3) The following is the Balance Sheet of Amutha and Rama sharing profits 3:2, as on 31.3.2015. Balance Sheet IET Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital Account: Amutha 80,000 Bank 10,000 Sundry debtors Stock 20,000 30,000 20,000 Machinery Land & Buildings 40,000 40,000 70,000 Rama 30,000 70,000 170,000 170,000 On 1.4.2015 they decided to admit Latha into the partnership for 1/5th 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. (Ans.: Revaluation Profit: R.O 2,000; B/s : R.O2,24,000)
3) The following is the Balance Sheet of Amutha and Rama sharing profits 3:2, as on 31.3.2015. Balance Sheet IET Liabilities Amount Assets Amount Sundry creditors Bills Payable Capital Account: Amutha 80,000 Bank 10,000 Sundry debtors Stock 20,000 30,000 20,000 Machinery Land & Buildings 40,000 40,000 70,000 Rama 30,000 70,000 170,000 170,000 On 1.4.2015 they decided to admit Latha into the partnership for 1/5th 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. (Ans.: Revaluation Profit: R.O 2,000; B/s : R.O2,24,000)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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