Homework Help is Here – Start Your Trial Now!
Business
Accounting
Dan and Job are in partnership and share profit and losses in the ratio 4:6 respectively. On 31/12/22, the balance sheet of Dan and Job partnership was as follows:

Dan and Job are in partnership and share profit and losses in the ratio 4:6 respectively. On 31/12/22, the balance sheet of Dan and Job partnership was as follows:

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Don't give answer in image format 

Dan and Job are in partnership and share profit and losses in the ratio 4:6 respectively. On 31/12/22, the balance sheet of Dan and Job partnership was as follows: Building Lorry Photocopy Debtors Stock Cash Balance sheet as at 31/12/22 Sh. Building Photocopy Stock 70,000 45,000 35,000 30,000 27,000 55,000 262,000 Capital Dan Capital Job Loan Unpaid insurance Sh. 105,000 28,500 58,000 35,000 50,000 120,000 On 1/1/23, they admitted Tom as their partner on the following conditions: 34,000 i. Tom was to bring in shs.40,000 cash as capital. ii. The profit and loss sharing ratios would be 4:5:3 for Tom, Job and Dan respectively. iii.It was agreed to revalue certain assets before admitting Tom as under, shs. 262,000 iv.Goodwill of shs.44,000 was created before the admission of Tom. The goodwill will not be shown in the balance sheet. Required: Make the appropriate ledger entries and then prepare the balance sheet as at 1/1/23 after the admission of Tom.
Transcribed Image Text:Dan and Job are in partnership and share profit and losses in the ratio 4:6 respectively. On 31/12/22, the balance sheet of Dan and Job partnership was as follows: Building Lorry Photocopy Debtors Stock Cash Balance sheet as at 31/12/22 Sh. Building Photocopy Stock 70,000 45,000 35,000 30,000 27,000 55,000 262,000 Capital Dan Capital Job Loan Unpaid insurance Sh. 105,000 28,500 58,000 35,000 50,000 120,000 On 1/1/23, they admitted Tom as their partner on the following conditions: 34,000 i. Tom was to bring in shs.40,000 cash as capital. ii. The profit and loss sharing ratios would be 4:5:3 for Tom, Job and Dan respectively. iii.It was agreed to revalue certain assets before admitting Tom as under, shs. 262,000 iv.Goodwill of shs.44,000 was created before the admission of Tom. The goodwill will not be shown in the balance sheet. Required: Make the appropriate ledger entries and then prepare the balance sheet as at 1/1/23 after the admission of Tom.
Expert Solution
steps

Step by step

Solved in 6 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Partners and Partnerships
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS