12. The following is the Balance Sheet of 'A' and 'B': Balance Sheet of balance prEET 37, Creditors Liabilities Bills Payable Bank Loans General Reserve Capital a/cs: A B Amount ₹ 10,000 Bank 2,000 Debtors Assets Amount ₹ 10,000 12,000 8,000 Furniture 4,000 6,000 Building 25,000 Machinery 10,000 20,000 15,000 61,000 61,000 On the following terms they admitted 'C' in partnership: (a) Goodwill was valued in books as 10,000. (b) Reserve of 10% be created on debtors. (c) Value of Building be increased by 10%. (d) Furniture and machinery be depreciated by 5%. (e) 'C' will bring 12,000 for capital and his share in future will be 1/4. (f) Capital accounts of old partners be readjusted in their new profit sharing ratio. Prepare Revaluation A/c and show New capital of old partners. 'C' receives his share equally from old partners. [Ans: Profit on Revaluation 600; Capital of Partners A, B & C 18,000; 18,000 and 9,500 respectively]
12. The following is the Balance Sheet of 'A' and 'B': Balance Sheet of balance prEET 37, Creditors Liabilities Bills Payable Bank Loans General Reserve Capital a/cs: A B Amount ₹ 10,000 Bank 2,000 Debtors Assets Amount ₹ 10,000 12,000 8,000 Furniture 4,000 6,000 Building 25,000 Machinery 10,000 20,000 15,000 61,000 61,000 On the following terms they admitted 'C' in partnership: (a) Goodwill was valued in books as 10,000. (b) Reserve of 10% be created on debtors. (c) Value of Building be increased by 10%. (d) Furniture and machinery be depreciated by 5%. (e) 'C' will bring 12,000 for capital and his share in future will be 1/4. (f) Capital accounts of old partners be readjusted in their new profit sharing ratio. Prepare Revaluation A/c and show New capital of old partners. 'C' receives his share equally from old partners. [Ans: Profit on Revaluation 600; Capital of Partners A, B & C 18,000; 18,000 and 9,500 respectively]
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![12. The following is the Balance Sheet of 'A' and 'B':
Balance Sheet
of balance prEET 37,
Creditors
Liabilities
Bills Payable
Bank Loans
General Reserve
Capital a/cs:
A
B
Amount
₹
10,000 Bank
2,000 Debtors
Assets
Amount
₹
10,000
12,000
8,000 Furniture
4,000
6,000 Building
25,000
Machinery
10,000
20,000
15,000
61,000
61,000
On the following terms they admitted 'C' in partnership:
(a) Goodwill was valued in books as 10,000.
(b) Reserve of 10% be created on debtors.
(c) Value of Building be increased by 10%.
(d) Furniture and machinery be depreciated by 5%.
(e) 'C' will bring 12,000 for capital and his share in future will be 1/4.
(f) Capital accounts of old partners be readjusted in their new profit sharing
ratio.
Prepare Revaluation A/c and show New capital of old partners. 'C' receives his
share equally from old partners.
[Ans: Profit on Revaluation 600; Capital of Partners A, B & C 18,000;
18,000 and 9,500 respectively]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3912df1f-266f-4b49-ba67-ed5c7ef202db%2F61a1d12e-493c-4495-b983-143332d98b77%2F9mcwhoh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:12. The following is the Balance Sheet of 'A' and 'B':
Balance Sheet
of balance prEET 37,
Creditors
Liabilities
Bills Payable
Bank Loans
General Reserve
Capital a/cs:
A
B
Amount
₹
10,000 Bank
2,000 Debtors
Assets
Amount
₹
10,000
12,000
8,000 Furniture
4,000
6,000 Building
25,000
Machinery
10,000
20,000
15,000
61,000
61,000
On the following terms they admitted 'C' in partnership:
(a) Goodwill was valued in books as 10,000.
(b) Reserve of 10% be created on debtors.
(c) Value of Building be increased by 10%.
(d) Furniture and machinery be depreciated by 5%.
(e) 'C' will bring 12,000 for capital and his share in future will be 1/4.
(f) Capital accounts of old partners be readjusted in their new profit sharing
ratio.
Prepare Revaluation A/c and show New capital of old partners. 'C' receives his
share equally from old partners.
[Ans: Profit on Revaluation 600; Capital of Partners A, B & C 18,000;
18,000 and 9,500 respectively]
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