The following is the Balance Sheet of Tahani and Alaa sharing profit and losses in the ratio of 2 : 1. Assets Amount Amount (OMR) (OMR) Cash 12,000 Sundry Debtors 60,000 Stock 12,000 Furniture 6,000 Building 20,000 Total 1,10,000 Liabilities Amount Amount (OMR) (OMR) Capitals: Tahani 50,000 Alaa 40,000 90,000 Sundry creditors 20,000 Total 1,10,000 They agreed to admit Sunita into partnership on the following terms: (i) Suhaila to pay OMR 9,000 as Goodwill. (ii) Suhaila bring OMR 11,000 as her Capital for 1/4 share of profit in the business. (iii) Building and furniture to be depreciated at 5%. Stock is reduced by OMR 1,600 and create provision for Bad Debt OMR1,300. Prepare Revaluation Account, Partners’ Capital Account and Balance Sheet of the reconstituted firm on Suhaila’s Admission.
The following is the
|
Assets |
Amount |
Amount |
|
|
(OMR) |
(OMR) |
|
Cash |
|
12,000 |
|
Sundry Debtors |
|
60,000 |
|
Stock |
|
12,000 |
|
Furniture |
|
6,000 |
|
Building |
|
20,000 |
|
Total |
|
1,10,000 |
|
Liabilities |
Amount |
Amount |
|
|
(OMR) |
(OMR) |
|
Capitals: |
|
|
|
Tahani |
50,000 |
|
|
Alaa |
40,000 |
90,000 |
|
Sundry creditors |
|
20,000 |
|
|
|
|
|
Total |
|
1,10,000 |
They agreed to admit Sunita into
(i) Suhaila to pay OMR 9,000 as
(ii) Suhaila bring OMR 11,000 as her Capital for 1/4 share of profit in the business.
(iii) Building and furniture to be
Prepare Revaluation Account, Partners’ Capital Account and Balance Sheet of the reconstituted firm on Suhaila’s Admission.
Step by step
Solved in 4 steps
