12,400 16,320 Goodwill Plant and machinery Stock Debtors Cash at bank 6,420 4,100 626 11,146 ( 5,928) Sundry creditors 5,218 33,938 Capital: Fitch Wall 19,461 14,477 33,938 On 1 January 20X3, they decided to admit Home as a partner on the condition that she contributed £12,000 as her capital but that the plant and machinery and stock should be revalued at £16,800 and £6,100 respectively, the other assets excepting goodwill, remaining at their book values. The goodwill was agreed to be valueless. You are required to show: (a) The ledger entries dealing with the above in the following accounts: (i) Goodwill account, (ii) Revaluation accounts, (iii) Capital accounts; (b) The balance sheet of the partnership immediately after the admission of Home.

12,400 16,320 Goodwill Plant and machinery Stock Debtors Cash at bank 6,420 4,100 626 11,146 ( 5,928) Sundry creditors 5,218 33,938 Capital: Fitch Wall 19,461 14,477 33,938 On 1 January 20X3, they decided to admit Home as a partner on the condition that she contributed £12,000 as her capital but that the plant and machinery and stock should be revalued at £16,800 and £6,100 respectively, the other assets excepting goodwill, remaining at their book values. The goodwill was agreed to be valueless. You are required to show: (a) The ledger entries dealing with the above in the following accounts: (i) Goodwill account, (ii) Revaluation accounts, (iii) Capital accounts; (b) The balance sheet of the partnership immediately after the admission of Home.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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