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 Amount Assets Amount Liabilities Sundry creditors 96,000 Cash in Hand 4,000 Bills Payable 56,000 34,000 Sundry debtors Stock Capital accounts: 40,000 V: 90,000 Plant & machinery 80,000 K: 80,000 170,000 Land & Buildings 120,000 300,000 300,000 The partners agreed to admit E into the firm subject to revaluation of the following items: (i) Stock was to be reduced by RO 4,000 (ii) Land and Buildings were to be valued at RO 160,000 (iii) A provision of 2.5 % was to be created for doubtful debtors (iv) A liability of RO 2,600 for outstanding expenses had been omitted to be recorded in the books. E contributed RO 60,000 as his share of capital. Required: Prepare the revaluation account, capital accounts and the balance sheet after the above adjustment.

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 Amount Assets Amount Liabilities Sundry creditors 96,000 Cash in Hand 4,000 Bills Payable 56,000 34,000 Sundry debtors Stock Capital accounts: 40,000 V: 90,000 Plant & machinery 80,000 K: 80,000 170,000 Land & Buildings 120,000 300,000 300,000 The partners agreed to admit E into the firm subject to revaluation of the following items: (i) Stock was to be reduced by RO 4,000 (ii) Land and Buildings were to be valued at RO 160,000 (iii) A provision of 2.5 % was to be created for doubtful debtors (iv) A liability of RO 2,600 for outstanding expenses had been omitted to be recorded in the books. E contributed RO 60,000 as his share of capital. Required: Prepare the revaluation account, capital accounts and the balance sheet after the above adjustment.

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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Alfa Company is liquidating. It has the following account balances: Cash $5,000, Non-cash assets $60,000, Liability $31,000, A Capital $15,000, B Capital $17,800, and C Capital $1,200. The company sold its non-cash assets for $84,000 and the income ratios of the partners are 3:2:1 respectively. The balance of C, Capital after paying liabilities is: (Show your calculation)
A, B, C, and D are partners, sharing earnings in the ratio of 3/21, 4/21, 6/21 and 8/21,respectively. The balances of their capital accounts on December 31, 20x1 are as follows: A --------- P1,000 B --------- 25,000 C ---------- 25,000 D ---------- 9,000 Total ------ 60,000 The partners decide to liquidate, and they accordingly convert the non-cash assets into P23,200 cash. After paying the liabilities amounting to P3,000, they have P22,000 to divide. Assume that a debit balance of any partner's capital is uncollectible. The share of B in the cash distribution to the partners was: (round-off answer) Please answer in good accounting form.
ILLUSTRATION 37:-X, Y and Z were partners sharing profits and losses in the ratio 2 : 2 : 1. Their respective capital balances on 31.12.2014 were $ 5,00,000, $ 6,00,000 and $ 4,00,000 respectively. After closing the accounts for the year 2014, it was discovered that salaries of $ 20,000 p.a. to X and $ 30,000 to Z were ommited before distributing the profit. Profits for the year 2014 were $ 5,00,000 and the same have already been credited to their capital accounts. Instead of changing the audited Balance sheet, it was decided to pass a single adjusting entry in the beginning of the year 2015, so that accounts of previous year can be rectified.
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On January 1, 20x1, the partners of ABC Co. decided to liquidate their partnership. 80,000 240,000 480,000 1,200,000 2,000,000 Cash Accounts receivable Inventory Equipment Total Accounts payable to B Payable A, Capital (20%) B, Capital (30%) C, Capital (50%) 800,000 Total 2,000,000 Information on the conversion of non-cash assets is as follows: 120,000 80,000 400,000 600,000 • $40,000 was collected on accounts receivable; the balance is uncollectible. $20,000 was received for the entire inventory. . The equipment was sold for $200,000./ $8,000 liquidation expenses were paid. • • #108,000 was paid to outside creditors, after offset of a 12,000 credit, memorandum received on January 2, 20x1. All of the partners are personally solvent. How much did B receive from the settlement of his interest in the partnership?