Trade CreditorsCapitals :ManojNaveenDeepakratio of 4:3:2. As at April, 2012, their Balance Sheet was as follows:0.13. Manoj, Naveen and Deepak were partners sharing profits and losses in theLiabilities₹Assets7,000 Cash in hand5,900Debtors19,00050,000Less : Provision1,400 17,60039,000Stock13,50030,0001,19,000 Plant and Machinery18,000Motor Car20,000Buildings48,000Goodwill3,0001,26,0001,26,000Deepak retired on the above date as per the following terms :1. Goodwill of the firm was valued at $21,000.2. Stock to be appreciated by 10%.3. Provision for doubtful debts should be 5% on debtors.4. Machinery is to be valued at 5% more than its book value.5. Motor Car is revalued at 315,500. Retiring partner took over Motor Car at thisvalue.6. Deepak be paid 2,000 in cash and balance be transferred to his loan account.Show necessary journal entries. Prepare Revaluation Account, Capital Accountsand Opening Balance Sheet of continuing partners.
Answers
Answer:
Mitali’s share in profit= 1/10
Atul’s new share= 3/5-1/10=5/10
Neera’s new share= 2/5
Mitali’s share=1/10
New ratio= 5:4:1
Explanation:
Trade CreditorsCapitals :ManojNaveenDeepakratio of 4:3:2. As at April, 2012, their Balance Sheet was as follows:0.13. Manoj, Naveen and Deepak were partners sharing profits and losses in theLiabilities₹Assets7,000 Cash in hand5,900Debtors19,00050,000Less : Provision1,400 17,60039,000Stock13,50030,0001,19,000 Plant and Machinery18,000Motor Car20,000Buildings48,000Goodwill3,0001,26,0001,26,000Deepak retired on the above date as per the following terms :1. Goodwill of the firm was valued at $21,000.2. Stock to be appreciated by 10%.3. Provision for doubtful debts should be 5% on debtors.4. Machinery is to be valued at 5% more than its book value.5. Motor Car is revalued at 315,500. Retiring partner took over Motor Car at thisvalue.6. Deepak be paid 2,000 in cash and balance be transferred to his loan account.Show necessary journal entries. Prepare Revaluation Account, Capital Accountsand Opening Balance Sheet of continuing partners