Question

Q6. The Balance sheet of X and Y who shares profits and losses in the ratio of 22
at 31st March 2014 was as follows:
Amount
Labilities
Amount
Assets
Creditors
36,000 Cash at bank
20,000
Workmen's Compensation
Debtors: 1.30.000
Fund
24.000 less provision 10,000
1,20,000
Employee's provident fund 20.000 Stock
60.000
General reserve
40.000 Investments
1,00.000
X's capital
1.68,000 Patents
20.00
Y's capital
1.12,000 Goodwill
80.000
4,00.000
4,00.000
They decided to admit Z on that date for 1/4th share on the following terms
(a) New Profit Sharing Ratio will be 6.9 5. Z is to bring in capital of 70,000
[) Goodwill of the firm is to be valued at 4 years' purchase of the average super
profits of the last three years. Average profits of the last three years are 70.000
while the normal profits that can be earned with the capital employed are
30 000 Nagoodwill is to appear in the books. Z brings in 24.000 cash out of his
share ofgoodwill
(c) Patents to be written down to 3.000 and Stock is undervalued by 32,000 20%
ofGeneral Reserve to be transferred to Provision for Doubtful Debts 9,000
included in Sundry Creditors be written back as no longer payable
(d) Out of the amount of insurance which was debited entirely to P&L A/C 10.000
becamed forward as an Unexpired Insurance. Unaccounted Accrued Income
2,000 to be provided for. A debtor whose dues of 10,000 were written off as bad
debts paid 80% in full settlement A claim of 6,000 on account of worumen's
compensation to be provided for
(e) The market value of investments was 90,000 Half of the investments were to
betaken over by old partners in their old profit sharing ratio.
Prepare the Revaluation Account, Capital Accounts and pass necessary journal
entres​

Answer 1

Answer:

Sorry I didn't understood your question