The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Liabilities Creditors Bills Payable General Reserves Capital Accounts A B C Amount (RO) Assets 60,000 Cash at Bank 24,000 Stock 30,000 Debtors 120,000 Furniture 105,000 Land and Buildings 75,000 414,000 D brings in his capital Provision is be made for outstanding expenses Goodwill already appears in the books Furniture is to be written down by Amount (RO) 45,000 75,000 90,000 24,000 180,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: Stock is to be depreciated by Land and Buildings is to be appreciated by 414,000 75,000 63,000 60,000 12.50% 7.50% 15.0% Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted.
The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Liabilities Creditors Bills Payable General Reserves Capital Accounts A B C Amount (RO) Assets 60,000 Cash at Bank 24,000 Stock 30,000 Debtors 120,000 Furniture 105,000 Land and Buildings 75,000 414,000 D brings in his capital Provision is be made for outstanding expenses Goodwill already appears in the books Furniture is to be written down by Amount (RO) 45,000 75,000 90,000 24,000 180,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: Stock is to be depreciated by Land and Buildings is to be appreciated by 414,000 75,000 63,000 60,000 12.50% 7.50% 15.0% Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Q2
The following was the Balance sheet of A, B and C sharing profits and
losses in the proportion of 5:3:2
Liabilities
Amount (RO)
Creditors
Bills Payable
General Reserves
Capital Accounts
A
B
с
Assets
60,000 Cash at Bank
24,000 Stock
30,000 Debtors
120,000 Furniture
105,000 Land and Buildings
75,000
414,000
Amount (RO)
45,000
75,000
90,000
24,000
180,000
Stock is to be depreciated by
Land and Buildings is to be appreciated by
414,000
They Admit D into Partnership giving him 1/5th share of profits on the
following terms:
D brings in his capital
Provision is be made for outstanding expenses
Goodwill already appears in the books
Furniture is to be written down by
75,000
63,000
60,000
12.50%
7.50%
15.0%
Write the Necessary Journal Entries. Prepare Revaluation Account,
Capital Accounts and Balance sheet of the firm as newly constituted.
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