3) The following is the Balance Sheet of Amutha and Rama sharing profits 3:2, as on 31.3.2015. Balance Sheet Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital Account: Amutha 40,000 Bank 10,000 30,000 20,000 40,000 Land & Buildings |70,000 80,000 20,000 Sundry debtors Stock Machinery 70,000 Rama 30,000 170,000 170,000 -th On 1.4.2015 they decided to admit Latha into the partnership for 1/5" of the future profits on the following terms: (a) Latha shall bring in a capital of R.O 30,000 and R.O 4,000 as her share of goodwill. (b) Goodwill of the firm being valued at R.O 20,000 (c) Land and buildings be appreciated by 10% (d) Stock is depreciated by R.O 3,000 and provision for outstanding liability is created at R.O 2,000. Required: Prepare the Revaluation account, Capital accounts, Bank account and the Balance Sheet of the reconstituted partnership.

3) The following is the Balance Sheet of Amutha and Rama sharing profits 3:2, as on 31.3.2015. Balance Sheet Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital Account: Amutha 40,000 Bank 10,000 30,000 20,000 40,000 Land & Buildings |70,000 80,000 20,000 Sundry debtors Stock Machinery 70,000 Rama 30,000 170,000 170,000 -th On 1.4.2015 they decided to admit Latha into the partnership for 1/5" of the future profits on the following terms: (a) Latha shall bring in a capital of R.O 30,000 and R.O 4,000 as her share of goodwill. (b) Goodwill of the firm being valued at R.O 20,000 (c) Land and buildings be appreciated by 10% (d) Stock is depreciated by R.O 3,000 and provision for outstanding liability is created at R.O 2,000. Required: Prepare the Revaluation account, Capital accounts, Bank account and the Balance Sheet of the reconstituted partnership.

Name: 3) The following is the Balance Sheet of Amutha and Rama sharingprofi
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Description: 3) The following is the Balance Sheet of Amutha and Rama sharingprofits 3:2, as on 31.3.2015.Balance SheetLiabilitiesAmountAssetsAmountSundry creditorsBills PayableCapital Account:Amutha| 40,00080,00020,000Bank10,00030,00020,00040,00070,000Sundry de

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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Concept explainers

Financial Transaction Analysis

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business, at least two accounts should be affected I.e. both the debit side and the credit side should be equal. The Accounting Equation is

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Question

3) The following is the Balance Sheet of Amutha and Rama sharing
profits 3:2, as on 31.3.2015.
Balance Sheet
Liabilities
Amount
Assets
Amount
Sundry creditors
Bills Payable
Capital Account:
Amutha
| 40,000
80,000
20,000
Bank
10,000
30,000
20,000
40,000
70,000
Sundry debtors
Stock
Machinery
Land & Buildings
70,000
Rama
30,000
170,000
170,000
-th
On 1.4.2015 they decided to admit Latha into the partnership for 1/5" of
the future profits on the following terms:
(a) Latha shall bring in a capital of R.O 30,000 and R.O 4,000 as her
share of goodwill.
(b) Goodwill of the firm being valued at R.O 20,000
(c) Land and buildings be appreciated by 10%
(d) Stock is depreciated by R.O 3,000 and provision for outstanding
liability is created at R.O 2,000.
Required: Prepare the Revaluation account, Capital accounts, Bank
account and the Balance Sheet of the reconstituted partnership.

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