2) V and K were partners sharing profits and losses as 60% to V and 40% to K. Their Balance Sheet as at 1st January, 2005 stood as under Balance Sheet Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital accounts: 90,000 96,000 34,000 Cash in Hand 4,000 Sundry debtors Stock 56,000 40,000 Plant & machinery | 80,000 Land & Buildings | 120,000 V: K: 80,000 | 170,000 300,000 300,000 The partners agreed to admit E into the firm subject to revaluation of the following items: (i) Stock was to be reduced by R.O 4.000 (ii) Land and Buildings were to be valued at R.O 160,000 (iii) A provision of 2 ½% was to be created for doubtful debtors (iv) A liability of R.O 2,600 for outstanding expenses had been omitted to be recorded in the books. E contributed R.O 60,000 as his share of capital. Required: Prepare the revaluation account, capital accounts and the
2) V and K were partners sharing profits and losses as 60% to V and 40% to K. Their Balance Sheet as at 1st January, 2005 stood as under Balance Sheet Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital accounts: 90,000 96,000 34,000 Cash in Hand 4,000 Sundry debtors Stock 56,000 40,000 Plant & machinery | 80,000 Land & Buildings | 120,000 V: K: 80,000 | 170,000 300,000 300,000 The partners agreed to admit E into the firm subject to revaluation of the following items: (i) Stock was to be reduced by R.O 4.000 (ii) Land and Buildings were to be valued at R.O 160,000 (iii) A provision of 2 ½% was to be created for doubtful debtors (iv) A liability of R.O 2,600 for outstanding expenses had been omitted to be recorded in the books. E contributed R.O 60,000 as his share of capital. Required: Prepare the revaluation account, capital accounts and the
Chapter23: Corporate Restructuring
Section: Chapter Questions
Problem 5P
Related questions
Question
![2) V and K were partners sharing profits and losses as 60% to V and
40% to K. Their Balance Sheet as at 1st January, 2005 stood as under
Balance Sheet
Liabilities
Amount
Assets
Amount
Sundry creditors
Bills Payable
Capital accounts:
4,000
56,000
40,000
Plant & machinery | 80,000
Land & Buildings 120,000
96,000
Cash in Hand
34,000
Sundry debtors
Stock
V:
90,000
K:
80,000 170,000
300,000
300,000
The partners agreed to admit E into the firm subject to revaluation of the
following items: (i) Stock was to be reduced by R.O 4.000 (ii) Land and
Buildings were to be valued at R.O 160,000 (iii) A provision of 2 ½%
was to be created for doubtful debtors (iv) A liability of R.O 2,600 for
outstanding expenses had been omitted to be recorded in the books. E
contributed R.O 60,000 as his share of capital.
Required: Prepare the revaluation account, capital accounts and the
balance sheet after the above adjustment.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F0512f021-d7de-473f-9ea3-ff55e4b3148d%2F2c637d78-e169-4c16-8509-c3eb35e38610%2Fsnsq9vp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2) V and K were partners sharing profits and losses as 60% to V and
40% to K. Their Balance Sheet as at 1st January, 2005 stood as under
Balance Sheet
Liabilities
Amount
Assets
Amount
Sundry creditors
Bills Payable
Capital accounts:
4,000
56,000
40,000
Plant & machinery | 80,000
Land & Buildings 120,000
96,000
Cash in Hand
34,000
Sundry debtors
Stock
V:
90,000
K:
80,000 170,000
300,000
300,000
The partners agreed to admit E into the firm subject to revaluation of the
following items: (i) Stock was to be reduced by R.O 4.000 (ii) Land and
Buildings were to be valued at R.O 160,000 (iii) A provision of 2 ½%
was to be created for doubtful debtors (iv) A liability of R.O 2,600 for
outstanding expenses had been omitted to be recorded in the books. E
contributed R.O 60,000 as his share of capital.
Required: Prepare the revaluation account, capital accounts and the
balance sheet after the above adjustment.
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