss on revaluation - ₹4200

closing balance: A's capital- ₹79200 B's capital -₹39600

capital- ₹12000

balance sheet total -₹146800