A & B were partners sharing profits and losses in the proportion of 2:3. The following is the BalanceSheet of A & B on 31st March 2015.Liabilities$Assets$Bills PayableWorkmen's Compensation Reservé10,000 Cash10,00015,000 Book Debts30,000 Bills Receivable15,000General Reserve15,000Capitals:Inventories10,000A20,000Fixtures20,000B25,00045,000 Business Premises30,0001,00,0001,00,000They admit C for th share into partnership on 1st April 2015, on the following5terms:(i) C brings $ 30,000 as capital.(ii) Goodwill of the firm is valued on the basis of C's share in profits and capitalcontributed by him.(ii) The Provision on Book Debts is to be created @ 5%.(iv) Fixtures and Inventories are to be decreased by 10%.(v) That the value of Business Premises be appreciated by 10%.Prepare the Revaluation Account, Partners' Capital Accounts and also the BalanceSheet of the new firm.

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A & B were partners sharing profits and losses in the proportion of 2:3. The following is the Balance Sheet of A & B on 31s* March 2015. Liabilities Assets Bills Payable Workmen's Compensation Reservé 10,000 Cash 10,000 15,000 Book Debts 15,000 General Reserve 30,000 Bills Receivable 15,000 Capitals: Inventories 10,000 A 20,000 Fixtures 20,000 B 25,000 45,000 Business Premises 30,000 1,00,000 1,00,000 They admit C for th share into partnership on Ist April 2015, on the following 5 terms: (i) C brings $ 30,000 as capital. (ii) Goodwill of the firm is valued on the basis of C's share in profits and capital contributed by him. (ii) The Provision on Book Debts is to be created @ 5%. (iv) Fixtures and Inventories are to be decreased by 10%. (v) That the value of Business Premises be appreciated by 10%. Prepare the Revaluation Account, Partners' Capital Accounts and also the Balance Sheet of the new firm.

A & B were partners sharing profits and losses in the proportion of 2:3. The following is the Balance Sheet of A & B on 31s* March 2015. Liabilities Assets Bills Payable Workmen's Compensation Reservé 10,000 Cash 10,000 15,000 Book Debts 15,000 General Reserve 30,000 Bills Receivable 15,000 Capitals: Inventories 10,000 A 20,000 Fixtures 20,000 B 25,000 45,000 Business Premises 30,000 1,00,000 1,00,000 They admit C for th share into partnership on Ist April 2015, on the following 5 terms: (i) C brings $ 30,000 as capital. (ii) Goodwill of the firm is valued on the basis of C's share in profits and capital contributed by him. (ii) The Provision on Book Debts is to be created @ 5%. (iv) Fixtures and Inventories are to be decreased by 10%. (v) That the value of Business Premises be appreciated by 10%. Prepare the Revaluation Account, Partners' Capital Accounts and also the Balance Sheet of the new firm.

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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