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 Cash 16,000 Khamis Loan 32,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Khamis 240,000 160,000 Computer Equipment 40,000 280,000 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. Computer was taken over by Khalid RO 33,000 Bills Payable were settled at RO 38,000 Cost of Realization expenses RO 2,400 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. 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 Cash 16,000 Khamis Loan 32,000 Debtors 80,000 (-) Provision for Doubtful Debts(3,600) 76,400 Profit and Loss 50,000 Stock 109,600 Capital Khalid Khamis 240,000 160,000 Computer Equipment 40,000 280,000 522,000 522,000 Khalid and Khamis decided to dissolve the firm on the above date. Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000. Computer was taken over by Khalid RO 33,000 Bills Payable were settled at RO 38,000 Cost of Realization expenses RO 2,400 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. Outstanding Electricity Bill of RO 5,000 Write the Necessary Journal Entries and Prepare the Realization Account, Partners Capital Account and Cash Account
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Q.1 Khalid and Khamis shared profits in the ratio of 2:3. Their
Balance Sheet of Khalid and Khamis as on 31st December, 2020
|
Liabilities |
Amount(RO) |
Assets |
Amount(RO) |
|
Bills Payable |
40,000 |
Cash |
16,000 |
|
Khamis Loan |
32,000 |
Debtors 80,000 (-) Provision for Doubtful Debts(3,600) |
76,400 |
|
|
50,000 |
Stock |
109,600 |
|
Capital Khalid Khamis |
240,000 160,000 |
Computer Equipment |
40,000 280,000 |
|
|
522,000 |
|
522,000 |
Khalid and Khamis decided to dissolve the firm on the above date.
- Debtors Realized for RO 80,000; Stock RO 119,000; Equipment RO 285,000.
- Computer was taken over by Khalid RO 33,000
- Bills Payable were settled at RO 38,000
- Cost of Realization expenses RO 2,400
- 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. - Outstanding Electricity Bill of RO 5,000
Write the Necessary
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 10 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education