Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their Balance sheet on 31 December 2020 was as follows: Balance Sheet of Khalid and Khamis as on 31st December, 2020 Liabilities Amount(RO) Assets Amount(RO) Bills Payable 40,000 Khamis Loan 32,000 Cash 16,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Computer Equipment 40,000 280,000 240,000 160,000 Khamis 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. 1. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. 2. Computer was taken over by Khalid RO 33,000 3. Bills Payable were settled at RO 38,000 4. Cost of Realization expenses RO 2,400 5. There was a Vehicle in the Firm which was purchased from the Partnership Firm Money was not shown in the books of the firm and sold for RO 10,000. 6. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Account

Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their Balance sheet on 31 December 2020 was as follows: Balance Sheet of Khalid and Khamis as on 31st December, 2020 Liabilities Amount(RO) Assets Amount(RO) Bills Payable 40,000 Khamis Loan 32,000 Cash 16,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Computer Equipment 40,000 280,000 240,000 160,000 Khamis 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. 1. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. 2. Computer was taken over by Khalid RO 33,000 3. Bills Payable were settled at RO 38,000 4. Cost of Realization expenses RO 2,400 5. There was a Vehicle in the Firm which was purchased from the Partnership Firm Money was not shown in the books of the firm and sold for RO 10,000. 6. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Account

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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