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M,BandAwere three partnersssharing profits i in the ratio 2::2::11 Their Balance Sheet as at 311.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities Assets $ 28,000 30,000 20,000 10,000 25,000 17,500 $ General Reserve Cash M's Capital Bis Capital FAs Capital 4(000 T7500 28,500 45,500 T5,000 30,000 Debtors Stock Land & Building Motor Vehicle Creditors Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: ((a) Batance in Capital A/c ((b) Shareof goodwill valued on the basis of thrice the average profits for the pastifourccompieted years. ((6) Sharein profits upto the dote of death on the basis of average profits forthe pastifour completeti yeurs. ((d) iInterestoncapital@ 18% p.a. Profits forthe yearsending on/March 31 of 2009, 2010, 2011antd2012 respectively.were $50,000, SEB,00, $40,000, $52,0OD respectively. Theifirmihaditaken amatonvéhičteihutítwas mot recordetdi inthelhooksitillttate. The market value is nowestimatetdas $1720,000. CCátculate thecamount payabteto Bisrrepresentatives.

M,BandAwere three partnersssharing profits i in the ratio 2::2::11 Their Balance Sheet as at 311.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities Assets $ 28,000 30,000 20,000 10,000 25,000 17,500 $ General Reserve Cash M's Capital Bis Capital FAs Capital 4(000 T7500 28,500 45,500 T5,000 30,000 Debtors Stock Land & Building Motor Vehicle Creditors Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: ((a) Batance in Capital A/c ((b) Shareof goodwill valued on the basis of thrice the average profits for the pastifourccompieted years. ((6) Sharein profits upto the dote of death on the basis of average profits forthe pastifour completeti yeurs. ((d) iInterestoncapital@ 18% p.a. Profits forthe yearsending on/March 31 of 2009, 2010, 2011antd2012 respectively.were $50,000, SEB,00, $40,000, $52,0OD respectively. Theifirmihaditaken amatonvéhičteihutítwas mot recordetdi inthelhooksitillttate. The market value is nowestimatetdas $1720,000. CCátculate thecamount payabteto Bisrrepresentatives.

FINANCIAL ACCOUNTING
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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M,Band/Aweretthree partnerssharing profits i int the ratio 2::2::11Their|Balance Sheetas at 31.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities $ Assets $ General ReservE M's Capital B's Capital FAs Capital Creditors 28,000 30,000 20,000 10,000 25,000 17,500 4,C00 TZ1500 28,500 45,500 15,000 30,000 Casih Debtors Stock Land & Building Motor Vehicle Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: (fa) Batanceiin Capital A/c ((b) Shareof goodwill valued on the basis of thrice the averoge profits far ithe pastifourcompieted years. ((0) Shareinprofits upto the dote of death on the basis of average profits forthe pastifour completet yeurs. ((d) ifntereston capital@ 18% p.a. Profits forithe yearsending on/March 31“ of 2009, 2010, 2011 and2012 respectively.were $50,000, $E8,00, $40,000, $52,0ODirespectively. Theifirmihaitaken amatonvéhičteibutítwas mot recordetdi inthelhooksitillttate. The market value is nowestimatedas $1720,000. CCátcútatetthecamount payabtetto:B$srrepresentatives.
Transcribed Image Text:M,Band/Aweretthree partnerssharing profits i int the ratio 2::2::11Their|Balance Sheetas at 31.3.2012 was as under: BALANCE SHEET as at 31.3.2012 Liabilities $ Assets $ General ReservE M's Capital B's Capital FAs Capital Creditors 28,000 30,000 20,000 10,000 25,000 17,500 4,C00 TZ1500 28,500 45,500 15,000 30,000 Casih Debtors Stock Land & Building Motor Vehicle Bilis Payable Goodwill 1,30,500 1,30,500 Bdied on 12th June, 2012. According to the deed, his legal representatives entitied ito: (fa) Batanceiin Capital A/c ((b) Shareof goodwill valued on the basis of thrice the averoge profits far ithe pastifourcompieted years. ((0) Shareinprofits upto the dote of death on the basis of average profits forthe pastifour completet yeurs. ((d) ifntereston capital@ 18% p.a. Profits forithe yearsending on/March 31“ of 2009, 2010, 2011 and2012 respectively.were $50,000, $E8,00, $40,000, $52,0ODirespectively. Theifirmihaitaken amatonvéhičteibutítwas mot recordetdi inthelhooksitillttate. The market value is nowestimatedas $1720,000. CCátcútatetthecamount payabtetto:B$srrepresentatives.
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