The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - The value of computer reduced by 10% A part of value of Patents for RO 1000 became useless and it has to be reduced. Buildings to be revalued at RO 55,000 Furniture was depreciated by 10% S shall bring RO 25,000 as capital for ¼ share of future profits Calculate New Profit Sharing Ratio and Sacrificing Ratio Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
The following is the statement of financial position of PQR sharing profits and losses in the ratio of 3:2:1 as on 31st Dec 2010 Liabilities RO Assets RO Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 25,800 200 6,000 78,000 110,000 Cash Debtor and Stock Furniture Computer Building Patents 8,000 42,000 15,000 10,000 30,000 5,000 110,000 They admit S into the partnership on the following terms: - The value of computer reduced by 10% A part of value of Patents for RO 1000 became useless and it has to be reduced. Buildings to be revalued at RO 55,000 Furniture was depreciated by 10% S shall bring RO 25,000 as capital for ¼ share of future profits Calculate New Profit Sharing Ratio and Sacrificing Ratio Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The following is the
|
Liabilities |
RO |
Assets |
RO |
|
Creditors Outstanding Expenses Bills Payable Capitals: P 28,000 Q 20,000 R 30,000 |
25,800 200 6,000
78,000
110,000 |
Cash Debtor and Stock Furniture Computer Building Patents
|
8,000 42,000 15,000 10,000 30,000 5,000
110,000 |
They admit S into the
- The value of computer reduced by 10%
- A part of value of Patents for RO 1000 became useless and it has to be reduced.
- Buildings to be revalued at RO 55,000
- Furniture was
depreciated by 10% - S shall bring RO 25,000 as capital for ¼ share of future profits
- Calculate New Profit Sharing Ratio and Sacrificing Ratio
- Prepare Revaluation Account, Partner’s Capital Account and redraft the Statement of financial position after the admission.
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