A,B and Care partners sharing profits and losses in the proportion of % , and % respectively. The firm's Balance Sheet on 31 March, 2015 was as follows: BALANCE SHEET as at 31" March 2015 Liabilities $ Assets Creditors 28,500 Cash 1,150 Bills Payable Profit &Loss A/c 7,500 Debtors 24,000 18,000 Less: Provision 750 23,250 37,500 12,000 52,500 67,500 Capital Accounts: A. Stock 60,000 45,000 Computer B. Plant C. 1,42,500 Building Trade Marks 37.500 2,600 1,96,500 1,96,500 B retires on that date, subject to the following adjustments: (a) The Goodwill of the firm to be valued at $ 27,000 and only B's share is to be recorded. (b) Plant to be decreased by 10% and Computer by 15% (c) Stock to be appreciated by 20% and Buildings by 10% (d) Provision for Doubtful Debts to be increased by $ 2,925 (e) Unrecorded Investments were sold for $ 18,000 Prepare: (1) Revaluation Account and (2) B's Capital Account
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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