Question

started business with Machinery
40,000 , Goods 3 20,000 furniture & 10,000
Cash 110,000 out the which 350,000
was borrowed from a friend Rajeeta. Journal entry
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Answer 1

Explanation:

Answer:

2.

(Ans. Realisation Profit to A 73,000 and B 21,000, Total Profit - 240.000

Verma and Sharma were partners sharing profits in the ratio of 3 1. On 31-3-2011

their Balance Sheet was as follows:

Balance Sheet of Verma & Sharma (as at 31.3.2011)

Liabilities

Assets

Amount

₹

Amount

3

70.000

Capital :

Verma

Sharma

Creditors

Land and Building

1,20,000

Machinery

80.000 2,00.000 Debtors

70.000 Bank

2.70.000

80.000

60.000

2.70.000

The firm was dissolved on 1-4-2011 and the Assets and Liabilities were setties

follows:

(i) Creditors of 50.000 took over Land and Building in full settlement of their

claim.

(ii) Remaining Creditors were paid in cash.

(iii) Machinery was sold at a depreciation of 30%

(iv) Debtors were collected at a cost of 500

(v) Expenses of realisation were 1.700.