TheBalance Sheet of L and M who share profits and losses in the ratio of 2:3 as at 31.3.2015was as under:BALANCE SHEETas at 31.03.2015Liabilities$Assets$Creditors25,000 | Cash40,000N's Loan55,000 | Debtors50,000L's Capital80,000 Stock47,000M's Capital70,000 | Furniture30,000Machinery43,000Goodwill15,000Profit and Loss A/c5,0002,30,0002,30,000On 1.4.2015, N was admitted into partnership forth share, on the following terms :-(a) That N's Loan should be treated as his capital.(b) N could not bring $35,000 as his share of goodwill in cash. It was decided not toshow goodwill account anywhere in books and for this purpose existing goodwillshould also be written off.(c) Assets be revalued as under:Machinery $ 52,000; Furniture $ 20,000; Stock $ 50,000.Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet ason 1.4.2015.

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Balance Sheet of L and M who share profits and losses in the ratio of 2:3 as at 31.3.2015 vas as under: BALANCE SHEET as at 31.03.2015 Liabilities $ Assets $ Creditors 25,000 Cash 40,000 d's Loan 55,000 | Debtors 50,000 's Capital 80,000 Stock 47,000 I's Capital 70,000 | Furniture 30,000 Machinery 43,000 Goodwill 15,000 Profit and Loss A/c 5,000 2,30,000 2,30,000 1 On 1.4.2015, N was admitted into partnership for – th share, on the following terms :- 4 (a) That N's Loan should be treated as his capital. (b) N could not bring $35,000 as his share of goodwill in cash. It was decided not to show goodwill account anywhere in books and for this purpose existing goodwill should also be written off. (c) Assets be revalued as under: Machinery $ 52,000; Furniture $ 20,000; Stock $ 50,000. Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet as

Balance Sheet of L and M who share profits and losses in the ratio of 2:3 as at 31.3.2015 vas as under: BALANCE SHEET as at 31.03.2015 Liabilities $ Assets $ Creditors 25,000 Cash 40,000 d's Loan 55,000 | Debtors 50,000 's Capital 80,000 Stock 47,000 I's Capital 70,000 | Furniture 30,000 Machinery 43,000 Goodwill 15,000 Profit and Loss A/c 5,000 2,30,000 2,30,000 1 On 1.4.2015, N was admitted into partnership for – th share, on the following terms :- 4 (a) That N's Loan should be treated as his capital. (b) N could not bring $35,000 as his share of goodwill in cash. It was decided not to show goodwill account anywhere in books and for this purpose existing goodwill should also be written off. (c) Assets be revalued as under: Machinery $ 52,000; Furniture $ 20,000; Stock $ 50,000. Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet as

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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