Amo (R 90000 Cash 7. 30000 Debtors 60000 Stock O Plant 120000 Buildings 105 45 37 150 60000 Profit & Loss Ac 15 90000 Equipment 90 450000 Total 450
Amo (R 90000 Cash 7. 30000 Debtors 60000 Stock O Plant 120000 Buildings 105 45 37 150 60000 Profit & Loss Ac 15 90000 Equipment 90 450000 Total 450
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as
on March 31, 2021 is as follows.
Liabilities
Amount (RO)
Assets
Amount (RO)
Creditors
90000 Cash
7500
Bills Payable
30000 Debtors
105000
60000 Stock
0 Plant
General Reserve
45000
Capital:
37500
Ahmed
120000 Buildings
150000
Wahid
60000 Profit & Loss Ac
15000
Bank Overdraft
90000 Equipment
90000
Total
450000 Total
450000
On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on
the following terms:
a) Building is revalued at
180000
b) Stock is revalued at
32250
c) Goodwill is raised at
60000
d) Provision for bad debts is to be made at 5%
e) Khalid has to bring in a Capital
75000
f) Khalid was unable to bring the amount of goodwill
Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the
reconstituted firm.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febf5d60e-da7d-46e4-a1bd-b8ab173e2f7d%2F7d0e314e-ae93-43d5-b9f2-f23a9e0a5652%2Fpr2vj9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet as
on March 31, 2021 is as follows.
Liabilities
Amount (RO)
Assets
Amount (RO)
Creditors
90000 Cash
7500
Bills Payable
30000 Debtors
105000
60000 Stock
0 Plant
General Reserve
45000
Capital:
37500
Ahmed
120000 Buildings
150000
Wahid
60000 Profit & Loss Ac
15000
Bank Overdraft
90000 Equipment
90000
Total
450000 Total
450000
On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits on
the following terms:
a) Building is revalued at
180000
b) Stock is revalued at
32250
c) Goodwill is raised at
60000
d) Provision for bad debts is to be made at 5%
e) Khalid has to bring in a Capital
75000
f) Khalid was unable to bring the amount of goodwill
Pass Journal Entries and Prepare Revaluation Account, Capital Accounts and the Balance Sheet of the
reconstituted firm.
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