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Problem 36:- A and B shares profit and losses in the ratio of 2:1. Their Balance sheet as at 31ª* March 2015, was as follows: BALANCE SHEET as at 31.3.2015 Liabilities Assets 5,000 Sundry Creditors Bills Payable Capitals: 10,000 Cash 5,000 Debtors 12,000 10,000 5,000 20,000 Less: Provisions 2,000 A 10,000 Stock в 15.000 25,000 Land 40,000 40,000 On 1* April, 2015 C is admitted for 1/4th share in future profits. He is to pay $ 9,000 as goodwill and necessary capital to give him 1/5" share of the total capital of the new firm. It was agreed that Land was to be revalued at $ 30,000; Stock to be increased by $ 3,000; the Provision on Debtors to be increased by $ 1,000. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. You are required to show your workings clearly.

Problem 36:- A and B shares profit and losses in the ratio of 2:1. Their Balance sheet as at 31ª* March 2015, was as follows: BALANCE SHEET as at 31.3.2015 Liabilities Assets 5,000 Sundry Creditors Bills Payable Capitals: 10,000 Cash 5,000 Debtors 12,000 10,000 5,000 20,000 Less: Provisions 2,000 A 10,000 Stock в 15.000 25,000 Land 40,000 40,000 On 1* April, 2015 C is admitted for 1/4th share in future profits. He is to pay $ 9,000 as goodwill and necessary capital to give him 1/5" share of the total capital of the new firm. It was agreed that Land was to be revalued at $ 30,000; Stock to be increased by $ 3,000; the Provision on Debtors to be increased by $ 1,000. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. You are required to show your workings clearly.

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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Problem 36:- A and B shares profit and losses in the ratio of 2:1. Their Balance sheet as at 31ª March 2015, was as follows: BALANCE SHEET as at 31.3.2015 Liabilities Assets $ 5,000 Sundry Creditors Bills Payable Capitals: 10,000 5,000 Cash Debtors 12,000 10,000 5,000 20,000 Less: Provisions 2,000 A 10,000 Stock 15.000 25,000 Land 40,000 40,000 On 1s* April, 2015 C is admitted for 1/4th share in future profits. He is to pay $ 9,000 as goodwill and necessary capital to give him 1/5th share of the total capital of the new firm. It was agreed that Land was to be revalued at $ 30,000; Stock to be increased by $ 3,000; the Provision on Debtors to be increased by $ 1,000. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. You are required to show your workings clearly.
Transcribed Image Text:Problem 36:- A and B shares profit and losses in the ratio of 2:1. Their Balance sheet as at 31ª March 2015, was as follows: BALANCE SHEET as at 31.3.2015 Liabilities Assets $ 5,000 Sundry Creditors Bills Payable Capitals: 10,000 5,000 Cash Debtors 12,000 10,000 5,000 20,000 Less: Provisions 2,000 A 10,000 Stock 15.000 25,000 Land 40,000 40,000 On 1s* April, 2015 C is admitted for 1/4th share in future profits. He is to pay $ 9,000 as goodwill and necessary capital to give him 1/5th share of the total capital of the new firm. It was agreed that Land was to be revalued at $ 30,000; Stock to be increased by $ 3,000; the Provision on Debtors to be increased by $ 1,000. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm. You are required to show your workings clearly.
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