Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is asfollows:LiabilitiesAssets40,000 Cash in handCash at Bank60,000 Sundry DebtorsStock in TradePlant & MachineryLand & BuildingSundry CreditorsAccumulated Balance in15,00025,00040,50024,500Profit & Loss A/cCapital Accounts :40,00040,00020,000|1,00,000|2,00,000A35,00060,000|2,00,000(1)Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists ofthe following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000.Analysis of the books of accounts disclosed the following errors :(a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10%depreciation on reducing balance method is provided on plant and machinery.(b) $1,080 being the fixed deposit interest due to the firm used by A for his personal(11)expenses in 2014.(c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale.The firm's gross profit ratio is 20% on sales.Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to theabove adjustments.

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Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is as follows: Liabilities Assets 40,000 Cash in hand Cash at Bank 60,000 Sundry Debtors Stock in Trade Plant & Machinery Land & Building Sundry Creditors Accumulated Balance in 15,000 25,000 40,500 24,500 35,000 60,000 Profit & Loss A/c Capital Accounts : 40,000 40,000 20,000 1,00,000 |2,00,000 A |2,00,000 (1) Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists of the following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000. (11) Analysis of the books of accounts disclosed the following errors : (a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10% depreciation on reducing balance method is provided on plant and machinery. (b) $1,080 being the fixed deposit interest due to the firm used by A for his personal expenses in 2014. (c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale. The firm's gross profit ratio is 20% on sales. Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to the above adjustments.

Since 1s* January, 2011 A,B and C are equal partners. Their Balance Sheet as on 31-12-2014 is as follows: Liabilities Assets 40,000 Cash in hand Cash at Bank 60,000 Sundry Debtors Stock in Trade Plant & Machinery Land & Building Sundry Creditors Accumulated Balance in 15,000 25,000 40,500 24,500 35,000 60,000 Profit & Loss A/c Capital Accounts : 40,000 40,000 20,000 1,00,000 |2,00,000 A |2,00,000 (1) Accumulated balance in Profit and Loss Account as given in the Balance Sheet consists of the following: Profit of 2012 3 36,000, Loss of 2013 3 18,000, and Profit of 2014 3 42,000. (11) Analysis of the books of accounts disclosed the following errors : (a) A machinery costing $ 12,000 purchased in 2013 was debited to Repairs Account. 10% depreciation on reducing balance method is provided on plant and machinery. (b) $1,080 being the fixed deposit interest due to the firm used by A for his personal expenses in 2014. (c) Goods costing $ 12,000 gent on sale or return basis have been recorded as credit sale. The firm's gross profit ratio is 20% on sales. Prepare Partners' Capital Accounts and Balance Sheet of the firm as on 31-12-2014 giving effect to the above adjustments.

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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A-1
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