Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3:3:2. They dectded to share the profits equally w.e.f. April 1, 2015. Thetr Balance Sheet as on March 31, 2016 was as follows: Ltabtltttes Arnount Assets (Rs.) Amount (Rs.) Sundry Creditors General Reserve Partner's Loan: Dinesh Ramesh Partners Capital : Dinesh Ramesh Suresh 1,50,000 Cash at Bank 80,000 Bills Recetvable Sundry Debtors Stock 70,000 Fixed Assets 40,000 50,000 60,000 40,000 _30,000 1,20,000 2,80,000 1,00,000 80,000 70,000 2,50,000 5,50,000 5,50,000 It was also decide that : 1. The fixed assets should be valued at Rs. 3,31,000. 2. A provisions of 5% on sundry debtors be made doubtful debts. 3. The goodwill of the firm at this date be valued at 4% years purchase of the average net profts of last, five years which were Rs. 14,000; Rs. 17,000; Rs. 20,000; Rs. 22.000 and Rs. 27,000 respectively. 4. The value of stock be reduced to Rs. 1,12,000. 5. Goodwill was not to appear in the books. Pass the necessary journal entrtes and prepare the revised Balance sheet of the firm.
Dinesh, Ramesh and Suresh are partners in a firm sharing profits and losses in the ratio of 3:3:2. They dectded to share the profits equally w.e.f. April 1, 2015. Thetr Balance Sheet as on March 31, 2016 was as follows: Ltabtltttes Arnount Assets (Rs.) Amount (Rs.) Sundry Creditors General Reserve Partner's Loan: Dinesh Ramesh Partners Capital : Dinesh Ramesh Suresh 1,50,000 Cash at Bank 80,000 Bills Recetvable Sundry Debtors Stock 70,000 Fixed Assets 40,000 50,000 60,000 40,000 _30,000 1,20,000 2,80,000 1,00,000 80,000 70,000 2,50,000 5,50,000 5,50,000 It was also decide that : 1. The fixed assets should be valued at Rs. 3,31,000. 2. A provisions of 5% on sundry debtors be made doubtful debts. 3. The goodwill of the firm at this date be valued at 4% years purchase of the average net profts of last, five years which were Rs. 14,000; Rs. 17,000; Rs. 20,000; Rs. 22.000 and Rs. 27,000 respectively. 4. The value of stock be reduced to Rs. 1,12,000. 5. Goodwill was not to appear in the books. Pass the necessary journal entrtes and prepare the revised Balance sheet of the firm.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
I need the answer as soon as possible
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
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
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education