Links Comments Header & Footer Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity RO Assets RO Bills Payable 80000 Cash in Hand 1875 Sundry Creditors Outstanding Expenses 156250 Cash at Bank 511250 1250 Debtors 222500 Capital: 0 Stock 500000 Furniture 312500 Plant and Machinery 375000 Building 278750 Lalitha 43750 Jothi 121875 Kananga Profits & Loss A/c 300000 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture 37500 Plant & Machinery 112500 Building A provision for doubtful debt to be created at 250000 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately.
Links Comments Header & Footer Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021. Liabilities & Equity RO Assets RO Bills Payable 80000 Cash in Hand 1875 Sundry Creditors Outstanding Expenses 156250 Cash at Bank 511250 1250 Debtors 222500 Capital: 0 Stock 500000 Furniture 312500 Plant and Machinery 375000 Building 278750 Lalitha 43750 Jothi 121875 Kananga Profits & Loss A/c 300000 55000 1480000 1480000 Lalitha retired from the partnership on April 01, 2021 under the following terms: The assets are to be valued as under: Stock 250000 Furniture 37500 Plant & Machinery 112500 Building A provision for doubtful debt to be created at 250000 10625 Goodwill of the firm was to be valued at 75000 The gaining ratio is 2:3. Lalitha was to be paid off immediately.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Record the necessary journal entries , prepare Revaluation Account, Capital Accounts and Balance Sheet of the reconstituted partnership .
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Comments
Header & Footer
Lalitha, Jothi and Kanaga were partners of a firm sharing profit and losses in the ratio
of 3:2:3. Set out below was their balance sheet as onMarch 31, 2021.
Liabilities & Equity
RO
Assets
RO
Bills Payable
80000 Cash in Hand
1875
Sundry Creditors
Outstanding Expenses
156250 Cash at Bank
511250
1250 Debtors
222500
Capital:
0 Stock
500000 Furniture
312500 Plant and Machinery
375000 Building
278750
Lalitha
43750
Jothi
121875
Kananga
300000
Profits & Loss A/c
55000
1480000
1480000
Lalitha retired from the partnership on April 01, 2021 under the following terms:
The assets are to be valued as under:
Stock
250000
Furniture
37500
Plant & Machinery
112500
Building
A provision for doubtful debt to be created at
250000
10625
Goodwill of the firm was to be valued at
75000
The gaining ratio is 2:3.
Lalitha was to be paid off immediately.
Record the necessary journal entries, prepare Revaluation Account,
Capital Accounts and Balance Sheet of the reconstituted partnership.
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