Answered: A and B are partners in the ratio of…

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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A and B are partners in the ratio of 2:3.Thier balance sheet shows machienery at 400000,stock at 160000 and debtors at 320000,c is admitted and new profit sharing ratio is agreed at 6:9;5. Machinery is revalued at 340000 and a provition is made for doubful debts @25%. A share in loss on revaluation amount to 20000. Revalued value of stock will be

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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