X,Y,Z were partners in a firm whose Balance Sheet as on 31st March 2013 was as under: BALANCE SHEET as at 31.3.2013 Liabilities $4 Assets $4 Creditors General Reserve X's Capital Y's Capital Z's Capital 18,240 7,500 20,000 14,500 10,000 Cash Debtors Stock Furniture 28,740 10,000 26,500 5,000 70,240 70,240 Y retired on that date in this connection it was decided to make the following adjustments: (a) To reduce Stock and Furniture by 5% and 10% respectively. (b) To provide for Doubtful Debts at $1,125. (c) A long dispute with the Creditors was settled and firm has to pay $8,050. In anticipation $ 5,000 have already been included in sundry creditors for this purpose. (d) Goodwill was valued at $ 12,000 and Y's share of the same be adjusted into the accounts of X and Z (e) To share profits and losses in 5:3 respectively. O Y should be paid off and the the adjusted capitals of the partners should be in their new profit sharing ratio. Adjustments to be made through cash. Prepare Revaluation Account, Partners' Capital Accounts

X,Y,Z were partners in a firm whose Balance Sheet as on 31st March 2013 was as under: BALANCE SHEET as at 31.3.2013 Liabilities $4 Assets $4 Creditors General Reserve X's Capital Y's Capital Z's Capital 18,240 7,500 20,000 14,500 10,000 Cash Debtors Stock Furniture 28,740 10,000 26,500 5,000 70,240 70,240 Y retired on that date in this connection it was decided to make the following adjustments: (a) To reduce Stock and Furniture by 5% and 10% respectively. (b) To provide for Doubtful Debts at $1,125. (c) A long dispute with the Creditors was settled and firm has to pay $8,050. In anticipation $ 5,000 have already been included in sundry creditors for this purpose. (d) Goodwill was valued at $ 12,000 and Y's share of the same be adjusted into the accounts of X and Z (e) To share profits and losses in 5:3 respectively. O Y should be paid off and the the adjusted capitals of the partners should be in their new profit sharing ratio. Adjustments to be made through cash. Prepare Revaluation Account, Partners' Capital Accounts

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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Question

X,Y,Z were partners in a firm whose
Balance Sheet as on 31st March 2013 was as under:
BALANCE SHEET
as at 31.3.2013
Liabilities
$ Assets
Creditors
General Reserve
X's Capital
Y's Capital
Z's Capital
18,240
7,500
20,000
14,500
10,000
Cash
Debtors
Stock
Furniture
28,740
10,000
26,500
5,000
70,240
70,240
Y retired on that date in this connection it was decided to make the following adjustments:
(a) To reduce Stock and Furniture by 5% and 10% respectively.
(b) To provide for Doubtful Debts at $1,125.
(c) A long dispute with the Creditors was settled and firm has to pay $ 8,050. In
anticipation $ 5,000 have already been included in sundry creditors for this
purpose.
(d) Goodwill was valued at $ 12,000 and Y's share of the same be adjusted into the
accounts of X and Z
(e) To share profits and losses in 5:3 respectively.
) Y should be paid off and the the adjusted capitals of the partners should be in
their new profit sharing ratio. Adjustments to be made through cash.
Prepare Revaluation Account, Partners' Capital Accounts

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