Ahmed and Wahid are partners sharing profits and losses in the ratio of 3:1. Their Balance sheet ason March 31, 2021 is as follows.LiabilitiesAmount (RO)AssetsAmount (RO)Creditors315000 Cash26250Bills Payable105000 Debtors367500General Reserve210000 Stock157500Capital0Plant131250Ahmed420000 Buildings525000Wahid210000 Profit & Loss Ac.Bank Overdraft315000 Equipment315000Total1575000 Total1575000On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profits onthe following terms:2) Building s revalued at630000b) Stock is revalued at112875l Goodwill i raised at210000di Provuion for bad debts sto be made at 5%e) Khalid has to bring in a Lapital262500n Khalid war onable to brina the amount of goodwill:Pass Journal Lntries and Prepare Revaluation Account, Capiital Accounts and the Dalance Sheet of thereconstituted firm.

NOTE 1: CALCULATION OF NEW PROFIT SHARING RATIO BETWEEN AHMED, WAHID & KHALID: Old…

on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount Creditors 315000 Cash Bills Payable 105000 Debtors General Reserve 210000 Stock Capital: 0 Plant 1. Ahmed 420000 Buildings 5. Wahid 210000 Profit & Loss Ac Bank Overdraft 315000 Equipment 31 Total 1575000 Total 157 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profin the following terms: a) Building is revalued at b) Stock is revalued at 63 112 c) Goodwill is raised at 216

on March 31, 2021 is as follows. Liabilities Amount (RO) Assets Amount Creditors 315000 Cash Bills Payable 105000 Debtors General Reserve 210000 Stock Capital: 0 Plant 1. Ahmed 420000 Buildings 5. Wahid 210000 Profit & Loss Ac Bank Overdraft 315000 Equipment 31 Total 1575000 Total 157 On April 01, 2021, they agreed to admit Khalid into the firm for 1/5th Share of future profin the following terms: a) Building is revalued at b) Stock is revalued at 63 112 c) Goodwill is raised at 216

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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