Basant, Hemant and Sarat were partners in a firm sharing profits and losses in the ratio of 4 : 3:3, respectively. Th firm was dissolved and Hemant was appointed to realise the assets and distribute the proceeds. Hemant is to receive 5% commission on the amount realised from sale of assets and to bear all expenses of realisation. The Balance Sheet on the date of dissolution was as under: Rs. Rs. Rs. Creditors Basant's Capital Hemant's Capital A/c 59,000 Cash 30,000 Debtors 20,000 Less: Provisions 1,500 45,500 2,500 43,000 60,000 4,500 Stock Sarat's Capital 1,09,000 1,09,000 Debtors realised Rs.35,000; Stock Rs.45,000; Goodwill Rs.2,000; Creditols was paid rs.57,500 in full settlement. In addition, outstanding creditors Rs.500, were also paid. The expenses amounted to Rs.600. Basant and Hemant agreed to recene Rs.3,000 from Sarat, in full settlement.

Basant, Hemant and Sarat were partners in a firm sharing profits and losses in the ratio of 4 : 3:3, respectively. Th firm was dissolved and Hemant was appointed to realise the assets and distribute the proceeds. Hemant is to receive 5% commission on the amount realised from sale of assets and to bear all expenses of realisation. The Balance Sheet on the date of dissolution was as under: Rs. Rs. Rs. Creditors Basant's Capital Hemant's Capital A/c 59,000 Cash 30,000 Debtors 20,000 Less: Provisions 1,500 45,500 2,500 43,000 60,000 4,500 Stock Sarat's Capital 1,09,000 1,09,000 Debtors realised Rs.35,000; Stock Rs.45,000; Goodwill Rs.2,000; Creditols was paid rs.57,500 in full settlement. In addition, outstanding creditors Rs.500, were also paid. The expenses amounted to Rs.600. Basant and Hemant agreed to recene Rs.3,000 from Sarat, in full settlement.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

pm.4 answer must be in proper format or i will give down vote
the answer provided does not support the question. which makes the answer incorrect.
What is underpricing? Why is it used? What evidence do we have to support the belief that underpricing is a regular problem?
What is Descartes's account of error? How do we make one and how can we avoid making one?
do you not see the solution you provided is the exact one i submitted, it says it's wrong..
Make sure to calculate the NPV correctly! The previous answer was wrong!
Explain the last chance clear rule.
It says they answers are wrong from your example.